Tandy On Real Estate

Austin No. 1 City Gaining Company Migrations from California

Austin continues to grow from California residents and business relocations. A recent study by Joseph Vranich of Spectrum Location Solutions revealed more than 13,000 companies have left California for friendlier locations, with Austin being the No. 1 city to gain the California migrations. The study also ranked Texas as No. 1 in the Top 10 states gaining the most from California business relocations, a distinction Texas has held for the past decade.

“During the study period, $76.7 billion in capital funds were diverted out of California along with 275,000 jobs – and companies acquired at least 133 million sq. ft. elsewhere – all of which are greatly understated because such information often went unreported,” according to the study.

The Austin Business Journal summarized that “Departures are understandable when year after year CEOs nationwide surveyed by Chief Executive Magazine have declared California the worst state in which to do business,” said Vranich, a corporate relocation expert who jokes that he loves California’s weather, but not its business climate. Until recently, Spectrum and Vranich were based in Irvine, Calif. Texas, on the other hand, consistently ranks as one of the best states to do business in.”

The top 10 states starting in the order of those that gained the most from California business relocations were:

  1. Texas, which has held the first-place distinction for at least a decade
  2. Nevada
  3. Arizona
  4. Colorado
  5. Oregon
  6. Washington
  7. North Carolina
  8. Florida
  9. Georgia
  10. Virginia

The top 10 cities gaining company migrations from California were:

  1. Austin
  2. Reno, Nev.
  3. Las Vegas
  4. Phoenix
  5. Seattle
  6. Dallas
  7. Portland, Ore.
  8. Denver
  9. San Antonio
  10. Scottsdale, Ariz.


The report’s ranking is based only on cities, not metro areas. Fort Worth, Houston, Pittsburgh, Atlanta, Indianapolis and Nashville also ranked among the top twenty.

Vranich further details the Texas metro market migrations in the Austin Relocation Guide. Metropolitan areas benefiting from California divestment events show Austin-Round Rock-San Marcos in the top spot, followed by No. 2 Dallas-Fort Worth-Arlington, and No. 10 San Antonio, which was tied with Salt Lake City. Of the Top 15 destination metropolitan communities benefiting from out-of-California Austin tops the list, followed by No. 6 Dallas, No. 8 San Antonio, No. 11 Houston, No. 13 Irving and Plano (tied) and No. 14 Fort Worth.”

The new 2018 Migration Trends study by residential real estate brokerage site Redfin shows California is the top source of people from other metro areas shopping for homes in Austin. KVUE reported that in the Austin area, the biggest generator of inflow (more people seeking to move to area than leave it) was from San Francisco, unsurprising considering both cities are hubs for the technology sector. In Dallas, the L.A. area produced the most potential newcomers.

With the California migrations, it begs the question, how is Austin doing today?

The Austin Chamber of Commerce recently reported:

  • Austin added 36,800 net new jobs, growth of 3.5%, in the 12 months ending in December, making Austin the fourth fastest growing major metro.
  • In Austin, the industry adding the most jobs and growing the fastest is wholesale trade which grew by 6,900 jobs or 12.8% over the last 12 months. Also growing at faster-than-average rates are construction and natural resources (8.1% or 5,000 jobs) and other services (4.4% or 2,000 jobs).
  • Austin’s seasonally adjusted unemployment rate is 2.9%, up from 2.8% in November. Unemployment has been at or below 3.0% for the last 16 months.
  • For new home construction Austin ranked number 1 in the nation in per capita building permits through midyear 2018 with a projected increase over 2017.
  • Home prices are rising with a median home price increase of approx. 4% in 2018.
  • Incomes are rising with total personal income in the Austin metro growing by 6.4% in 2017, the 5th fastest growth rate among major metros.

We continue to see growth in Austin, and we welcome California transplants to make Austin their home.

For more stories like this, please subscribe to Tandy on Real Estate.

