"Horseshoe Bay: Texas' Sweet Spot,
Laid back and friendly, for a weekend or a lifetime!"

Among "America's premier Vacation Venues," we're ranked #1 (NEW YORK TIMES, May 26, 2008).
Regarding "Where America's Money is Moving," we're ranked #4 (FORBES.COM, June 16, 2010).

~ ON LAKE LBJ: ALWAYS FLOWING, ALWAYS FRESH, ALWAYS FULL, CONSTANT LEVEL ~

The internet's most current and comprehensive guide to the history and development of Horseshoe Bay, Texas.

415 MATERN ISLAND: This spectacular new lakefront home - on a private island . . . in the Texas Hill Country . . . on America's lake of choice - is the most magnificent ever built on a speculative basis in Horseshoe Bay ("HSB"). It is located in the heart of "The Sweet-Spot of Texas" and has about 11,500 square feet under roof, of which 8,311 is air-conditioned. It features a timeless yet contemporary Hill Country design with Hill Country and Tuscan elements and is widely recognized as "HSB's Finest New Home Offering Ever" - perfect for elegant lakeside living in a smart but casual fashion.
                The extraordinary home accommodates every possible function – from entertaining world-class guests and top corporate executives to being a wonderfully warm and attractive setting to house and entertain three distinct generations (parents, children and grandchildren). It is situated on one of HSB's best lakeside lots - being up to 189 feet deep with 137’ of lakefront sculpted out for a variety of lakeside toys, having a deep, open-water view of a distant perpetually green shore, and blessed with the preferred eastern exposure that shades afternoon lakefront activities. It was designed by one of America's Top-10 "green" architects and is on the cutting edge in every aspect, featuring the latest and best in practically every category imaginable, including being HSB's most electronically advanced. And, testifying to the neighborhood's quality, our offering is located among a cluster of four of HSB's largest, finest, and most expensive lakefront homes.
                It is located on the HSB West's lakefront, where most of HSB's newest, largest and most expensive lakefront homes are situated and is designed such that the lake - continually refreshed by the through-flowing, 862-mile long Colorado River - can be viewed from each of the home's 92 Loewen windows, which are ranked as North America's finest. Furthermore, the home contains neither paint nor carpet, attesting to its exceptionalism.
                Matern Island has a Gated Entrance, one of the few HSB subdivisions so favored, and is further distinguished: a) by having its own private "Lighthouse;" b) by incorporating three beautifully landscaped, park-like "islands" with conversation benches within the street's median; c) by being the only residential street in all of HSB with street lights, and d) by being HSB's most beautiful street. It is only a fourth of a mile long and differs from all other HSB lakefront subdivisions by being a complete island. It is also the community's smallest subdivision, with room for only 27 homes. Its beautifully landscaped 1,200-foot long boulevard and integrated common area is HSB's broadest residential right-of-way - being 80-feet wide with no through traffic and no intersections. It's also HSB's only Live-Oak-lined roadway, with the 30-feet tall trees matching in size and traversing the boulevard's entire length, making for perfect leisurely strolls, walking the dogs, neighborly street-side chats, and the like. And being gated and completely lake-bound likely makes it all the more secure. 

 
Our masterpiece was completed during the spring of 2006. It was built largely as a "Model Home" to show the HSB community what we can do as high-end builders, being that we own 2/3rds of HSB Proper and West's 50 or so remaining full-size undeveloped lakefront lots and look forward to developing our 32 ourselves. During the intervening period, we held the home out as available for purchase only if a buyer really wanted it, pricing it about $1,000,000 above market -- going as high as $7,500,000 -- to insure we got great usage out of it as a Model Home showplace.

We've had 415 Matern re-appraised effective May 1, 2010, finding it currently valued at $6,572,450 on a cost basis.
Being now serious about selling, we've lowered the asking price to $5,375,000, as posted in the local MLS -- about $1,200,000 below appraisal.
Chubb Lloyd's has the home and improvements (exclusive of the lot) insured at a replacement cost of $4,635,000.

The home is generally available for viewing on 30 to 45 minutes notice by contacting Ken Martin (LBJ Lakefront Inc's president)
at either 512/755-6226 or KMartin@Moment.Net. In his absence, you may also call Rick Herrington at 512/755-5600. We invite all inquiries.

                LBJ Lakefront Inc is an exceptionally focused developer, having positioned itself as a purveyor of extraordinarily fine custom lakefront homes, operating solely on HSB's lakefront. We intend to build out our 32-lot inventory for discriminating third parties through both "SPECULATIVE BUILDING," as in 415 Matern Island, and our "LAKEFRONT DESIGN-BUILD PROGRAM," which we are developing and hope to initiate next year (see button above for "OUR PROJECTS"). Since we plan to build out our lots slowly over the next dozen or so years, the program will typically be limited to three or so projects annually.
        When my wife and I moved to HSB in 1992, coming from New Orleans, we leased for three years before moving into a lakefront home we built on a lot we purchased after being here about 18 months. It took us that long to appreciate the uniqueness of Lake LBJ and get the lay of the land - such as where HSB's appreciation potential existed, where it didn't, where it was the greatest, and why. Thereafter, it took another 18 months to get plans drawn, permits approved and the home built. Many others have followed a similar route. Those coming in today who might be interested in a similar flexible arrangement will find us willing to develop one that works well for you.

For more info on:
a) The Spec Home, see: SUMMARY INFO ON WHAT SETS 415 MATERN ISLAND APART, positioned at the bottom of this page.
b) Its Site Plan and Three Floor Plans, go to:  www.HomeView.net/415MaternCourt.
c) Our Undeveloped Lots, go to: HorseshoeBayWaterfront.Com/Undeveloped_Lots.htm. In addition to the Matern Island "spec' home site, our company owns 32 of the approximately 50 or so full-size undeveloped lots that remain available on HSB's Proper and West lakefronts (see buttons above for "ABOUT US" and "OUR HSB LAKEFRONT LOTS").
d) Our Development Company ( LBJ Lakefront Inc.), go to: HorseshoebBayWaterfront.Com/AboutUs.htm. LBJ Lakefront Inc, a purveyor of extraordinarily fine custom lakefront homes, is an exceptionally focused developer, operating solely on HSB's lakefront. We intend to build out our 32-lot inventory for discriminating third parties through both "SPECULATIVE BUILDING," as in 415 Matern Island, and our "LAKEFRONT DESIGN-BUILD PROGRAM," which we are developing and hope to initiate by the end of 2010 (see buttons above for "OUR HSB LAKEFRONT LOTS" and "OUR PROJECTS"). Since we plan to build out our lots slowly over the next dozen or so years, the program will typically be limited to three or so projects annually.To emphasize the quality of our lots, there are only 16 full-size undeveloped lots remaining on HSB Proper's and HSB West's lakefronts that have the preferred eastern exposure. We own 15 of the 16.
e) "The Sweet Spot of Texas," go to: HorseshoeBayWaterfront.Com/America_SweetSpot.htm. You'll find a map outlining the area.

THE "SWEET SPOT OF TEXAS." Our State's "Sweet Spot" is located in the heart of central Texas. It's the only portion of Texas where our four most favored contiguous provinces overlap. The four provinces are: 1) the laid back and friendly TEXAS HILL COUNTRY; 2) the gorgeous chain of HIGHLAND LAKES, where fishing and water sports excel; 3) the picturesque, heavily folded and faulted LLANO UPLIFT; and 4) the colorful, 1.09 to 1.36 billion-year-old CENTRAL MINERAL REGION, located in the heart of the Uplift area. See buttons above for "AMERICA's SWEET SPOT" and "MY HSB BEACON ARTICLES").
                The 250 square mile "Sweet Spot" is typically hilly, spring-fed, and Live Oak covered terrain. It is also a geological paradise of the highest order, with rock outcroppings of practically every color, variety, shape and age, being one of the world's most widely studied "windows" into the Earth's geologic past. When combined with the Hill Country's mild climate and exceptionally laid back and friendly atmosphere, it makes for a uniquely special and extraordinarily attractive setting.

HSB HAS BECOME NATIONALLY RECOGNIZED: And time has borne out the HSB Resort-Lake LBJ-Texas Hill Country concept! HSB, along with its booming real estate market, continues to gain more and more national attention. Most recently, on January 22, 2009, USA Today published an article titled: "Second homes: Lakeshore living in Texas Hill Country."
                The article, which featured HSB, described the local area as "dotted with small-town charm, natural beauty and fair weather, the region has become one of the most popular retirement, vacation and second-home areas in the nation." On September 12, 2008, CNN Money selected Marble Falls - HSB's twice-as-large sister city - as "one of America's six most terrific waterfront towns." These communities, located three miles apart, feed off one another.

HSB SITS IN THE HEART OF AMERICA'S #1 VACATION SPOT: On May 26, 2008, the New York Times called HSB and the surrounding Texas Hill Country America's #1 vacation spot. A more in-depth article had appeared in the "Escape" section of the Times' May 19, 2008 issue, entitled "Far Enough in the Heart of Texas to be Away."

