SellAustinTexas

According to Trulia’s rent vs. Buy Index 2011, the smart choice for most Austinites right now is to buy.

Austin is among the top 50 U.S. cities where it is “Much Less Expensive to Buy Than rent”, coming in at #35. What does that mean? Well, when you look at the average home price vs. the average monthly cost of rent in Austin, the numbers show that it is significantly more affordable to buy in most areas of the city. With rental rates increasing and interest rates at historic lows, buying is financially the smarter choice. So, is buying right now the right choice for you? This is a sampling of Austin MLS areas:

Rent Vs. Buy MLS Area Comparisons

This “perfect storm” of home buying conditions aren’t going to last for long. Take advantage of low mortgage rates and low home prices. There’s never been a better time to buy than now.

If you have questions on the Austin housing market or want to get started on buying a home, call Chuck Stephens, our buying expert, at 512-947-8077 or drop him an email at cstephens@cbunited.com.  To see current inventory, visit our web site www.dmtx.com.

Night Skyline

Austin’s excellent quality of life, strong economy and high employment rates made it a top choice among American cities in several recent studies and best of lists for 2011.  Here’s a quick re-cap of some of the bigger accolades as compiled by the Austin Business Journal:

•In July, Forbes and the Praxis Strategy Group named Austin America’s No. 1 “boom town.”

•Earlier this month, Austin was ranked by the Milken Institute as the fourth best-performing city in the U.S.

•Austin was ranked this month as the top city for the highest job levels in a decade but Forbes magazine cited a 19 percent drop in high-tech jobs over the past decade when it ranked Austin No. 32 on a list of best cities for tech jobs.

•In September, Austin snagged fifth on a list of U.S. cities with the most healthy employment outlooks.

•The Brookings Institution named Austin among the best green job generators in its “Sizing the Clean Economy: A National and Regional Green Jobs Assessment” report.

•Ajilon Professional Staffing said Austin has the second best jobs market in the U.S. but Forbes ranked the Capital City No. 3 for best jobs market in its January report.

•Austin leads the nation for having the most favorable conditions for small businesses, an April report said.

•Businessweek listed Austin among the best places to live, Business Review USA chose Austin as one of the eight best places to live and work in the U.S., and RelocateAmerica named the Capital City as one of the 100 finalists in its 14th annual best places to live contest.

For a more expanded list, read the full article here.

Austin Real Estate Snapshot – Less Inventory, More Sales

Austin Area Sales and Stats October 2011

This week there are currently 9,223 active listings in the Austin MLS.  The same week last year, there were 11,228! The Austin real estate market continues to move closer to equilibrium as the number of sales continues to outpace the number of new listings coming onto the market. October 2011 sales stats show the Austin housing market is remaining strong as it has all year.

1,468 homes were sold in October of 2011 compared to 1,165 homes sold in October 2010.  That’s a 26% increase. More significantly, pending sales were also up with 1,783 last month as compared to 1,505 in October 2010.  New listings could not keep pace with the number of sales with only a 1.35% increase in the number of new listings as compared to last year.

Another indicator of our strong housing market is the change in expired and withdrawn listings (i.e., homes that couldn’t sell).  1,108 homes were withdrawn and 774 homes expired in October 2010 as compared to only 804 withdrawn and 468 expired in October of 2011.  That’s a 28% decrease in withdrawn and an almost 40% decrease in expireds!

BUT, it’s still a buyer’s market out there.  Homes prices took a dip this month as the average sales price was down 3.08% as compared to last year.  Sellers are willing to take less to get their home sold and it seem that many buyers are taking advantage of it.

If you are interested in purchasing a property for investment purposes, now is the time. The facts about the Austin real estate market remain the same.  We have a booming population, mortgages are cheap and rents are rising. As inventory decreases and demand for homes increases, home prices will start increasing too.

If you have questions on the Austin housing market and whether or not it’s the right time to buy or sell, feel free to give Chuck Stephens, our buying expert, a call at 512-947-8077 or drop him an email at cstephens@cbunited.com.  To see current inventory, visit our web site www.dmtx.com.

Austin Area Sales and Stats September 2011

Good news on the strength of our local economy and the strength of the housing market.  Inman.com recently reported on the thriving Austin economy, citing our big population growth, AAA municipal bond rating and, most importantly, the growing job market as the major contributors to our robust economy.

The article goes on to interview several area realtors who all come to the same consensus.  Rental rates are rising fast and homes that are reasonably priced, in good shape and close to downtown are selling fast.

