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Dallas’ Ross Perot, Jr: 18 Companies Eye Texas for Relo, Bank Regulators Are Slowing Recovery

Major Realtor event last night at the Creeks of Preston Hollow, Hillwood’s uber upscale privately-gated, one-acre residential community, land that was once private homes on big lots, snapped up by Kenny Troutt for a multiple acre family compound, who then decided his compound on Strait Lane was just fine, so Hillwood went shopping. Now the company really wants folks with high net value to go shopping. (Really, I am amazed GWB and Laura did not buy here, would have made security so much easier.) Some are already rung up, some are said to be circling. 

Last night’s fete was to pump up top agents to bring in the buyers. Hillwood brought in father-son team David and Britt Fair of Hexter-Fair Title Company — David L. Fair closed the Alliance deal for Ross Jr. — for a little state of the LOCAL real estate economy report.  June is when the fat lady sings in the real estate calendar. MLS dollar volume in June, 2007, the greatest year in history for Dallas real estate sales, topped $1.9 billion. June, 2008 topped $1.5 billion. Debbie Downer: April 2009 was about $950,000,000. There is no doubt buyers are seeking the very best purchase prices out there, and the biggest anchors keeping us from taking flight are consumer fears of job loss or loss of home value, and in-migrants who want to buy in North Texas but haven’t sold elsewhere.

And, of course, the banks. 

Mr. Perot stepped up to tell us that 14% of the folks moving out of California are moving to Texas. In the Lone Star State, we just don’t understand how bad it is elsewhere — companies love our low taxes, business-friendly ‘tudes, and lower costs of living. Texas is the 11th largest economy in the world. Perot spoke with Governor Rick Perry recently who told him 18 major companies want to relocate to Texas. North texas is where it’s happening. Overheard: one major company is currently circling us, the CEO hunting for a mega million dollar pad –at least $40m.

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Home Ownership, Canadian Style

I had the pleasure of having lunch today with Bob Schlegel, Chairman and CEO of PAVESTONE, the Grapevine-based manufacturer of concrete pavers and building products, and his darling daughter, Kim Schlegel Whitman. We discussed home ownership in Canada versus the U.S. Canadians cannot deduct the home mortgage interest from their taxes. (Which does not steer them away from home ownership in the least.) President Obama is looking to limit that deduction for high net worth individuals to recoup additional revenue. With our Wall Street meltdown, many folks are looking closely at our rock solid neighbor to the north where the banks are not hemorrhaging and socialized medicine is the health plan. Canadian mortgages, says Bob, are higher. Schlegel told me his first home in Canada cost about $25,000 in the mid 70’s and held a 12% interest rate. Since you cannot deduct home mortgage interest in Canada, he says, the incentive is to hurry up and pay off that mortgage and own the home, which he and his wife Myrna did. Business interest is deductible, so Canadians tend to pay off their homes and take out other loans with deductible interest. The end result — more paid-off homes. From the perspective of good conservative fiscal living, says Bob, that’s what happens in Canada.

Whole Foods Lakewood — Sneak Peak Inside The New Store

Whole Foods Market opens its long-anticipated Lakewood store Monday, March 2…. and Lakewood homeowners will celebrate not only what is possibly the most “green” Whole Foods store in the chain (Austin, earmuffs) but a tremendous boost for Lakewood home values. “That store,” said Realtor Scott Carlson, “is going to give us all even more of an appreciation boost.” Not that Lakewood needs any help: though there’s plenty of inventory, sensibly priced homes there are selling well, agents tell me.�

What If There Was No Home Mortgage Deduction

For folks who earn more than $250,000 per year. How would that affect home building and sales?