5 real estate stories to follow

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1 SUGAR LAND MISSOURI CITY EDITION VOLUME 5, ISSUE JULY 7-AUG. 4, 207 INSIDE, FIND 6 PAGES OF COVERAGE REAL ESTATE Edition & 5 real estate stories to follow Home sale prices have soared JOE GIULIANI/COMMUNITY IMPACT NEWSPAPER +9% +6% +9% +27% Built in 960 $238,850 in 204 $283,280 in 206 Annual home sales The number of residential home sales has fluctuated with changes in the national economy. Sales levels are now about the same as they were in Built in 960 $82,050 in 204 $20,370 in 206 Number of annual sales 2,500 2,000,500 N 90 MATLAGE WAY BROOKS ST. KYLE ST. ALCORN ST. 2,407 sales,686 sales Built in 960 $232,040 in 204 $276,570 in 206 Built in 97 $208,590 in 204 $265,20 in 206,422 sales,000,26 sales REAL ESTATE EDITION L 7 AN RANGER INSIDE INFORMATION How to get a mortgage Average home sale prices The average sale price for homes in has more than doubled since The average home sale price has risen in by nearly as much. Sale price (in thousands of dollars) $350 $300 $250 $200 $66,689 $50 $00 $8,497 $ SOURCES: ATTOM DATA SOLUTIONS, HOUSTON ASSOCIATION OF REALTORS MULTIPLE LISTING SERVICE/COMMUNITY IMPACT NEWSPAPER $35,623 $239,400 INSIDE BUSINESS FEATURE Pierce Built Homes DINING FEATURE Micheaux s Diner and Catering

2 207-8 REAL ESTATE Edition 5 real estate trends worth knowing in and The price of housing has soared in and, driven by new who have moved to Fort Bend County. COMPILED BY JOE GIULIANI HOME SALE PRICES HAVE SOARED Average home sale prices have increased greatly over the past 6 years, more than doubling in Missouri City and nearly doubling in Sugar Land. In 206, the most recent year data was available, the average sale price for a home in was $239,400; in, the average home sale price was $35,623, according to ATTOM Data Solutions, a real estate research firm. The number of home sales per year has dropped significantly in both cities compared to the years leading up to the foreclosure crisis, according to ATTOM. 2 RENT PRICES ARE ALSO HIGHER While rents have increased nationwide in the wake of the foreclosure crisis, has seen its al rates double from 200-5, according to CoStar Group, a commercial real estate research firm. Only seven years ago, the average rent was % 92.7% +00.8% $637, but in the span of five years, the had skyrocketed to nearly $,300 in 205. Average rents in Sugar Land increased 50.4 percent in the same time period, according to CoStar. Interestingly, the higher rental rates have brought with them higher vacancy rates rent increase 2005 as well. In, the vacancy rate for residential rental increased 2.5 percentage points between 200 and 205, while the average vacancy rate in nearly doubled in that time, according to CoStar % 87.9% +50.4% rent increase MOST PEOPLE CAN ENVISION A TIME IN THEIR LIVES WHEN THEY LL HAVE SOMEONE WHO NEEDS TO LIVE IN THE HOUSE WITH THEM. WILL HOLDER, PRESIDENT OF TRENDMAKER HOMES $637 SOURCE: COSTAR GROUP/COMMUNITY IMPACT NEWSPAPER $, $96.50 $, MULTIGENERATIONAL HOUSING IS IN One of the newest trends in home building is multigenerational housing. Such housing allows for people to live separately under the same roof, with separate kitchens, living rooms and bathrooms. Will Holder, president of Trendmaker Homes, said his company has seen a significant increase in requests for such housing, often referred to as a house within a house. Such housing can be used in situations where a family has an aging parent living with them or an adult child who moves back in. Meanwhile, Holder said other people use multigenerational housing layouts as a way to receive guests who visit from out of town for extended periods of time. SOURCE: IMPACT NEWSPAPER WHAT IS MULTIGENERATIONAL HOUSING? Multigenerational homes feature a small apartment, including a kitchen, within the larger house. Main home 2,038 square feet 2 car garage 3 bedrooms 2 bathrooms Private section Private suite Kitchenette Living area Optional laundry 60 square feet bedroom bathroom Private bedroom Porch Garage Bath Private living room and kitchenette Utility room Bedroom Dining room Kitchen Bedroom Bath Breakfast nook Family room Master bath Master bedroom Patio 4 Community Impact Newspaper communityimpact.com

