The Upper Rio Grande Valley recorded another record home-selling month in February, but lower prices may show homeowners are starting to drop their prices.

In February, 209 homes in the McAllen area were sold compared to 167 in February 2007, according to the Real Estate Center at Texas A&M. It was the best February in area history. The area also had record sales in January after a tough 2007.

However, the average prices for a home slid to $116,500, the lowest since January 2006. The median prices also dropped below $98,000.

Area real estate agents have complained for months that stubborn homeowners have refused to lower prices, preventing sales in a buyer's market.

Lower average prices and higher sales may be a sign that sellers are relenting to a tougher market. read more ...

The McAllen area is considered part of the Texas Gulf Coast region by the state of Texas. read more ...

Rio Grande Valley Border Fence Real, Not 'Virtual' As Some Texas Officials Believed

McALLEN, Texas (AP) - A new map showing President Bush's planned border fence has riled Rio Grande Valley officials, who say the proposed barrier reneges on assurances that the river would remain accessible to farmers, wildlife and recreation.

City officials in the heavily populated valley had anticipated a 'virtual' fence of surveillance cameras and border patrols.

Instead, a Customs and Border Protection map depicts a structure running piecemeal along a 600-mile stretch of Texas from Presidio to Brownsville, a border region where daily life is binational.

'We were given the impression that they were not going to be building walls, that there would be more cameras, surveillance, boots on the ground,' said Mike Allen, head of McAllen Economic Development Corp.

'This is going to seriously affect the farmers,' he said. 'They will not have access to water. It's just going to create bedlam.'

The map, obtained by The Associated Press, was attached to a memo addressed to 'Dear Texas Homeland Security Partner.' It outlines a plan to build 370 miles of fence and 200 miles of vehicle barriers, such as concrete barriers, by the end of 2008.

Of the 370 miles of fence, Texas is to have 153, Arizona 129, California 76, and New Mexico 12. Most of the vehicle barriers will be in Arizona and New Mexico.

Russ Knocke, a spokesman for Homeland Security Secretary Michael Chertoff, said that the so-called virtual fence won't work in urban areas and that the federal government has delivered a consistent message to local officials.

'We are utilizing traditional fencing at the border generally in those areas including metropolitan areas where it is easier for an alien ... to conceal themselves in a home or a business,' he said.

Agents would use technology including sensors, radar and aerial drones in remote border areas, Knocke said.

Environmentalists fear the fence will block Rio Grande water access to endangered cats such as ocelots and jaguarundi and ruin key feeding and resting areas for migratory birds.

Environmental assessments are being conducted, but border security outweighs such concerns, Knocke said.

'For more than two decades this has been a problem that has been bubbling up,' he said. 'There's an expectation by the American people that we secure our borders.'

Chertoff has already waived requirements to get permits in environmentally sensitive areas in order to expedite construction, Knocke said.

Hidalgo County Judge J.D. Salinas said the fence would damage the regional economy, which thrives on cross-border commerce.

Mexicans cross daily to make bank deposits, buy real estate, shop and work - activities Salinas said would be threatened by the ill feelings generated in Mexico by the fence.

'Irrigation, that's one concern,' Salinas said. 'The other is the indirect message you're sending to you neighbor to the south.'

President Bush called for 700 miles of fence during his national address last May on immigration reform, and Congress approved it. Of the $1.2 billion Congress approved, at least $400 million has been released.

The new Democratic majority in Congress could modify the law or withhold funding, Texas Congressman Henry Cuellar said.

'It's going to be difficult, but we're sure going to do everything we can,' he said.

Texas' senators, both Republicans, said they expected federal officials to heed local concerns.

'I would be very concerned if they are not being listened to,' said Sen. Kay Bailey Hutchison. 'We should have local input, and private property rights should be taken into account.'

Sen. John Cornyn said he would 'insist that local officials, property owners and stakeholders have a voice in how we ultimately secure the border.'

Cornyn said he and Hutchison had tried to require local input in legislation authorizing the fence but failed.

McAllen Mayor Richard Cortez doubts a fence would be effective. He said he has seen people forming human ladders and jumping off international bridges into the United States in full daylight and within view of agents.