LAKE LBJ - AMERICA'S LAKE OF CHOICE: Matern Island is located in 23-mile long Lake LBJ - America's largest constant-level lake. Such lakes are rare in that they require even larger lakes both upstream and down - upstream to keep it full during droughts and downstream to catch overflow during floods. The Lower Colorado River Authority operates Lake LBJ and the other six lakes that comprise the lower Colorado's Highland Lakes system.
                On such lakes, one can build on their shorelines, which allows for maximum lakeside intimacy - like fishing off your shaded back porch. It also makes for more enjoyable lakeside living than afforded by typical lakes with fluctuating water levels.
                Controls on Lake LBJ are such that during a 100-year flood, the lake should rise only 2.9 feet above its normal 825-foot pool level at Wirtz Dam. During the 16-month period from July 2007 through November 2008, a period of significant drought, Lake LBJ's level varied only seven inches, from a low of 824.55 to a high of 825.12 feet. On the other hand, during that same 16-month period, Lake Travis' level fluctuated 48 feet, from 654 to 702 feet. Travis' historical maximum fluctuation - from all time high to all-time low - is 96 feet.

HSB's GOLF AMONG THE COUNTRY'S BEST: Confirming HSB's golf as among the country's best, the November 13, 2006 issue of Business Week contained an article written in conjunction with Golf Digest entitled "The Top-18 Emerging Golf Retirement Regions." It ranked the two-county portion of the Texas Hill Country where HSB is located as #3 among the country's Top-18 golfing destinations. In addition, Southern Living's August 2006 issue praised HSB in an article entitled "Heavenly Horseshoe Bay." A similarly favorable two-page article appeared in the May 1, 2006 issue of Business Week, entitled "The Hills Are Alive."

HSB - THE CITY: HSB, a city of 5,000 people, is located about 45 minutes northwest of Austin and some 75 minutes north of San Antonio. It is exceptionally well suited as a R & R or second-home destination, being situated within 3.25 hours driving time of five of the country's 19 largest cities. Moreover, it's cradled in the "Sweet Spot of Texas" - being the only city so well positioned.

HSB RESORT: For those who don't know, the city of HSB is built around HSB Resort (horseshoebaytexas.com), one of America's leading destination resorts and the best in Texas, featuring five world class Robert Trent Jones Sr, Tom Fazio, and Jack Nicklaus Signature golf courses (the Nicklaus is under construction); one of the world's finest 18-hole, par 72, grass putting courses; a destination spa and fitness center; a 350-room Marriott Hotel; a variety of fine dining venues; the best in fishing, swimming and water sports; outstanding equestrian facilities, and challenging creek-side hiking/riding trails. Furthermore, 1,500,000 feet of exceptionally fine shopping is available within 30 minutes' drive - all at one locale.

HSB RESORT'S JET CENTER: In addition, the Resort has one of the country's finest, best equipped private airports - The HSB Jet Center - with a 6,000-foot runway featuring a newly installed HIRL system, being the latest in runway lighting. The runway is lined with a terminal, three large hangars and a fueling depot in one area and accommodates hangar-homes along the remaining length, where members can taxi directly to/from the runway to private hangars at their homes. The Resort also has its own private airline - Air Horseshoe - featuring five Dornier jets with occupancies ranging from five to 30 passengers - all readily available for charter.

LAKE OF THE HILLS REGIONAL MEDICAL CENTER: Construction on Scott & White’s 120-bed, full-service, acute-care hospital, to be located between HSB and Marble Falls, is on schedule to open in mid-2012. Patients who currently travel outside the area for medical needs will then get practically all needs met locally in a state-of-the-art facility. The $140,000,000 facility is being built as part of a 40-acre medical campus located at the corner of US 281 and Texas Highway 71 - being only three miles southeast of HSB's city limit.
                Scott & White is one of the country's Top-100 hospitals and the only major teaching hospital in Texas as well as the only health care institution in central Texas to make the prestigious Thomson Rueters' Healthcare 100 Top Hospitals "Benchmark List for 2008." The annual Award, which the hospital has received for the past six years, recognizes hospitals that have achieved excellence in clinical outcomes, patient safety, patient satisfaction, financial performance and operational efficiency.

SKYWATER: Progress on HSB's new high-end, off-water, 1,600-acre Skywater golf course community development, which includes a Jack Nicklaus Signature golf course, stalled in late 2007 when awareness of the sub-prime mortgage crisis first emerged and as it became widely known that the hedge fund bank-rolling the project had been damaged by the sub-prime mortgage crisis.
                Further evidence of our rebound is found at Skywater. In the midst of the national uncertainty, it announced in early 2009 that a major, $75,000,000 refinancing of the project had been agreed - speaking additional volumes about HSB's strength and appeal during a weakened nationally economy.

THE CENTRAL TEXAS' ECONOMY: Texas' economy has been leading the country since 2005. The State is the country's leading oil and gas producing state and corporate headquarters of most of America's petroleum companies. It is projected to continue leading the country in most growth categories for decades - as long as America's economy remains oil-based. Central Texas' renown Hill Country (see lakesandhills.com) is the state's premier wine region, with three designated American Viticultural Areas.
                On February 17, 2009, an article entitled "The Healthiest Housing Markets for 2009" appeared in Builder Magazine. It published its metric for determining America's 15 highest potential markets. Its Top-5, nationwide, were the five largest cities in the eastern half of Texas, ranked as follows: Houston #1, Austin #2, Fort Worth #3, San Antonio #4 and Dallas #5, documenting Texas is the place to be in today's world.

AUSTIN REGAINED ITS LEAD AS AMERICA'S TOP METROPOLITAN GROWTH AREA IN 2008: In a study released November 10, 2008, BizJournals reported that Austin was ranked among America's Top 10 Metropolitan Growth Centers. “Three Texas markets are members of the Top 10, with Austin posting the best growth record of the trio." Texas leads the country, and Austin and central Texas' Hill Country leads Texas. Being home to 30% of the country's Top-10 growth centers attests to the economic strength of Texas.
                Even more significantly, the report added, "Population has soared more than 8 percent in Austin in the past two years, and employment has jumped more than 10 percent. Raleigh, North Carolina is the only American metro area that can match Austin's short-term momentum. And, sure enough, on December 11, 2008, we learned central Texas' housing market had surpassed Raleigh's. On that date, the Office of Federal Housing On Enterprise Oversight announced that "Austin became America's leading housing market during 2008's 3rd quarter. That should come as no surprise. The December 11, 2008 report also found that people were moving to Texas in droves, with 60% of central Texas' new residents coming from out-of-state.

HSB's LAKEFRONT IS AMERICA'S BEST PERFORMING REAL ESTATE: On August 28, 2008, HSB's weekly newspaper - The HSB Beacon - published an article entitled: "HSB's high-end housing market blowing out Austin's." Whereas Austin's American-Statesman newspaper had reported on August 20, 2008 that Austin's $1,000,000 and up market was off 33% from the comparable period during 2007, HSB's was up 114% during the same period. HSB's high-end market, being 147% stronger than Austin's, America's leading real estate market at the time, spoke volumes about HSB's market strength.
                But don't think HSB’s huge increase in high-end home sales relative to Austin's in the over $1,000,000 market were realized through “fire sales.” To the contrary, HSB's high-end prices during 2008 remained basically flat with 2007's - down an average of 4.5% on a square foot basis, but up 17% when comparing 2008's maximum sale price on a square foot basis with 2007's maximum.
                If HSB's high-end real estate market is 147% stronger than Austin's, which the Office of Federal Housing On Enterprise Oversight ranked on December 11, 2008 as stronger than any other metropolitan area in the country, it follows that HSB high-end market - in blowing out Austin's - is clearly America's strongest, and by a long shot!
                On December 12, 2008, The Highlander, Marble Falls' newspaper of record since 1959, reported that through October 31st, HSB's 2008 home sales in the $1,000,000 and up range were up 100% and prices per square foot were up about 25% over the same period in 2007. However, it took sellers just over twice as long (219 days versus 106) to find the right buyer.

HSB's LAKEFRONT HAS PROVEN FAR MORE VALUABLE THAN GOLD: When originally offered in 1970, HSB's full-size lakefront lots sold on average for about $25,000. At that time, gold was worth around $50 per ounce. At the end of 2008, NYMEX gold sold for $884 per ounce - up 17.7 times over the 38-year period. However, the 18 or so full size HSB lakefront lots that remain undeveloped and available from individual investors on the 91% developed HSB Proper and HSB West lakefronts at that time were priced to sell on average for $1,612,000, up 64.3 times over the 38-year period -- 3.6 times better than gold. By comparison, the U.S. dollar lost 82% of its value during the period, amounting to a 5.6-fold decline.
                Dr. James Gaines, research economist for Texas A&M's Real Estate Center, advised on January 15, 2009 (personal communication) that he and his colleagues at The Center believe exceptional real estate like found on HSB's lakefront will continue to outperform gold. How could that be, you ask?

Well simply put, like gold, HSB's unique lakefront is in very limited supply and like gold cannot be duplicated. HSB Resort and America's largest constant level lake together constitute a one-of-a-kind package which just happens to be located within easy driving distance (210 miles) of five of America's 17 largest cities. Until very recently, gold was humanity’s money of choice, for one very good reason: It exists in limited supply, and governments can’t make more of it, so its value tends to be stable. As paper currencies collapse, the world will look for alternatives, one of which is sure to be gold. Massive amounts of global capital will start chasing a very limited supply of gold, sending its value through the roof. Look for HSB's lakefront to do even better, driven by an exploding price for oil.

