Snapshot of the Austin Real Estate Market:
1. New home starts are down 27% from a year ago, due to a decreased number of relocation buyers, cautious homebuyers due to the slow down scare in the media, and lenders approving fewer loans under $200,000, according to Metrostudy. The good news, however, is that Austin’s new home prices have not inflated significantly, thus insulating our city and suburbs from the drastic price reductions seen in other parts of the country. http://www.statesman.com/blogs/content/shared-gen/blogs/austin/realestate/entries/2007/11/06/homebuilding_slows_down.html
2. The hottest areas in September were those in the older areas of Austin with homes primarily priced under $250,000. The top five areas were N (North Austin), 10N (South Austin, just south of Ben White), 10S (South Austin just North of Slaughter Creek), 9 (South of Lady Bird Lake and East of I35), and SWE (South of Slaughter Creek and West of I35.) These numbers are interesting in that they affirm the idea that the higher priced home buyers are being more cautious at this time, and the lower priced home buyers or investors are still buying.
3. Some of the slowest selling areas included some of the nicest and most desirable. Area LS (South Lake Travis Area), RN (River North, aka Steiner Ranch area), and 8E (close to Central Austin with great schools) were all in the last 15 areas rated for ‘hotness’ in September. If you had a home to sell in one of these areas, you were probably not very happy. The good news is that if you’re interested in buying a home in one of these areas it may be a good negotiating time, since homes have been sitting for up to 170 days on the market in these areas. (www.abor.com.)
4. Austin’s economy expands due to our strong job market. Our employment rate is 104.5% of the national average, and we rank 39th out of 100 cities studied in total number of jobs. http://www.statesman.com/business/content/business/stories/other/11/07/1107austinecon.html
What does all this mean to you? I
f you’re looking for a higher priced home, $300,000 and up, this could be a great time to buy at a good price with lots of inventory to choose from.
If you’re looking for an investment property, this is a good time to find a knowledgeable agent to help you navigate which areas will be best for investing to help you meet your goals.
If you’re looking for a home under $300,000, the market is fairly competitive; so again, a great time to find a real estate agent adept at negotiating.
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