The Real Estate Center at Texas A&M came out with its 2008 Market Overview for major metro areas in Texas. This is for the Austin MSA, which includes Bastrop, Caldwell, Hays, Travis and Williamson Counties. Cities included are Austin, Cedar Park, Georgetown, Leander, Lockhart, Pflugerville, Round Rock, San Marcos and Taylor. Some highlights:
2007 population estimate was 1,598,161, up 5.6% from 2006. Population growth from 1997 to 2007 is estimated to be 43.8%. The area's population is expected to exceed 2 million at some point between 2020 and 2025. 26.1% of the population of Travis County residents ages 25 and older have at least a Bachelors Degree. That compares to a statewide average of 15.6%. The University of Texas at Austin had an enrollment in 2007 of 50,170. That's a huge student body!
The state of Texas employed almost 66,000 people in 2007. The largest private employer was Dell with approximately 17,000 employees. Employment growth in 2007 was 5.6% while unemployment was just 3.6% That compares to 3.0% and 4.3% for the state of Texas. Overall the numbers are very strong both for the Austin MSA and the state. Austin Bergstrom International Airport saw an increase in passengers in 2007 of over 625,000.
There is much, much more information to look through. To see the Austin-Round Rock Overview, click here. For other Texas markets, click here.
Tuesday, July 22, 2008
Wednesday, June 25, 2008
What Happened in Austin Real Estate for May, 2008?
The average sales price for houses in Austin increased 5.14% in May from $259,958 in May 2007 to $275,711 May 2008. Sales prices had been flat or falling since Feb 2008, but May has us heading the other way again. We continue to have a large number of “failed sales” listings though, and days on market continues to creep upward. In short, there are a lot of mixed signals in the sales data. Here is a brief summary followed by charts below.
• Number of homes sold is down 24% from 2,630 May 2007 to 2,006 May 2008.
• Average sold prices in Austin were up 5.14% over the same month last year to $275,711.
• Median sold price was up 7.01% over the same month last year to $199,925.
• Avg sold price per square foot is up 4.02% over May 2007 to $124 per sqft.
• Avg days on market is up 11 days (22%) from 50 last year to 61 this May.
• Median days on market is unavailable because our $1M/yr MLS software, MLXChange, won’t produce it this month. I’ll leave it at that before I go off on another “MLXChange Sucks” rant.
• Number of “Not Sold” (exp or withdrawn) is up a whopping 56% over the same month last year.
| Austin Real Estate Market Update for May 2008 | ||||
| All Austin / Central TX MLS Areas – Houses Only | ||||
| Apr 2008 | May 2008 | May 2007 | Yr % Change | |
| # Sold | 1826 | 2006 | 2630 | -23.73% |
| Avg List | $254,318 | $275,711 | $259,958 | 6.06% |
| Med List | $194,935 | $203,037 | $189,900 | 6.92% |
| Avg Sold | $245,483 | $267,231 | $254,169 | 5.14% |
| Med Sold | $189,000 | $199,925 | $186,832 | 7.01% |
| List/Sold % | 96.52% | 96.92% | 97.77% | -0.87% |
| Avg SQFT | 2117 | 2155 | 2132 | 1.08% |
| Med SQFT | 1924 | 1941 | 1928 | 0.67% |
| Avg $ SQFT | $116 | $124 | $119 | 4.02% |
| Avg DOM | 63 | 61 | 50 | 22.00% |
| Median DOM | 39 | * | * | not avail MLS |
| # Expired | 519 | 509 | 306 | 66.34% |
| # Withdrawn | 586 | 599 | 473 | 26.64% |
| Not Sold | 1105 | 1108 | 779 | 42.23% |
| Not Sold % | 38% | 36% | 23% | 55.71% |
| On the Market (houses) as of June 23, 2008: | ||||
| 12,466 = Active Res Listings in Austin MLS (12,066 last month) | ||||
| 10,335 = Total Single Family Homes listed (9942 last month) | ||||
| 1870 = Condo/Townhome/Loft/Garden Homes listed (2026 last mo.) | ||||
| 97 = Mobile/Manufactured Homes (97 last month) | ||||
What Happened in Austin Real Estate for May, 2008?
The average sales price for houses in Austin increased 5.14% in May from $259,958 in May 2007 to $275,711 May 2008. Sales prices had been flat or falling since Feb 2008, but May has us heading the other way again. We continue to have a large number of “failed sales” listings though, and days on market continues to creep upward. In short, there are a lot of mixed signals in the sales data. Here is a brief summary followed by charts below.
• Number of homes sold is down 24% from 2,630 May 2007 to 2,006 May 2008.
• Average sold prices in Austin were up 5.14% over the same month last year to $275,711.
• Median sold price was up 7.01% over the same month last year to $199,925.
• Avg sold price per square foot is up 4.02% over May 2007 to $124 per sqft.
• Avg days on market is up 11 days (22%) from 50 last year to 61 this May.
