Real Estate Information Archive

In the late 80’s and early 90’s in Austin, job growth stopped, real estate values dropped and people left town. Probably because of the severity of that recession, Austin has faired much better this time. Home prices did not increase more than could be supported by median family incomes. Thanks to Texas’s home equity laws, consumers could not borrow against their home appreciation nearly as easily as homeowners in other states – which helped keep home prices stable and consumer debt manageable. If you don’t have a bubble then you don’t have a bust. While most other major real estate markets have seen home prices drop by as much as 50% and experienced high unemployment, Austin’s median home price has been stable or seen only a small drop. Job losses have been slight. 

Now, Forbes and Moody’s Economy.com projects Austin's economy will grow by 32% over the five year period from 2007 to 2012. Not only is Austin’s economy growing, but it's growth rate is nearly 50% higher than #2 ranked Fort Myers, Florida. Equally important to Austin’s economic growth is Austin's population growth which is expected to grow by an amazing 15%.

 “To compile our list, we looked at all of the country's 363 metropolitan areas, defined by the U.S. Census Bureau as a geographic region with a "core urban area" of at least 50,000 people. Because many small metro areas are high growth--and because we wanted to show growth in large cities as well--we split the group into two classes: the largest 100 metro areas (with at least 528,000 people) and everyone else. We use projections run for us by Moody's Economy.com to show growth in GMP between 2007-2012.

Of course, if one looks at economic growth in the country's largest 100 metros, the usual suspects jump to the top of the list. With an estimated 32% GMP growth from 2007-2012, Austin, Texas, is the winner for big metros. Atlanta, Seattle, Orlando, Houston and San Jose, Calif., also appear high on the list. What do they all have in common? They're tech hubs with proximity to universities and a healthy increase in population. Austin's population, for example, is expected to increase by nearly 15% by 2012, according to Moody's Economy.com forecasts.”

Go Austin. Go.

Full Article: http://www.forbes.com/2008/01/30/economy-cities-alabama-biz-cx_bw_0130econcities.html

Every week I run into people who think the real estate in Austin is going to tank. That's not likely to happen during 2008. I think people are over reacting the national home news with all the increase in foreclosures and price drops. In Austin I think we are seeing a lull in sales and an increase in the amount of homes for sale. Recently one the top builders here (Centex Homes) decided not to build a 1,400-home community in north Austin.

(Read the full story here)

Here is a re-cap of last week's real estate market:

December 9 - December 15, 2007
(compared to the same week in 2006)

There was a 28% increase in number of homes for sale. Buyers now have more homes to choose from in the market.

The number of homes pending (under contract) is down 63% from the same time last year.

The number of Homes Sold is down 44% from the same week last year. There  are less sales happening right now then last year.

As for Average Prices: Dec. 9 - Dec. 15, 2007
(compared to the same week in 2006)

The "New Listings" average list price for a home increased 21% to a little over $300,000.  We are still seeing home sellers be too overzealous in pricing their homes on the market. Sellers need to have their home in top condition and be priced competitively to the competition if they want to sell their home now.

The Sold average closed sales prices increased 13% to $274,000.