Filed under: Real Estate
About a week ago, I heard on NPR a new proposal to bring mortgage interest rates down to 4.5%. My husband did some research and found that the group making the proposal is the Home Builders Association, and they are asking for these rates for new construction homes. That won’t go over well with all the homeowners and Realtors trying to sell their resale homes, nor with banks needing to get foreclosed homes off their books, nor with mortgage brokers who are excluded from the new construction market due to the home builders owning their own mortgage companies. The only people that legislation would be good for are the home builders!
Recently the National Association of Realtors sent me a survey asking if the proposed new rates were enticing buyers to buy homes. What a silly question. If a buyer thinks he/she has a chance of getting a mortgage in a few months at an all time low rate of 4.5%, why buy now? The effect of the announcement on NPR was detrimental to the real estate market – because now buyers have yet another reason to sit on the fence – waiting for prices to reach rock bottom, and now also waiting for interest rates to hit rock bottom. What needs to happen is for someone in the federal government to make and announce a final decision as to whether or not they plan to pass legislation that would force interest rates down to 4.5% and if so, when.
In the meantime, interest rates really are at an all time low for fixed rate loans. Previously a buyer had to get into an adjustable rate mortgage to get a 5% or lower rate, while now you can get a fixed rate mortgage at or slightly above 5% with good credit and depending on what day or time you lock your rate, maybe a point or two paid. And while prices might go lower still than they are now, that’s not a given in the Austin area. We are still seeing many people moving here from other places, and with our economy remaining better than many other cities, I don’t see that changing. Springtime is always a better time to sell, since more people are out buying, and prices tend to go up slightly in the Spring when there’s more demand.
What all this means is that NOW is an excellent time to buy… if you need to buy. And if you have the luxury of being able to buy a home first, move out and then sell your existing home, the timing can’t be better. Buy in January when prices are down and sellers are highly motivated, close in February, and list in March. That’s the optimal situation.
Filed under: Real Estate
If you are a horse enthusiast looking for a new home – this may be the property for you! For a price of $540K, you get 7.62 acres, hill country views and privacy, an updated 4200 sq ft home, an Olympic regulation dressage arena (professionally installed), a custom 4-stall barn, and three fenced pastures! What you get is an exceptional, one-of-a-kind property in the Austin area. This type of property can NOT be found in Austin proper for this price, but drive north on 183 to Leander, still in Travis County, and exit at 2243 going west. This is about a 30-minute drive to central Austin without traffic. See lots of pictures here. Or call Vikki Goodwin to request your private showing, 512-426-9090.
Filed under: Real Estate | Tags: Austin real estate, Southwest Austin real estate
I recently saw this home with clients who loved it except for the fact that it is a 2-story home. These clients did end up buying a 1-story home, but they wanted to be sure they didn’t miss anything before making that decision. This house was high on their list because they love big back yards and particularly those with privacy. This house backs to a greenbelt and the yard has wonderful mature oaks. The home itself is full of vibrant colors (which my clients and I liked), upgrades (granite in the kitchen and wrought iron railing up the stairs) and lots of popular features (3-car garage, theater room, large island kitchen that’s been updated). I’m really surprised this home is still on the market. It is reasonably priced at $360K for 3121 sq ft – a steal for this quality in Circle C. To see the home, call Vikki Goodwin, Homes ATX, 512-426-9090.
For those who want to feel like they are in the country without being so far from the city, Granada Oaks is a wonderful compromise. The new custom home section has beautifully designed homes set on 1 acre lots with many trees around, and it’s close to the intersection of 290 and 1826. One house in particular recently caught my eye. It is currently priced at $599K which seems like a bargain for what you get. The home has beautiful finish out and a nice floor plan. It is on a cul-de-sac at the back of the neighborhood, so traffic will be minimal. The schools are excellent – Clayton, Mills (soon to be the new SW MS), and Bowie. Take a look at some pictures and details, or call for a showing, Vikki Goodwin, REALTOR, Homes ATX, 512-426-9090.
Filed under: Real Estate | Tags: Real Estate, Southwest Austin real estate, SW Austin
When you step into the backyard of this home, you will know that UT alumni have lived here! Aggies – you might have to refinish the pool before moving in. The interior of the home will appeal to just about anyone, though. It is a beautiful home with many upgrades, in a neighborhood that is convenient to MoPac and downtown, and close to excellent schools, including Bowie High School. Some of the upgrade features include wrought iron railings going up the stairwell, Plantation-style shutters, upgraded light fixtures and wood floors. This home has a lot of space – 3262 sq ft – and is priced at $329,900! That’s a deal for a SW Austin home with a pool and upgrades! See more pictures and details.
