Filed under: Real Estate | Tags: Austin, Austin real estate, market outlook, Real Estate, Vikki Goodwin
Similar to the way people call their lenders and ask them to let them know when interest rates are at their lowest point, buyers are now calling their REALTORS® asking them to let them know when the real estate market hits the bottom. Honestly, I think that time is now and here’s why:
1) Financing has become extremely tight for builders, particularly custom builders in the higher price ranges, as well as for buyers getting loans.
2) Sales of homes started slowing down last August when many homes were under construction. Some resale homes are still on the market.
3) Demand is low due to difficulty in buyer’s obtaining financing.
4) Construction has slowed down considerably meaning the inventory of new homes is decreasing.
For the many real estate segments it is a buyer’s market. But with the slowdown of construction, and with an increase in availability of loans, the supply and demand will shift. For buyers who make offers this year, deals can be made. Once the inventory shrinks, sellers will gain more control.
Oh, and the last reason, lots of people are moving to Texas, and Austin in particular. I continue to sell more homes to people moving in, than homes of people moving out. Lots of news goes out to the rest of the country about how great Austin is! For example, this article talks about Austin being the best city for job growth: http://www.newgeography.com/content/00745-large-cities-ranking-2009-new-geography-best-cities-job-growth.
Vikki Goodwin
REALTOR®, GRI, SRS
EcoBroker®
Homes ATX
512-426-9090 cell
www.vikkigoodwin.com
Filed under: Real Estate | Tags: Austin, Austin real estate, home sales data, Real Estate, Southwest Austin real estate, Vikki Goodwin
I recently had a buyer from Philadelphia visit Austin to look for a home. We had planned to view seven homes, but the evening before the showings, I checked the status of each, and three had gone under contract. On the one hand, I was disappointed that these choices were no longer available to my client, but on the other hand, I was delighted to see so much activity in the housing market right now. In talking to other area REALTOR®s, I’m hearing the same thing. The market for homes in the $180K-$200K range is hot (or at least hotter than lukewarm)!
The first quarter of 2009 has certainly not been as hot as the first quarter of 2008. This year there were 3100 homes sold in the Austin metro area at an average price of $240,523; while last year there were 4567 homes sold at an average price of $243,605. While it is a buyer’s market, sellers really are holding firm on their prices, knowing that Austin will rebound in short order. A number of sellers are opting to lease their homes for a year or two to wait out the market.
The most expensive home sold in the first quarter of 2009 was in Westlake and it sold for $5.15M. During this same time, 46 homes sold for $1M or more in the Austin metro area. The majority of homes, 73%, sold in the $100K-$200K range. Surprisingly, the only area of town to have a slight increase in the price per square foot of sold homes was in South Austin. In the first quarter of 2008, the average price per square foot of homes sold in South Austin was $146, while in 2009 it was $150. Homes in North Central Austin seem to sell quickly with an average of 59 days on the market compared to 84 days on the market for the metro area. Southwest Austin homes sell in an average of 72 days, at an average price of $109 per square foot.
Because the market has slowed, builders have really decreased home starts in the area. For the first quarter of 2009, there was a 47% decline in new home starts. Builders are hoping to reduce their inventory, and once that happens they will cut back on buyer incentives. Besides a slowing of the market, builders have felt is the negative impact of traffic. Many new subdivisions are located further from downtown, and as traffic gets worse, buyers are reluctant to live so far out. I believe traffic has had a huge effect on a number of area neighborhoods.
