Report Reveals Real Estate Key Industry For Texas

By James Comtois

Real estate is the third most important private industry in Texas, accounting for 7.8% of the state’s total gross domestic product in 2006, ranking behind manufacturing (13.4%) and mining (9.8%), according to the latest data from the U.S. Bureau of Economic Analysis.

“The GDP is the broadest measure of economic importance when looking at the overall economy,” said Ali Anari, a research economist with the Real Estate Center at Texas A&M University.

Mr. Anari studied the real estate industry’s role in the state’s economy and compiled his findings in the Center’s report, Texas Real Estate Industry Review, 2008. While the GDP is an important indicator of overall economic health, other data can be just as valuable.

The Center’s report reveals that every $1 million of revenue in the Texas real estate industry generates just over half a million dollars of revenue in other parts of the state economy. Also, every $1 million of revenue in the Texas real estate industry generates 5.16 jobs in the state real estate industry and five jobs in other industries.

Real Estate Market Focus

Builder Sees Increased Demand

By Brad Finkelstein

LEXINGTON, SC-There is a “marked increase” in the number of pre-sold custom built homes, according to one builder in this market. The reason: stabilized and lower builder material costs, coupled with lower interest rates.

“I have experienced more demand for large, high-end custom homes in the last three months than I had in the last two years combined,” said local builder Steve Baudo, owner of Baudo & Associates Home Builders Inc. here. “We typically focus our efforts on homes starting around the $400,000 and up, but lately the bulk of interest seems to be in the $1,000,000 plus range. We are in the process of gearing up to meet the demand as our pipeline continues to fill up.”

Todd Lewis, senior account representative with 84 Lumber Co., explains why some people might be interested in a custom-built home. “Lumber composites (which include pine, spruce, and fir) have dropped over 34%. Panels (plywood) have dropped over 12%. The overall lumber market has changed very little over the past 24 months. With lumber on a ten-year low and little change in the market recently, one would tend to rationalize that drastic price decreases are not on the horizon. In combination with competitive quality labor prices, readily available lots, record low interest rates, and a down lumber market, now is the perfect time to build a home not only as everyone dreams of but also as a sound investment.”

Gators break the streak!

Great opportunity to tailgate with the start at 8 pm. We arrived with chanda and brian around 5:45. University blvd was packed with lots of trash piled up at the corners. Fans from the u were mixing it up with gators.

Food was great with the red beans and rice being my favorite.

The crowd was a record and the game felt like mid season, but you never felt drama.

Go gators!

Week one

This was the beginning. The week that will come to define the business that is emg. Never before have I faced such adversity, but I am thankful for the help that my partners provide.

I am repeatedly drawn back to a different view of pricing. Is now the time to consider a radical departure from the norm?

Prepare and play to your strengths

Listened to a great podcast today at salesrep radio taking about the dufference between selling and negotiating.

The discussion led to the idea that preparing for meetings by listing possible objections and obstacles before facing them was great. It ended with the thought that you should identify your strengths then amplify them!

Tropical storm Fay

The last three days have been a lot of fun. Duval county had canceled classes so the kids have been home with me while Monica has been in O-town.

The rain finally arrived today. I had to call john to learn how to drain off the pool – it would have flowed over. Both kids have been in with my at night.

Mastermind group

Conducted the first mastermind group meeting. Used gotomeeting to handle the web conference – relatively easy to setup with a great email invite system.

Interesting that the group were all positioning themselves as mortgage planners with homeowner magazine as a focal marketing campaign. I got several great tips from the meeting, but I did not hear a silver bullet marketing campaign.

Listened in on a mortgage coach webinar regarding loan modifications. This might be the silver bullet. There would be a number of people to reach out to without the loan process to potentially stall the closing of the transaction. Plus an opportunity to create raving fans.

Also read matt 6:25-33 – awesome verse when worrying about life!

Questions raised about buydowns

Met with a prospect today who had a target payment for the mortgage. Due to retirement, the cashflow issues take higher importance than would ordinarily.

Ran the breakeven analysis with the result at two years. What returns greater profit – cash in retirement funds or interest saved per month?

Sunday – day of rest

Enjoyed rev Smyrl’s comments about the opening ceremony. Would the world have been accepting of a judeo-Christian iconograghy?

The class’ comments regarding what makes a Christian home were interesting – the movie reference to debbie does Dallas was hilarious!

The sermon was a continuation of the giving God control of the spiritual.

Jags kickoff the preseason

George, Charlie, grant and I were at the game vs the falcons. Reggie had a nice pick off of a deflected pass. Grant and I shared some great nachos.