HSB's LAKEFRONT REAL ESTATE IS IN EXCEPTIONALLY SHORT SUPPLY: Texas Hill Country real estate in general, the Highland Lakes' portion in particular, and HSB's specifically are receiving their most intense interest ever. And consistent with HSB's history, dating back to the Resort's founding in 1970, HSB's lakefront continues to experience the City's strongest demand, as evidenced by the fact that 40% of HSB's 2,400 dwellings are located there. This fact should come as no surprise either, since it's widely known that 76% of the American public prefer waterfront living.

a) LAKEFRONT LOTS: Although strong demand reigns on HSB's lakefront, which is divided into HSB Proper and HSB West, it contains only about 735 lots, making for an extraordinarily limited supply, especially when considering that almost all are developed. Approximately 550 of these are full-size single-family sites, 89% of which are developed; 100 are multi-family sites, 90% of which are developed; and 85 are "half-sized" garden home sites, 67% of which are developed. No garden home sites are located on open water.
                Eighteen of the 50 or so remaining full-sized lakefront lots are largely held for resale by individual investors. As of February 11, 2009, at the bottom of the financial crisis, the average asking price of the 18 was $1,612,000. Considering that HSB's lakefront lots sold for about $25,000 when originally offered in 1970, the $1,612,000 figure constitutes an average increase over the interim of about 12% per annum.

b) SINGLE FAMILY LAKEFRONT HOMES: HSB's first home to sell for more than $2,000,000 went under contract in December, 2002, priced at approximately $417 per square foot of living area. However, the square foot price for $2,000,000 and up homes fell to $344 in 2003. At that point, Texas real estate was ranked by several governmental agencies as America's most undervalued.
                In the six-year period between 2003 and 2008, prices of lakefront homes in HSB's $2,000,000 and up range increased at that same12% per annum rate - priced per square foot of living area.
                The maximum price paid to date for a home in HSB (house and lot) is $7,000,000. The maximum price paid to date on a living area basis is $973 per square foot. Both records involved homes located on HSB's lakefront. HSB has had no garden homes sell for more than $2,000,000 and no townhomes or condominiums sell for more than $1,600,000.

HSB's LAKEFRONT IS HOME TO SOME OF AMERICA's BEST INVESTMENT OPPORTUNITIES: We're convinced time will prove we're moving into the most favorable investment climate of our lifetimes. Interest rates appear destined to prevail at near all-time low levels through at least 2011 to help ensure an improving economy and that ARMs still to be re-priced don't reset at higher levels. At the same time, high inflation arising from massive increases in money supply will become widely apparent during 2010 and likely continue thereafter in the 10+% range for several years. In said environment, savvy investors can experience the best of all worlds: a once-in-a-lifetime golden investment opportunity involving strong appreciation of quality hard assets in the presence of exceptionally attractive loan rates.

HSB's LAKEFRONT IS UNIQUELY POSITIONED TO OFFER BOTH CAPITAL PRESERVATION AND EXTRAORDINARY GAIN - SIMULTANEOUSLY!: Whereas strong appeal and limited supply have driven HSB's lakefront market for years, two additional factors are apparently now in play: 1) investors not only view HSB’s lakefront as a safe-haven for wealth preservation, holding up extraordinarily well during economic downturns. 2) In addition, it is also exceptionally well positioned for unique supply/demand reasons for continued out-sized appreciation in the face of what appears to be a forthcoming extended period of mega-inflation.

LISTED CHRONOLOGICALLY BELOW ARE THIRD-PARTY FINDINGS RELATED TO HSB THAT DATE FROM MID-2008's FINANCIAL CRASH FORWARD TO THE PRESENT. THEY FOCUS ON EXPLAINING HOW HSB's HIGH-END REAL ESTATE MARKET RESPONDED TO THE CRISIS.

The record demonstrates that HSB's lakefront real estate handled the crisis probably better than any other market in America
and is positioned to lead for the next three or more decades!
For example, through May, 2010's lakefront homes sales in the $2+ million range were up more than two-fold compared with the entirety of 2009
and on track to better 2009 by 4 to 5-fold by year end.

AUGUST 20, 2008: Austin's American-Statesman newspaper reported that Austin's $1,000,000 and up real estate market had been off 33% since the beginning of 2008 compared with the comparable period during 2007.

AUGUST 28, 2008: HSB's weekly newspaper - The HSB Beacon - published an article entitled: "HSB's high-end housing market blowing out Austin's" that keyed off Austin’s week-earlier article and reported that HSB's $1,000,000 and up market had been up 114% during the same period. It also made the reasonable claim that being 147% stronger than Austin, America's leading real estate market at the time, spoke volumes about HSB and its high-end market. Logic suggests HSB’s high-end market - in blowing out Austin's - must be America's strongest, and by a big margin. But don't think HSB’s huge increase in high-end home sales relative to Austin's in the $1,000,000 and up market were accomplished through “fire sales.” To the contrary, HSB's high-end prices during 2008 remained basically flat with 2007's - down an average of only 4.5% on a square foot basis but up 17% when comparing 2008's maximum sale price on a square foot basis with 2007's maximum.

SEPTEMBER 12, 2008: CNN Money selected Marble Falls - HSB's sister city that’s twice-as-large - as "one of America's six most terrific waterfront towns." These communities, located four miles apart, feed off one another.

NOVEMBER 10, 2008: BizJournals found Austin ranked among America's Top 10 Metropolitan Growth Centers, saying “three Texas markets are members of the Top 10, with Austin posting the best growth record of the trio." Texas leads the country. Austin and central Texas' Hill Country lead Texas. In a study released November 10, 2008, BizJournals reported that Austin was ranked among America's Top 10 Metropolitan Growth Centers. “Three Texas markets are members of the Top 10, with Austin posting the best growth record of the trio." Being home to 30% of the country's Top-10 growth centers attests to the economic strength of Texas.

DECEMBER 11, 2008: The Office of Federal Housing On Enterprise Oversight announced that by its measure, Austin’s real estate market ranked stronger than any other metropolitan area in the country during 2008’s third quarter, having been second best after Raleigh during the two prior two quarters.

DECEMBER 12, 2008: The Highlander, Marble Falls' newspaper of record since 1959, reported that “through October 31st, HSB's 2008 home sales in the $1,000,000 and up range were up 100% and prices per square foot were up about 25% over the same period in 2007. However, it took sellers just over twice as long (219 days versus 106) to find the right buyer.” Furthermore, on January 15, 2009, Texas A&M's Real Estate Center announced that “job growth during 2008 was 10 times greater in Texas than in any other state and that its research economists believe quality Texas real estate ranks on balance as among the best investment one might make in today's world.

JANUARY 15, 2009: Texas A&M's Real Estate Center announced that “job growth in Texas during 2008 was 10 times greater than in any other state and that its research economists believe quality Texas real estate ranks on balance as among the best investment one might make in today's world.”

JANUARY 22, 2009: Confirming HSB’s independent strength, USA Today published an article entitled: "Second homes: Lakeshore living in Texas Hill Country." The article, which featured HSB, described the local area as "dotted with small-town charm, natural beauty and fair weather . . . the region has become one of the most popular retirement, vacation and second-home areas in the nation."

JANUARY 30, 2009: Sam Tarbet, President of HSB Corp, longtime head of one of HSB's leading real estate firms opined that in spite of the uncertainty introduced into the local market in September 2008 by the mortgage and banking collapses, the collapse-induced downturn of the local real estate market had bottomed.

FEBRUARY 6, 2009: Further evidence of such is found at HSB's high-end, off-water, 1,600-acre Skywater golf course community development, featuring a Nicklaus Signature course. In the midst of the national uncertainties, Skywater announced a major, $75,000,000 project refinancing had just been agreed, which speaks additional volumes about HSB's strength and appeal in such a weak market nationally.

FEBRUARY 17, 2009: Builder Magazine, the information source for the nation’s building industry and uniquely positioned to speak on the nation’s housing market, released its forecast for “America’s Top-15 Healthiest 2009 Housing Markets.” The markets were ranked on such factors as employment growth, market stability, affordability, comparative strength of home prices and new permits. The magazine sees “America’s Top-15 Healthiest 2009 Housing Markets” being located as follows: #1) Houston, Tx; #2) Austin, Tx; #3) Fort Worth, Tx; #4) San Antonio, Tx; #5) Dallas, Tx; #6) Raleigh, N.C.; #7) Seattle, Wash.; #8) Indianapolis, Ind.; #9) Fayetteville, Ark.; #10) Washington, DC; #11) Nashville, Tenn.; #12) Denver, Col;. #13) Charlotte, N.C.; #14) Wilmington, N.C.; and #15) Myrtle Beach, S.C. With all this strength expected in the Texas housing market for 2009, HSB is positioned for an outstanding year, particularly if President Obama can settle down the sub-prime mortgage crisis and associated banking crisis that it precipitated. After all, HSB is located within a mere 3¼-hours driving time of the first five cities on Builder Magazine’s list, which just happen to be five of the 19 largest cities in the country.
 
FEBRUARY 23, 2009: Shelton Thibodeaux, co-owner of HSB Re/Max, reported that HSB’s real estate market had taken off about three weeks earlier and three homes in the $1,000,000 and up range have since gone under contract - one for more than $3,000,000. On that same date, Chris Munnerlyn, Escondido's head of sales, reported a return to normal brisk activity, having placed three additional $1,000,000 and up home sales since late January.