September sales stats show that home sales are picking up.  1,480 homes were sold in September of 2011 as compared to 1,171 homes sold in September 2010.  Pending sales were also up significantly with 1,783 last month as compared to 1,502 in September 2010.  New listings continued the downward trend from previous months with 2,284 new listings this past September as compared to 2,505 in September of last year.

We are continuing to see a tightening of the market with new listings decreasing and sales increasing.  However, home prices are staying relatively flat.  That’s due to a tight mortgage market shutting out many potential buyers.  Although mortgage rates are very low, many buyers are still unable to get a loan because of strict loan qualification policies.  This creates a lot of pent-up demand.  In the coming months, mortgage rates will rise and banks will start to loosen loan qualification standards.  This will open the market to a lot of new buyers and we will see home prices on the rise.

If you are thinking of buying, now is the time.

Parenting magazine recently named Austin the #2 city for families right behind Washington, D.C.  The magazine compiled data based on quality of schools, affordability of homes, strong job market, parkland space and cultural activities.  The article noted our city’s 27,000 acres of parkland(!), abundance of pools to keep us cool, Town Lake, great schools and many pediatricians.  It also mentions the many year round festivals in Austin and, most importantly, the many innovative companies who make Austin a progressive city.  Other cities include Honolulu, Omaha, Seattle and Boston.

Homes sales in Austin continued to see a rise in volume for August of 2011. A total of 1,669 single family homes sold in the Austin area in August compared to 1,381 in August of 2010. The total volume of sales rose to $454,979,712 compared to $381,540,256 in August of 2010.

Average sales price fell to $272,606 from $276,278 in August 2010. Not as bad as the dramatic decrease we saw in July. This is still directly attributed to a big decrease in home sales in the luxury market. $500K+ home sales in August of 2010 contributed 9.7% total volume compared to only 8.3% in August of this year.

In price ranges that are affordable for most buyers, home sales are remaining steady or increasing. Mortgage rates are low and loans are readily available for qualified buyers.

If you are interested in purchasing home for investment purposes, now is the time. The facts about the Austin real estate market remain the same. We have a booming population, mortgages are cheap and rents are rising. Check out this great recent Wall Street Journal Article for six mistakes to avoid when looking for a home investment.

If you have questions on the Austin housing market and whether or not it’s the right time to buy or sell, feel free to give Chuck Stephens, our buying expert, a call at 512-947-8077 or drop him an email at cstephens@cbunited.com. To see current inventory, visit our web site www.dmtx.com.

Homes sales in Austin continued to see a rise in volume for July of 2011.  A total of 1,671 single family homes sold in the Austin area in July compared to 1,389 in July of 2010.  The total volume of sales rose to $459,970,464 compared to $408,616,832 in July of 2010.

Average sales price fell to $275,266 from $294,180 in July 2010.  This is directly attributed to a big decrease in home sales in the luxury market.  $500K+ home sales in July of 2010 contributed 11% to total volume compared to only 9.1% in July of this year.

So, what do the numbers mean?  In price ranges that are affordable for most buyers, home sales are increasing.  Mortgage rates are low and loans are readily available for qualified buyers.  With the recent downgrading of the U.S. government credit rating, we have seen a dip in the U.S. government borrowing rate – which directly affects mortgage rates.

It’s mixed reviews out there as to what affect the recent downgrading of the credit rating of the U.S. government will have on the mortgage rate.  It’s safe to say that interest rates will move in the same direction as the U.S. government borrowing rate because there is government backing of mortgages on nearly all mortgage originations in today’s market.  It’s also possible it could have no affect at all.  With economic turmoil throughout the world and credit rating agencies not looking so “credible” after having awarded the best triple-A ratings to subprime mortgage bundles during the housing bubble years, the U.S. government still looks like one of the safest bets out there.

Even with bad news all around, the facts about the Austin real estate market remain the same.  We have a booming population, mortgages are cheap and rents are rising. As the above stats show, it’s becoming increasingly apparent to many buyers that buying is cheaper than renting and owning a home in Austin is a much better investment than betting that savings on the roller coaster that is the U.S. stock market.

If you have questions on the Austin housing market and whether or not it’s the right time to buy or sell, feel free to give Chuck Stephens, our buying expert, a call at 512-947-8077 or drop him an email at cstephens@cbunited.com.  To see current inventory, visit our web site www.dmtx.com.

The median price was $205,000 last month, about the same price as June 2010. The total volume of sales was $583,137,555.

