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Monday, July 22, 2013

More good news in the housing market from John Paulson, Hedge Fund manager


Entry July 22, 2013
More good news in the housing market. Popular and successful
financial analysis, John Paulson, now says that buying a home is
a good investment. He thought it a bad investment back in the
time of subprime mortgage disaster, but he is back on the
"home ownership" band wagon. He says if you already own a home,
but a 2nd one. Maybe that 2nd home (or even your primary
home) should be in the country. Let us know when we can
show you a country home!
To see original article on CNN, click link below.

The Buzz

All markets and investing news all the time
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John Paulson's advice: Buy a house

John Paulson made billions betting against subprime mortgages. Now, he says 
buying a house is the best possible investment. If you already own a home,
buy a second one. "You won't make returns that good by investing in me,"
Paulson told the audience at CNBC's Delivering Alpha conference 
in Manhattan on Wednesday. Paulson said that back in 2006, he was
aware that housing was at its peak. Now, he thinks it's still very close to
the bottom. "I think we're just at the beginning of the recovery.
I think it will continue for four to seven years," he said.
"It's not too late to get involved."

For the individual investor, locking in a fixed-mortgage rate is also a
way to hedge against inflation down the road. He thinks it's unlikely
that an uptick in mortgage rates will cause the housing market to cool.
Paulson's hedge fund, Paulson & Co., has been betting big on housing
for more than a year. He says his fund has likely been the
largest purchaser of undeveloped land in Arizona, California,
Florida and Nevada this year. He expects the price
of such land to increase precipitously, since he thinks there's
not enough inventory to meet the coming demand for new homes.

See remainder of article at this link, relating to gold as an investment@
http://buzz.money.cnn.com/2013/07/17/john-paulsons-housing/?iid=HP_River.

Wednesday, June 26, 2013

Home Prices Improve, best since 2009


Entry June 26, 2013

Post as to Improving Home Prices so far this year
June 20, 2013, 11:52 a.m. EDT

Existing-home sales highest since 2009


Existing-home sales in May were up 12.9% from the same period in the prior year — the largest growth since October 2011. Meanwhile, year-over-year median prices rose 15.4% in May,
the largest growth since 2005.
WASHINGTON (MarketWatch) — Existing-home sales rose in May to the highest pace
since November 2009, when buyers were rushing to make a tax-credit deadline, pointing to a continuing recovery, the National Association of Realtors reported Thursday.
Existing-home sales rose 4.2% in May to a seasonally adjusted annual rate of 5.18 million. These sales were
12.9% higher than during the same period in the prior year. Economists polled by MarketWatch had expected the pace of existing-home sales to hit a rate of 5 million in May, compared with an April rate of 4.97 million.“This report provides further evidence that the housing market is on a firmly improving trend,” wrote analysts at RDQ Economics in a research note.Meanwhile, the median existing-home price hit $208,000 in May, the highest since 2008, with low inventory supporting prices. The median price is up 15.4% from the same period in the prior year, the largest growth since 2005.
HOW TO INVEST AS INTEREST RATES RISE
'Biggest fear is a return to economic decline with loss of faith in the Fed.'
            — @TFMkts during @MarketWatch #FedInvest Twitter chat



Inventories rose 3.3% in May to 2.22 million existing homes for sale. The supply of existing homes
declined to 5.1 months at May’s sales pace from 5.2 months at April’s sales pace.
The share of the sales accounted for by distressed properties and first-time buyers remained low in May.
Analysts say the housing market’s gains over the past year could have been even larger if inventories were greater Still, economists expect housing demand to continue to grow along with the U.S. economy.
As home prices continue to rise, more buyers are likely to be able and
willing to put their homes on the market.

Rising prices also induce buyers to bid before prices get too high. However, NAR
said prices are rising too quickly and more construction is needed.

Bloomberg
Existing-home sales rose 4.25 in May and home prices climbed more than 15% year over year.
Low interest rates have been fueling demand. In recent weeks these rates have trended higher, though there was a recent decline. While rising rates will curb demand among
some buyers, they could also spur others to quickly enter the market to take advantage of high affordability.“Given the massive rise in mortgage rates in recent weeks, we expect the pace of positive momentum will likely slow in the coming months, though the initial reaction could be for some buyers to move into the market as they try to lock-in the lower mortgage rates,” wrote Millan Mulraine, director of U.S. research and strategy at TD Securities.Despite their recent climb, rates remain relatively low, as Federal
Reserve Chairman Ben Bernanke pointed out Wednesday.

