A note from the Austin Home Pro…
The Austin real estate market has long been the economist’s stronghold on optimism, because our strong local economy centered in an economically strong state continues to beat the “doom and gloom” odds. Despite falling home prices around the nation, Austin has held strong. Due to Austin’s slow and steady growth even during booms elsewhere in the country, Austin has little of a boom to bust. Although national economic feats have affected our local market, the stability of Austin real estate continues to impress top experts around the country.
Ranked the healthiest by online industry magazine
AUSTIN (KXAN) – A homebuilding industry online magazine has ranked Austin the nation’s healthiest housing market. Builder Online cites low unemployment and high demand as reasons why the Austin market is making a comeback.
Home prices in Austin were still going up last year, unlike most of the country, but they have finally started to fall. The latest numbers show home prices down 4.6% in 2009.
“Clearly we’re not as good as we’d like, obviously we’d like for things to be better but still it gives you some feeling of assurance that things aren’t as bad as some people are having,” said Harry Savio with the Greater Austin Homebuilders Association.
Builder Online notes that Austin’s population grew by more than 4% during the first half of this year which created demand and will help to firm up home prices.
“The fundamentals are there for housing to continue to grow,” said Savio. “We don’t have a lot of inventory, we don’t have a lot of excess houses on the ground.”
This next article I found is from The Wall Street Journal. It shows a great long-term trend for Austin homebuilders to keep in mind. “Knowledge workers” will increasingly play a strong role in the economic health of this community. Startups and company growth depend on having a well educated work force and Austin is well positioned with 120,000 students enrolled in some type of upper education program. That number grows to 300,000 when you look at a 200 mile radius – all of whom would probably choose to live in Austin given the opportunity. This article lists Austin in the top 10 post-recession boom towns for the young and ambitious. I think this is very important to keep in mind when determining what type of product you are going to need to create in the future.
For buyers… Now is still a great time to buy because rates are still at historical lows. If you’re in the market, buy now because interests rates are headed up and it could be fast from what we’re seeing. Take advantage of low prices on homes, but don’t expect to buy a home 1/2 price, because those instances are still few and far between, especially in the under $1M market. Over $1M, there may be a few new homes by relatively new builders at heavy discounts, but I still recommend buying a new home with a seasoned, reputable builder who can provide you with a rock solid home warranty (and years of experience in building homes with few to no issues). If you’re on the fence waiting for the bottom of the market, get off the fence because it looks like you’ve already missed it. Most sellers have little patience for the “bottom feeder” calls and offers… you’re very likely not the first one to make an insulting 40-50% off offer and most sellers are being cautious these days by not buying a new home until the old one sells. Make a reasonable offer using comparable sales as back-up. Most homes are already priced for the market in order to sell in this market.
For everyone… Don’t forget that this isn’t the first downturn we’ve seen in Austin. It’s not even the first downturn we’ve seen this decade! (9/11 and .com bust anyone?) It won’t be the last. The moral of this story? Don’t panic! Make smart decisions and if you are new to the real estate market (or have other ways you’d rather spend your time) hire a seasoned, experienced, knowledgeable Realtor®, not just any agent because there is a serious business when it comes to making the best and brightest calls in a volatile market with consumer confidence all over the board like we are currently experiencing.
Huge $80k Price Reduction, now only $699,000!
The city of Austin is proposing a new tree ordinance that would require that more trees be planted and older trees would be preserved under proposed rules that the Austin City Council will consider TODAY. The proposed rules would require developers to plant more trees in new subdivisions and in the parking lots of commercial projects, sucha s shipping centers and office complexes. The rules would also prevent landowners and builders from cutting down large, older trees unless they first sought a variance from the city.