Average days on market for June 2011 was 75 days, 7 % longer than June 2010. New listings were down 4% this past June when compared with the same time last year, continuing the tightening of the market. Currently, 9,687 active single-family home listings are on the market, or 18% less than in June 2010. 2,114 sales were pending in June, a 31% increase from June 2010.  Sales are trending up while actual inventory is trending down.  The less inventory out there, the more competition there is going to be for homes and home prices are going to start rising.

The volume of leasing activity in Austin grew in June 2011 with 1,730 properties leased. That’s 16%  more than June 2010 and a big leap from May’s volume of 1,269 leased properties.  The median lease price of $1,300, was 7 percent higher than June 2010.  As more and more people move to Austin, rents are going to continue to rise.  If you are renting, now is the time to consider making an investment in a home.

Give Chuck Stephens, our buying expert, a call at 512-947-8077 or drop him an email at cstephens@cbunited.com.  To see current inventory, visit our web site www.dmtx.com.

Here’s a snapshot of the current state of the residential market as of May and how we compared to last year. 1,891 single-family homes were sold in Austin last month, or 8 percent fewer than in May 2010.  The median home price increased 4 percent from May 2010 to $198,100.

Austin added 3,127 new single-family homes on the market in May, 2 % more than last year. There were a total 9,744 active single-family homes listed — new in May and existing — or 13 percent less than the year ago total.

Homes spent an average 81 days on the market – 27% longer than May a year ago, but the lowest figure since October. At the same time, pending homes sales were up 53% year over year to 2,156 in May.

It seems last year’s tax credit created demand earlier, causing the market to peak in the spring. The considerable increase in pending sales from May could indicate Austin is returning to a typical seasonal cycle.  While sales are still down, the increase in pending sales and the decrease in days on market shows a rising demand for homes in Austin.

Another important fact to note: a total 1,269 leases were signed in May, 4 percent higher than the same time last year. Tenants paid a median $1,250 monthly in rent, which is about 4 percent higher than last year.  The increase in leases and the increase in rent show a rise in demand in the lease market as our population increases.  This makes landlords very happy!

If you have questions on the Austin housing market and whether or not it’s the right time to buy or sell, feel free to give Chuck Stephens, our buying expert, a call at 512-947-8077 or drop him an email at cstephens@cbunited.com.  To see current inventory, visit our web site www.dmtx.com.

If you are considering buying a home in Austin, the time is now.  Home prices have not dropped in the past few months.  In fact, they are increasing.  Mortgage rates remain at an all time low.  Most importantly, demand is increasing.  We are at an equilibrium in the market as far as buyers and sellers and the supply of good lots and homes is getting very tight.  If there were a time to make a move and invest in a home – the time is now.

The most important factor in selling a home is the price.  There’s 3 different categories of prices and every home on the market falls into one of them.

#1:  Overpriced. Most buyers think all homes are overpriced.  That’s because they are looking for a great deal – a steal.  And rightfully so.  We all want to get a deal. But, it’s just not true.  Homes that are overpriced in this market stick out like a sore thumb and most likely won’t even fall onto a buyer’s radar screen.  This happens for several reasons.  The seller bought it 3 or 4 years ago and has to get back what they put into it or the seller makes a few thousand dollars worth of improvements, calls it a remodel and tries sell it at an inflated price.  It is often the fault of a real estate agent not being honest with a seller about the market and instead allowing the seller to dictate the price – not the market.

What to do?  Go ahead and make an offer based on the market.  Sometimes a seller needs a reality check before making a price adjustment.  Maybe you won’t be the first one to make that offer and it could get accepted.

#2 Market Value.  Most homes are priced at market value.  Getting a good deal on a home at market value is a matter of timing, education and skill.  An experienced agent can work on your behalf to find a seller’s motivation, agent’s motivation and points beyond price that can get a deal done.  In this instance, offer less than the asking price and go from there.  More often than not, they will come off their price.  But as the Austin market gets tighter, we are seeing properties sell at or very close to their asking price.

#3 Undervalued. Getting an underpriced home is about being in the right place at the right time.  There are a lot of buyers out there waiting for that low priced deal to come along.  Deals go quick and a savvy agent can make sure you get in front of them before someone else.

It doesn’t take a rocket scientist to know a good deal from a bad one in today’s market.  Internet sites like AustinHomeSearch.com provide a great jumping off point to begin a home search. You can even compare homes to figure out pricing.  But when it comes to making the investment, it’s smart to have someone who has intimate knowledge of the market and can negotiate on your behalf to make sure the investment is the right one.