The International Herald Tribune reports on Texas. "Cinnamon Shores, a 250-home 'new urbanism' development, is one of several new projects along the Gulf Coast stretching south from Houston, where there is little evidence of the problems gripping the U.S. housing industry. Values are up in many areas and investor money continues to flow to waterfront projects."

"The upbeat mood is due, in part, to international buyers, who are bypassing traditional markets like Florida, New York and California to invest in the Lone Star State."

"'I think it's keeping the market alive,' said Richard Miranda, a broker in Houston."

"The coast of Texas, including vacation spots like South Padre Island and Galveston, is seen as a bargain spot compared with other areas. 'We didn't have the big blow up, the bubble,' said Jim Gaines, research economist at Texas A&M University."

"Although it is hard to quantify the number of international buyers in the Houston area, Gaines estimates that they account for 5 to 10 percent of the market. 'For some segments, like high-end condos, it might be close to 20 percent,' he said."

"On South Padre Island, Mike Masso, a partner in a property agency, says he believes that affluent buyers from Mexico represent more than 40 percent of transactions, in terms of dollar value. His company is opening an office in Monterrey, Mexico, to help woo more Mexican buyers."

"'It seems like every week I'm working with a different group from Mexico trying to track down developable land,' Masso said."

"Many are like Enrique Castilla, a banker in Monterrey, who views the United States as a safe investment. At first he bought a condo on South Padre as a vacation getaway for his family, but recently he has helped form partnerships to buy land on the island to build condominiums."

"'They feel they will be protected with the dollar,' Castilla said of his partners."

The Houston Chronicle. "Home construction in 2008 is expected to fall for the second year in a row, but consumers aren't likely to see prices this low for years to come, according to Metrostudy."

"'The irony is, with all the scary stuff that's going on, it's a really good time to be a home buyer,' said Metrostudy president Mike Inselmann. Developers are expected to build about 35,000 homes, down more than 11 percent from the 39,500 constructed in 2007."

"The down housing market is a result of 'a mismanaged mortgage industry' that made loans to unqualified borrowers who couldn't keep up with their payments and went into default, Inselmann said."

"Some builders are offering discounts of up to $40,000, as well as decorator allowances and other perks to unload their unsold inventory, said Jim Holcomb of Holcomb Properties, a subdivision developer."

"'There are tremendous values on housing right now that probably won't be seen this time next year,' he said."

"That is if the national economy holds up. 'The big variable here is going to be a recession and whether or not we have one,' said Gaines. 'It might be 2010 before we start seeing much improvement.'"

The American Statesman. "The Austin area's booming job market has slowed to a three-year low, and its once sizzling real estate market is cooling fast."

"'When you've got a national economy with very weak legs, it's a given that Austin will slow down right along with everyone else,' said Bud Weinstein, director for the Center for Economic Development at the University of North Texas. 'Austin has gotten used to having a supercharged economy and a very low unemployment rate, and when things slow down a bit, you think you're having a depression.'"

"What could trip Austin up? A weakening housing market is high on the list, and that appears to be happening. Builders are pulling back in the Austin area as the national housing market continues to struggle, according to recent reports."

"New home starts in 2007 were down nearly 20 percent compared with 2006, according to Residential Strategies Inc. Starts for new homes haven't been that low since 2004."

"The resale market has been softening for months. October was the fifth straight month of declining home sales. Sales of single-family homes were down 15.4 percent compared with October 2006, according to the latest figures from the Austin Board of Realtors."

"Home starts are expected to bottom out in 2008, said Mark Sprague, Austin partner for Residential Strategies. 'What's happening is the rest of the national market is pulling us down,' he said."

From Keye TV. "The smell of plywood hangs over Downtown. It means more places to live, that most Austinites can't afford. Consultants working on a downtown plan say only seven percent of Austin residents can afford property in the Downtown area."

"Consultants suggest a fee on new residential development downtown -- high enough to make a difference, low enough so as to not discourage development. Casey Wallace, who would love to live downtown, thinks fee or not, prices will drop."

"'People are paying for [Downtown living spaces] now, but I really feel like there aren't going to be enough people who want to pay half a million dollars or more for a loft, and the prices are eventually going to come down, naturally,' says Wallace."

"A growing number of Texans struggling with delinquent property taxes are turning to risky tax loans even as the state attempts to crack down on the lenders."

"Consumers who use property tax loans risk losing their homes if they default on even a small loan. Fees can run into thousands of dollars, and interest rates top out at 18 percent."

"'They are the payday lenders for property taxes,' said Robert Doggett, an attorney with the Texas Low Income Housing Information Service."

"An indication of the growth of property tax loans is reflected in the increase in the number of tax lien transfers...in the state's largest counties, according to the Center for Public Policy Priorities."

"The jump was most remarkable in Travis County, where tax lien transfers went from about 50 in 2005 to an estimated 1,250 in 2007, after lending companies increased their marketing in the state capital."

"In Harris County, loans jumped from about 650 in 2005 to an estimated 1,500 last year. And Bexar County saw an increase from about 600 to 800 in the same period."

The Star Telegram. "North Texas new-home sales fell by the largest amount in 18 years in 2007, according to figures released Friday by the housing-tracking firm Residential Strategies."

