Moving To And Living In Austin

Austin Economy Astounds Nation

Sales of existing homes in Central Texas rose more than 8 percent in October from the same month a year ago, according to a recent report from the Austin Board of Realtors. Last month, a record 2,073 single-family homes were sold, up from 1,913 sold in October 2005.

With a higher median price, relatively quick sales and a higher number of pending sales, the report indicates a very strong housing economy. The Central Texas region has posted a strong pace of home sales this year, signaling that the region continues to buck national trends of a cooling housing market.

It also bodes well for 2007, as economists expect the region to hold on to its strong sales and growth.

Last month, the area's median home price was up almost 9 percent to $175,000. And homes are staying on the market for 66 days on average, which makes it a seller's market.

Pending sales were up 19 percent to 2,417.

And sales of condominiums and townhomes are also posting gains, up 25 percent from October 2005.

The median price of these properties is up 28 percent to $168,250, inching closer to home prices.

The strong trends are expected to continue if favorable mortgage rates and the region's healthy job growth remain intact, said John Rosshirt, chairman of the Austin Board of Realtors.

By contrast, national home sales fell in 38 states, including Nevada and California, during the summer months.

"Most parts of the country would love to have our stats," Rosshirt said. The mortgage and job growth rates "will lead to a strong real estate market. So it looks like an excellent year on all regards and an optimistic 2007."

So far this year, the Central Texas region is posting a 10 percent increase in sales compared with the same period a year earlier. The median price during this same period is up 7 percent to $174,000.

There are fewer homes selling for under $120,000 so far this year, which is down 6 percent or more compared with the same period a year earlier.

Home sales in the $200,000 to $249,000 price range, however, are up 18 percent.

Among the Central Texas submarkets, the South Austin area known as area 10 posted the highest "hotness" factor, which is calculated by the number of pending sales versus active listings, Rosshirt said.

In that area, which includes neighborhoods such as Cherry Creek and Tanglewood Forest, active listings took about 18 days to sell, the report found.

Source: Austin American-Statesman

More Job Growth Equals Strong Housing Sales in Texas' Future

Job growth is likely to slow in Texas next year, but will still more than double the national job growth rate, economists told business leaders in San Antonio this month.

And the state and local housing market should remain strong, they said.

The tone of the economic overview sponsored by Frost Bank and Ernst & Young was upbeat, despite forecasts that the economic slowdown nationally will continue.

"The U.S. economy will grow moderately in 2007," said Keith Phillips, senior economist with the San Antonio branch of the Federal Reserve Bank of Dallas. "Texas' economy will moderate but will grow faster than the U.S."

He and Mark Dotzour, chief economist with the Texas A&M University Real Estate Center, said Texas should have an edge in housing affordability, energy impact, jobs and other factors as the economy heads into the new year.

"I see next year being good, perhaps very good for housing" in Texas, Dotzour said.

This year, the state's labor market could expand by 3.1 percent compared with the nation's 1.3 percent growth rate, he said.

Next year, Phillips expects Texas' job growth will slow to about 2 percent but be about twice the rate recorded nationally.

Phillips does not expect the nation's economy to slip into a recession, despite the existence of an inverted yield curve. That condition, which arises when short-term interest rates are higher than long-term rates, has been a strong indicator of recessions in the past.

Phillips said it may not be as dependable now because long-term rates are affected more by international markets.

Source: San Antonio Express-News

Job Growth Forecast by the Texas A&M Real Estate Center

Keep Austin Weird!

Check out this little video about Austin!

http://www.turnhere.com/city/austin.aspx

This Proves It, We ARE Insane!

Ken and I showed up during the first hour of the grand opening of the new Ikea in Round Rock yesterday.  It was like Sea World on the Fourth of July....INSANE!  But, for the record, we didn't camp out there for several days like these crazies.....

We DID get our new kitchen designed and priced out for the house we are building.  We spent several hours on their cool Kitchen Planning software, and now we have a 3d version of it saved that we can access from their website at any time.  The best part is, that we spent about half of what we had originally budgeted for, so we are excited! Follow this link to see the drawing:Download ikea_kitchen_planner_drawing.pdf

When Are We Happy to NOT Sell a Home?