“In terms of monthly payments on an average house, the change in mortgage rates we’ve seen so far is not all that dramatic,” Bernanke said at a press conference following the central bank’s decision to leave policy unchanged.Indeed, Americans’ views on the housing market recently hit a multiyear high, with large shares
saying that now is a good time to buy and sell homes. However, recent price gains don’t necessarily signal that real estate is a good long-term investment, according to Yale economist and housing expert Robert Shiller.Ruth Mantell is a MarketWatch reporter based in Washington. 

Follow her on Twitter @RuthMantell.

Wednesday, June 5, 2013

 Welcome to the ETX Country Roads Blog for
The Country Connection,
in Canton, TX
We hope you will come back often to see what is happening in and
around Canton,  and the rest of North East Texas!
Entry June 5, 2013
BBC Post on why so many people are moving to Texas

10 reasons why so many people are moving to Texas


Icons of Texas
Half of the 10 fastest-growing cities in the US are in Texas, according to new figures. Why?
Every way you look at it, there are a lot of people moving to Texas.
Five of the 10 fastest-growing cities in the country between 2011 and 2012 were in Texas, according to new figures from the US Census Bureau. New York is way out in front in terms of added population, but Houston is second with San Antonio and Austin fourth and fifth.
Graph showing fastest growing cities
In terms of percentage growth, it's even more Texas, Texas, Texas. Among the five cities that grew most, as a proportion of their size, between 2011 and 2012, three are Texan. San Marcos is out in front with the highest rate of growth among all US cities and towns - 4.9%.
Some of this Texan population boom is due to a natural increase - more births than deaths - but the numbers moving into the state from elsewhere in the US and from abroad far outstrip every other American state. Why?
1. Jobs "I don't think people go for the weather or topography," says Joel Kotkin, professor of urban development at Chapman University in Orange, California. "The main reason people go is for employment. It's pretty simple.

Most new arrivals 2011-12

  • Texas: 210,590
  • N Carolina: 60,106
  • Virginia: 40,844
"The unconventional oil and gas boom has helped turn Texas into an economic juggernaut, particularly world energy capital Houston, but growth has also been strong in tech, manufacturing and business services."
Critics have questioned whether the "Texas miracle" is a myth, based on cheap labour and poor regulation.
But Kotkin says Texas has plenty of high-wage, blue-collar jobs and jobs for university graduates, although people looking for very high-wage jobs would probably head to Seattle, San Francisco and New York.
Four of the top 10 metropolitan areas for job growth in 2013 are in Texas, according to Kotkin's website, New Geography.
Texas also has a huge military presence, which grew as defence spending increased in the decade after 9/11. Many retired Texans first came to the state as service personnel.
2. It's cheaper Once employed, it's hugely important that your pay cheque goes as far as possible, says Kotkin.

Fastest growing cities in US (%)

  • 1: San Marcos, Texas (4.91)
  • 2: South Jordan, Utah (4.87)
  • 3: Midland, Texas (4.87)
  • 4: Cedar Park, Texas 4.67)
  • 5: Clarktown, Tenn (4.43)
  • 6: Alpharetta, Georgia (4.37)
  • 7: Georgetown, Texas (4.21)
  • 8: Irvine, California (4,21)
  • 9: Buckeye, Arizona (4.14)
  • 10: Conroe, Texas (4.01)
US Census Bureau, 2011-12
"New York, LA and the [San Francisco] Bay Area are too expensive for most people to live, but Houston has the highest 'effective' pay cheque in the country."
Kotkin came to this conclusion after looking at the average incomes in the country's 51 largest metro areas, and adjusting them for the cost of living. His results put three Texan areas in the top 10.
Houston is top because of the region's relatively low cost of living, including consumer prices, utilities and transport costs and, most importantly, housing prices, he says.
"The ratio of the median home price to median annual household income in Houston is only 2.9. In San Francisco, it's 6.7.
"In New York, San Francisco and LA, if you're blue-collar you will be renting forever and struggling to make ends meet. But people in Texas have a better shot at getting some of the things associated with middle-class life."

