Moving Rates.org

When a person or company is looking to start a new business, there are a variety of factors they take into account including population size, income, taxes, education levels, housing and lease costs, and climate. For these reasons and many others Austin is on many lists for best city to start a business. In fact, Kiplinger’s financial magazine named Austin the best city for the coming decade.

Austin is located near the center of Texas, at the base of Texas Hill Country. It enjoys usually mild winters with plenty of parks, lakes, a river, and a vibrant music scene. Summers, however, are high quite hot with high temperatures usually in the mid 90s. Austin’s population has been growing and according to the 2010 U.S. Census, the Austin metropolitan area (including Round Rock) has a population of 1,716,291.

Austin has three primary economic drivers: University of Texas (UT), government, and technology companies such as Dell Computers. The city is home to the UT’s main campus, which has more than 50,000 students and 16,500 faculty and staff. Austin is the state capital of Texas, housing the state legislature, governor, and main office for numerous state departments and agencies.

Austin is also known as a tech center. It is the headquarters for Dell Computer, a large AT&T office, and a major IBM research lab. Many technology companies are locating in Austin. The city is even called “Silicon Hills”, due to its terrain, in contract to Silicon Valley in California. Much of Austin’s entrepreneurial spirit comes from the educated workforce coming out of UT. Michael Dell started his computer company in his UT dorm room.

Austin was one of the few cities that actually saw employment growth between 2004 and 2009. It grew 16% during that period, while much of the rest of the country saw significant layoffs and high levels of unemployment.

Austin also benefits from Texas being one of seven states with no state income tax. It also has a much lower cost of living than many other technology centers such as San Francisco and Seattle. According to the National Association of Realtors, the median home price in Austin for an existing home at the end of 2010 was $190,300.

Austin is one of few cities in the U.S. where home prices have remained steady the past four years. All of these factors make Austin a best city to start a business and a great place to move.

Short sales in real estate are becoming increasingly common as more and more American are under water in their mortgages, face other debts, and are looking to get out. If you bought a new home with a loan in the past ten years, especially the past five years, it is highly likely that you owe more than your house is currently worth.

In many U.S. metropolitan areas, more than ¼ of all mortgage holders owe more on their mortgages than their homes are worth. States such as California, Arizona, Nevada, and Florida have higher rates. This presents big problems for people when they are looking to move out of their current homes.

What is a Short Sale?

Short sales in real estate are a special type of transaction. It occurs when the borrower cannot pay the amount they owe on their property and needs to move. A lender may enter into the agreement, as they would rather sell the home at a moderate loss than go through a foreclosure. Foreclosures take longer and are more costly to banks than short sales. Foreclosures involve attorney’s fees and other liabilities that could result in an even greater loss for the lender.

In order for a short sale to go through, the borrower and mortgage holder(s) have to agree to the terms of the sale. A listing involving a short sale must be clearly identified as such so that potential buyers of the property are aware of it.

More Paperwork

Short sales involve more paperwork as the mortgage holder will evaluate the borrower’s financial situation and determine whether or not they will approve the sale of the home for an amount lower than what the borrower owes. If the lender agrees that the borrower faces economic hardship, they may enter into the short sale agreement.

Borrower Benefit

Homeowner/borrowers can also benefit from short sales, as the damage to their credit is not nearly as bad as a foreclosure. They may also be able to better control their debt by selling their home. Some people’s credit rating goes down a little as 100 points after a short sale, although amounts vary. Another consequence of a short sale is that it is unlikely the borrower will be approved for a home loan for at least a three-year period after the sale.

Impact On Real Estate Market

The volume of short sales on the real estate market has a significant impact on prices. Short sales sell for less money than regular listings as the process takes longer and the potential homebuyer must await the outcome of a short sale agreement. The buyer must be patient and have flexibility if the deal does not go through. Often, short sale homes cost tens of thousands less than a comparable regularly listed home, which is the reason they attract buyers. However, short sale prices drag down the prices for all listings, as do foreclosures, playing a substantive role in the health of the housing market.

Borrowers who are looking at doing a short sale in real estate should consult with a realtor, attorney, or other professional specializing in this area of real estate to consider their options and learn more about the short sale process.

Data from the 2010 U.S. census shows that the U.S. is moving South and West. Hispanics are helping this shift. The country gained a total 28.3 million people between 2000 and 2010. Census data shows that Hispanics accounted for more than half of the U.S. population increase during the period. Nearly one in six Americans are now Hispanic. Despite the gains in Hispanic population, the U.S. had its slowest population growth since the 1940 census.

Overall, the census found there were 196.8 million whites, 50.5 million Hispanics, 37.7 million Blacks, and 14.5 million Asians. Per the 2010 census, the total U.S. population is 308,745,538. There is also an increase in the number of multiracial persons, with more than nine million Americans identifying themselves as being from more than one race category. The Census Bureau does not ask about a person’s citizenship when taking the census. Thus, it is unknown what percentage of the U.S. population is not a legal U.S. resident.

Whites make up about 64 percent of the total population, down from 69 percent in the 2000 census. Whites will likely continue to lose ground as the largest racial group as the census bureau found their median age is 41, higher than other racial groups. They have low birth rates and lower amounts of immigration. At least ten states have more than 50 percent of their under 18 population being minorities including: Arizona, California, Florida, Georgia, Hawaii, Maryland, Mississippi, Nevada, New Mexico, and Texas.

A bit surprising from the census is that it found that Hispanic population was actually the most rapid in the South. Many southern states have seen their Hispanic populations double in the past decade including Louisiana, North Carolina, and Alabama.