Recently a client called us with a problem.  Kari had owned her home in Lakeway for five years, but she was a single mom and felt that the payments and the upkeep were too much for her.  To make matters worse, Kari was a teacher, and she knew she could not retire on her salary.  She decided to sell, and she called us.

We consulted with Kari about what her needs were around her situation.  We looked at what the other homes in the area were leasing for.  We found that if she held onto her home and rented it out she would only be negative by $150/mo with management fees, maintenance, and vacancy.  If she held onto it, her $300,000 home could be paid off for her in 20 years and be worth $500,000!  Imagine Kari’s delight when I didn’t rush over to list her home, but instead assisted her with her retirement plan!

This solution is certainly not for everyone.  But, if you or a friend are in a similar situation, email us for our Seller Planning and Strategy Session, which will help clarify your needs and goals around your biggest asset.

Austin Parks!

We love Austin for all its beautiful parks.  We have tons of great places to take the kids.  Follow this link to see a complete list of Austin Parks from the Parks and Recreation Department.

http://www.ci.austin.tx.us/parks/parkdirectory.htm

Our favorites?  Big Stacy, Bull Creek, Dick Nichols, Circle C on Slaughter Creek, North West Park, Zilker, Emma Long (peacocks!), and The Veloway.

This is a photo taken this weekend of the Train at Zilker Park where we took our kids and their friends.  This park is a staple in Austin.  If you have kids, you have to know about this park!  (Zane is the one in green waving both his hands.)

The Scoop on Downtown Austin

Here is a list of links to some of the happening high-rises going in downtown.

http://www.springaustin.com/ 

http://www.seaholm.info/

http://www.lifesurroundsyou.com/

http://milagocondos.com/

http://www.bridgesonthepark.com/

www.ZomUSA.com

http://www.guerrero-mcdonald.com/lavista/

http://www.theshorecondos.com/en/index.html

http://www.waterstreetlofts.com/

http://www.muelleraustin.com/   

http://www.1400soco.com/

http://www.twentyone24.com/ 

http://www.liveaquaterra.com/default.asp 

http://averadevelopment.com/

Will Austin Taxpayers see a break in city taxes for 2007

As alot of us know recently tax appraisals went up dramatically. The appraised values had been below the average sales prices for a few years. It was common for a house that sold for 200k to be appraised values on the tax rolls for 170k. The state came in and said if Austin didn't raise their appraisals to reflect sales prices they would cut education funding. So most property owners saw their appraised values increase dramatically this year.

The question has lingered: what is Austin going to do with the extra money it will be generating? Austin already had increased revenues due to the upturn in the economy. Now with the forced increase in property appraisals values, will Austin lower tax rates? On Friday the Statesman had an article about a proposed break for Austin taxpayers. The 2007 budget was released on July 27th and showed homeowners with a lowered tax burden in 2007. The proposed tax rate for the city in the new budget was 39.85 cents per $100.00 in tax value which is lower than the current tax rate of around 45 cents.

Although the tax rate might decrease, the uptick in the economy and the increased appraised values will allow for an increased budget. Some programs such as emergency medical response were cut during the downturn. The increased budgets will pay to replace aging ambulances and to add back training that was cut during the downturn.

Below is a graph which shows the history of the Austin Tax rate over the last few years and the total property valuation of Austin over the last few years.

In addition to Austin lowering the city tax rates, the state of Texas is lowering school property taxes in May. The tax cut will be paid for by increased taxes on businesses and cigarettes. Currently the tax rate for the Austin ISD runs at about $1.623 per $100 in tax value. Under the new bill the tax rate should be lowered to $1 per $100 in tax value. Although the tax rate is lowered, schools can raise taxes for local programs. State Comptroller Strayhorn has said that once schools raise taxes for local programs, the tax savings will be minimal so taxpayers will have to wait and see how the bill plays out.

To see the current tax rates in Austin we have created a table located here
Austin Real Estate Tax Rates

www.escapesomewhere.com/austinblog/2006/07/will_austin_taxpayers_see_a_br.html

As alot of us know recently tax appraisals went up dramatically. The appraised values had been below the average sales prices for a few years. It was common for a house that sold for 200k to be appraised values on the tax rolls for 170k. The state came in and said if Austin didn't raise their appraisals to reflect sales prices they would cut education funding. So most property owners saw their appraised values increase dramatically this year.