Texans who've left their mark on the world

Composite image showing, from left: Roy Orbison, Joan Crawford, Jayne Mansfield and George W Bush
  • Roy Orbison (pictured, first) was born in the small town of Vernon, in 1936, months before fellow rock 'n' roll great Buddy Holly, from nearby Lubbock
  • Joan Crawford(second), born Lucille Fay LeSueur to a poor San Antonio family, was famous for accepting an Oscar while ill in bed
  • As JR Ewing, Fort Worth's Larry Hagman became the face of long-running soap Dallas and just about the most famous man in Texas
  • Also robbers Bonnie and Clyde, singer Janis Joplin, country star Willie Nelson, cyclist Lance Armstrong, actress Jayne Mansfield(third)
  • Texas has produced two presidents: Lyndon Johnson and Dwight Eisenhower. Connecticut-born George W Bush (fourth) grew up there
3. Homes
Land is cheaper than elsewhere and the process of land acquisition very efficient, says Dr Ali Anari, research economist at the Real Estate Center at Texas A&M University.
"From the time of getting a building permit right through to the construction of homes, Texas is much quicker than other states.
"There is an abundant supply of land and fewer regulations and more friendly government, generally a much better business attitude here than other states."
This flexibility, plus strict lending rules, helped to shield the state from the recent housing market crash.
4. Low tax

'I moved because I had to'

Ryan and Jeff
Jeff Paradise, 32, works for an insurance company and relocated to Dallas in 2011, but he often returns to see his partner, Ryan (above left), in his native New York.
"I've been to quite a lot of cities in the US and Dallas is probably my least favourite. The one reason I'm here is for a financial purpose. I have a really good job but I work about 70-80 hours a week so if I had more free time, I would do more. It's a new American city, all sprawled out, because it came of age in the 60s and 70s when it was all about cars and highways. But it's definitely changed the last 5-10 years and they are trying to improve the public transport. I get the train and it's clean, on time and cheaper than New York."
Texas is one of only seven states where residents pay no personal state income tax, says Kay Bell, contributing tax editor at Bankrate and Texan native.
The state has a disproportionate take from property taxes, which has become a big complaint among homeowners, she adds. But overall, only five states had a lower individual tax burden than Texas, according to Tax Foundation research.
There are also tax incentives for businesses and this week legislators cut more than $1bn off proposed business taxes.
5. Pick your own big city
Texas has six of the country's 20 biggest cities, says Erica Grieder, author of Big, Hot, Cheap and Right: What America Can Learn from the Strange Genius of Texas.
Contrast this to, for example, Illinois, where if you want to live in a big city you can live in Chicago or you have to move out of state, she says.
But if you're in Texas you can be in Houston, San Antonio, Dallas, Austin, Fort Worth, or El Paso.
6. Austin in particular

Why I live in Austin

James McMurty
"Houston is a city, San Antonio is a city but Austin doesn't feel like that to me," says Texan-born folk singer James McMurty.
"I like it because it's equidistant to each coast so I can get in my van and drive to the west coast and drive around there for three weeks and then come home and do the same on the east coast and still have a life.
"It's far enough south that it doesn't get too cold and you don't get many twisters. And it's a blue dot [Democrat] in a red sea."
Restaurant manager Christopher Hislop, 33, moved in 2007 from Los Angeles to Austin, where he met his wife and they now have a nine-month-old boy.
"I came to Austin for a wedding and thought it was a really cool city and the people were nice - it was everything that LA wasn't but still had that hip vibe without pretension. The nightlife is great and there's an emphasis on getting out and about - they maintain trailways and nature.
"It's not Texas at all and that's what I liked about it. I don't know Texas very well, I grew up in Chicago, but Austin is not Texas because you think of 10-gallon hats and guys on horseback. It's a cliché but Austin isn't like that, it's hip and in the now. The rest of Texas is very conservative."
People like to perpetuate a myth that Austin is still the Austin it once was, says Joshua Long, author of Weird City: Sense of Place and Creative Resistance in Austin, Texas. So as it's become a big city, a movement has developed to "keep it cool, keep it weird and keep it environmentally friendly".
7. Family-friendly
Because of its good-value housing, Texas has been particularly popular with families, and some of its cities now have an above-average number of children. San Antonio is home to the largest community of gay parents.
In Texas, you can have a reasonable mortgage and pretty good schools, says Grieder. And restaurants are invariably family-friendly.
"You hear about the high drop-out rate but Texas education scores pretty well at national tests for 4th and 8th graders in math, reading and science. The aggregate is about average.
"The perception is that Texas has poor schools but it's not correct. Across the country in general, we don't have schools as good as we would like them to be."
In eighth-grade maths, for instance, Texas scored higher than the national average and outscored the three other big states of California, New York and Florida. On Sunday, an education budget was approved that restored cuts made in 2011.
8. Fewer rules