3 4 PRICE INCREASES OUTPACE COSTS FOR BORROWERS, CENSUS SURVEYS REVEAL While home sale prices in and soared about 40 percent each from 200-5, monthly housing costs in those cities did not keep pace, and they actually decreased by 7.53 percent in, according to the U.S. Census Bureau. Housing costs include expenses, such as mortgage payments, taxes, insurance, homeowners association fees and utilities. Those average costs for owner-occupied housing with a mortgage dropped from $,739 in 200 to $,608 in 205 in Missouri City, according to census data. In Sugar Land the average monthly housing cost increased from $2,23 in 200 to $2,75 in 205, an increase of only 2.45 percent, according to census data. SOURCE: U.S. CENSUS BUREAU/COMMUNITY IMPACT NEWSPAPER AVERAGE MONTHLY HOUSING COSTS for owner-occupied housing with a mortgage % $,739 $, % $2,23 $2,75 $2,500 $2,000 $,500 $,000 $500 $0 Average monthly housing costs 5 HOUSING UNITS KEEP PACE WITH POPULATION CHANGES The number of housing in and Missouri City, including apartments, grew as well between 200 and 205, according to the U.S. Census Bureau. saw its housing stock increase by over 4 percent while the population expanded by 9.24 percent. However, officials especially in --have said there is little vacant land left on which to add new housing. Meanwhile, officials with the Houston-Galveston Area Council are projecting a major influx of new to Fort Bend County over the coming decades. SOURCE: U.S. CENSUS BUREAU/ COMMUNITY IMPACT NEWSPAPER 0 20,000 40,000 60,000 80,000 00,000 + HOUSING UNITS vs. POPULATION 2,68 3. in , in , in , in We ve Got The Hottest Rates In Town AUTO LOANS Rates as low as.74% APR* We ll beat your rate or pay you $00!** Up to 60-month term Buy new, used or refinance This Summer This Summer SIGNATURE LOANS Rates as low as 5.99% APR*** Get cash for vacation, debt consolidation or whatever you need. Call , visit any Smart Financial branch or go to smartcu.org to apply. Limited time offer. *New and used autos. Auto Loan Rate as low as.74% APR up to 60 months with approved credit. Existing auto loans with Smart Financial are not eligible for this promotion. Lowest rate includes all applicable discounts. Promotional rates 7//207 through 8/3/207. Loans must book within 30 days of application. Promotion subject to change without notice. Some restrictions may apply. **Dealer rates and non-traditional finance sources as determined by Smart Financial are not eligible. If Smart Financial cannot beat the rate on a 60 month term loan from current lender, Smart Financial will deposit $00 within 30 days of receiving proof of current rate into applicant s membership share account. Must be a member to receive the $00 rate match. The rate match incentive cash payment is considered interest and will be reported on IRS Form 099-MISC, to federal, state, and local tax authorities, if required by applicable law, and the member is responsible for any taxes due. Some restrictions may apply. ***Signature Loan with rates as low as 5.99% with approved credit. Minimum loan amount $2, Lowest rate includes all applicable discounts. Promotional rates 7//207 through 8/3/207. Loans must book by 8/3/207. Promotion subject to change without notice. Some restrictions may apply. UT Physicians offers Free Vascular Screenings Take charge of your heart and vascular health. Call today to schedule your free screening at a location near you DARE(3273) Early detection and treatment is key to preventing vascular disease. All results are sent back to your doctor. / edition July 207 5

