credit crunch

After developing and selling out 360 -- one of the most successful downtown projects -- Novare Group announced in 2008 that they would build two new towers on Block 51 & 52.

The prime downtown blocks, one the site of the downtown post office and the other on an adjacent block to the West of the post office, were to contain 900 condo units in two 37 and 40 floor towers which were to be completed by 2012.

Before the economy entered a total nosedive, the first signs of real estate problems began with the credit crunch and out-of-control mortgage rates.

Starting 18 months ago, mortgage rates began to spike -- especially for jumbo loans over $417,000.

First, AquaTerra was cancelled.

Then the Monarch converted from condos to rental units. 1155 Barton Springs was indefinitely postponed.

These days, the national mortgage crisis is big news. As home prices drop, delinquencies rise, and foreclosures continue to grow, the national picture remains bleak.

There has been lots of mixed news on the national and local real estate front over the last few months -- so it is a relief to see good news from BartonPlace Condominiums.

The Austonian, a 56-story tower at 2nd and Congress that would become the tallest building in the city, staged an elaborate "ground-breaking" ceremony today to signify the beginning of construction.

While the ground-breaking does hold real symbolic value, it did not involve much in the way of construction equipment.