"A glut of inventory, tougher requirements for loans in the last half of the year and a fiercely competitive market all contributed to the worst nose dive since the real estate crash of the late 1980s."

"'I think it was pretty evident to us during the third and fourth quarters that the market had slowed,' said Ted Wilson, principal of the Dallas-based real estate consulting company."

"This fall, builders saw about 40 percent of prospective buyers cancel contracts, twice the usual rate, according to Residential Strategies."

"December was a particularly brutal month for the 29-county area that stretches from the Red River to just north of Waco, with sales down 25 percent compared with December 2006. Only 5,257 homes sold in the region in December, compared with 6,990 existing-homes sold in December 2006."

"The year was the second in a row with falling sales. Home sales here fell 5 percent from 2005 to 2006. Still, the declining sales figures come after years of an off-the-chart, record-setting pace."

"'These numbers, relative to the '04 numbers are great -- even '05,' said Jim Gaines, a real estate economist at Texas A&M, who predicts that 2008 will be slower than 2007. 'It's hard to see that '08 would be better than '07. But we don't think the market is falling off a cliff.'"

"In every month of 2007 except January, fewer homes were sold than the same month the year before. 'I think that probably starting in March 2007, the economy began to slow,' said Mike Bowman, founder of Century 21 Mike Bowman, in Grapevine."

"The real estate market nationwide has struggled in recent months as lenders adopt stricter requirements, mortgage lenders have said. That has constricted the flow of eligible buyers into the market from previous years, when almost anyone could get a loan."

"'It was a false economy,' said Lonny Coffey of First Advantage Mortgage in Arlington."

"At the same time, sellers are seeing more competition from others who are putting homes on the market, Gaines said. Sellers are also seeing competition from home builders, who can afford to throw in perks to close a deal."

The Dallas Morning News. "Dallas-Fort Worth homebuilders slashed construction almost 50 percent in the fourth quarter as the housing slowdown deepened. New home sales during the period fell almost 30 percent, according to Residential Strategies."

"'This is the lowest amount of homes under construction in over 10 years,' said Residential Strategies' Ted Wilson. 'The mid-1990s were the last time construction was so low.'"

"'Looking around the area, it's evident that many fewer houses are being started,' he said. 'And this is the time of year you usually see a lot of construction.'"

"For the first time in years, builders started fewer homes than they sold in 2007. At the market's peak in mid-2006, area builders were starting about 5,000 houses a year more than they were selling."

"'That's what led to the buildup in inventory,' Mr. Wilson said. It's been more than a decade since builders started fewer homes than they sold."

"Even with the cutbacks, there is a surplus of new houses. At the end of the year, there were almost 10,000 vacant, finished new homes sitting on the market in North Texas. Builders are offering a wide range of incentives to move unsold houses, and, with starts slowing, the inventory should decline, Mr. Wilson said."

"The D-FW area has been hard hit by foreclosures. And the shakeout in the mortgage market has significantly reduced the number of buyers who can get a loan. 'The discipline in the market with regard to qualifying buyers is as extreme as I've ever seen it,' Mr. Wilson said."

"Dallas artist Tomás Bustos was hoping to pay off some bills and renovate his home a couple of years ago. And a plethora of companies were willing to help him refinance. So he took out a $60,000 equity loan on the Oak Cliff home he had paid off and been living in for almost 28 years."

"Then came the shocker. The fine print in the loan allowed the mortgage payment to balloon quickly. His mortgage payment has nearly tripled – from more than $500 to more than $1,400 – since then. And he's in danger of losing his home and his business space."

"Monica Gonzales, senior legislative representative for AARP, said lack of knowledge about the mortgage process and regulations make Latinos an easy target for lenders' aggressive marketing. Many simply don't expect to be deceived, she said."

"'Culturally, we have a trust that 'this guy's not going to do me wrong, he's my compadre,' she said. 'In reality, the guy's only looking out for himself.'"

"During the last decade, thousands of renters have bid adieu to the 'burbs and headed downtown for a taste of urban living. The trendy new loft apartments and growing base of restaurants and retailers in Dallas' core marks a comeback for a center city that until recently was one of the most lifeless in the country."

"High-dollar homes have replaced empty office space, and a series of planned downtown parks will soon give core dwellers new places to walk the dog and chew the fat. But alas, all is not sweetness and lattes in the lives of downtown renters."

"Take a gander at some of the comments you'll find on Internet sites that rate downtown Dallas loft buildings. To hear some of those folk talk, it's an urban hell presided over by shoddy management and noisy neighbors."

"'I could tolerate the noise because I lived on the 14th floor, but the lack of customer service is absolutely pathetic,' laments one loft renter. 'When you consider the amount of money that we pay in monthly rent, you would expect some sort of accountability on their end.'"

"And I loved the parting shot: 'Oh yeah, my sink fell through the counter, and it took a month to get someone up to repair it.'"

"And panhandlers are a familiar peeve. Other common gripes are about trash piling up and a 'frat house' atmosphere. 'Half the people coming and going don't seem to live here. Parties get out of hand, and the police are called out,' one reviewer of a Main Street building said."

"A shocking number of complaints involve poop."