UPDATE: Over the last week, that is, mid-November time period, we've we're finally starting to see some price adjustments which we've expected considering the trending we've been tracking over the last several months. With an increase over last year in inventory, and less homes sold, we've finally seen the average sales prices decrease 1.63% to $236,228. In 2006 it was $240,140 for the same week.
What's going on in Austin Texas real estate at the moment? Looking back over October, we find new listings are up by 13.92%, pendings are up 3.37%, and solds decreased by 17.26%. This sort of thing must have an effect on sales price eventually, and we'd expect it to continue throughout the slower market months of Nov/December.
Austin continues to hold promise as a great market to live and invest in, however, and these fluctuations we're seeing are part of a NORMAL market environment, unlike the more publicized national markets in the East and West.
From Paul Kaihla, CNNMoney.com:
Projected median sales prices for single-family homes in Austin:
Q1 2008: $186,350
Q4 2009: $195,060
Growth rate: 4.7 percent
In Austin, the rental market takes a backseat to buyers, many of whom hold high-paying jobs with tech giants like Dell, IBM, and Freescale Semiconductors. Austin's population is well educated -- 40 percent have a university degree -- and the Texas capital ranks among the top major metropolitan areas for business startups per capita. Austin also has the highest percent age of residents in the coveted 25- to 34-year-old demographic and, not coincidentally, the highest concentration of live music venues in the country. The labor market is so hot that shortages of engineers and product managers are driving double-digit wage hikes in those occupations.
But unlike other creative-class capitals, Austin doesn't price white-collar talent out of the housing market. At $200,000, the median sales price for a single-family home is about a third of that in San Francisco. But the gap is starting to close: While home prices in San Francisco have barely budged since the market peaked in 2005, prices in Austin have risen by 6 percent. That has prompted major builders to lay groundwork for some of the largest new master-planned communities in the country - at the very time that competitors are fleeing other Sun Belt metros. "
As one of Austins top REALTOR husband wife teams, we keep up with the day to day market changes. We cannot stress enough how important it is to check in with a knowledgeable agent to determine the facts of Austin Real Estate trending, as the national news about real estate is not often a template that fits Austin's unique market place. We feel Austin provides a healthy and normal market, and we expect to see prices continue to appreciate even with an increase in inventory as they have for the last 3 years.
Meanwhile, it's my experience that rental property returns are increasing, as supply is tightening in desirable areas as spooked investors move out. TWe have been increasing the prices on re-leased homes from 50-100 dollars per month. This bodes well for those looking into a buy and hold strategy.
This is a great time to buy and hold property. This is the investment philosophy most used by out of state investors we work with. Austin was recently cited as #4 in the top 10 Tech cities in the U.S. (WIRED magazine) and we see this positioning our college/tech centered city as ripe for further growth and continued influx of Real Estate investment. Nearby Cedar Park was recently cited as a Top City for Families by the Austin Business Journal. Not only this, but Foreclosures are dropping in the Austin area; Austin fares better than other counties in the state. According to the American-Statesman on June 22 (quoting Daniel Kah), "In Central Texas, the economy is still growing strongly. The unemployment rate is almost as low as it can get. All the economic indicators are all pointing in the right direction," We agree these positive indicators point towards strong growth in the rental and resale market to continue into 2008.
|