The demographic changes are already having an impact politically. Based on the 2010 census, there will be a shift of 12 Congressional seats and electoral votes affecting 18 states starting in the 2012 elections. State population figures from the census determine how the 435 congressional seats are allocated. Texas and Florida were the two states with the largest population increases, gaining four and two seats, respectively. Both of these states are Republican-leaning. However, Hispanics typically are Democrat-leaning.

The U.S. moving south and west has shifted the population center of the country about 30 miles and it is now located near the village of Plato in Texas County, Missouri, which is in the southern part of the state. Based on current trends, the population center is expected to shift into Arkansas or Oklahoma by mid-century.

In 2010, a study funded by Underwriters Laboratory, a non-profit safety organization, and conducted by Sperling’s BestPlaces, evaluated the top 50 largest U.S. cities on 20 factors including accident rates, air quality, smoke alarm requirements, fire response times, bike helmet laws, as well as the number of hospitals, police and fire department per capita in the city. Surprisingly the largest city in the country, New York, NY, made the top 5.

According to the study, the top 5 safest U.S. cities were:

1. Boston, MA

Boston has a population of about 650,000. It is famous for its beautiful harbor, history, and numerous excellent colleges and universities such as Harvard, MIT, Tufts, Boston College, Suffolk, Northeastern, and University of Boston. The city is a center for higher education and has many excellent health care facilities. Boston has the highest number of hospitals per capita in the U.S. The city is also noted for its public schools. In 2002, Forbes Magazine ranked the Boston Public Schools as the best large city school system in the country, with a graduation rate of 82%.

2. Columbus, OH

Columbus, with a population of 770,000, is located in central Ohio. It is the capital city of the state and home to Ohio State University. It has a low rate of pedestrian accidents and the lowest incidence of vehicle-related deaths among major cities.

3. Louisville, KY

Louisville is located in northern Kentucky along the Ohio River, just two hours south of Indianapolis, IN. With a population of about 270,000 is largest city in the state and home to the Kentucky Derby, horseracing’s biggest event. Louisville has low pedestrian accident rates, a high number of hospitals per capita, and quick fire response times. In 2003, Louisville merged with Jefferson County giving it technically a total population of about 570,000, which is the reason it is on the top 50 list.

4. Minneapolis, MN

Minneapolis-St. Paul area has long been regarded one of the top metropolitan areas to live in the Midwest. Its metro population is over 3,000,000 and is the headquarters to nearly twenty companies on the Fortune 500 list including UnitedHealth Group, Target, and Best Buy. With its many lakes, it offers an abundance of recreation and has low levels of pedestrian accidents and fires.

5. New York, NY

While many people may not believe New York would be on a safest U.S. city list, the city’s rankings were bolstered by its excellent fire response times, police officers per capita, pool safety laws, low drowning rates, and strict fireworks regulations. With a population of about 8,400,000, the city has the largest fire department-based emergency medical services in the country.

All of these cities have diverse populations, with each having at least a 30% minority population rate. New York is the most diverse city with more than half of its population being either Black or Hispanic. However, suburban areas in Boston, Minneapolis, and Columbus are not as diverse.

These safest U.S. cities are worth considering if you are making a move. The next top 5 safest U.S. cities on the list were Portland, Oregon; San Francisco, California; Seattle, Washington; Tampa, Florida; and Virginia Beach, Virginia. Accident rates and safety are an important factor in the city you live. However, be sure to also evaluate other crime statistics such as robbery and homicide rates. Living in a safe city can help ensure your children’s well being and typically provides an environment for better schools.

In 2010, Las Vegas was once again the city with the most foreclosures, based on the ratio of foreclosures to population. According to data from RealtyTrac, one in 9 homes in Sin City received some kind of default notice in 2010. The good news is that the foreclosure rate is actually down 7% from 2009.

The cities with the most foreclosures were:

1. Las Vegas, Nevada
2. Cape Coral, Florida (near Fort Myers)
3. Modesto, California
4. Phoenix, Arizona

All of the above cities saw a drop in foreclosure rates from 2009, with the largest drop being Cape Coral where filings dropped 28% in 2010. Nevada, Florida, California, and Arizona had numerous bubble markets that saw house prices skyrocket in the 2002-2007 period. Home prices have come down dramatically in the past three years in many areas of these states. Cities in these states account for 19 of the top 20 cities with highest foreclosure rates. While there was better news for the worst hit areas, foreclosure rates rose 72% overall in the 206 U.S. metropolitan areas covered in RealtyTrac’s report.

Even in Houston, Texas, which saw modest gains during the housing boom, and the median home price is currently $144,900, according to Yahoo Real Estate, had a 26% gain in foreclosures from 2009. This was the largest gain among the top 20 largest U.S. The unemployment rate in Houston in November 2010 was 8.6%. Similarly Atlanta, Georgia saw a 21% rise in foreclosure filings. Salt Lake City, Utah experienced a 30% gain in foreclosure rates in 2010.

It is likely the U.S. will experience high levels of foreclosures in the next few years. Many services have been overloaded with the foreclosures and slowed down their actions. There has also been some delay due to evidence of improper handling of foreclosures by banks to expedite foreclosures. Lawsuits have been filed focusing on the dubious practice called ‘Robo-Signing’ by lending institutions on legal documents, in which documents were automatically generated. However, foreclosure rates may again still rise in the worst hit areas, as banks and lending institutions are able to move forward with foreclosure proceedings.