Resources:

Austin Business Journal – https://www.bizjournals.com/austin/news/2018/12/13/1-800-companies-left-california-in-a-year-with.html 

The Kumar Law Firm – https://thekumarlawfirm.com/lawyer/2018/12/31/Business-Law/California-Businesses-Flock-to-Texas_bl36525.htm

KVUE – https://www.kvue.com/article/news/local/california-homebuyers-continue-coasting-into-austins-real-estate-market/269-608008889 

PRWeb – https://www.prweb.com/releases/record_number_of_companies_departing_california_study_urges_more_to_leave/prweb15977005.htm

Redfin – https://www.redfin.com/blog/2018/10/q3-2018-migration-report.html

Culture Map – http://austin.culturemap.com/news/real-estate/10-25-18-homebuyer-interest-in-austin-california-san-franscisco-redfin/

Austin Chamber of Commerce – https://www.austinchamber.com/blog/01-22-2019-job-growth-unemployment

Austin Chamber of Commerce – https://www.austinchamber.com/economic-development/business-climate/economic-perspective

Austin Relocation Guide – http://www.austinrelocationguide.com/Austin-Wins-Big-as-Companies-Leave-California/

Real Estate Agent and Broker are Found Liable for Wire Fraud Loss

A Federal Court upheld a jury’s finding that a real estate agent and broker were 85% responsible for a wire fraud that cost their client $196,622.67 (Bain v. Platinum Realty, LLC, Dist. Court, D. Kansas 2018).

Jerry Bain was working with a real estate agent to purchase a property. To fund the purchase, Bain was instructed to wire $196,622.67 to the title company. Unbeknownst to the parties involved, a criminal was intercepting e-mails exchanged between the title company, agent, and Bain. Bain had actually been sent hacked wiring instructions, which instructed him to wire funds straight to the criminal’s account. Once the funds were sent they could not be recovered and so Bain sued the agent, broker and others.

In finding the real estate agent and broker liable, the court emphasized several points which can provide valuable lessons to all agents:

  • The real estate agent was serving as the middleman between the settlement agent and her client. Serving in this role made her responsible for the delivery of accurate instructions to her client.
    • Real Estate agents should not be involved with wire transfer instructions!  Buyer’s and Seller’s should communicate directly with the title company.
  • The agent did not alert the other parties to the transaction when she learned her e-mail account had been compromised.
    • If your email account is compromised, you have an obligation to notify the parties involved.  Make sure you notify clients, title companies and lenders promptly.

Wire fraud criminals continue to improve their approach to tricking buyers and other parties into wiring funds to them by a variety of schemes.  These include phishing emails, compromised email accounts, and impersonating title companies and agents on email, text and by phone.  Real Estate agents must implement best practices regarding their clients wiring funds.  Learn more about how to protect yourself at the following links:

Texas Growth Reports

The Perryman Report and Texas Letter talks about:

• Jobs – Texas added 39,600 jobs in April for a total of 332,300 jobs over the previous 12 months,
• Energy – Advances in technology in an amazingly short period of time have reduced the cost to produce oil.  Three years ago $70 per barrel almost shut down the industry.  Today that price accelerates an ongoing surge.  Production is so strong that the Permian Basin will run out of pipeline capacity within the next 3 to 4 months until new pipelines can be completed in 2019.
• Business – Texas again winning the top award for corporation location and expansion projects from the Site Selection Magazine.
• Population – Texas is projected to reach a population of 30 million in the next 4 years.

Major Metro Areas Growth

Major Metro Areas Growth

The Federal Reserve of Dallas Texas Employment Forecast projects a whopping 412,600 jobs will be added to the state this year with a job growth rate of 3.3%.  The 2018 forecast is significantly above 2017 job growth of 1.9 percent. The Fed’s Leading Index for Texas continues it’s positive three year trend after recovering from the downturn caused by the drop in the price of crude oil.