'No physical wall is going to keep people from coming in,' he said. 'The core of the problem is an economic issue. We have integrated all of the markets in North America, but we have failed to integrate the labor market. It's the market forces that are bringing people here to work.'

Officials said Chertoff had assured them they would be consulted before any fence went up.

'We met with Secretary Chertoff and we were given a commitment that he would talk to the locals before building a wall, so we're surprised that this is happening,' Salinas said. 'We feel there is already a structure there, which is the Rio Grande river.' read more ...

U.S., Mexican Officials Announce Grand Opening Of Brownsville SENTRI Lane

Brownsville, Texas — U.S. and Mexican officials came together today in the middle of the Veteran’s/Los Tomates International Bridge to announce the formal grand opening of the Secured Electronic Network Traveler Rapid Inspection Lane, also known as SENTRI. A ribbon-cutting ceremony signaled the formal launch of operations of the frequent traveler program.

More than 150 guests attended the event, which straddled the U.S.-Mexico border at the bridge. The event began with a moment of silence for CBP Air Interdiction Agent Clinton Brady Thrasher, who lost his life in the line of duty Wednesday. Following the playing of both nation's anthems, officials addressed the border operations in the growing region.

“SENTRI is a smart way to manage an increasingly busy border,” said W. Ralph Basham, U.S. Customs and Border Protection Commissioner. “SENTRI helps CBP meet our mission of protecting America against all threats while allowing low-risk border crossers to enter the U.S. quickly. It is the perfect marriage of security and facilitation,”

SENTRI provides a dedicated lane and expedited CBP processing for pre-approved, low-risk travelers. Applicants must voluntarily undergo a thorough biographical background check against criminal, law enforcement, customs, immigration, and terrorist indices, a 10-fingerprint law enforcement check, and a personal interview with CBP.

Commissioner W. Ralph Basham greets CBP Officers at the Veterans International Bridge, Brownsville, Texas, during the opening of the new SENTRI lane.

Once approved, a SENTRI participant is issued a Radio Frequency Identification Card (RFID) that will identify their record and status in the CBP database upon arrival at the U.S. port of entry. An RFID transponder is also issued to the applicant’s vehicle. SENTRI users have access to a SENTRI dedicated commuter lane. Membership in the program does not exempt the vehicle and passengers from security screening.

Commissioner Basham added, “Today’s SENTRI lane opening would have not been possible without the full participation and support of our Mexican partners.”

The Veteran’s SENTRI lane became operational in May 2006. Since then, SENTRI participation has increased from just a few participants in its early stages, today approximately 300 SENTRI users are making daily crossings. It is expected that these numbers will continue to climb.

The Veteran’s SENTRI lane is operational seven days a week. On Monday thru Friday, the lane is available from 6 a.m. to 8 p.m. On weekends the lane can be accessed 10 a.m. thru 8 p.m. The processing times for SENTRI users can be as short as one minute.

To enroll in SENTRI or obtain information, a prospective applicant may call the Brownsville SENTRI Enrollment Center at (956) 983-5668. Applicants can also visit the Frequent Traveler Program on the CBP Web site. ( SENTRI: Secure Electronic Network for Travelers Rapid Inspection )

As an added feature, applicants can from the convenience of their homes or offices, access CBP’s Global Online Enrollment System. ( Global Online Enrollment System ) Through GOES, applicants can file their SENTRI applications online.

U.S. Customs and Border Protection is the unified border agency within the Department of Homeland Security charged with the management, control and protection of our nation's borders at and between the official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws.

Contacts For This News Release
9901 S. Cage
Pharr, TX 78577 Felix Garza
Supervisory Field Liaison Officer
Phone: (956) 843-5714
Fax: (956) 843-8336

CBP Headquarters
Office of Public Affairs
1300 Pennsylvania Ave., N.W.
Room 3.4A
Washington, DC 20229
Phone: (202) 344-1770 or
(800) 826-1471
Fax: (202) 344-1393 read more ...

Bush said the government's stepped up enforcement measures, including a new fence along the Mexican border, have cut down on the number of illegal immigrants entering the country. The border fence is more contentious among Republicans than Democrats: Fully 71% of conservative Republicans support construction of a 700-mile border fence, compared with 54% of moderate and liberal Republicans. By comparison, there is less of an ideological split among Democrats (61% of liberal Democrats oppose a border fence as do 54% of conservatives and moderates). read more ...