MARCH 19, 2009: The ALEC-Laffer State Economic Competitiveness Index published a study entitled "Rich States, Poor States.” It documents economic performance trends from states over the last 10 years. It shows that Americans are more sensitive to high taxes than ever before. The tax differential between low-tax and high-tax states is widening, meaning that a relocation from high-tax California or Ohio, to no-income tax Texas or Tennessee, is all the more financially profitable both in terms of lower tax bills and more job opportunities. One last point: States aren't simply competing with each other. As Texas Gov. Rick Perry recently told us, "Our state is competing with Germany, France, Japan and China for business. We'd better have a pro-growth tax system or those American jobs will be outsourced." Gov. Perry and Texas have the jobs and prosperity model exactly right. Texas created more new jobs in 2008 than all other 49 states combined.

APRIL 21, 2009: Austin’s American-Statesman newspaper reported home sales bottomed in Austin’s metropolitan market at 820 units in January 2009, increasing 73% to 1,421 sales in March. By all appearances, essentially all buyers were saying they were in HSB somewhat as investors - aware HSB’s market had stayed strong and prices had held firm through the recent turmoil and seeing little future downside risk. They were also aware how the government's massive spending will logically set off an intense inflationary spiral that will lift values in HSB substantially. 

APRIL 21, 2009: In one of the most important actions in HSB's history, the City of HSB took over ownership of the city's 122-mile street system from the HSB POA, which lacked the financial capacity to maintain them to HSB's standard, paving the way for a huge street restoration program throughout HSB.

MAY 9, 2009: HSB's electorate votes in favor of becoming a Home Rule city, which among other things positions it to issue municipal roads bonds, which will lead to a relatively prompt upgrade of HSB's 122 miles of streets.

MAY 15, 2009: The Highlander, serving the Highland Lakes Region and Marble Falls newspaper of record since 1959, reports HSB as being recession-proof, saying its May 2009 sales tax receipts were up 10%, year over year.

MAY 18, 2009: Arthur Laffer explained in an Op-ed piece published in the Wall Street Journal that "Americans know how to use the moving van to escape high taxes, that Texas created more new jobs in 2008 than all other 49 states combined, and that Texas is now America’s #1 Economic Engine."

MAY 21, 2009: The HSB Beacon published an article entitled "Now Is The Time To Buy." Regarding HSB’s real estate market, Jim Rowe and Shelton Thibodeaux, owners of HSB Re/Max, advise that HSB real estate has in their opinion not only come off bottom, “it has left the station,” whereas Mike Gordon, who heads HSB Resort Realty advises that from his company’s perspective, “the train is leaving the station.” Sam Tarbet, President of HSB Corp, sees it is more conservatively. He says “the train is loaded, fueled, and about to pull out.” Although disagreeing slightly on what the “train” is doing, these leaders of HSB’s top three real estate firms all agree now Is the time to buy, before prices head back up. 

JUNE 10, 2009: Skywater representatives advise that litigation holding back the 1,600-acre development has been resolved and that the development is back on tract to immediately resume its infrastructure construction, construction on its Nicklaus golf course, and its residential lot sales. Funds are also set aside to complete the prime boulevard that extends through the development, connecting Highway 71 with RR 2147 near the heart of HSB.

JUNE 11, 2009: The HSB Beacon published an article entitled "HSB’s high-end real estate has snapped back." Through June 5th of this year, HSB has seen seven lakefront homes go under contract, 40% more than occurred during the first five months and five days of 2008. And this year’s contracts didn’t go down as “fire sales.” To the contrary, two went for around $3,000,000 and as a group they went for an average price that was only 7% less than in 2008. In addition, the first lakefront lots to sell in the past 10 months occurred during May, when four went under contract. Those are both strong signs of a real “Snap Back!”

JUNE 14, 2009: In an article focused on the Austin/central Texas area, titled: "There's no need to go to a resort when your home is on the water," Austin's American-Statesman reported: "even with the national economy struggling, the market for area lakefront properties remains in solid shape . . . homes may be staying on the market longer, but most sellers aren't being forced to lower their prices."

JULY 9, 2009: The cover story of the July 9, 2009 issue of The Economist compared California with Texas, demonstrating how the Golden State is falling apart while the Lone Star State is leading the nation out of the recession.

JULY ??, 2009: In a mid-July issue of National Review, Kevin D. Williamson said the nation is “Going Alamo,” with new jobs and businesses tipping southward, draining California, the Midwest, and Northeast of their former economic glory. One indicator of the trend, according to Williamson, is the cost of renting a U-Haul truck for a one-way move. From Austin, Texas to San Francisco, California, the cost is $900, while a one-way rental from San Francisco to Austin is $3,000, due to the exodus of trucks from California.

JULY 21, 2009: An article published this date by Austin's American-Statesman, entitled: "Positive signs for Austin housing," which dealt with the real estate rebound in the Austin/central Texas area, reported that monthly homes sales in June 2009 were the highest in a year and that the median home price last month was unchanged from a year earlier, with several realtors reporting that west coast buyers made as many as 60% of their purchases and that "there is a distinct change in activity and attitude out on the street.

JULY 29, 2009: The Washington Times carried an op-ed piece by Texas’ governor Rick Perry telling the nation that Texas has become one of the very few states to balance its budget this year. The Texas legislature also cut taxes for 40,000 small businesses and created more jobs in 2008 than all the other 49 states combined and ranks #1 (for the fourth year in a row), being the state where people relocate the most. Furthermore, Texas is home to Big Oil, America’s highest-volume port, the largest medical center in the world, and a leading Tech Center, with more Fortune 500 companies (58) than any other state, He added that Texas has no state income tax, that low taxes force slower spending growth, and that the State's business-friendly environment attracts capital to create jobs.

AUGUST, 2009: In its most scientific where-to-live survey yet, Outside Magazine put America's 100 largest cities under the microscope to present the 10 healthiest - physically, mentally and economically. Austin was ranked 4th, after Colorado Springs, Seattle and Atlanta.

AUGUST 31, 2009: August closed out as the best month for home and lots sales on HSB Proper's and West's lakefronts since April 2006, suggesting people are becoming aware the unchecked increase in America's money supply will likely lead to the U.S. dollar's demise through hyperinflation, during which people become unwilling to hold money longer than needed to trade it for prime tangible assets to avoid further loss as the dollar continues to lose buying power.

SEPTEMBER, 2009: Texas Meetings and Events Magazine recognizes HSB Resort as the Best Golf Resort in Texas. Dallas/Fort Worth's Four Seasons at Los Colinas was ranked 2nd, Austin's Barton Creek 3rd and San Antonio's Hyatt Hill Country 4th.

SEPTEMBER 1, 2009: SmartMoney.Com published an article entitled: "It's Time to Invest in Real Estate." Magazine articles by nature typically experience considerable lag time in getting news from the ground into print (see our May 21, 2009 entry for news direct from the ground).

SEPTEMBER 1, 2009: Six high-end HSB lakefront homes ($1,000,000+) and five lakefront lots went under contract during August 2009, being a monthly HSB record for a month when the price of light crude oil closed below $70 per barrel on the NYMEX.

SEPTEMBER 4, 2009: The new owners of HSB's stalled Skywater development restarted work on its Jack Nicklaus Signature Golf Course, which anchors the new $245 million subdivision. The 1,618-acre project overlooking Lake LBJ is the first major new residential development in the region to re-launch during the recession - a positive sign for the HSB economy. The project is platted for 1,200 homes, villas and condominiums, plus three commercial parcels.

SEPTEMBER 14, 2009: The Highlander reports that utility construction for Scott & White's $140,000,000,120-bed regional medical center located on the outskirts of HSB is 25% complete and in line for completion in July 2010. The hospital's construction will commence within 30 days thereafter and build outs in 24 more months - by August 2012. Scott & White promise that the services it will offer match anything available in Austin. The center is the single element HSB has needed to complete its collection of America's most prime living conditions - great for a weekend or a lifetime!

SEPTEMBER 18, 2009: The San Antonio Business Journal reported a nationwide forecast by IHS Global Insight, forecasting that: Texas' four major metros will be among the first in the nation to recover from the recession, with San Antonio and Austin leading the way, bouncing back to their prerecession job levels during 2010, predicts the Lexington, Mass–based economic forecasting firm. Houston and Dallas–Fort Worth are among the nation's eight other metropolitan areas predicted to recover by 2011. It is indeed interesting that HSB has already bounced back - far head of the ten national leaders.

SEPTEMBER 20, 2009: Through August 31, 2009, with one-third of the year remaining, the volume of sales of full-size HSB lakefront lots was up 40% over those made during the full 12 months of 2008. The number of sales made in 2008 did not increase over that made in 2007, remaining the same.

SEPTEMBER 21, 2009: Regarding sale prices of full-size HSB lakefront lots, they were up 13% in 2008 over that experienced in 2007 and were up another 1% through the first two-thirds of 2009.

OCTOBER 9, 2009: The Austin Business Journal reported that "Austin leads Bizjournal's latest employment ratings of the country's 100 biggest metropolitan areas, with San antonio 2nd, Houston 4th, DFW 5th and El Paso 11th." Nine of the top-11 were located in Oil-patch states - 5 in Texas, 2 in Oklahoma, and one each in Louisiana and Arkansas.