TX Job Forecast 6-25-18

TX Job Forecast 6-25-18

Chamber Report on High Tech

This week, the Austin Chamber of Commerce published a report on the High Tech Industry: https://www.austinchamber.com/blog/06-05-2018-high-tech-industry

• Nearly 6,500 employers in the Austin metro area are in high tech industries.
• Jobs in Austin’s tech industries total over 138,500, or 14.1% of all jobs, compared to 7.0% nationally.
• In 2017, jobs in Austin’s high tech industries grew by 4.3%, surpassing the metro’s 3.2% total job growth.

Annual average employment in high tech industries in the Austin MSA in 2017 was 138,544, up 4.3% from 2016. That’s a stronger gain than the 3.2% increase for employment across all industries. High tech jobs represent 14.1% of all Austin area jobs in 2017 and 18.5% of the year’s net new jobs. Nationally, high tech accounts for 7.0% of all jobs.

This is important to Austin and to the Real Estate community overall because of the quality of the these jobs.  For all industries, the average annual salary in Austin is $59,742, up 4.3% from 2016, while the average salary for high tech jobs is $112,771, up 6.2%.

Average Annual Salary Austin MSA

Average Annual Salary Austin MSA

High Tech Jobs Austin MSA

High Tech Jobs Austin MSA

More Opportunities for Wire Fraud

The latest FBI reports show that criminals are getting better at stealing money through fake emails and scams:
·         An increase from 20,000 incidents of wire fraud through Business Email Compromise (which includes all types of email phishing) for 3 billion in 2015 to 40,000 reported incidents for 5.3 billion in 2016.

The FBI also reports that international criminal organizations now employ linguists, attorneys, real estate professionals, programmers, IT specialists, social media experts and anyone else needed to perfect their frauds.
Fraudulent emails with good grammar and professional looking email signature graphics are now common. Non-email methods may include communicating via phone, text messaging, and chat programs or applications. Fraudulent texts from the criminals pretending to be the REALTOR® or other parties to the transaction are now used.
In a recent example, fake closer sent fake wire instructions to fake agent. Fake agent then sent a fake text to the homebuyer saying she had just received the wiring instructions from the title company and would be forwarding the wire instructions to the buyer shortly. Fake agent then forwarded the fake title company email to the homebuyer requesting down payment funds be sent (to the criminal’s bank account) before the day of closing.  All of the fake emails and fake texts were well written and time stamped to seem like they were real.
Criminals are even calling the buyer pretending to be one or more of the parties to the transaction.

Preventing wire fraud
• The agent, title company and lender should talk to the buyer about how money is wire transferred – not just rely on written wire fraud warnings.  The buyer must understand that they should never rely on emailed wire instructions without first calling a verified phone number.
• Cashier’s checks are a great option
• All users involved in the real estate transaction, including agents, should implement two-factor authentication, use long pass phrases as their password and should change their password often (and immediately change their password if they see evidence of phishing or fake emails involved in one of their transactions)

On a side note, criminals can even trick Alexa and Siri into stealing money for them. See: “Alexa and Siri Can Hear This Hidden Command. You Can’t. https://nyti.ms/2G2RrgW.”

Housing Affordability

A dramatic shift has taken place over the last 7 years in housing affordability.  Home prices in Travis County under $150,000 have dropped from 27% to 2.6% of all sales.  In Williamson County, the drop has been more dramatic going from 36.5% to 2.2%.  And in Hays County, still more so, A dramatic shift has taken place over the last 7 years in housing affordability.  Home prices in Travis County under $150,000 have dropped from 27% to 2.6% of all sales.  In Williamson County, the drop has been more dramatic going from 36.5% to 2.2%.  And in Hays County, still more so, going from 42.3% to 3.2%.
In the $150,000 to $250,000 range, home prices also decreased 30.2% to 24.2% and 43% to 37.4% in Travis and Williamson respectively.  The percentage of homes in this price range increased in Hays County going from 31.1% to 44.7%.

