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!

Today’s Austin American Statesman reports that “Austin-area existing home sales were up 14 percent last month compared to a year earlier” (see Home Sales Improving). Over the last two months, our brokerage has seen the increase, and we’ve noticed fewer homes than normal on the market. The improvement in the economy and the popular Spring buying season lead us to believe sales will continue to increase. These factors also mean that great deals are disappearing quickly, so buyers need to know the market and act fast when a potential home becomes available.

Having a Reilly Realtor on your side in a tightening market could mean finding THE house before others do. And if you are considering selling, let our marketing and sales skills go to work for you. Call us at 512.600.1800 and let us know how we can be of service!

“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 following information is from the Austin Board of Realtors website:

Austin Board of REALTORS® releases November 2009 real estate statistics

December 21, 2009 – According to the Multiple Listing Service report by the Austin Board of REALTORS®, the volume of Austin-area home sales continues to surge, increasing 58 percent in November 2009 compared to November 2008.

“This is the largest increase in year-over-year homes sales the Austin market has seen in more than ten years,” explained Jay Gohil, chairman of the Austin Board of REALTORS®.

In November 2009, there were a total of 1,576 home sales, contributing $377,603,296 to the local economy. The median home price for Austin in November 2009 was $179,000, a two percent decrease from the same month the prior year.

“The combination of steady home prices with increasing demand is very encouraging for the Central Texas real estate market,” said Gohil.

In the face of increasing sales volume, the Austin real estate market is seeing a decrease in home inventory.  The Real Estate Center at Texas A&M University cites 6.5 months of inventory as a balanced market, meaning demand for homes is evenly balanced with inventory of homes for sale.  At approximately 5.4 months of inventory for November 2009, demand for homes in the Austin real estate market is slightly outpacing inventory.

November 2009 Statistics

• $377,603,296 – Total dollar volume of single-family properties sold, a 62 percent increase from November 2008.
• $179,000 – Median price for single-family homes, a two percent decrease from November 2008.
• 1,576 – Single-family homes sold, a 58 percent increase from November 2008.

If you are looking for Dallas Fort Worth Texas Real Estate: Nu Home Source Realty is one of the premier real estate companies in the Dallas Fort Worth Area. They offer professional end-to-end real estate services in the areas of Pre-Existing Homes, Brand New Homes, Lease-Rental homes, Credit Repair and all other associated real estate services.

The Austin Board of Realtors (ABOR) just released October sales data, and there’s good news for home sellers in the Austin area – home sales surged for the month. “In October 2009, 1,823 homes were sold, a 38 percent increase from 1,322 in October 2008.” (ABOR October 2009 real estate statistics)

ABOR notes the increase is likely due to the first time home buyer tax credit. Since the government extended and expanded this tax credit, we hope to see home sales continue to rise.

Here is a snapshot of the market provided by ABOR:

Learn more about Austin Real Estate through our Austin Homes for Sale search or by calling Reilly Realtors at 512.600.1800.

The National Association of Realtors reported today that nationwide, home sales are up 7.2%, for a fourth consecutive month of national home sale increases. The Austin board of Realtors reported positive news for July sales as well. Austin home sales volume for 2009 is equal to the 2008 volume for the first time this year while the median home price is only slightly lower than the median price in July 2008.

You can read more about the national report at “July Home Sales Surge More than 7 Percent” on Yahoo Finance.

For more on Austin’s market in July, see the information below from the Austin Board of Realtors:

Austin-area home sales volume continues momentum, reaches 2008 pace for July
Austin Board of REALTORS® releases July 2009 real estate statistics

August 20, 2009 – According to the July 2009 Multiple Listing Service report by the Austin Board of REALTORS®, the volume of Austin-area home sales reached 2008 levels for the first time this year.

In July 2009, 2,069 homes were sold, statistically unchanged from the 2,068 homes sold in July 2008. The median home price for Austin in July 2009 was $191,500, a two percent decrease from the same month the prior year.

“The sales volume momentum in Austin continues, now reaching 2008 levels. That’s good news, but I think it’s even better news that we’ve achieved that increase while maintaining a steady median home price,” said Jay Gohil, chairman of the Austin Board of REALTORS®. “Throughout 2009, the median price has fluctuated only slightly compared to 2008.  Looking back further, prices have remained above 2007 levels, one of the most lucrative years of the last decade in Austin real estate. That long-term price stability, particularly in the face of market fluctuations, bodes well for Austin’s future.”

July 2009 Statistics
$508,810,549 was the dollar volume of single-family properties sold

$191,500 was the median price, a two percent decrease from one year ago

2,069 was the number of homes sold, unchanged from July 2008

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

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 is speaking highly of Austin once again. Our city just ranked #1 on their “Best Cities for Recession Recovery” list posted on June 10, 2009. Forbes gives credit to our relatively low unemployment rate and diverse economy that includes the University of Texas, Texas government, and high-tech employers like Dell.

Other good news more specific to the real estate market is that nationwide pending home sales are up for the third month in a row. The National Association of Realtors® says “buyers are responding to very favorable market conditions.” These conditions include more affordable home prices, record low interest rates, and the rush for first-time home buyers to purchase homes before November 30th in order to benefit from the up to $8000 tax credit.

Sources: Forbes.com The Best and Worst Cities for Recession Recovery and NAR’s Pending Home Sales Up for Three Months in a Row

If you are a first time home buyer, you are probably aware of the First Time Home Buyer Tax Credit. Essentially, you may qualify for a tax credit of up to $8,000 (10% of the home’s purchase price) if you are a first time home-buyer (or have not owned a principal residence in the last 3 years), you purchase the home between Jan 1, 2009 and December 1, 2009, and you meet certain income caps. You can learn more about the tax credit at: http://www.federalhousingtaxcredit.com.

This month there is new news related to the tax credit:

“Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a down payment.” (Realtor.org May 12,2009) This means FHA approved lenders will now be able to offer short-term bridge loans to first-time home buyers, allowing them to use their tax credit as a down payment.

If you are a first-time home buyer and ready to purchase an Austin area home, we hope you will call Great Austin Properties today at 512.600.1800!

Freddie Mac said today that “the average rate on 30-year U.S. fixed-rate mortgages dropped for a 10th consecutive week as of Thursday, to 5.01 percent, after the Federal Reserve launched its plan to lower home borrowing costs.” Freddie Mac’s chief economist elaborated by saying “mortgage rates have dropped nearly 1.5 percentage points since October, creating a savings of about $184 per month on a $200,000 loan.” This is good news if you are in the market to buy a home…and good news for those of you selling with new refinancing opportunities, and hopefully more buyers interested in taking advantage of the unprecedent rate drops. Read the full article at CNBC.com.

Call Great Austin Properties at 512.600.1800 to buy and sell Austin real estate – rates won’t stay this low forever!