With all the negative news going around, I’d like to reveal something positive, and that is the average sales price of an Austin home is higher now than ever before, at $262K. Given the higher inventory and decline in sales, this is a little surprising. However, another important factor is this – new construction starts are down 70% from a year ago. That’s a huge change that is helping the resale housing market here.
The primary explanation for the higher average home price is that we still have an influx of people coming from higher priced markets – such as California, Florida and New York. Our labor force increased from 849K in Aug. 2007 to 870K in Aug. 2008, according to the Greater Austin Chamber of Commerce, and I know some of that increase is due to people moving in from out-of-state. I expect this to continue through 2009 at least. After all, besides having cheaper houses, we also have cheaper gas, and a lower cost-of-living overall.
Another explanation for the increase in the average sales price is that buyers continue to want larger and fancier homes. While a 1700 square foot house used to work for a family of four, with all the things we acquire, that same 1700 square foot house gets crowded fast! The average size of a home continues to increase, and the materials we put in them tend to be more expensive.
My forecast for the coming year is that the average price will remain stable, but it will be more and more of a buyer’s market. If you plan to sell, you will need to spend more time preparing the home, rather than just putting it out there on the market. Repair items left undone will ensure your home sells slowly, not at all, or for below average price. A properly staged home, on the other hand, will sell more quickly and for more money.
Filed under: Real Estate | Tags: Austin homes, Austin real estate, West Austin homes
Located in a gated community off of Barton Creek Blvd. in west Austin, this 3900 sq ft home is absolutely beautiful. Some of the details that set this apart from other homes in the area include the beautiful front doors (nothing standard about these doors), the ceiling feature in the formal dining room (hand stenciled artwork that is subtle, not too bold), the granite selection for the kitchen, the private covered patio off the master bedroom, the view from the study and the view from one of the secondary showers! The pool is also well done – not too large and not too small – and the yard is just large enough for running around, yet not too high maintenance. I can’t think of any negatives except for the steep driveway and the proximity to the neighboring houses, both of which are typical of this neighborhood. To view this home online, click here. To see it in person, call Vikki Goodwin, Homes ATX, 512-426-9090.
I often talk about how important schools are to real estate values. There is certainly a correlation between how well the public perceives a school is doing to how well the neighborhood maintains property values. And because the schools are so important, I’ve joined a group called AISD Up Close. The Austin Independent School District hosts a monthly meeting for the group of individuals to learn more about the schools in the district, to ask questions, and to provide input. As a member of this group, I receive updates at least weekly about various things going on in the district. Today I learned that Office Max is giving about $1200 worth of supplies each to seven different teachers in the AISD. The program is called “A Day Made Better”, and the supplies are going to schools with a higher percentage of economically disadvantaged children, and specifically to teachers who have shown innovative approaches and exceptional dedication. I applaud this effort and hope Office Max will continue the program on an annual basis. The more emphasis we put on rewarding dedicated teachers, the more likely they will stick around longer. This in turn will have a positive effect on property values.
Filed under: Green Homes, Real Estate | Tags: green built homes, Green Homes
This week I visited 3 homes, two 5-star and one 3 or 4-star rated homes by Austin Energy. They were all beautiful homes in North/Central Austin. The first home dazzles you as you enter the house with a decorative stone wall with contemporary art niches. The colors and materials throughout the home are well chosen. The backyard is also really nice – big and backing to a wet weather creek. The rooms are all spacious and the floor plan is very usable. The second home is also a great home with a nice floor plan and yard. Being smaller, this one is not as expensive, and might be a great home for someone trying to stay under $500K. The third home was extraordinary. I really liked the large gameroom overlooking the beautiful yard full of trees, and the balcony off the master bedroom. There are some wonderful surprises in this home, from the shower in the master bathroom on down to the huge fridge in the kitchen. The seller says electric bills have run around $60/month in this 5-star green home!
Filed under: Real Estate
I think it will. Although this is not really a credit, it’s more of a loan, I think quite a few people will take advantage of it and will spend money on furniture or items for the home. Why wouldn’t they? If the government offers $7500 – as a credit on your tax return – and you can image many ways to spend that money…. hmmm… The important thing to remember is that the full amount must be paid back to the government over a 15 year period, or $500 per year (there is no interest charged on the money, which is nice). Ok, so the idea is to help first-time home buyers who might be needing some cash to make the deal work, but you don’t get the money until you file your tax return, likely after you’ve bought the home. So, if you can scrape together the cash to close on the house, then you get $7500 after the fact, you’re likely to spend it on stuff to go in the house, or repairs/upgrades, etc. I’m not sure that’s bad, and I really do think it will put more money into the marketplace. My advice is just to realize you do have to pay it back, and saving money might be a better alternative.
