Austin Real Estate News

Nationally, mortgage interest rates are down substantially in the last week thanks to the Federal Reserve’s announcement on November 25th to buy up to $500 billion of securitized home loans. According to Bankrate.com, ”the average rate on the 30-year fixed was 6.33 percent Nov. 19.” Today, Bankrate.com is reporting that rate at 5.92%, the lowest it has been since February of this year. An online search for rates for an individual with good credit seeking a 30-year fixed for an Austin area home purchase shows rates close to 5.5%. With low interest rates and sellers who need to sell, it’s a great time to buy an Austin home.

Call us at 512.600.1800 – we have REALTORS ready to help you find an Austin home today!

The Austin Board of REALTORS® (ABOR) compiles monthly home sales statistics. Here is a snapshot from ABOR showing just released sales data comparing September 2007 to September 2008.

This data shows a slowdown in the Austin housing market, with a decrease in homes sold of 8% and a 2.4% increase in active listings. Fewer homes are pending as compared to this same time last year (a 10% decrease), an indicator that sales data for October will likely be down as well.

The good news for those interested in purchasing a home is that it’s a buyer’s market – more homes from which to choose with fewer buyers. And for everyone, the good news is the Austin housing market is more stable than most parts of the country, and considering the economic uncertainty around the globe, that’s good news indeed.

These are crazy economic times - leaving many reconsidering thoughts of buying Austin real estate. We’ve got good news for those of you on the fence: money is out there, and Austin is the place to buy.

It’s true that subprime Austin home loans are now nearly impossible to get and expensive when they are offered. In addition, banks are scrutinizing all loans these days to mitigate risk. That means even prime borrowers (people with good credit and an income and loan-to-value (LTV) ratio lenders like to see) will have to show more documentation on their income and appraised property value.  The good news is banks are still lending for Austin home purchases. In addition, rates appear to be coming down (at least in the short term according to some experts – rates are quite volatile overall). Today, a 30 year fixed rate mortgage for an Austin home purchase is around 6.35% and a conforming 5/1 ARM is at 6.06% (source: kxan.com). These are still historically low rates - in the 1980’s rates were in the double digits.

So you may just be able to get a loan after all, and the rate may look great but the question remains, should you buy an Austin home?  Here are a few reasons to buy:

1. Austin is ranked #1 by Forbes for Best Bang for the Buck.

2. Deals are out there!  The Austin Board of Realtors reported slight increases in the average sales price for the Austin area in July and August, but September saw a 3.2% sales price drop, indicating a good time to purchase an Austin home.

3. Austin is seeing job growth.  The Austin economy is faring well with a 2.4% job growth increase in August since the same time last year, and only a small rise in unemployment (up from 4.4% to 4.5%). Read more about Austin’s job growth on our recent blog post:  Austin Job Growth – 2nd Nationwide.

These are good reasons to buy, but if you are new to the area, you also need to know that Austin is simply a great city to call home. Ask around and you’ll find that the weather is sunny practically year round, we boast an affordable cost of living, the music scene is second to none, recreation opportunities abound, our workforce is well educated and highly skilled, and the city itself is vibrant and beautiful!

Ready to move? Give us a call at 512.600.1800 and we’ll help you find great Austin real estate today!

Those with interest in home design have likely heard of Sarah Susanka’s ingenious book, The Not So Big House. Ms. Susanka encourages readers to consider how spaces in a home are used rather than how big they are – the idea of building homes that fit and function well rather than overwhelm.

In the high-end market it’s rare to find a small home with luxury finish-out. That’s in part because so many of us equate luxury with high square footage, and partly because it’s more profitable for builders to create large spaces with luxury details than smaller ones. Think about it. A small luxury home may have the same appliances, toilets, bathtubs, and light fixtures as a larger home, but because the framing materials, sheetrock, trim and other materials needed to construct a larger home is a small incremental cost, a builder can charge less per square foot and appeal to a larger audience with the large luxury home. 

Once in a while, though, a small luxury home does become available – and in today’s Austin real estate market, you may find small luxury homes you couldn’t build for today’s purchase price. As an example, look at the photos of this small luxury home in Spanish Oaks Austin. At 3,233 square feet, it’s one of the smallest homes in the neighborhood, but the attention to detail the builder put into the home is second to none. Eight hanging fixtures grace the open living and dining room, fir beams add structural interest in ceilings, and a built in banquette and large center island help create a kitchen that truly is the heart of the home. At $900,000, this home is a steal for Spanish Oaks, and a value to anyone who knows the Austin luxury real estate market.

To learn more about this home visit www.11919labarzola.com. To schedule a showing for 11919 La Barzola Bend or to learn more about other Austin Homes for Sale, please contact Michael J. Reilly at 512.600.1800.

The Austin Board of Realtors reported this week that Austin area home sales fell nearly 21 percent in July compared to this time last year.  Although the sales drop was spread across all price ranges, the majority of the reductions in sales came from the high and low end of the market.  For example, homes in the Austin area priced between $100,000 and $129,000 saw a 30% drop in sales from July 2007. Worse, homes priced over $1,000,000 experienced a decline of 33% for the same time period.  Compared to the rest of the nation, the value of an Austin home is holding up extremely well. The median price of an Austin area home is up 3% to $195,000 compared to this time last year. On another positive note, new home listings in Austin fell 5% which could help contain values as the inventory of available homes fall in line with the reduced number of buyers.