And why some might not move to Texas

University of Texas Longhrons in action
  • The weather - summer is hot. Very hot
  • Congestion problems growing in big cities
  • Not well known for fun nightlife, outside Austin
  • If you hate American football (above, University of Texas Longhorns), you might be outnumbered
"Texas is liberal in the classic sense, it's laissez-faire, so there's a lack of regulations," says Grieder, and this can apply to the obvious (business regulations) or the less obvious (city rules).
"The classic social contract is - we're not going to do a ton to help you but we're not going to get in your way. That's not 100% true of the state but there's that strand in the state."
Mortgage lending is an obvious exception. But there has been strong opposition to banning texting while driving and a proposed tax on soda.
And Governor Rick Perry is poised to sign off the strongest email privacy laws in the US, which would require state law enforcement agencies to get a warrant before accessing emails.
9. Texans are normal people The state likes to proclaim itself as an unpretentious, down-to-earth place where people are easy to get along with.
As John Steinbeck wrote: "Texas has a tight cohesiveness perhaps stronger than any other section of America."
And for people with conservative values, it could be a natural home, although demographic shifts have prompted speculation it will be a Democratic state in the future.
People dream about moving to California, but they don't dream about moving to Texas, says Grieder, yet many of those reluctant to move there end up liking it.
She adds: "[They] realize that Texans aren't all Bible thumping, gun-toting people. The job is the trigger to come but you find it's pretty nice to live here."
10. And they're not going anywhere All this doesn't just bring in new arrivals - native Texans aren't leaving the state either. It is the "stickiest" state in the country, according to the latest figures from the Pew Research Center, which suggest that more than three-quarters of adults born in Texas still live there. Alaska is the least sticky.
Entry February 21, 2013
We have been seeing signs of a real estate recovery in our own area since the end
of 2012. We are getting more calls and showings plus we have been writing
offers. Is the recession over...? No way we can say what will be coming in
the next months or  years. All we have is "recent experience". This has
been up on some blogs and seems to be a credible prediction based
on our activity here.

Entry January 3, 2012

Texas' Private Sector Job Growth Outpaces Nation's

COLLEGE STATION (Real Estate Center) – Texas gained 227,800 nonfarm jobs from November 2010 to November 2011 according to the Center’s latest Monthly Review of the Texas Economy. That represents an annual growth rate of 2.2 percent compared with 1.2 percent for the United States.
The state’s non-government sector grew at an even faster rate, adding 292,700 jobs (3.4 percent) compared with 1.7 percent for the nation’s private sector.
Texas’ seasonally adjusted unemployment rate fell to 8.1 percent in November 2011 from 8.3 percent the year before. The nation’s rate decreased from 9.8 to 8.6 percent.
All Texas industries except the information industry and the state’s government sector had more jobs than the same time a year ago. The state’s mining and logging industry ranked first in job creation, followed by the professional and business services industry and the leisure and hospitality industry.
 
Entry March, 2011




Spring is in bloom in East Texas.  Come out and enjoy the beauty!


Entry March, 2011


 Snow views around our home for the early January snow!

 There's no place like "Home for the Holidays", especially if the home is
 in the country in Northeast Texas!  The icicles are on the office in
 Downtown Canton.  Just a few days of ice and snow per winter. 
 Great place to live!



Entry September 27, 2010
Visit Van Zandt County in the Autumn.  You'll want to stay forever!