OCTOBER 10, 2009: As of this date, there were 25 full-sized full-sized lots listed for sale by the MLS on the HSB waterfront. Their average asking price was $1,665,000. The 25 include such lots that were available in Escondido and Lago Escondido, but not include the 33 other full-sized undeveloped lots owned by LBJ Lakefront Inc (to view our lots, click on "Our HSB Lakefront Lots" button on the webpage's Home Page). Only four of these 25 have the preferred eastern exposure, where the home ultimately built thereon shades the lakeside, making for far more enjoyable lakeside afternoons and evenings. However, half of our 33 lots have the eastern exposure, attesting to the merit of our lots.

OCTOBER 22, 2009: Texas claimed five of BusinessWeek.com's top-10 spots in its rankings of the nation'sTop-40 economies based on job growth, employment, economic growth, and home prices, effective as of the end of June, 2009. It found San Antonio #1, Austin #2, Dallas-Fort Worth #5, Houston #9 and El Paso #10.

NOVEMBER 1, 2009: Through October 2009, with 1/6th of the year remaining, the volume of sales of HSB lakefront homes in the $1,000,000 and up range was up 22% compared with the entirety of 2008. Sales volume during 2008 was up 157% compared with 2007.

NOVEMBER 17, 2009: Texas metros, led by number one Austin–Round Rock, claimed four of the top five spots and nine of the top 16 in the 2009 Milken Institute/Greenstreet Real Estate Partners Best-Performing Cities Index. Also making the list were Killeen–Temple–Fort Hood (2), McAllen-Edinburg-Mission (4), Houston–Sugar Land–Baytown (5), San Antonio (11), Fort Worth–Arlington (12), Dallas-Plano-Irving (13), El Paso (14) and Corpus Christi (16). Austin–Round Rock was the first metro to ever be ranked number one twice, the last time being in 2000. But it doesn't stop there. Nine other Texas metros made the top 25 out of the 124 smallest metros that were studied. Those were Midland (1), Longview (2), Tyler (4), Odessa (5), College Station–Bryan (14), Texarkana (17), Waco (18), Laredo (20) and Abilene (21). Leaders in this year’s index, which ranks U.S. metros based on their ability to create and sustain jobs, are all metros that succeeded in avoiding the worst of economic declines driven by falling housing markets and job losses in manufacturing and global trade. Regional economic factors also strongly influenced the rankings this year, with the oil and gas sector, technology and alternative energy providing stability among metros in Texas. Another factor helping Texas metros move up in the rankings is the state’s favorable business climate and its ability to attract jobs and corporations away from higher-cost states.

NOVEMBER 23, 2009: Texas’ four major metros make up 40% of the nation's Top-10 fastest-recovering cities according to Forbes magazine. In its latest issue, Forbes ranked San Antonio the second fastest recovering city in the country, Austin the third, Dallas–Fort Worth–Arlington the sixth and Houston–Sugar Land–Baytown the eighth. Their housing markets' ability to remain stable while they have crashed in most markets nationwide is the principal reason for their relatively quick recovery.

NOVEMBER 24, 2009: Texas A&M's Real Estate Center Online News reported this date that Austin's October 2009 home sales weere far stronger than anaya aother of Texas's Top-10 metro areas, with year-over-year sales up 38% and prices down only 5%.

DECEMBER 19, 2009: Burnet County, in which the easternmost quarter of HSB is located, has been named one of two new Micropolitan Statistical Areas in the country by the White House Office of Management and Budget. Burnet County is the fastest growing non-metropolitan county in Texas.

DECEMBER 23, 2009: The U.S. Census Bureau reported that "Texas gained more residents than any other state in the Union in the 12-month period ending July 1, 2009, giving exas the largest overall increase of this decade." Texas has led in this category for the past four years. Texas' delegation in the U.S. House of Representatives is in line to get a four-seat gain - the biggest between-decades gain for Texas in over a century. This growth is widely attributed to the fact that Texas' workforce continues to add more jobs than any other state and that its workforce is the largest in the State's history.

DECEMBER 31, 2009: The Dow Industrials close out 2009 at 10,496, up 3,949 points (60.3%) from its post-crisis low of 6,547 on March 9, 2009.

JANUARY 2, 2010: After reaching +5.6% in July 2008 (see http://www.inflationdata.com/Inflation/images/charts/Annual_Inflation/annual_inflation_chart.htm), which was a 17½-year high, inflation fell 7.7 points to a low of -2.1% in July 2009, at which time the Fed’s massive “Quantitative Easing Program” (AKA: running its printing presses at record rates) began taking hold, overwhelming deflation that had set in nationally beginning in August 2008. Since July 2009, inflation has been increased nationally in the succeeding five months at the rate of 1.05% per month to read read +3.15% as of mid-December 2009, all as reported by the "Moore Inflation Predictor," which measures monthly change (see http://fintrend.com/ftf/mip.asp). 
            With the Fed continuing to run its printing presses all out, inflation is in line to reach +8% by mid-2010 and the low double digits by year end, which amounts to some three times more than the 3.25% average that prevailed from the first of 2004 through 2007. During this four-year period, prices of HSB’s high-end lakefront homes increased 90%, but HSB's lakefront lots did even better – increasing at more than twice that.

JANUARY 8, 2010: The price of crude oil is up 2.57 fold (157%) over the past 11 months, rising from $32.10 per barrel in mid-February to $82.75 at January 8, 2010's close (see http://futures.tradingcharts.com/chart/CO/W), owing largely to the declining U.S. dollar and the fact that massive inflation may already be underway. The sharp price increase is quite relevant regarding HSB's real estate market. With HSB being both a major second home and a R & R destination for Texas’ oilmen, our high-end real estate is obviously very sensitive to the price of oil – and it has been since HSB’s inception 40 years ago.

JANUARY 8, 2010: The Austin Business Journal published a report by The Brookings Institute which found that Austin's economy grew more during 2009 than any other among America's 100 largest metropolitan areas. Austin's was up 2% whereas the average U.S. metro area saw its Gross Metropolitan Product (the value of goods and services produced) decline by 2.4%.

JANUARY 12, 2010: Folks will likely be surprised how favorably Horseshoe Bay’s high-end 2009 real estate market turned up to be compared with 2007. It held up far better during the past two years than some of the country’s best overall real estate markets (such as Austin’s, which has been among the nation’s overall leaders for the past couple of years even though its home sales in the high-end market (being $1,000,000+) are off sharply – down 33% from 2007 to 2008, as reported in the American-Statesman, and continuing down in 2009.
           To enlarge on how much stronger HSB’s high-end real estate market was than Austin’s during the 24-month period from 12/31/07 to 12/31/09, HSB’s number of lakefront home sales in the $1,000,000+ range increased 111% and total sales in the category were up 175% – based on local MLS sales records.  Similarly, the number of HSB’s lakefront lot sales increased 60% during the period and total sales were up 85%. HSB's lakefront real estate is clearly among America's best performing! NOTE: It is especially noteworthy that HSB's high-end lakefront real estate could perform so exceptionally well even though deflation prevailed nationally during half the period. GOING FORWARD, as oil prices continue on their march to $300+ per barrel by the end of 2012, as the extended period of high inflation takes hold, and as normal demand returns in coming months, its high-end real estate will most certainly perform far better, especially when considering how demand will once again be overwhelming the limited lakefront supply.

JANUARY 15, 2010: As seen at http://www.inflationdata.com/Inflation/images/charts/Annual_Inflation/annual_inflation_chart.htm, the deflation that set in nationally in July 2008, when the sub-prime mortgage crisis surfaced, ended in July 2009. In the five months from then through 2009, inflation returned with a vengence, increasing 1% per month - going up faster and at a sharper angle than it had dropped during the 12-month crash. Also see http://www.shadowstats.com/alternate_data/inflation-charts. The Fed's "Quantative Easing" program did in fact overwhelm deflation.

JANUARY 20, 2010: A high-end HSB home sale's contract was executed this date that futher validates our lakefront real estate market as primed for one of its very best years - being potentially healthier than ever - based on apparent pent-up demand. A five bedroom, 6.5 bath home with a western exposure just went "Pending" at a near all-time record price of $833 per square foot of living area. It's one of eight HSB lakefront homes listed for sale in the $4,500,000 to $7,900,000 price range - being the lakefront's most expensive homes. The group's average asking price is $789 per foot - ranging between $739 and $833. Although the contract price remains confidential, HSB's lakefront prices have held up exceptionally well during the nation's financial crisis and this one will probably close in the $4,000,000 to $4,250,000 range. The sale is set to close within three weeks.

JANUARY 22, 2010: The Austin Business Journal announced a new study by BizJournal found "Austin leads the nation in small-business vitality . . . Its number of small businesses increased four times faster than the national average, with no other city coming close to Austin's growth."

FEBRUARY 15, 2010: Marc Faber, internationally known and highly respected contrarian investor/publisher of the "Gloom, Boom & Doom" report, advised on his website that: "Federal Reserve Chairman Bernanke is not leveling with the American public. Regardless of what he might say, the Fed's exit strategy will be more Money Printing and Monetization. What's in store for America is inflation like happened in the 1970s, only much worse. Furthermoe, interest rates won't rise above the rate of inflation, contrary to what occured during the early 1980s, meaning we are iheading into an extended period of negative inflation - after adjusting for inflation."

FEBRUARY 22, 2010: At a presentation in Tokyo, Faber added: "If you want to prepare for what I believe lies ahead, besides owning precious commodities and other quality tangible assets known to be in short supply, you should also move to the countryside, away from vulnerable and potentially dangerous urban areas." Could anywhere fit that bill better than Horseshoe Bay, located as it is in the Sweet Spot of Texas - America's most appealing state?