Travis County Stats

Travis County Stats

Williamson County Stats

Williamson County Stats

Hays Stats

Hays Stats

Source: Real Estate Center at Texas A&M

FBI Warning on Routers

From Reuters article on Friday:

“The FBI urged people to reboot their devices to temporarily disrupt the malware and help identify infected devices. People should also consider disabling remote-management settings, changing passwords and upgrading to the latest firmware.”

This applies to routers at work and at home.

Link to article: https://www.reuters.com/article/us-usa-cyber-routers/fbi-warns-russians-hacked-hundreds-of-thousands-of-routers-idUSKCN1IQ2DY

CYBER RISK
MAY 25, 2018 / 10:54 AM / UPDATED 3 HOURS AGO

FBI warns Russians hacked hundreds of thousands of routers
Joseph Menn, Sarah N. Lynch
(Reuters) – The FBI warned on Friday that Russian computer hackers had compromised hundreds of thousands of home and office routers and could collect user information or shut down network traffic.

The U.S. law enforcement agency urged the owners of many brands of routers to turn them off and on again and download updates from the manufacturer to protect themselves.

The warning followed a court order Wednesday that allowed the FBI to seize a website that the hackers planned to use to give instructions to the routers. Though that cut off malicious communications, it still left the routers infected, and Friday’s warning was aimed at cleaning up those machines.

Infections were detected in more than 50 countries, though the primary target for further actions was probably Ukraine, the site of many recent infections and a longtime cyberwarfare battleground.

In obtaining the court order, the Justice Department said the hackers involved were in a group called Sofacy that answered to the Russian government.

Sofacy, also known as APT28 and Fancy Bear, has been blamed for many of the most dramatic Russian hacks, including that of the Democratic National Committee during the 2016 U.S. presidential campaign.

Earlier, Cisco Systems Inc said the hacking campaign targeted devices from Belkin International’s Linksys, MikroTik, Netgear Inc, TP-Link and QNAP.

An FBI official told Reuters that the kinds of devices known to be affected by the hack were purchased by users at electronic stores or online. However, the FBI was not ruling out the possibility that routers provided to customers by internet service companies could also be affected, the official added.

Cisco shared the technical details of its investigation with the U.S. and Ukrainian governments. Western experts say Russia has conducted a series of attacks against companies in Ukraine for more than a year amid armed hostilities between the two countries, causing hundreds of millions of dollars in damages and at least one electricity blackout.

The Kremlin on Thursday denied the Ukrainian government’s accusation that Russia was planning a cyber attack on Ukrainian state bodies and private companies ahead of the Champions League soccer final in Kiev on Saturday.

“The size and scope of the infrastructure by VPNFilter malware is significant,” the FBI said, adding that it is capable of rendering peoples’ routers “inoperable.” It said the malware is hard to detect, due to encryption and other tactics.

The FBI urged people to reboot their devices to temporarily disrupt the malware and help identify infected devices.
People should also consider disabling remote-management settings, changing passwords and upgrading to the latest firmware.

Reporting by Sarah N. Lynch in Washington and Joseph Menn in San Francisco; Editing by David Gregorio
Our Standards:The Thomson Reuters Trust Principles.

Texas Economy From Federal Reserve Bank of Dallas

Three recent charts from Dallas Fed regarding the Texas Economy. Texas continues to hit on all cylinders for 2018.

Energy indicators improved in the first half of April, with oil prices rising the week of April 20 to highs last seen in 2014. The drilling rig count also continued to pick up, reaching a three-year high of 509.


The Texas Business-Cycle Index, a composite of state payroll employment, the unemployment rate and gross state product, is an aggregate measure of underlying economic activity in the state. The index increased at an annualized 5.4 percent in March, its fastest rate since November 2014 and well above last year’s pace of 4.4 percent.


The median price for Texas homes inched up slightly to a new high of $231,972 in February.  Home inventories across the state remain below the six months considered to be a balanced market. Existing-home sales increased slightly in February and remain near the all-time high set at the end of 2017.

