Austin Real Estate News

Austin’s housing market is strong, and a help to the overall Central Texas economy. The Austin American Statesman reported this news on Saturday (see Housing Market Still a Stabilizing Force for Austin’s Economy), noting that our home prices remain steady unlike hard hit areas such as Las Vegas where prices were up almost 50% before their tremendous drops. Texas also has the sixth lowest foreclosure rate in the nation, a sign that our economy is stronger than most, and another reason Austin real estate is still a good investment.

Friends of ours in Colorado have been harder hit, but recent data shows the state’s housing market seems to be turning the corner with lower inventories and fewer foreclosures. If you are interested in Denver Real Estate, be sure to check in with our friends who serve the Denver, Colorado real estate market. They can help you find a second home in Denver now so you can enjoy the 2011-2012 ski season!

Austin continues to make lists of great places to live, this time appearing in Yahoo!’s “5 Places with Good Jobs and Cheap Housing”.  The author gathered data from the U.S. Office of Management and Budget, the U.S. Bureau of Labor Statistics, Forbes, CNN, and Sperling’s Best Places to create the list.  Read the full article on Yahoo! at http://tinyurl.com/3t87vvc.

A recent article on The Atlantic website lists the “30 Most Dynamic Cities in the World” and Austin makes the list. In fact, Austin was the only American city to make the list and only one of three cities in the developed world to rank. Reasons? Austin has not been hit as hard as most places by the recession and the housing market here is still strong. Austin benefits from being the seat of the Texas government, home to the University of Texas (and therefore home to jobs in education and research), and a draw for high-tech businesses.

That’s good news for us…and another reason why buying and/or selling Austin real estate may be a great move for you. Let Reilly Realtors know if you are ready to buy or sell in the Austin area. Our expert Realtors would love to hear from you. Call us at 512.600.1800 today!

“Housing Bulls Should Try Texas” – that’s a featured story in today’s Wall Street Journal. The main reasons given in the article are:

• Demand – 19% population growth in the last ten years, strong economy, and below average unemployment (8.3%).
• Laws – After the 1980s real estate bust, Texas enacted laws to keep investors from taking advantage of the real estate market. Plus Texas has “tight limits on home equity lines of credit” helping to keep foreclosure rates lower than most.
• Taxes – Since Texas is one of the few states that taxes property, but not income, demand for high priced homes (with high taxes) is smaller.
• Supply – Thanks to the environment in which Texas home builders work, new home supply is pretty much in balance with demand – in Austin it’s a 3 months supply (other states have over 10 months worth). Additionally, Texas has not seen a glut in the lot market. For example, in Austin there is a 37 months supply (24 months would be great – and Austin is seeing a decline in supply) – whereas cities like Denver and Phoenix have 90 months and 98 months respectively.

So, investors should take a look at new Texas home builders. And those interested in purchasing a home in Austin should find more confidence with data like this.

Please let us know if we can help you with an Austin real estate purchase or sale. Our professional REALTORS are ready to serve you! Call Reilly Realtors at 512.600.1800.

The Austin Board of Realtors reported last week that home sales are up 27% in March as compared to March 2009. ABOR attributes this substantial increase to the home buyer tax credits set to expire April 30th. The median for home prices remained at $180,000.

Builder Online just updated its top healthiest housing markets, and Austin came in at #1. Here’s why:

“Even though it took a step backward during the last six months, Austin happens to be the only market on our list that is genuinely close to healthy. Home prices, which rose in 2008, finally declined this year—they are down 4.6% through September—as this Texas metro ended a long run of employment growth and lost some jobs. But its population has expanded by 4.3% during the first half of 2009, which should add housing demand and help firm up home pricing. It was the same story with Austin-area employment numbers, which remained in positive territory until mid-2009, when its manufacturing segment began losing jobs. Still, unemployment in this progressive city runs only about 7%, significantly below the national average. Dell Computer is Austin’s largest employer, with about 17,000 jobs. Austin continues to draw population, especially retirees, with its low cost of living, inexpensive housing, and warm-weather climate. The city had the third highest household growth rate in percentage terms among the top 100 market. Even so, permit activity fell by 38% during the first half of the year.”