4 INSIDE INFORMATION COMPILED BY VANESSA HOLT Making sense of the market: BUY NEW, BUY OLD OR RENT? Homeownership is part of the traditional American dream, but for many families and individuals, it makes more sense to lease a single-family home rather than to make a long-term commitment. Professionals in homebuilding, buying and renting have identified potential considerations that homeowners should take into account. BUYING A NEW HOME BUYING AN EXISTING HOME RENTING INITIAL COSTS New homes are often more expensive than existing homes, and a larger down payment is typically required in addition to closing costs. However, the market for new construction can be highly competitive. Existing homes often have a lower purchase price than a new home of the same size. The previous owners of an existing home may be highly motivated to sell or may face foreclosure, creating an advantage for the buyer. Leasers are faced with little or no upfront cost aside from a security deposit and the first month s rent. Leasing requires no long-term obligation and allows the renter to move and relocate as necessary. INVESTMENT Owning a new home can be a good financial investment. The initial costs can be high, but repair and maintenance costs will be lower than those in an existing home. Older homes may be located in areas that are closed to new construction, where property values continue to increase. Homeowners may be able to use repairs as tax write-offs. Residents who lease do not have the ability to build equity or to sell the home in the future. The owner of the property can sell the property, forcing to move out prematurely. MAINTENANCE AND REPAIRS The homeowner can choose flooring, design, colors or other features if the home is not complete. New houses do not generally require renovation or repair to pass inspection. Existing homes typically face higher expenses for maintenance and repair when they move in. The property owner not the resident is responsible for major, expensive repairs. Residents who lease must maintain the property. LOCATION New construction is often located in areas increasingly further away from downtown centers away from prime metropolitan real estate and may require a longer commute. Older homes may be located in areas that are closed to new construction, and houses are often larger than new construction in the same price range. A person leasing a home can learn about the neighborhood for future consideration as a permanent residence. SOURCES: HARRIS BAY, COLDWELL BANKER, SENTE MORTGAGE, ROOFSTOCK, URBAN PROVISION REALTOR/COMMUNITY IMPACT NEWSPAPER Median sales price, Existing vs. new homes in Texas Median sales price in $ $300,000 $250,000 $200,000 $50,000 $00,000 $50,000 0 New home Existing home MORTGAGE versus RENT PAYMENTS The U.S. Census Bureau tracked the median monthly housing cost of mortgage holders and renters from 20 to 205. $,492 Median owner cost with a mortgage Month of report Jan. 20 July 20 Jan. 202 July 202 Jan. 203 July 203 SOURCE: TEXAS A&M UNIVERSITY REAL ESTATE CENTER/COMMUNITY IMPACT NEWSPAPER Jan. 204 July 204 Jan. 205 July 205 Jan. 206 July 206 Jan. 207 $928 Median gross rent SOURCE: U.S. CENSUS BUREAU/COMMUNITY IMPACT NEWSPAPER 6 Community Impact Newspaper communityimpact.com

5 INSIDE INFORMATION Pre-qualification Short-term loans can mean higher monthly payments but a lower total cost to over the loan term. Long-term loans may mean lower monthly payments but greater interest payments over the term. 4 Pick a loan term Apply for loan estimate Name Date of birth Income Employment history Residence history Social Security number Prequalification letter approved Steps to homeownership LOAN RANGER Pick an interest rate 2 Fixed interest rates* 3 Fixed-rate home loans are less risky because the interest rate remains the same throughout the loan term. Adjustable-rate loans can offer a lower initial interest rate but adjust to fluctuations in the market. Check credit history 5 6 Target credit score range No foreclosures in last 7 years No bankruptcy in last 4 years No liens 3.25%-4% Fixed Annual Percentage Rates* 3.55%-4.39% *AS OF 6/2/207. BASED ON GOOD CREDIT. Calculate debtto-income ratio Take into account: Credit card debt Student loans Installment loans Cosigned loans Medical debt is not considered A real estate broker can help find that affordable dream home. Closing costs should be considered. Homeownership is not exclusive to high-income earners. The first step is to work with a lender and hash out the complex financial details. COMPILED BY NORA OLABI Pick a loan type Conventional Not guaranteed by the U.S. government Conform to Fannie Mae and Freddie Mac* Less money on mortgage insurance, fewer steps to closing $424,00 loan limit FHA Guaranteed by the Federal Housing Authority Option for first-time homebuyers Available to lower credit borrowers Available to borrowers with smaller down payments Loan limits vary by county VA Guaranteed by the U.S. Department of Veterans Affairs Eligible veterans, service members, surviving spouses No down payment required No mortgage insurance Capped closing costs USDA Guaranteed by the U.S. Department of Agriculture Designed for low- to moderate-income borrowers Must meet property eligibility requirements Up to 38-year loan term No down payment required *FANNIE MAE AND FREDDIE MAC ARE U.S.-SPONSORED MORTGAGE SECURITIES DEALERS Secure a prequalification letter from lender 2 Find a house 3 Make an offer 4 Seller accepts offer 5 Independently inspect and appraise home 6 Close on house 7 Congrats, new homeowners! SOURCES: CONSUMER FINANCE PROTECTION BUREAU, FANNIE MAE, TEXAS TRUST CREDIT UNION, TEXAS LENDING, U.S. DEPARTMENT OF AGRICULTURE, U.S. DEPARTMENT OF VETERANS AFFAIRS/COMMUNITY IMPACT NEWSPAPER / edition July 207 7