McALLEN — Housing woes are battering Wall Street and hundreds of real estate markets across the nation, but the Rio Grande Valley’s home market appears to have dodged the bullet.

Hidalgo County real estate experts say steadily growing home prices are buoying the local home market and preventing drowning borrowers from getting over their head with “subprime” home loans. The loans, which are being blamed for the current volatility of the stock market, were offered to millions of potential home owners in recent years, often those with poor credit.

Since the borrowers were considered high risk, the loans were often at a higher interest rate or an adjustable-rate loan, which starts at a low interest rate and can increase as time goes on.

With interest rates steadily rising during the last two years, many homeowners can’t afford the higher payments.

At that point, foreclosure is often the only option for the companies.

“Several years after these companies started selling (subprime mortgages), now it’s coming back to bite them,” said Eva-Jean Radle, a Realtor with Re/Max in the Valley and chair of the McAllen Chamber of Commerce.

Nationally, subprime lenders like New Century Financial Corp., Accredited Home Lenders Holding Co. and People’s Choice Financial Corp. have made investors jittery.

Texas’ five biggest markets — Dallas, Fort Worth, San Antonio, Austin and Houston — are all among the top 20 cities in the country in foreclosure rates, according to RealtyTrac, a nationwide foreclosure listing service. In those cities, at least one in every 50 homes went into foreclosure in 2006.

But McAllen continues to claim one of the best foreclosure rates in the entire country; only one in 427 homes hit the auction block last year.

The biggest factor in McAllen’s lack of foreclosures has been steadily growing home prices, as opposed to other parts of the state and country, where home values are dipping.

The average home selling price in McAllen rose more than $15,000 between January 2006 and January of this year, according to the Texas A&M Real Estate Center.

Rising home prices allows troubled borrowers more opportunities to sell, pay off their debt and avoid foreclosure, said Paul Schwab, president of Valley Mortgage Co. in McAllen.

McAllen’s homes are undervalued by about 13 percent, according to a reported GlobalInsight and National City released Monday. That should help insulate this market in the event of many market problems.

Area insiders also say a strong economy and local lenders’ stubbornness to not get into the adjustable-rate mortgage business has helped. McAllen’s low per-capita income, near the lowest in the country, may have saved many borrowers from ever being offered adjustable-rate mortgages.

“We haven’t pushed the limits of borrowing here in this area,” said Jerry Prock, a finance professor at the University of Texas–Pan American. “It’s a relatively conservative area and we haven’t had many subprime lenders operating down here.”

____
Kyle Arnold covers business, the economy and general assignments for The Monitor. You can reach him at (956) 683-4410. For this and more on local stories, visit www.themonitor.com. read more ...

Ten best cities for rising home values
Business 2.0 magazine ranks the top 10 cities for buying property now. Experts say that while these locales may not be immune to the current housing malaise, eventually property values in these places, for a variety of reasons, are likely to zoom.

Here’s the list, along with the projected gain in home prices:

1. Panama City (FL): 72 percent projected gain in home prices over five years. A new airport that will be built next year will open the area to vacationers and residents.

2. Vero Beach (FL): 64 percent. Demand for housing along with moderate property taxes and beautiful weather will drive growth.

3. Bridgeport (CT): 63 percent. Proximity and the staggering home prices in other parts of Fairfield County are making this hardscrabble area appealing to New York City commuters.

4. Lakeland (FL): 59 percent. This growing area is only 30 minutes from Tampa via Interstate 4, but prices are 80 percent lower.

5. McAllen (TX): 57 percent. A Hispanic baby boom and rising incomes are driving demand for bigger homes.

6. San Luis Obispo (CA): 40 percent. Compared to southern California, the prices here are low and the developing wine industry adds to the appeal.

7. Wilmington (NC): 37 percent. With great golf, mild weather and its proximity to water, this area is a great retirement community.

8. Manchester (NH): 35 percent. This city was the winner of Money Magazine’s best place to live in America. It's within commuting distance of Boston, but home prices are a fraction and there’s no income or sales tax.

