Importance of Property Insurance

Last week around 3:30 am, I awoke to see an orange glow emanating from our blinds. I sprung up, looked out the blinds, and saw the home behind us engulfed in flames. A moment of terror shuddered through my body as I felt a panic rush through me. Previously, I had thought about what I would grab in a moment like this where I had but seconds to think of what was most important to me. In this moment, my mind was blank.

I called the police and was informed that the fire had already been reported and I heard the fire trucks park and the commotion begin to extinguish the flames. Fortunately, it had been raining most of the day, so the ground and trees were soaked. The next day, we would find out through a neighbor that the firemen informed her that if it hadn't been raining all day, the trees between our properties would have spread the fire to all the surrounding homes, including our own. The only thought processed was that this was a miracle.

We have this somewhat innate feeling inside that bad things can never happen to us, until they do. I cannot stress enough to not skimp on your property insurance coverage and if you are unaware of the coverage details, pull it out and look. If you have any questions, contact Mike Carroll with Carroll & Delaune Insurance Services at (512) 828-7010 or Mike@Carroll-Delaune.com or your insurance advisor. They can examine your coverage and let you know if you are adequately protected.

The above is a video of the house behind me burning down that I filmed after I knew we were reasonably safe from immediate danger. Listening to my wife, it may seem that we are going to die of carbon monoxide, but I assure you we were safe. She can be an extreme worrier.

2012 Austin Housing Market Forecast: Positive Trend to Continue

According to the Fourth Annual Housing Forecast held by the Austin Board of Realtors and Home Builders Association, the housing market in Austin will continue to see improvement in 2012. Austin’s housing market saw growth in 2011 and that trend is expected to continue in 2012. 

Austin’s job growth, increasing population and tightening rental market should result in higher demand for housing in Austin and surrounding areas, according to Eldon Rude with Metrostudy.  

Texas experienced a 2.2% increase in job growth when comparing November 2010 to November 2011. One out of seven jobs created in the US have been in Texas. As a result, Texas consumer confidence is much higher than the overall south central region of the nation. The Austin/Round Rock/San Marcos MSA saw a 1.2% increase in job growth year over year which meant 9,600 new jobs. 

Texas had over 63,000 housing permits pulled for new construction in 2011. This is double the amount of the next highest state, California with over 33,000 new housing permits.  For 2012, Eldon Rude expects new home production in the Austin region to increase for the second straight year. There were 6,115 new home “starts” in the Austin region in 2011 which represents a nearly five percent increase in starts from 2010. The starts barely exceeded closings so inventory is declining....which is a good sign. Demand must be met by supply so builders must start building to meet that demand.  

Home starts in 2011 were up over 2010 levels in every price range except under $150,000, with the strongest increases in the move-up price points between $200,000 and $300,000.  

A factor that might limit new home starts in 2012, especially in more high demand areas, is a lack of developed lots to accommodate new home construction. Weather and water resources are also major concerns for homebuilders. 

According to 2010 and 2011 migration patterns, Texas nets more people moving into the state versus moving out. The IRS information census shows a strong population growth trend in the Austin MSA over the past 10 years.   

In 2011 the Austin MSA population was approximately 1.763 million. By 2020, Eldon Rude with Metrostudy predicts a population of approximately 2.304 million. This growth of 540,000 in population is equivalent to 31% total growth which is 3.4% per year. At 60% home ownership the result is 13,333 new homes per year in Austin. 

The upcoming Presidential election should generate confidence that the economy will improve, reflecting in many home buyer's decision to purchase. Due to continued job growth, a strong rental market and strong inward migration, we should experience a housing market that continues to improve in 2012.