We still have a record number of foreclosures and a record number of sales. Aggressive tactics by mortgage brokers and lenders have lead to our record breaking foreclosure rate. Many people who purchased a house 10 years ago are shocked to hear that anyone with decent credit can purchase a home with Zero down and not have to pay any closing cost. Daily we are seeing buyers close on a house only spending money on inspections and a appraisal. Many times those expenses are actually refunded to them at closing. There are many renters that have more invested in a rent house then some new homeowners.

Many people feel that this is an indication of a bad market. Traditionally that has been the case but in today’s market we are seeing a different cycle. Typically once a foreclosure is taken by the bank and put on the market it is purchased within the first 30 days of being on the market by investors or first time home buyers. It is an odd cycle but luckily it is not affecting the home market significantly. I hear many people say “don’t foreclosures hurt my home value?” and they answer is no. Even with the high number of foreclosures many subdivisions rarely have more than one foreclosure home on the market at anytime. Appraisers and Real Estate Professional know that those lower sales price are not an indication of the market but rather an indication of the condition of that property. Foreclosures are typically not used when completing marketing analysis or appraisals.

Foreclosures present a great opportunity for investors that are seasoned and have cash available to act quickly. Foreclosures that are discounted sell within days and many time over list price. Mortgage companies are moving to tighten up requirements to cut the number of foreclosures and to try to stop mortgage fraud.

Update on Friendswood’s West Ranch – Roads are being paved and sewer systems installed on this new residential development on FM 518, north and south sides. It’s expected that builders for the 1,500 homes will move sales trailers on property very soon as the opening is March, 2007. A 23-acre Village Center (fine dining and shopping) is part of the 80-acre commercial development and this will start end of 2007. Project build-out is seven to eight years.

Plans have surfaced for Seabrook’s new waterfront development – a 99-unit condominium complex on The Point. The eight-story building will be located at the intersection of Todville Road and Tenth Street on the northeast edge of the peninsula. A conditional-use permit has been approved by the City. Amenities planned are a plaza level for tennis, racquet ball, volleyball, a pool, and club house facilities (gym and media room), all above the 208-space parking garage. Gazebos and extensive landscaping will compliment the Mediterranean-designed structure. Residential units will start on the 3rd level.

Armandwilde – The second phase of the Mediterranean-style townhome project will be built on Space Center Boulevard in Pasadena. Twenty-seven units will be added to the 25 already built .. ranging in size from 2,200 SF to 3,200 SF and priced into the $400’s.

Kemah – Still under review is a project that might bring high-rise residential construction to the city’s FM 2094/waterfront area.

Borden’s Gully – 64 home sites on FM 517 and Borden’s Gully Drive in Dickinson. Price range: $180’s up.

Pasadena’s new towers! The Endeavour Clear Lake on NASA Parkway is taking shape as construction has reached the 14th floor with the top level of the 30-story building scheduled to start in December. Just down the street, demolition crews have cleared the way at the former Parkside Marina for the new Endeavour Parkside, the 34-story tower. Units for this one start at 900 SF / one bedroom to 6,400 SF / four bedroom. Prices range from the $300’s to $3 million.

People who have lived in our area for years will question how “affordable” real estate is in the Clear Lake/Galveston area but compared to the rest of the national our waterfront is very cheap. The addition of a number of high rises in Clear Lake will only future increase the values.

You can still get condos under $100k in Clear Lake with waterfront, and homes as low as the 150′s. We just listed a property off the a back bay of Clear Lake with almost an acre of land and a boat slip for $300k. Many people want “in” on the next big thing, water is the next big thing. You do have to watch insurance rates but they are still affordable. With condos you need to look at the financial stability of the association which is shown on the resale certificate.

Many low end waterfront condos are lacking in funds to complete repairs and the insurance rates in some areas have doubled. How many times have you heard “location, location, location”. Water isn’t going any where but the prices will rise in the near future.