MARCH 18, 2010: In an article published in its March issue entitled "The Ten Healthiest Housing Markets for 2010," Builder Magazine predicted Austin's housing market will be America's strongest, saying: "Texas' capital city largely avoided the brunt of the recession because there was no home appreciation bubble to burst. What a novel idea. The town enjoys one of the lowest unemployment rates in the country, was the second fastest growing metro area in the nation in 2008, and during the recession businesses relocating said "What recession?" Portfolio.com recently named Austin the most attractive location for young professionals out of 67 metro areas studied. Austin space is the place." Raleigh, and Charlotte, were #2 and #3, respectively, with San Antonio #4.

APRIL 6, 2010: The Austin Business Journal reported that Austin and San Antonio were ranked among the top ten metros nationwide with the largest apartment rental rate increases, according to Reis Inc. The research firm said Colorado Springs had the largest year-over-year increase at 2.5%, San Antonio saw the third highest increase with 1.5 percent growth and Austin’s 1 percent increase earned the number seven slot.

APRIL 30, 2010: For the second year in a row, Texas cities took half of the top ten spots in Newgeography.com's annual ranking of the best cities in the nation in which to find a job. Austin–Round Rock–San Marcos ranked first, San Antonio–New Braunfels second, Houston–Sugar Land–Baytown third, Dallas-Plano-Irving fifth and Fort Worth–Arlington seventh. Among the medium-sized cities that Newgeography.com ranked, El Paso was fifth, McAllen-Mission-Edinburg was sixth and Corpus Christi was seventh. College Station–Bryan was the third best smallest city in which to find a job. Killeen–Temple–Fort Hood was fourth. The rankings are based on three-month rolling averages of monthly employment data from the Bureau of Labor Statistics from November 1999 to January 2010.

May 1, 2010: The local MLS reported that HSB had seven lakefront homes go under contract in the $1,000,000 and up range during the first four months of 2010, being 40% more over the period than at any time since 2006. The contracts ranged in price from $1,100,000 to $3,499,000 - averaging $2,485,428. Prices per square foot ranged from $355 to $731. The two selling in the $1 to $2 million range went for $394/SF, the two in the $2 to $3 million range went for $517/SF and the three in the $3 to $4 million range went for $612/SF.

MAY 13, 2010: Policom Corporation released its "2010 Economic Strength Rankings" of the country's 366 Major Metropolitan Areas. Three of the Top-12 were located in Texas - Houston, Dallas and Austin.

MAY 24, 2010: Texas ranked as the No. 1 state for business in a recent survey of CEOs published in “Chief Executive” magazine. Closely following in the poll of 651 CEOs were North Carolina, Tennessee, Virginia, and Nevada. Rounding out the top 10 were Florida, Georgia, Colorado, Utah, and South Carolina. As for the bottom of the barrel, California led the way, followed by New York, Michigan, New Jersey, and Massachusetts. “Texas is pro-business with reasonable regulations, while California is anti-business with anti-business regulations,” one CEO told the magazine.

The CEOs ranked states in three main categories: taxes and regulation, skill of the workforce, and quality of living. Perhaps not coincidentally, nine of the top 10 — Colorado is the exception — are among the 22 right-to-work states in the country, meaning that state law forbids forcing employees to join a union to be able to work. Meanwhile, all five of the states the CEOs ranked on the bottom do not have such laws. In addition, six of the 10 states CEOs like rank below the national median for household income, while four of the bottom five are above the median.

Texas is where 70 percent of all new U.S. jobs created since 2008 are based, according to “Chief Executive.” The Lone Star State’s tax credits and incentives for businesses that move or expand there are among the most generous in the country. Duh, no wonder  the CEOs like Texas!

JUNE 4, 2010: During the first 155 days of 2010, being the first 42% of the year, nine HSB lakefront homes went under sale's contracts in the $2+ million range. If such sales continue at this pace, HSB is on track to record 21 sales for the year -- up 5.3-fold from 2009 when only four lakefront homes sold in this price range. The prior annual sales record was nine, which occurred in 2008, being up one from 2007 when eight such sales occurred. Year 2007 continues to hold the record average annual price ($4,179,000/home) for sale's in this price range.

This sharp uptick in buying activity, an abrupt five-fold inc incease, was triggered by indications the downturn had turned around. The fast action demonstrates the underlying strength of and pent-up demand for HSB lakefront real estate -- one of America's strongest markets!

JUNE 16, 2010: HSB was ranked #4 by Forbes.Com in an article entitled: "Where America's Money is Moving." Collier County, Florida (Naples) was ranked #1, Green County, Georgia, located 75 miles east of Atlanta came in #2 and Nassau County, Florida (Jacksonville) was #3. Forbes' conclusions were based on 2008 IRS data -- the latest available. It restricted its study to counties where arriving families had average annual incomes of at least $140,000, which eliminated all but 130 of the country's 3,142 counties. Incomes of familes moving to HSB averaged $177,000 whereas those moving out had about half that.

In addition, the article ranked Austin #2 among the country's "Most Innovative" and the 10th best for "Young Professionals."

JUNE, 2010: Austin was picked as best city to live in for the next 10 years by Kiplinger's Personal Finance and arguably America's best crucible for Small Business.

JUNE 25, 2010: USA TODAY reported Texas having four of the 10 fastest growing cities in America among those with populations over 100,000 and 11 of the top 25.

JULY 13, 2010: FORTUNE Magazine published as article entitled: "Four reasons why Texas beats California in a recession." They are: 1) Diversity of jobs; 2) It pays to be friendly to business owners; 3) Taxing sales instead of income distorts the economy less and allows for more flexibility; and 4) Power of the people can backfire.

JULY 22, 2010: Texas Leads Economic Recovery. Texas is leading the United States in the current U-shaped economic recovery, according to the latest monthly review of the Texas economy from the Real Estate Center at Texas A&M University. The complete economic review, written by Center Research Economist Dr. Ali Anari, is online at http://recenter.tamu.edu/econ/.

JULY 23, 2010: According to a report compiled by Bloomberg Businessweek, four Texas cities are among the top ten best cities for new college graduates. Houston ranked first while Dallas, Austin and Fort Worth nabbed third, fifth and 10th, respectively. The listing was based on data from AfterCollege as well as city unemployment rates and the average annual pay for all occupations reported by the U.S. Labor Department.

JULY 28, 2010: Both Houston and the Austin have made it onto Kiplinger.com’s Top Ten Great Cities for Young Adults. "The study based its list on youth-friendly factors such as cost of living, rental costs, culture, nightlife, time spent in traffic and the percentage of people younger than 35. Houston was chosen primarily because of its diversity, with more than one million of Houston’s inhabitants born outside of the United States, along with its proximity to the Gulf Coast. Its average annual wage is $41,074, whereas the median monthly rent is $775 compared with the national average of $819. Austin, meanwhile, had an average annual wage of $41,380 (as of 2007). Median monthly rent is $864. The city was touted for its cultural scene, "vibrant" nightlife and eclectic neighborhoods. It also has the fourth-lowest jobless rate among cities with populations of one million or more."

JULY 30, 2010: According to the U.S. Bureau of Labor Statistics, four major Texas metros had the strongest employment gains in the nation during the past five years. Houston led the way with 129,800 new private-sector jobs created between June 2005 and June 2010. Dallas came in second with 71,300 jobs, followed by Austin and San Antonio with 56,100 and 32,600, respectively. With 84 of the nation's 100 biggest labor markets suffering losses in private-sector employment during that time, Texas represented one-fourth of those that finished on the upside.In a shorter time span, Texas fared well with Austin having the largest one-year gain at 8,400 jobs and Dallas ranking third with 4,800 private-sector jobs created between June 2009 and June 2010.

AUGUST 3, 2010: The Atlantic says Texas is faring well compared with the rest of the nation, racking up an ever-growing list of accomplishments. In addition to ranking fourth in the country with the least amount of state debt, Texas has four cities in the Milken Institute’s Top Five Best Performing Cities Index, four among Forbes' list of top ten “Cities Where the Recession is Easing,” and four in last year’s Top Ten in Homebuilding.

Texas is also home to three of the top five most resilient major metro areas for employment, with McAllen first, Austin third, San Antonio fifth and El Paso and Houston not far behind in the top 15. Furthermore, it claims 64 Fortune 500 companies — more than any other state — in addition to being dubbed Top State for Business for the second time in three years by CNBC.

The magazine adds that these accomplishments are because Texas’ major cities have chosen comparatively stable industries — Houston is the nation’s energy hub, Austin leads in education and technology, and San Antonio dominates the health care and education sector in addition to military spending. Its success also tends to demonstrate that the more tax incentives and less regulation, the less likely businesses are to get sued and the more likely it is they’ll want to come and prosper in your state,” said Brooke Rollins, president of the Texas Public Policy Foundation.

These factors support Texas’ position as a global economic leader, having the 15th largest economy in the world.

MORE PROJECT DETAILS (for the very interested)  

MAIN FLOOR:  the entire floor and three adjacent garages are covered with extra large (36"x24"x3/4" and 16"x24"x3/4") rectangular blocks of 100-million-year-old honed, Lower Cretaceous coral-reef limestone ("Dorado travertine") mined from the Sierra Madre Oriental Mountains near Torreon, Mexico.  The floor is focused around a gourmet Sub-Zero/Wolf/Miele/Asko/Sharp Kitchen - a chef's dream, the "best of the Best."  The Kitchen has a commanding view of the floor's public areas, all of which open into one another.   