The Austin Business Journal reported comments today from Mark Dotzour, chief economist at Texas A&M University’s Real Estate Center. Mark predicted that “Austin will outperform the rest of the country in job growth and in the health of its housing market.”  The ABJ went on to quote Mark saying “Austin will add 8,500 new jobs between now and August 2009, despite a negative job growth across the country. The local housing market will turn around faster than the rest of the country by next summer”.  

Here at Great Austin Properties, we can’t help but like Mark’s optimism. As a leading website for Austin real estate, we have the opportunity everyday to talk with people moving to Austin. Whether it’s the beautiful scenery of the hill country and lakes, the culture of central Austin, or a growing job market, we hear the same thing over and over… folks want to move to Austin, Texas.
 

Austin, Texas is known for its real estate affordability as compared to other idyllic places to live. While one million dollars in a city in California just might get you a fixer-upper, in this Texas town that’s far from the case. For example, check out this newly listed home in one of Austin’s most sought after communities, Spanish Oaks. For $1M on the nose you could live at 11919 La Barzola Bend:

We highlight this home not only because it’s our newest listing, but also because we think it’s one of the finest homes at this price point we’ve seen. And we’ve seen a lot of homes. Besides the great location in Bee Cave with easy access to Highway 71, 290, Southwest Parkway, and FM 2244 (Bee Cave Road) and across the street from the new Hill Country Galleria, 11919 La Barzola sits on a hill behind the 24/7 guard gated entrance in Spanish Oaks. The attention to detail is what sets the home apart as you can see from the photos on the 11919 La Barzola Bend virtual tour website. 

If you are interested in this home or other Austin homes for sale, or if you just want to learn more about Austin real estate, please contact Michael Reilly at 512.600.1800. Or start your Austin home search using the great search tools at AustinHomeListings.com. 

According to Forbes.com, Austin is one of the top 10 recession-proof cities in the United States. With one of the lowest employment rates in the country (3.6%) and median home prices under $200K, Austin appears to be doing quite well. 

The Austin Board of REALTORS reported the median price for single family homes was $186,680 this March, which puts Austin in the top 5 of the 10 recession-proof cities as far as affordable housing goes.

Ready to put recession woes behind you? Austin may be just the place to call home. Start your search for Austin homes for sale with a great search tool and loads of neighborhood information at AustinHomeListings.com.

Reference: America’s Recession-Proof Cities by Joshua Zumbrun, Forbes.com, April 29, 2008

Many economists don’t expect the housing market to turn around nationwide until next year, but we’re hoping the optimism of the Wall Street Journal’s Cyril Moulle-Berteaux is more on target. In his opinion column today, he states “It is very likely that April 2008 will mark the bottom of the U.S. housing market.”  From the 1990s to the early 2000s the housing market boomed, making affordable housing out of reach for many buyers. Mr. Moulle-Berteaux predicts “the market will turn because normal people can afford homes again.” And as normal people start buying, home prices typically stop falling – or at least home price declines start ebbing.

In Austin, we’ve been somewhat sheltered from the housing slow down. While nationwide the housing inventory is 11 months (the highest it’s been in 25 years), Austin is currently at about 5 months supply which signals a healthy market.   

So if Mr. Moulle-Berteaux is right that the nationwide housing market is trending up, that’s good news for the country, and great news for Austin.

Start your Austin real estate search now.

Reference: The Housing Crisis Is Over by Cyril Moulle-Berteaux, The Wall Street Journal, May 06, 2008

AMD, Borland, Paypal, and others are setting up shop in Austin. The Wall Street Journal reported last Thursday that the reason is the relatively cheap Austin real estate and our highly educated work force. Those being the major drivers, we can’t help but point out the Austin scene has to be another big draw – the lifestyle Austin affords is hard to beat with abundant outdoor recreation opportunities, a great night life, new shopping, and unique neighborhoods.

Recreation includes in town hiking, biking and jogging around Town Lake (recently renamed Lady Bird Lake), swimming at Barton Springs, and soccer and disc golf at Zilker Park just to get started. The Veloway, Barton Creek Greenbelt, Hamilton Pool, and Lake Travis are additional draws for outdoor enthusiasts.

And night life? Restaurants like La Traviata, Uchi, Moonshine, Asti, and Jeffrey’s continue to impress. And an Austin stay without experiencing a little of Sixth Street, The Saxon Pub, Continental Club, or The Backyard would mean a missed opportunity to see why Austin has earned the moniker of Live Music Capital of the World. If you can, try to catch a show with The Mother Truckers, an Austin original.

And shopping? Trendy shops on South Congress and those near Lamar and 6^th keep Austin unique, and new shopping at The Domain and the upcoming Hill Country Galleria in Bee Cave bring upscale shopping to the area and prove that Austin is indeed a hot spot for growth.

And the neighborhoods? That’s what Austin Home Listings knows best. Be sure to read up on and see pictures of popular neighborhoods like Pemberton, Belterra, Hyde Park, and Lake Pointe in our Austin Neighborhoods Guide, or search for listings in 100+ neighborhoods using our neighborhood QuickSearch at the top right of this page.

We’ll admit to being a little biased, but we agree with people making the decision to move business and families here. It’s hard to beat the Austin lifestyle.

If you want to learn more about Austin Texas Real Estate, we would love to help! Contact Great Austin Properties – the Real Estate Brokerage that brings you AustinHomeListings.com – at 512.600.1800.