State and Local Taxes Influence Homebuyer Migration

Overall taxation increasingly determines where people and companies choose to relocate. Last week Rob Chrisman talked about what makes homebuyers move in his daily newsletter. According to MarketWatch jobs are the determining factor for someone to relocate, second to state and local taxes.

ATTOM Data Solutions, national property database provider, released its 2017 property tax analysis for more than 86 million U.S. single family homes which shows that property taxes levied on single family homes in 2017 totaled $293.4 billion, up 6 percent from $277.7 billion in 2016 and an average of $3,399 per home — an effective tax rate of 1.17 percent.

For Daren Blomquist, Attom’s senior vice president, the story of national property taxes is the story of migration around the country. Blomquist told MarketWatch that taxes are “the icing on the cake” in areas that are seeing strong population inflows anyway.

“Among the counties that saw the biggest percentage of in-migration in 2017, according to Census data, all are in Texas, Florida, Georgia, or the Carolinas. Texas doesn’t have particularly low property taxes, but it has no personal income tax, making the overall tax burden much more manageable,” said Andrea Riquier of MarketWatch.

Texas is a pro-business state that continues to attract business and population.

Business Facilities Magazine ranked Texas as the top state in the nation for the Best Business Climate in the magazine’s 13th Annual Rankings Report. Out of all 50 states, Texas achieved the best overall performance in the 2017 State Rankings Report.

According to Texas Governor Abbott, “economic liberty is why Texas leads in job creation and in corporate expansion and relocations.  Restrained government, lower taxes, smarter regulations, right-to-work laws and litigation reform—these are the pro-growth economic policies that help free enterprise flourish and that attract business to Texas from states that overtax and overregulate.”

Austin continues to attract businesses, and is a hub for corporate and regional headquarters, including AMD, Apple, Bazaarvoice, Cirrus Logic, Dell, Dimensional Fund Advisors, eBay, Facebook, Freescale, General Motors, Hanger, Hewlett-Packard, HomeAway, Home Depot, IBM, LegalZoom, National Instruments, Oracle, Whole Foods, and Visa. Check out the  Austin Chamber of Commerce Austin’s major employers map.

Best and worst business climates.

24/7 Wall Street ranked best and worst business climates looking at nearly 50 measures of doing business, including economic conditions, business costs, state infrastructure, the availability and skill level of the workforce, quality of life, regulations, technology and innovation, and cost of living.

Massachusetts ranked No. 1 with a well-educated population that is a boon for state businesses. Such a population presents a more flexible and skilled talent pool for employers. Also, people with college educations tend to have higher incomes, which means they have more disposable income to spend. A nation-leading 42.7% of Massachusetts adults have a bachelor’s degree, compared to 31.3% of adults nationwide. The typical state household earns $75,297 a year, the fourth highest median income of any state and over $17,000 greater than the national median.

And, Louisiana ranked last. Working-age Louisianans are less likely than working-age Americans to have the qualifications for higher-skilled, higher-paying jobs. Just 23.4% of adults in the state have a bachelor’s degree, nearly the lowest percentage of all states. Unlike most states, Louisiana’s working-age population is also declining. In the Census’ American Survey of Entrepreneurs, 46% of state businesses reported unpredictable conditions having a negative impact on their business, and 48% reported slow business or lost sales, each among the highest shares in the country.

Texas ranked among the top states at No. 13.

  • 1-yr. real GDP change: -0.3% (7th largest decrease)
  • salary: $53,838 (12th highest)
  • Adults w/ bachelor’s degree: 28.9% (tied — 22nd lowest)
  • Patents issued/100,000 people: 35.7 (18th most)
  • Working-age population change, 2020-2030: -14.9% (4th largest growth)

According to USAToday, “like North Dakota and a few other oil-producing states, Texas’ economy has taken a beating from the more-than-three-years-long stretch of depressed crude oil prices. However, the state’s economy is more diverse than that of North Dakota, and GDP has contracted by just 0.3% in the most recently reported year. Credit agencies Moody’s and Standard & Poor’s clearly recognize the state’s stability and rate its debt a perfect AAA and Aaa, respectively, with a stable outlook. The state’s businesses not only benefit from a stable economy, but also from a growing labor force. Texas’ working age population is projected to grow by 14.9% between 2020 and 2030, the fourth most of any state.”

