SellAustinTexas

The past year has brought a lot of adjustments to the Austin market.  Here’s a year-end rundown on stats (compiled as of 11-30-2010):

Total dollar volume of single family properties sold: $4,180,259,992 – down 1% from 2009

Average price for single family homes: $194,000 – up 3% from 2009

Single family homes sold: 16,477 – down 6% from 2009

Average days on market: 76 – down 4% from 2009

Looking at the numbers, we saw the average price rise and the average days on market go down – both signs of improvement in the market.  However, the total volume went down in both number of dollars and number of homes.   These up and down stats point to a 2010 Austin real estate market going through a period of adjustment.  It will be interesting to see how 2011 turns out.

Here’s some recent good news in terms of the economy.  According to the Brookings Institution, Austin was one of only 15 major metropolitan areas to experience job growth in all 4 quarters of 2010. Forbes ranked Austin as the 10th most affordable city in the US. It notes our strong high tech job economy.

Austin

On March 2, Forbes released their list of metro areas in the U.S. with the best economic recoveries. Austin, Texas sits on top of the list along with Washington, D.C.

According to Forbes, “jobs have been lost nearly everywhere in the last three years, but between December 2007 and December 2009 the number of jobs in Austin rose by 0.98%; more than any of the other major cities we looked at.”

Economics professor Daniel Hamermesh points out Austin’s strong housing market as one of it’s biggest advantages. “The first advantage is that we haven’t had a housing boom, and therefore there isn’t much of a housing bust. The second advantage is that we have a diversified economy with lots of government and high-tech jobs.” The third advantage, Hamermesh says, it Austin’s desireability as a place to live: people stay even when “things go bad.”

The state as a whole fared well through the recession in the housing market.

Says James P. Gaines, Research Economist for the Texas Real Estate Center at Texas A&M University, “the housing market got lucky, if you want to look at it that way. We didn’t have excessive overbuilding, so we don’t have a big overhang of unsold new homes, and because Texas has among most affordable housing in the country, the demand sustained.”

“If one state is a poster child for economic recovery, it’s Texas,” writes Forbes.

Says Governor Rick Perry: “This Forbes ranking highlights the relative economic strength of our state’s major metropolitan cities, which is good news not only for the people who live in Texas, but for those looking to move to a state with a strong economic future. Texas continues to be the best state in the nation to live, work and raise a family thanks to our low tax burden, predictable regulatory climate, skilled workforce and principled, disciplined spending.”

Photo: View from the 555 Condo

Forbes just recently published their “Best States for Business” list, ranking all states from 1-50. The list factors in six categories of data, with 33 points of data from nine different sources. Business costs including labor, energy and taxes were weighted most heavily.

Texas ranked first for Economic Climate, and third in Growth Prospects. It also ranked tenth in Regulatory Environments. Strong rankings in these three categories, and three others, put Texas in the eighth spot on Forbes’ top ten list.

"A common theme with our top-ranked states is an expanding, educated workforce," writes Forbes.

The top ten states were:

1. Virginia

2. Washington

3. Utah

4. Colorado

5. North Carolina

6. Georgia

7. North Dakota

8. Texas

9. Nebraska

10. Oregon

You can see all fifty states ranked here.

This is not the first time Texas has been recognized as a top state for business – in June, Directorship named Texas number one.

Austin and San Antonio are the only two cities expected to see prices rise this year.

Many renters and future homebuyers have been watching the housing market with interest, waiting for that deal of a lifetime. (As we’ve written, with rising interest rates, those deals are passing by.)  Homeowners looking to sell have seen a two-year slide in home values “at a stomach-turning pace.” The economists and researchers at Forbes have determined where home prices are likely to rise.

Where are home prices likely to rise, and fast? Austin and San Antonio.

“Although prices in Austin and San Antonio are also expected to have dropped mildly five years out (by 0.57% [Austin] and 1.01% [San Antonio]) the reasons for, and implications of, this drop are quite different [than other national metro areas with slow growth and weak local economies]. These are the only two cities expected to see prices rise this year; their home correction will be late, and gentle. Texas metros Houston and Dallas will only see modest drops by the end of the year and a small lift five years out.”

Forbes has once again aknowledged Austin, Texas as an economic and business hotspot, and an ideal place for career motivated individuals and families to live by putting it on their list of Best US Cities to Earn a Living. ”For the exasperated job seeker to whom employment opportunities may seem bleaker than ever, salvation may lie in the Lone Star State,” the article reads. “Texas, home to dozens of energy heavyweights and nearly as many innovative small companies, has three of the best cities to earn a living: Dallas, Houston and Austin.”

Forbes compared cost of living, strength of industry, economists’ predictions for future employment, and salaries to create their Top 10 List. On the list are:

 

Austin, Texas

1. Dallas, TX

2. Houston, TX

3. Minneapolis, MN

4. Austin, TX

5. Washington, DC

6. St Louis, MO

7. Seattle, WA

8. Atlanta, GA

9. Kansas City, MO

10. Denver, CO

While jobs around the country are fewer and farther between, Forbes writes, some markets remain healthier where there are concentrations of top companies, a case for the top three Texas cities.

Austin is a strong market with career potential and great real estate deals you can start seeing today!

 Forbes has just announced what many Austinites already knew: Austin, Texas is the best city to live in for affordability and opportunities. Austin landed number one on their Top 10 list of Best Bargain cities.

The list was based on five points:

- Average salary of workers (Bachelor’s Degree or higher)

- Annual unemployment statistics

- Cost of living

- Housing Opportunity Index (amount of homes sold that are affordable to family with the local median income).

Austin did well in all categories, particularly the unemployment rate, which at 5.5%, is about half the national average.

Why Austin? Austin has three main contributing features: being the state capital, a university town, and a technology industry based city. Further, Texas as a state offers many incentives for entrepreneurs and business owners; Texas is now home to many California businesses that became too expensive to operate in that state. Four other Texas metropolises are on the top ten (Houston, San Antonio, Dallas and Fort Worth).  Although, even Forbes acknowledges that it’s the charm of the city and the people in it that makes Austin such a desirable place to work and live.

View from 555 Condo