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Sandy Ranch

CNN Money’s article “What Housing Bust?” covers what areas of the nation have done well in the housing market, and why. According to writer Les Christie, areas with plenty of available developable land have smaller swings between home price highs and lows. This is because, when the demand for housing spikes, home builders are able to build more homes and keep the housing prices in check. Speed is also of the essence here, home builders need to be able to build quickly, thus, the need for available land.

“Elasticity of supply,” this is called, according to Mark Fleming, chief economist for First American CoreLogic. And Christie says, it is the definition of Texas real estate, and similar throughout all the metro areas.

“Texas is the poster child for these ‘steady Eddie’ states. House prices during the past three years rose in all 26 metro areas with gains ranging from 2.8% for Dallas, the second largest metro area, to 9.7% in Houston, the largest, to a whopping 32.5% in Odessa.”

This is part of what is causing the metro areas in Texas, including Austin, to grow so rapidly. Landowners in the Austin area should continue to see their investments in high demand for buyers and developers.

When high-rise condominium projects started appearing in the downtown skyline, many Austinites were curious and skeptical about what the demand would be for these condos, and if they may just be finished to remain empty.

But News 8 Austin reported on Tuesday that now, Downtown living flourishes.

“According to the Downtown Austin Alliance, since 2007, 1,562 condos have been built or are currently under construction. Of those, 73% have been sold,” they report.

555 Condo Living Room and View

“Conveniently located to everything around here, easy to get around, public transportation, bikes, walking; it’s the best,” says Chelsea Write, a downtown Austin resident. She is living in the 360 Condos, a development that has every unit sold.

While downtown condos are showing to be a solid investment, there are still good deals to be made. “I don’t know of anything that is selling for full price these days, but the fact that these condos are selling is remarkable,” says Tom Stacy, President of Austin’s Downtown Alliance.

Although don’t expect prices to fall much further. ”Stacy says more than likely, prices won’t fall that much, because soon, demand will outweigh supply. ‘There won’t be any new construction starts for probably another four or five years, so the condos being built now, that’s it,’ Stacy said.”

Our Downtown Austin Luxury Condo is a 3 bed/2.5 bath, 2,039 Square Foot condo with stunning panoramic views of the city. It’s reduced price is $899,000. You can see the full listing, and more stunning pictures, here.

Various sources have cited Austin as one of the healthiest markets among major cities in the U.S. Right now with interest rates at incredible lows and Austin’s relative economic strength, real estate is a great avenue for investing. One pointer for looking for that second home or investment is to look at proximity to downtown, colleges, business districts and events. Central locations have a tendency to hold their value better during tough times because the demand for being near areas of work and play are ever present.

 Our listing at 6013 Wilcott is the perfect balance of location and price. This new Newmark detached condo is located 5 minutes from downtown and priced at $239,000. The home is currently leased and the location is perfect for someone who enjoys visiting Austin for events such as SXSW (which brought in about $103M in revenue for Austin businesses in 2008) or someone looking for a low maintenance rental property for college students or young professionals.