Texas is #1…of course it is!

TEXAS RANKED NO. 1 IN THREE CATEGORIES BY AREA DEVELOPMENT

In addition to securing three No. 1 spots, Texas finished among the top-10 states in eight categories.

Texas earned No. 1 rankings in Overall Cost of Doing Business, Corporate Tax Environment and Competitive Labor Environment. The Lone Star state’s unmatched economic strength, paired with the second-largest civilian workforce in America, makes it an ideal state to do business.

Among Texas’ most notable top-10 finishes were: No. 2 in Best State for Business Overall, No. 2 in Access to Capital & Project Funding and No. 3 in Most Improved Economic Development Policies.

Source: Area Development

 

 

Amazon’s New Minimum Wage

Amazon will hire fewer people, not spend more on higher wages

So says David Bahnsen, wealth manager and founder of The Bahnsen Group.

“Through time, they are going towards an automation process that’s going to be hiring less people. They will not end up spending more in wages. They will end up hiring less people,” Bahnsen said on CNBC’s Closing Bell. Hear more of his thoughts here at CNBC.

bahnsen

 

Buy Now? Buy Now!

From Mark Sprague’s Texas Market Update:

I would suggest that with increasing costs of building, labor and development and higher lending rates, why wait?  Every time rates go up 1% you lose 12% buying power. 90% of all builders are experiencing framing and finishing carpentry issues, and 85+% are experiencing plumbing shortages.   Builders are seeing a 20+% annual labor and materials cost increase, which in turn increases values.  The home/apartment you look at today will be gone tomorrow, and more expensive.

one percentOne key point that must be stressed is that interest rates are rising. Everyone agrees that we can expect 3 rate hikes in the next year – not big hikes, but hikes nonetheless. And as Mark noted, “Every time rates go up 1% you lose 12% buying power.”

What does that look like in real life? There are two ways to look at it. First, it means if you wait one year, and the rates have gone up as expected, a property that would cost you $300,000 today will cost you $336,000 next year. Or to look at it another way, your ability to purchase $300,000 today will mean purchasing $264,000 in 12 months.

It is not a gimmick to say, “Buy now!” Waiting in this market will cost you.

Read the rest of Mark’s update here: Texas Market Update

Is the local housing market slowing?

By Mark Sprague, State Director of Information Capital at Independence Title

Is the local housing market slowing?

          Independence Title

Locally, regionally, and nationally, that seems to be a common question / theme. Locally, I can tell you that most of the Texas metros have been on a sustained, positive run, with Austin’s being the longest at over 9 years (6 years being the longest previously).

First, what is happening in the market presently appears to be more of a seasonal slowing, prior to school starting. Second, two months is NOT a trend.

To see if the market is slowing, what are the signs? You need to look for lack of GDP growth, lack of job growth, easy mortgage financing (requiring little to no down and easy qualifying), new and resale inventory increasing, other real estate channels showing signs of overbuilding or slowing of values, etc. There are no indications of any of this happening. Quite the opposite, in fact.

So, why the pessimism? Read Mark’s Complete Monthly Texas Market Update Here.