6 BY THE NUMBERS real estate market AT A GLANCE homes sold JUNE 205-MAY 206 JUNE 206-MAY % COMPILED BY JOE GIULIANI The number of homes sold has been stable over the past two years. Only west saw a notable jump. +2.7% The housing market in and has remained stable over the past two years, with average sale prices and housing sold remaining fairly constant. One notable exception is the fact that homes took longer to sell in the past year compared to the year before. This did not translate to price drops in north, which saw the biggest increase in average number of days on the market but also saw the area s largest jump in average sale prices. Meanwhile, homes in sold the fastest among neighborhoods identified by the Houston Association of Realtors. SOURCE: HOUSTON ASSOCIATION OF REALTORS MULTIPLE LISTING SERVICE/COMMUNITY IMPACT NEWSPAPER TOLL West South East North area average sales price JUNE 205-MAY 206 JUNE 206-MAY 207 Average sales prices generally stayed the same this year in five of the six neighborhoods around and. 6 N,037,69 West JUNE 205-MAY 206 JUNE 206-MAY % South average days +4.9% -5.% East North,379,46 area ON MARKET -3.% 545 Other than in, homes took longer to sell in the last 2 months than they did the year before. 528 West $336,388 $340,025 +.% North $270,877 $293, % West North % % 56 South $497,332 $49, % area $99, +.4% $20,882 South area % % 34 East $330,0 $338, % $402,233 $38, % East % % 64 SUMMER SPECIAL $200 OFF FULL TREATMENT some restrictions may apply Traditional Metal Braces Esthetic Clear Braces Invisalign Treatment Interest Free Financing Dr. Christy Vu Hsieh is an orthodontic specialist for children, teens and adults. (832) University Boulevard, #70, TX Contact us today to schedule a complimentary initial exam. 8 Community Impact Newspaper communityimpact.com

7 REAL ESTATE FEATURED NEIGHBORHOOD AUSTIN PARK, RECENT LISTINGS Austin Park is a subdivision located in Fort Bend County near the intersection of Hwy. 6 and Austin Park/Dulles Road. The neighborhood is zoned to schools in Fort Bend ISD. Additionally, the subdivision offers amenities, such as a swimming pool, tennis courts and lakes nearby. Residents enjoy proximity to shopping, entertainment and restaurant venues TOLL SUGAR LAND Build-out year: 985 Median square footage: 2,608 Median home values: $280,000-$399,000 Homeowners association dues (estimated): $750 annually Amenities: swimming pool, tennis courts, lake Schools: (Fort Bend ISD) Settlers Way Elementary School, First Colony Middle School, Clements High School Property taxes (in dollars): City of 0.32 Fort Bend County General Fund 0.46 Fort Bend Drainage 0.02 Fort Bend ISD.34 Fort Bend LID 0. Total (per $00 valuation) E. Wisteria Circle 4 bedroom /2.5 bath 3,80 sq. ft. $399,000 Terri Kurkjian RE/MAX Fine Properties Indigo Drive 4 bedroom /3.5 bath 2,958 sq. ft. $340,000 Michael Wong Keller Williams Realty Southwest MISSOURI CITY N Median home value $320,000 Homes on the market* 5 2 Homes under contract* *As of 6/6/207 Median annual property taxes Median price per square foot $7,200 $34 42 Average days on the market* Neighborhood data provided by Karim Pirani RE/MAX piranirealestate.com 3862 W. Wisteria Circle 3 bedroom /2 bath 2,233 sq. ft. $30,000 Emelia Appel Better Homes & Gardens Real Estate, Gary Greene-Fort Bend W. Wisteria Circle 4 bedroom /2 bath 2,25 sq. ft. $39,000 Cathy Stubbs Keller Williams Realty Southwest MARKET DATA ON THE MARKET (MAY 207) Number of homes for sale/average days on the market Price range $49,999 or less / /63 2/4 $50,000-$99,999 24/84 2/29 3/50 /30 /37 $200,000-$299,999 24/53 9/44 75/47 2/34 33/47 $300,000-$399,999 65/66 34/42 09/45-36/60 $400,000-$499,999 89/70 0/45 33/74-0/39 $500,000-$599,999 46/99 /02 83/42-6/67 $600,000-$799,999 33/84 /50 82/62-7/60 $800,000-$999,999 0/79 9/0 2/39-2/27 $ million + 4/99 0/33 38/06 - /55 MEDIAN PRICE OF HOMES SOLD IN MAY 206 VS. 207 Price $600,000 $500,000-4.% $400,000 $300,000 $200,000 $00, % 0% +5.2% +4.% Fine Properties / edition July 207 Making Dreams A Reality With our money saving programs Buy & list with us and we can save you thouands! Call us today for details YOUR FORT BEND EXPERTS DECADES OF EXPERIENCE TOP PRODUCERS Karim Pirani Ruksanah Pirani Highway 6, TX PiraniRealEstate.com team@piranirealestate.com 9