It looks in a southerly direction into a formal but friendly Parlor with full lake view and looks southeasterly to a spacious Dining Room that can seat twelve adults (many more by rotating the table 90 degrees) comfortably for dinner.  The Dining Room, which also has the full lake view, includes a complementing sitting area.  Looking from the Kitchen directly east through the Breakfast/Sun Room, one has another full lake view.  The Sun Room overlooks a large Reflecting Pool with two large, vanishing-edge waterfalls that drop nine feet to the Lakeside Swimming Pool.

These four rooms define wonderful spaces that are completely open (Kitchen) or fully windowed floor to ceiling on their lakeside (the other three).  The spaces are organized about a spectacular, 35' tall Entry Foyer, capped by a massive, three-story, stucco and rock Tower, again featuring 125-year-old Long Leaf Pine beams.  Spilling into the awesome setting is an elegant, winding, two-story Bull Mesquite Stairway.  The Front and Lakeside Entry Doors, custom made of glass and Spanish Cedar, are perfectly aligned to provide a tempting look directly through to the lake without revealing the adjacent Dining Room and Parlor, which appear as pleasant surprises as one walks through the Foyer/Tower, drinking in the view and experience.

The stainless Kitchen has a wealth of Knotty Alder cabinet storage and granite-covered counter space.  It includes a Breakfast Area (space for a table for six) and an exceptional five-seat, granite-covered Wet/Breakfast Bar with adjacent Sub-Zero under-counter frig.  It also has a Sub-Zero 48" Frig/freezer with ice and water dispenser; a Wolf 48" Professional Series, free-standing, self-cleaning gas range with two electric ovens; a 48" Wolf Hood; Miele Coffee Maker; Miele Convection/Steam Oven; Asko Dishwasher; Sharp convection Microwave; Kitchen Aide Trash Masher; built-in Command Center for the lady of the house; two Pantries with a combined 260 feet of shelf space; and an extra large Appliance Garage above which is a large TV cabinet - all in addition to the usual features.  Adjacent to the Kitchen is an ergonomically-planned, stainless Laundry Room, featuring a Meile washer and Meile dryer and a 36" Sub-Zero Frig/freezer.  It has generous Knotty Alder cabinet storage and granite-covered folding space, a large closet and a built-in ironing board that makes an often overlooked work area unusually appealing.  

A barrel-vaulted Powder Room is located north off the magnificent Entry Foyer.  To the south, the floor's more private sector is entered through a vestibule Library, which has the full lake view as well.  The Library connects to a large, perfectly-placed Office/Study on the west.  

The Office/Study's ceiling is boxed on four-foot centers with the antique, 125-year-old Long Leaf Pine beams and its walls are wainscoted five feet high with Knotty Alder.  The space within the four-foot square ceiling boxes is covered with hammered, antiqued solid-copper.  

Leading off the Library to the east is a sumptuous Master Suite, featuring a huge walk-in closet and a barrel-vaulted Master Bath - literally a "Home Spa."  The Suite, which features thermostatically-controlled floor warming elements, also includes a spacious Sitting Area that overlooks the Lakeside Entertainment Oasis. 

The Home Spa includes two completely different massage stations:  1) a deep Kohler Riverbath tub for two that offers both soaking and whirlpool action, featuring the best in Air Aspiration, Chroma-therapy and Hydro-therapy.  It offers three types of horizontal message; and 2) a unique Steam/Rain Shower for two that includes two different Body Spas and two different Shower/Towers - 12 shower heads in all.  It deliver the best in Steam Therapy and several types of vertical Hydro-therapy. 

His and her lavatories, clothes closets, built-in chests, dressing stations, heated towel bars and remote-operated potty/bidet combinations round out this very special space.

UPPER FLOOR:  accessible by a wide-plank Bull Mesquite Stairway or a Dynasty Elevator - the best in residential elevators and capable of handling four adults comfortably.  The floor is covered by extra-long and extra thick (three-quarter inch), tongued and grooved Mesquite planks in a rarely seen combination - four, six and eight-inch-wide widths.  

The floor has separate North and South Wings - connected by a bridge that spans the rock-walled Entry Tower.  The North Wing contains a spacious Guest Suite, a huge, irresistible Entertainment/Exercise Center with full lake view, a separate Hobby (Arts & Crafts) Room, a Powder Room and two Closets - one for Storage and one for Home Automation.  

The double vaulted Entertainment Center competes successfully with the home's lakeside treats for attention and features a fabulous lake view from all sectors.  It contains a U-shaped, granite-covered Wet Bar/Kitchenette seating seven and a comfortable Media Center featuring a 50" Plasma HDTV over a Stone Fireplace - all in a casual den-like setting.  The Kitchenette has a Sub-Zero under-counter Frig, Sub-Zero Ice Maker, a two-drawer Fisher-Paykel Dishwasher, Miele Espresso Maker and a Sharp Microwave.  The Center also includes a large Exercise Area, plus space for two permanent Card Tables, a permanent Game/Poker Table, a full-size Pool Table, and several separate conversation areas.   The huge room opens onto a Covered Porch with (you guessed it) an unparalleled lake view.  

The South Wing - the Kids'/Grandkids' Wing - is fully functional and can be completely closed off when warranted for privacy purposes, such as when adults take over the Entertainment Center.  The South Wing contains three large Bedrooms  with full Baths and California Closets and a Kids Lounge with a granite-covered Computer Station for two.  The largest of the three Bedrooms, located at the far west end of the wing, is perfect as a fantasy Bunk Room for Grandkids.  The vaulted room is capable of comfortably housing four double bunk-beds and has an extra large, partitioned, full bath.  The entire wing is floored with wide-plank Mesquite, save for all bathrooms, which are travertine, and the Bunk Room, which has wool carpeting. 

The ceilings of all vaulted rooms on this floor are covered with five-inch wide, tongued and grooved planks of 125-year-old Long Leaf Pine.   The Hobby Room ceiling, which is flat, is also covered with the Antique Long Leaf Pine. 

LOWER (LAKESIDE) FLOOR:  of stunning proportions, accessible by elevator or stairs - the base of operations for the home's lake-side/pool-side/spa-side/waterpark-side/fishing-side treats.  With flag-stoned floors and T&G cypress ceilings throughout, it opens directly onto the east-facing, afternoon-shaded, flag-stoned Lakeside Patio.  

This largely air-conditioned level features the following attractions:  A) a barrel-vaulted Wine Cellar that features a hammered copper ceiling, a one-drawer Fisher/Paykel Dishwasher, a Kohler stainless sink, and storage for 350 wine bottles, including two 46-bottle, double-zoned, Sub-Zero wine coolers;  B) a wonderful, barrel-vaulted Wine Tasting Room/Home Theater, with 61" Wide Screen LCD HDTV/Movie "Screen," that also doubles as a Storm Shelter - being a wonderful safe haven for "sitting out" a severe storm warning;  C) a Parents'/Kids'/Grandkids' Game/Play Room;  D) a Lakeside Family Room with 50" Plasma HDTV over a Stone Fireplace;  E) a covered Summer Kitchen;  F) exceptionally generous and readily accessible walk-in Lakeside Storage;  G) a large Work Shop;  and H) a Full Bath, including a "Kid's Car Wash" with a re-circulating 10-jet Body Spa, in-line Heater and Waterfall that together deliver 80 gallons per minute - an irresistible kids'/grandkids' enticement that provides an added lakeside attraction while insuring they freshen up after a day enjoying the home's many other great lakeside treats.  The Summer Kitchen - with a 48" Wolf Grill, 54" Wolf Hood, Sub-Zero beverage refrigerator and a Kohler stainless sink with disposal - is for what else but cleaning, prepping and grilling the daily catch in an unmatchable setting. 

LAKESIDE PATIO:  a fabulous entertainment area that features HSB's only private, residential Water Park, one that interacts beautifully with the lake and caters in every possible way to three full generations - Parents, Kids and Grandkids.  The Park provides an extensive variety of lakeside attractions, including:  A) a Lap Pool;  B) two large Waterfalls;  C) a large Reflecting Pool;  D) a cave-like Grotto Spa, featuring an wall-mounted, flat-panel LCD HDTV and a hot tub that exhibits the latest in hydrotheraphy and chromotheraphy;  E) anchored, lakefront space for the latest in Water Toys - such as a floating Trampoline, Blob and/or Aqua Log combination;   F) a 10-foot wide, walk in/out native limestone stairway for easy lake entry/exit;  G) an oversized, Covered Boat House with a 28' boat slip;  H) four floating Jet Ski Ramps;   I) a lakeside conversation area around a propane-fired Stone Fire Pit;   J) multiple Fishing "Piers" (your choice of sun or shade);  K) a conveniently located, 200 square-foot storage room dedicated exclusively to Swim Park Storage;  L) a Mussolini Balcony;  M) an attractive, afternoon-shaded mid-Deck seating eight that overlooks it all; and N) all of which is enhanced by a plethora of fragrant, Ever-Blooming Gardenia.  

The Patio, which consists of nine principal sections on five different levels, has the appearance of being located within an naturally stratified Limestone Quarry, long abandoned.  It also has a broad, open, distant and unimpeded view of the lake.   