9. Fort Collins (CO): 28 percent. This winner of many best lists has great schools, low crime and good jobs — plus 40 parks within the city limits.

10. Atlanta (GA): 24 percent. Commuting is a bear here and many newcomers to the area are driving up prices in close-in suburbs as the area’s overall economic fortunes continue to rise. read more ...

It seemed for a time on Thursday that Edinburg’s finest high school mariachis put on a performance strong enough to shake the Capitol.

All-City Edinburg Mariachi came with about 70 business and civic leaders for Edinburg Day at the Capitol. The delegation of civic and business leaders pitched their wish list to lawmakers in the morning, and at noon the mariachi group had drawn a crowd in the rotunda.

But midway through the first song the performers were interrupted by DPS troopers and escorted to a smaller hallway near the Capitol’s south entrance. Glass had fallen and shattered in the rotunda, and they would have to move for safety reasons, they were told.

Around the time they had started playing, a three-inch piece of glass had popped out of a light bulb that lights the back of the star atop the dome. It fell 218 feet to the rotunda floor and broke to pieces.

“They think maybe it was the vibrations from the mariachis,” one DPS trooper said when directing traffic away from the center of the rotunda.

Later, building officials would confirm that the mariachis had not been responsible. The bulb was thought to have broken because of a change in temperature or another reason unrelated to soaring trumpets, said Julie Fields, spokeswoman for the State Preservation Board, which runs the Capitol.

A part-time tour guide was in the rotunda leading a group when the bulb crashed, but no one was injured, Fields said. The guide finished the tour.

The mariachi band drew a crowd and filled the south foyer.

“There wasn’t the view that the rotunda provides for our kids, but we made it work,” said Willie Perez, director of fine arts for the Edinburg school district. “It was up close and personal, so that was good.”

Leaders also got up close with lawmakers, including a meeting with House Speaker Tom Craddick, said Edinburg Mayor Joe Ochoa.

They asked Craddick to pay $5 million over the next two years so the Regional Academic Health Center can pay researchers to staff the new Edinburg laboratory. They also want continued funding for the University of Texas-Pan American and money for highways, he said.

“I think the RAHC is a tremendous economic development tool, not only for our city but for the Rio Grande Valley,” Ochoa said.

State Rep. Aaron Peña, D-Edinburg, said he is sure the $5 million will be made available to fund researchers for the RAHC.

“I’m willing to bet my home on it, that’s how confident I am,” he said.

Sen. Juan “Chuy” Hinojosa, D-McAllen, said the money for the RAHC and money to pay for the debt service on the tuition revenue bonds to build a fine-arts center at UTPA will be available.

“We pretty much have a confirmation from Sen. Steve Ogden (R-Bryan, chairman of Senate Finance) and the leadership that the money we need to operate that RAHC will be included,” Hinojosa said.

The Edinburg delegates arrived in Austin Wednesday afternoon for a series of receptions and meeting with state lawmakers. The chamber of commerce, city council members and business leaders were among the delegates.

They were recognized on the House floor with a resolution by Peña, then moved to the Senate chambers where they had the place to themselves to take photos with Hinojosa since the Senate was not in session.

It was one in a series of many visits from Rio Grande Valley cities. Delegations from McAllen and Brownsville have been here already this week. Those from Pharr-San Juan-Alamo and Harlingen are expected in the next week.

Some leaders have questioned whether it is practical to have so many visits from the Valley, many making similar or identical requests. Each has asked the Legislature to fund highways to the Valley, help with economic development and avoid passing anti-immigration bills.

Rep. Veronica Gonzales, D-McAllen, said the multiple visits make it easier for lawmakers from outside the Valley to understand and support Valley requests.

“When they actually put faces to the cities and realize how much our people care, it’s harder to say no,” she said.

As for the light at the top of the rotunda, it will be replaced as part of an ongoing effort to make light fixtures all over the Capitol more energy-efficient, Fields said.

“It’s been ground-floor-up,” Fields said. “Our electrician just came in and said we’re going to rearrange the priorities today.” read more ...

Starting January 23, new passport rules will change the face of travel.

On Tuesday, all air travelers entering the United States will be required to have a passport including American citizens returning from Canada, Mexico and the Caribbean. read more ...