Read the whole story here:  Healthiest Housing Markets 2009: Fall Update

The Wall Street Journal reported last Wednesday that Austin ranks #5 in its list of “11 Post-Recession Boomtowns”.  “The Wall Street Journal sought out six of the nation’s leading experts to rank the 10 U.S. cities they see as most likely to emerge as ‘youth magnet’ cities after the recession—popular target destinations among young, college-educated, often single people setting out to start a career, find a mate or both.” While the Journal itself notes that the rankings are not scientific (calling the effort a “parlor game”), expert demographers, economists, geographers, and urban issues authors were among the panelists.

The rankings appear below, as well as the details on why Austin made the list.

1. Washington D. C. (tie)

2. Seattle (tie)

3. New York City

4. Portland, Ore.

5. Austin, TX

6. San Jose, CA

7. Denver

8. Raleigh Durham, N.C.

9. Dallas

10. Chicago (tie)

10. Boston (tie)

“Fifth Place:  Austin, Texas

Topline: Nobody ever has anything bad to say about Austin. At least that’s what its fans say.

A state capital and site of the University of Texas’s biggest campus, Austin has become a gathering place for tech- and arts-minded young adults. The city has significant high-tech, computer and electronics sectors, helping make it “a model for a thriving 21st-century knowledge-based community,” one panelist says. Its annual South by Southwest media and arts conference and the yearly Austin City Limits music festival draw hundreds of thousands of visitors. Plus, the climate is cooler than most of Texas, and the cost-of-living is well below other cultural hot spots.

Downside: Some panelists have doubts about how strongly Austin will rebound after the recession. ”

See the full story at The Next Youth-Magnet Cities.

The Austin Business Journal reported on Tuesday that IHS Global Insight, an economic research firm in Massachusetts, shows Austin and San Antonio topping the list for recession recovery in the United States. According to the research firm, both cities should be back to their pre-recession employment levels sometime next year.

That’s good news for Austin and our housing market. For those of you looking to buy, this could be a sign that now is the time…while sellers, perhaps the grass will be greener next year if you are able to wait to sell.

Read the full report on the ABJ site at: Austin among best performing U.S. Metros

If you are interested in buying or selling in the Austin area, please give us a call. Our real estate experts would love to help! 512.600.1800.

The Austin Board of Realtors (ABOR) compiles monthly statistics for the Austin real estate market. Below is a chart from ABOR showing data for the month of June 2009 as well as the summary posted by the Board.

July 20, 2009 – According to the June 2009 Multiple Listing Service report by the Austin Board of REALTORS®, the volume of single-family home sales in June 2009 was 2,135, down four percent from June 2008, and the median price was $199,900, unchanged from June 2008.

“We’ve seen the year-over-year gap in sales volume close steadily throughout 2009 and that momentum continues this month,” said Jay Gohil, Chairman of the Austin Board of REALTORS®.

Home prices in the Austin area have also continued to gain momentum from the beginning of the year. Over the first two quarters of 2009 (January 2009 to June 2009), the average sale price for a single-family Austin home has increased $20,824, while median sales price has increased $24,400.

Also, from January 2009, sales volume is up 61 percent and active listings are up 14 percent. “This signifies a healthy Central Texas real estate market and good news for both local home buyers and sellers,” said Gohil.

June 2009 Statistics
$537,981,570 was the dollar volume of single-family properties sold

$199,900 was the median price, unchanged from one year ago

2,135 was the number of homes sold, a 4 percent decrease compared to June 2008

The Austin Board of REALTORS® is a non-profit, voluntary organization representing more than 8,000 licensed REALTORS® in Central Texas.

Forbes.com has ranked Austin #1 on their new “America’s Best Bargain Cities” list. Citing the country’s lowest unemployment (5.5%), salaries, cost of living, and the Housing Opportunity Index, Forbes.com states “Austin is the place where people pay the least to get the most.” We like the sound of that, and hope it gives you another good reason to buy Austin real estate.

Great Austin Properties would love to make your next Austin home purchase even sweeter with our new Buyer Cash Back Program. Buy with us and we’ll give you 25% of our commission back when you close! Call us at 512.600.1800 and let us help you get a great deal!

Read the entire Forbes article at America’s Best Bargain Cities.