The Swimming Pool is especially unique, being a crescent-shaped Lap Pool with maximum dimensions of 19' by 58', including a shallow-water Tanning Bench for four adults and a section where one can cross over on Stepping Stones.  It also features two nine-feet-high, "spring-fed" Waterfalls that together deliver approximately 20,000 gallons per hour.  One waterfall is positioned to massage swimmers as they sit on a swim-out bench located immediately beneath.  

Hidden neatly behind the two waterfalls is an unbelievably fantastic cave-like Limestone Grotto, home to a heated Whirlpool Spa seating five that features two smaller waterfalls and an Xtreme therapy seat for the ultimate in relaxation.  The Grotto features HDTV and a Stereo Sound System.  Both the Pool and Spa continue the home's hydro-therapeutic and chroma-therapeutic themes, providing the best of both.  

ATTIC:  accessible by a extra sturdy, 30" wide, power driven, drop-down stairway.  The attic contains approximately 500 square feet of Floored Storage, plus houses the Reverse Osmosis Drinking Water Filtration System and three of the home's six Air Handlers.  

The attic is not vented.  Vented attics are no longer thought to constitute a good building practice.  They draw in dust as well as extreme temperature and moisture variations that today's homeowner want to control and seal out. The attic's temperature is little different from that of the home's Upper Floor.

WALL-MOUNTED TVs:  The home is furnished with seven wall-mounted, high-definition television sets, including two 50" Plasmas and one 61" DLP. 

ROOFING & GUTTERING:  The standing-seam roof is galv-alum with a copper-like Antiqued Patina that coordinates magnificently with the home's absolutely awesome Gutters and Chimney Caps.  The home is Guttered with custom-made, contemporary, antiqued, solid-copper and the two chimneys are covered with solid-copper Caps.  The unique, simple yet elegant, custom designed Caps and Gutters are trimmed in brass.

HOME AUTOMATION:  the computer-age home is among the most technological advanced possible in today's world.  It is powered by an 800 amp electrical system that is sized to handle 1,000 amps.  It has a total lighting load of 565 amps and HVAC load of 240 amps.  The home contains approximately 25 miles of hard electrical wiring.  Eight miles of this wiring carries high voltage and represents 25 miles of separate voltage pathways.  The other 17 miles carries the low voltage Home Automation System.  The Home Automation company had never put so much wiring in a single home and claims its portion contains about 85 miles of direct data pathways.  Together, the two systems contain approximately 110 miles of separate data and voltage pathways, making the home potentially among the smartest and most electronically advanced in the Austin-central Texas area.

The System features Crestron Control, providing intuitive and user-friendly operation of the various sub-systems, and Vantage Lighting Control, a highly flexible and programmable system designed to meet homeowners' ever changing lighting needs.  In this home, the Vantage System is controlling more than 300 recessed and otherwise permanently-mounted lamps - indoors and out.   Household operation of the two systems is simplified through usage of stylish Keypads and Control Panels scattered throughout the home.

The Vantage Lighting System and Crestron Control System afford direct/remote control of the follow subsystems:  Whole House Audio/Video, including multiple satellite connections (six separate stations at once); Climate Control; Telecommunications; Security and Fire; Surveillance; Lighting Control; Home Theater; and High-speed Computer Access, including hard-wired and wireless computer networks (whole-house Wi-Fi).  

Operationally, using a wireless touch panel, one can browse the internet and use the personal computer, as well as maintain complete whole-house automation control of the audio/video, lighting security, HVAC, swimming pool, security, surveillance systems, from anywhere on the property, inside or outside the home.  As wireless technology continues to advance, the home has infrastructure in place to accommodate and take advantage of such improvements.  For example, an internet phone service known as" Voice Over IP" may soon become prevalent.  When desired, it could be readily integrated into the wireless system

BUILT ENERGY & ENVIRONMENTALLY SMART:   appealing to today's energy and conservation-minded buyers.  The home is protected with a radiant barrier and dura-vents covering the entire attic - a closed, unvented system.  Furthermore, the home's  94 aluminum-clad, Douglas Fir windows are independently waterproofed, insulated, low-E, double-pane by Loewen, and are sized and positioned with reference to the sun's trajectory, as are its porches.  Loewen is the supplier of America's premier wood windows, which are framed with Douglas Fir, one of America's most stable woods.  Loewen's fine windows are ranked first in the world in overall quality, as measured against all competition.  

The home has premier Hunter ceiling fans throughout for extra, conservation-minded comfort.  In addition, exhaust fans drawing fumes from hoods above the Kitchen range and Lakeside grill are mounted on the home's exterior.  The bathrooms are all tied to a huge, interconnected exhaust system that exits through the roof.

The home is insulated with the latest material, one that meets demands for a healthier home, quieter home and more energy efficient home.  It is insulated far beyond required limits with Icynene, America's premier home insulation system (www.Icynene.com).   Icynene is a flexible, water-based, inorganic, non-toxic, open-cell spray foam that is hydrophobic, meaning it resists moisture and dries quickly if wetted.  

Especially important is the fact that this unique combination of properties makes Icynene the insulation industry's best solution against mold and mildew, which feed on organic materials in the presence of moisture.   Accordingly, Icynene delivers superior energy efficiency, ultimate comfort and the healthiest of indoor environments.  

Icynene's open-cell structure also makes it an excellent sound-absorbing medium.  Accordingly, the home was extensively soundproofed to keep extraneous noise to a minimum.  Particular attention was paid to the exterior walls and the perimeter walls of all bedrooms, bathrooms and powder rooms.

It also produces an air-tight, insulated, thermal envelope that practically eliminates cold floors and drafts.  Nevertheless, the floor pathways throughout the Master Bedroom, Bath, Clothes Closet and Water Closets are heated electronically with thermostatically-controlled warming elements.

LIGHTING SYSTEMS:  All interior lighting fixtures, save for recessed ceiling cans, are custom made by Texas Lightsmith of Austin.  They feature copper, iron, brass, mica and blown glass, and range from chandeliers to sconces to pendants.  

The home contains more than 150 recessed ceiling cans, all of which are sealed to eliminate floor-to-floor sound transmission and inter-room air movement.  The light source in the typical can is directionally adjustable, allowing for a fine tuning that makes for perfectly placed and perfectly balanced lighting.  

In addition, Lucifer lighting - the "creame-de-la-creame" of linear lighting - lights the granite under-cabinet counter tops, lines the barrel vaults and accents the wall cabinets. 

On the exterior, whitish mercury-vapor lighting highlights the grove of Live Oaks street side and all 15 of the Sable Palms lakeside.  The home's front elevation is bathed in wonderfully contrasting soft golden light.

OTHER SYSTEMS:  a state-of-the-art, whole-house Reverse Osmosis Drinking Water Filtration System serves the two ice makers and four principal drinking water taps.  It has improved the Lake LBJ Municipal Utility District's water quality, as follows:  1) by reducing the District's water hardness from 13 to zero and 2) by reducing the dissolved solids content of the District's water supply from 220 parts per million to 7, making it comparable in quality to distilled water, which averages 5 to 7 ppm.

Heating and cooling are handled by a 22-ton, six-zone, 14-Seer, variable speed Puron HVAC System, featuring programmable thermostats, de-humidifiers, readily accessible, up-scale air filters.  Besides providing for the very best in home heating, cooling and water purification, we've also installed a whole-house Air Purification System that controls allergies and keeps the home fresh.  

The home is fed by a two-inch water line, enough to accommodate most apartment houses, to insure adequate pressure and volume.   Two commercial water heaters, connected in parallel to insure maximum delivery, provide whole-house hot water, which is made available On-demand.  Premium brush-nickel plumbing fixtures are throughout.   

Chores are held to a minimum with a Central Vacuum System, an automatic Irrigation System, three propane-fueled Fireplaces/Pits, and the like.  Two separate Lakeside Control Rooms serve to concentrate and organize the Home Automation, Electrical, HVAC, Central Vacuuming, Water Heating, Water Softening, Steam Generation and Irrigation Systems.  In addition, a spacious third Lakeside room takes on the dual task of a Work Shop and Swimming Pool/Waterfalls Servicing Room, whereas a fourth is set aside for Lakeside Storage - such as for Water Toys, Life Preservers, Boat Equipment, Skis and the like. 

INSURANCE:  all this is protected with a whole-house Security System, a Smoke and Fire Protection System, a Surveillance System, a Monitoring System, a Lightning Protection System, an Emergency Water Shut-Off, an Anti-Flood System, and a Surge Protection System offering the most up-to-date transient voltage and surge protection available for whole house and electronic drives..   In addition, the elevator shaft and all bedrooms are covered with and protected by fire-resistant dry wall.  We have made certain our Buyer is exceptionally well protected.  

DISCLAIMER:  LBJ LAKEFRONT makes no guarantee that the features and amenities depicted by artists' renderings or otherwise described will be built, or if built, will be the same type, size, or nature as depicted or described.  Although it is our intent to build HSB's most spectacular spec house, and believe we are well along toward doing so, we are continually exploring the market for ideas that work for best for the project and accordingly will be making changes without notice.  

For More Information: Go to:  www.HorseshoeBayWaterfront.com.

Last updated:8/28/2010.

Though we strive for accuracy in our reporting, we do not guarantee it. In particular, data can get out of date, so check things out before acting.