• Median days on market is unavailable because our $1M/yr MLS software, MLXChange, won’t produce it this month. I’ll leave it at that before I go off on another “MLXChange Sucks” rant.
• Number of “Not Sold” (exp or withdrawn) is up a whopping 56% over the same month last year.
| Austin Real Estate Market Update for May 2008 | ||||
| All Austin / Central TX MLS Areas – Houses Only | ||||
| Apr 2008 | May 2008 | May 2007 | Yr % Change | |
| # Sold | 1826 | 2006 | 2630 | -23.73% |
| Avg List | $254,318 | $275,711 | $259,958 | 6.06% |
| Med List | $194,935 | $203,037 | $189,900 | 6.92% |
| Avg Sold | $245,483 | $267,231 | $254,169 | 5.14% |
| Med Sold | $189,000 | $199,925 | $186,832 | 7.01% |
| List/Sold % | 96.52% | 96.92% | 97.77% | -0.87% |
| Avg SQFT | 2117 | 2155 | 2132 | 1.08% |
| Med SQFT | 1924 | 1941 | 1928 | 0.67% |
| Avg $ SQFT | $116 | $124 | $119 | 4.02% |
| Avg DOM | 63 | 61 | 50 | 22.00% |
| Median DOM | 39 | * | * | not avail MLS |
| # Expired | 519 | 509 | 306 | 66.34% |
| # Withdrawn | 586 | 599 | 473 | 26.64% |
| Not Sold | 1105 | 1108 | 779 | 42.23% |
| Not Sold % | 38% | 36% | 23% | 55.71% |
| On the Market (houses) as of June 23, 2008: | ||||
| 12,466 = Active Res Listings in Austin MLS (12,066 last month) | ||||
| 10,335 = Total Single Family Homes listed (9942 last month) | ||||
| 1870 = Condo/Townhome/Loft/Garden Homes listed (2026 last mo.) | ||||
| 97 = Mobile/Manufactured Homes (97 last month) | ||||
Monday, June 23, 2008
Experts: Amid rising building costs, deals on new homes won't last long
(Re-printed) from Austin American-Statesman; June 2oth, 2008
By: Business might not be any easier for builders in the coming months.
They face rising construction costs and consumers who want better deals because they see the national housing market plummet, a local housing expert said Thursday.
For the next half of the year, builders will need to continue to be more selective about the communities they invest in and wait "until the buyers come" to them, rather than build speculative housing, said Mark Sprague, Austin partner of Residential Strategies Inc. in his midyear housing forecast to the Home Builders Association of Greater Austin.
But buyers may not be getting cheaper deals for long, he said.
With building costs on the rise, consumers need to buy now because, in order to make a profit, builders won't be able to afford the same discounts and incentives next year, Sprague said.
Local developer Dick Rathgeber agreed, noting that the costs of materials and gas are on the rise.
"There's nothing that goes into the price of a house that is going down in price," Rathgeber said. "Short of a foreclosure, (housing) prices next year are not going to be cheaper. The builder cannot afford to produce it."
Sprague emphasized that the Austin market remains one of the strongest in the country, despite the decline in local home sales.
Although median home prices are down 25 percent nationally, Texas and Austin are still seeing appreciation, Sprague said.
"We've had a phenomenal market," he said. "Austin is where everyone wants to be. We see values going up here."
Austin is "the safest investment in the world right now," he added.
Sprague said that the days of easy money are gone, making it tougher for many possible home buyers to get loans.
In April, the latest figures show that sales of existing homes fell for the 10th consecutive month, and new listings soared 20 percent to a four-year high.
But Sprague said most new lot developments have been mothballed, chipping away at excess inventory in the new-home market. He said Central Texas still has less than a six-month supply of new homes.
And with 18,000 lots available and ready to build on — "a very small number," he said — he predicts that in 18 months to two years, "we're not going to have enough lots."
He said Austin is poised to recover from the housing downturn more quickly than coastal markets because of job and population growth, though both are slower than last year.
"We're down but not out," Sprague said.
By: Business might not be any easier for builders in the coming months.
They face rising construction costs and consumers who want better deals because they see the national housing market plummet, a local housing expert said Thursday.
For the next half of the year, builders will need to continue to be more selective about the communities they invest in and wait "until the buyers come" to them, rather than build speculative housing, said Mark Sprague, Austin partner of Residential Strategies Inc. in his midyear housing forecast to the Home Builders Association of Greater Austin.
But buyers may not be getting cheaper deals for long, he said.
With building costs on the rise, consumers need to buy now because, in order to make a profit, builders won't be able to afford the same discounts and incentives next year, Sprague said.
Local developer Dick Rathgeber agreed, noting that the costs of materials and gas are on the rise.
"There's nothing that goes into the price of a house that is going down in price," Rathgeber said. "Short of a foreclosure, (housing) prices next year are not going to be cheaper. The builder cannot afford to produce it."
Sprague emphasized that the Austin market remains one of the strongest in the country, despite the decline in local home sales.