The question has lingered: what is Austin going to do with the extra money it will be generating? Austin already had increased revenues due to the upturn in the economy. Now with the forced increase in property appraisals values, will Austin lower tax rates? On Friday the Statesman had an article about a proposed break for Austin taxpayers. The 2007 budget was released on July 27th and showed homeowners with a lowered tax burden in 2007. The proposed tax rate for the city in the new budget was 39.85 cents per $100.00 in tax value which is lower than the current tax rate of around 45 cents.

Although the tax rate might decrease, the uptick in the economy and the increased appraised values will allow for an increased budget. Some programs such as emergency medical response were cut during the downturn. The increased budgets will pay to replace aging ambulances and to add back training that was cut during the downturn.

Below is a graph which shows the history of the Austin Tax rate over the last few years and the total property valuation of Austin over the last few years.

In addition to Austin lowering the city tax rates, the state of Texas is lowering school property taxes in May. The tax cut will be paid for by increased taxes on businesses and cigarettes. Currently the tax rate for the Austin ISD runs at about $1.623 per $100 in tax value. Under the new bill the tax rate should be lowered to $1 per $100 in tax value. Although the tax rate is lowered, schools can raise taxes for local programs. State Comptroller Strayhorn has said that once schools raise taxes for local programs, the tax savings will be minimal so taxpayers will have to wait and see how the bill plays out.

To see the current tax rates in Austin we have created a table located here
Austin Real Estate Tax Rates

www.escapesomewhere.com/austinblog/2006/07/will_austin_taxpayers_see_a_br.html

What We Do.....

Realtors all have a ton of great tools to help you buy or sell a home. We have websites and billboards, lockboxes and databases. But, besides being that handy person that lists your home in the MLS or drives you around to unfamiliar areas, what do we do for you that is different from most traditional agents? There are three main areas that we specialize in to bring you the very best service:

We Consult. One of the first things we do with prospective clients is to sit down with them for a 'Planning and Strategy Session.' Whether your goal is to buy your dream home, sell your home quickly, invest in Austin property, or build a custom home, we ask profound and insightful questions that many traditional agents would never dream to ask. Why? Discovering what's really important to you is crucial to what we do. We see it as our job to lead you through this process of clarifying your values and dreams, because when your values are clear, the decisions are easy.

After listening carefully to your answers, we work closely with you, hand in hand, to craft a very specific strategic plan to ensure that your ideal scenario is carried out. At any point during our conversation, if you we cannot help you, or we feel that we are not the right team to serve your needs, we'll let you know right away.

We negotiate. We understand that money is a very emotional issue. One of our passions is to help you realize your financial goals through real estate. I

magine what it would be like to have a team of trusted advisors to deal with your money and all the critical issues around each situation. Our philosophy is that if we can't treat your money with the same protection and care we would our own money, then we shouldn't be in this business. Our job is to articulate to you the strengths and weaknesses of the suggestions that the other side proposes, to recognize when its appropriate to resist the objections of others, and to remain 100% committed to the course of action we have outlined together.

We oversee all the transactional details. Every real estate transaction requires 100 to 150 phone calls and over 40 pieces of paper must be signed and initialed, each one of them loaded with critical details. As you can imagine, each 'I' must be dotted, and each 'T' crossed, because all the details matter when dealing with legal documents and with lots of money involved. There could be 50 people or more (e.g. buyers, sellers, home inspectors, real estate brokers, lawyers, appraisers, mortgage brokers, etc.) involved in the eight different stages of buying or selling a home. Making a small mistake could be very costly.

So, we have implemented the systems that make organizing, managing, and overseeing all these details a dependable, timely process. And, we make sure to keep you informed every step of the way.

These are the three distinguishing roles that we perform in each and every transaction: consultant, negotiator, and overseer of details.

Most of our business comes from referrals, so we understand and believe in the importance of being GREAT in all three areas, which leads to very happy clients.