Austin MSA stands out with 42.8% having a bachelor’s degree or higher, as compared to 28.9% in Texas, and 31.3% in the United States. And, WalletHub ranked Austin-Round Rock No. 9 in the Most & Least Educated Cities of America.

SOURCE: U.S. Bureau of the Census, American Community Survey

To receive more posts like this from Tandy on Real Estate updates direct to your inbox, please subscribe.

SOURCE:
http://www.robchrisman.com/daily-mortgage-news-commentary/page/2/
https://www.marketwatch.com/story/americas-new-great-migration-in-search-of-lower-property-taxes-2018-04-05
https://www.attomdata.com/news/market-trends/home-sales-prices/attom-2017-property-tax-data-analysis/
https://gov.texas.gov/news/post/texas-ranked-top-state-for-business-climate-by-business-facilities-magazine
https://businessfacilities.com/2017/07/business-facilities-13th-annual-rankings-report/
https://www.austinchamber.com/upload/files/ed/MajorEmployersMap.pdf
https://www.usatoday.com/story/money/business/2018/03/05/economic-climate-best-and-worst-states-business/376783002/
https://www.austinchamber.com/economic-development/austin-profile/population#Educational%20Attainment
https://wallethub.com/edu/most-and-least-educated-cities/6656/

Austin Ranks No. 1 on Nation’s Best Places to Live

Two years running Austin is number one on the nation’s Best Places to Live according to U.S. News and World Report. For those of us who are Austinites and who are working in real estate, we know this to be true.

Austin took the lead again in the magazine’s 2018 edition of its Best Places to Live in the U.S. list, which ranks 125 major metro areas in four categories including desirability, value, job market, quality of life and net migration.

Check out the Top 10 cities.

2018 Top 10 “Best Places to Live”

  1. Austin
  2. Colorado Springs, Colorado
  3. Denver
  4. Des Moines, Iowa
  5. Fayetteville, Arkansas
  6. Portland, Oregon
  7. Huntsville, Alabama
  8. Washington, D.C.
  9. Minneapolis-St. Paul, Minnesota
  10. Seattle

“When deciding on a place to settle down, it’s important to understand that where a person lives can impact their well-being,” said Kim Castro, executive editor at U.S. News. “U.S. News created the Best Places to Live to highlight areas across the country that have the characteristics residents are looking for, including steady job growth and affordability. The top-ranked places are areas where citizens can feel the most fulfilled socially, physically and financially.”

And, Austin is not stopping it’s growth, according to the Austin Business Journal Austin’s population keeps growing. In fact, there were 151 additions to the population a day in 2017, down only slightly from 159 in 2016.

To receive more posts like this from Tandy on Real Estate updates direct to your inbox, please subscribe.

SOURCE:
https://www.cnbc.com/2018/04/10/us-news-world-report-the-10-best-places-to-live-in-the-us-in-2018.html
https://realestate.usnews.com/places/texas/austin
https://www.bizjournals.com/austin/news/2018/04/10/austin-no-1-again-on-revered-best-places-to-live.html?ana=e_ae_set1&s=article_du&ed=2018-04-10&u=CuOUKGCJY978Qy2wnhw9SA0f338830&t=1523397950&j=80955401
https://www.bizjournals.com/austin/news/2018/03/22/austins-population-keeps-popping-heres-how-many.html

« Older posts

© 2019 Tandy On Real Estate — Powered by WordPress

Theme by Anders NorenUp ↑

« Older posts