Although median home prices are down 25 percent nationally, Texas and Austin are still seeing appreciation, Sprague said.
"We've had a phenomenal market," he said. "Austin is where everyone wants to be. We see values going up here."
Austin is "the safest investment in the world right now," he added.
Sprague said that the days of easy money are gone, making it tougher for many possible home buyers to get loans.
In April, the latest figures show that sales of existing homes fell for the 10th consecutive month, and new listings soared 20 percent to a four-year high.
But Sprague said most new lot developments have been mothballed, chipping away at excess inventory in the new-home market. He said Central Texas still has less than a six-month supply of new homes.
And with 18,000 lots available and ready to build on — "a very small number," he said — he predicts that in 18 months to two years, "we're not going to have enough lots."
He said Austin is poised to recover from the housing downturn more quickly than coastal markets because of job and population growth, though both are slower than last year.
"We're down but not out," Sprague said.
15 - Year Fixed Rate Loan
A 15-Year Fixed Rate loan works well for borrowers who are nearing retirement and want to be debt-free when they get there. Because payments in a 15-year scenario are amortized over half the length of a 30-Year Fixed Rate loan, the monthly payments will be significantly higher in comparison. This is an important factor to consider before committing to a 15-year loan. However, the interest rate on a 15-Year Fixed Rate loan will be lower for the same reason - financing for 15 years costs much less than financing for 30 years.
If a borrower is 50 years old and would like to be debt-free when retiring at age 65, then a 15-Year Fixed Rate loan will allow the borrower to meet that goal as far as their mortgage is concerned. However, if there is any question as to whether the borrower will be able to commit to the higher monthly payment, the alternative is to take a 30-Year Fixed Rate mortgage and make pre-payments with some consistency. If the borrower has the discipline to make those extra payments whenever possible, he or she can still attempt to meet the same goal.
If a borrower is 50 years old and would like to be debt-free when retiring at age 65, then a 15-Year Fixed Rate loan will allow the borrower to meet that goal as far as their mortgage is concerned. However, if there is any question as to whether the borrower will be able to commit to the higher monthly payment, the alternative is to take a 30-Year Fixed Rate mortgage and make pre-payments with some consistency. If the borrower has the discipline to make those extra payments whenever possible, he or she can still attempt to meet the same goal.
Tuesday, June 10, 2008
Austin Recession Proof?
Recession Proof Austin
According to Forbes magazine, Austin is ranked #3 in recession proof cities; right behind San Antonio (#2) and Oklahoma City (#1). The reason for the high ranking is because of low unemployment and affordable housing costs. Unemployment in Austin, Texas is 3.6% percent down from 3.8% at this time last year and the median price of a home is still under $200,000 in most areas of Austin.
Recession Proof Austin is the Place to Buy
Austin was ranked by Entrepreneur magazine as one of the top places to buy a home. Reporter Danielle Babb based her decision on the fact that Austin and Round Rock have seen incredible job growth and stable home prices even though most of the country is in a downturn. She also cited that jobs are continuing to grow here, which is a strong factor for keeping prices stable and inventory low.
Other cities that were on the list were Mission Viejo, California, Palm Beach, Florida and Las Vegas, Nevada. Palm Beach and Las Vegas were citied because of their number of foreclosure homes in 2007 making their market on the low cost end moving back up.
Recession Proof isn’t Only Reason Austin’s Great
Austin is a great city to live in with everything that is has to offer: live music venues, top notch festivals, hike and bike trails galore, rock-climbing, lake living, great shopping and great food. Within the city limits itself, you have several parks and lakes such as; Lady Bird Lake (also known as Town Lake), Lake Austin, Barton Springs Pool, Barton Creek Greenbelt, and Zilker Park.
Many celebrities and world-class athletes have made Austin their home because of the laid-back and welcoming atmosphere of the residents and because of the plethora of outdoors and athletic activities that this community supports with fervor.
Friday, May 23, 2008
The Advantages of FHA Loans
In many regions of the
1) Congress passed the Stimulus Act of 2008. During the recent housing boom, home values surpassed FHA loan limits in many regions of the
2) The FHA changed its appraisal and fee negotiating guidelines. In the past, many sellers steered clear of FHA loans because the appraisals were too strict and certain fees were non-negotiable. The FHA has greatly loosened these guidelines to make it easier for both buyers and sellers.
3) FHA loans are much cheaper now. Because FHA loans are federally insured, they tend to trade at a higher premium in the secondary market. This means lenders can often charge a lower rate.
Other FHA Benefits:
- FHA loans are not credit-score driven. Borrowers can have a lower score than other products and still qualify for a good rate.
- FHA loans require as little as 3% down.
- FHA loans allow down-payment assistance programs. This allows the seller to cover the buyer's down payment and closing costs. This means borrowers, especially first-time buyers, or move-up buyers with limited funds, have a real opportunity of getting into a home with little or no cash at closing. For sellers, this means you can offer concessions that make marketing your home much more attractive without having to lower the price of your home again.
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