HOUSTON (Houston Business Journal) – Houston lost 25,500 construction jobs between December 2008 and December 2009, more than any other metropolitan area in the country, according to the Associated General Contractors of America (AGCA).

 AGCA’s analysis of the latest Bureau of Labor Statistics figures revealed that Houston–Sugar Land–Baytown construction jobs decreased 13 percent from 203,900 jobs in December 2008 to 178,400 jobs at the end of 2009.

 Although Houston had the largest total job loss in the construction sector, other metros had higher percentage decreases year over year.

 Only four of 337 cities nationwide added construction jobs last year.

 AGCA also reports that construction spending fell $100 billion in December to a six-year low of $903 billion.

DALLAS (Dallas Morning News) – North Texas home builders posted more conservative home start numbers in 2009 than in previous years, but some still fared well.  Overall, builders started about 13,500 homes in the area last year, a more than 70 percent decrease from the market’s peak in 2006.  The 20 largest builders built 17 percent fewer homes in 2009 than in 2008.  Fort Worth–based D.R. Horton Inc. increased its starts by 20 percent between 2008 and 2009, building about 2,289 homes last year, according to Residential Strategies Inc. However, this was less than half the number of homes the builder started in 2006.  The next three largest builders — Pulte-Centex, Highland-Huntington and Meritage-Legacy — reduced their starts in the DFW area in 2009.

WASHINGTON, D.C. (Realtor.org) – The Federal Housing Administration (FHA) yesterday relaxed what is known as the “anti-flipping rule.”  FHA now provides mortgage insurance for some purchases in which the seller bought the property and held it for fewer than 90 days.  The change was made to speed up sales of renovated homes in communities with too many bank-owned and foreclosed homes, said FHA Commissioner David H. Stevens.

HOUSTON (Houston Chronicle) – Texas ranked 29th in state foreclosure rates for 2009, with 1.06 percent of the state’s total housing units receiving at least one foreclosure filing, according to a report by RealtyTrac.

 That calculation includes default notices, scheduled foreclosure auctions and bank repossessions.

Overall, 100,045 housing units received foreclosure filings in Texas last year, up 4 percent from 2008 and up 18 percent from 2007.

In comparison, Nevada posted the highest foreclosure rate in 2009, with over 10 percent of its housing units receiving foreclosure filings. Colorado was tenth in the nation, with 2.37 percent of its units receiving foreclosure filings.

1.  In general, a foreclosure property should be at least 20% lower than similar homes in the area.   

2.  Buying a foreclosure at auction is risky.  The home could have liens, be in poor condition, or have other legal headaches attached.  Buying bank-held or HUD foreclosure properties is safer. 

3.  Do your homework!  Rumors of bargain prices have attracted buyers to the foreclosure market, but it’s not always a good deal.  Sometimes multiple bids on a property drive up the price making it less of a bargain. 

4.  There are a lot of un-reputable websites that promote foreclosures.  A good website to use is RealtyTrac.com.  You can also search the entire Houston MLS Database at BuyandSellwithShannon.com/Buy

5.  Work with an experienced Realtor (like me!) that has access to foreclosure data through the Multiple Listing Service.  Impulsive or uneducated buyers can get taken advantage of and acquire a home with many problems.

6.  Make sure you have the home inspected during your option period.  If the bank will not allow an option period, get it inspected before putting in an offer.  Your inspector will be able to spot water, pest, and structural problems.  If the inspector recommends it, hire an HVAC professional to check out the heating and air conditioning system. 

7.  If there are repairs that need to be made you should get estimates for repair costs before getting locked into a contract on the home.

8.  Get a Pre-Approval before house hunting, as the bank will require that with your offer.

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