So our inventory is up, more homes are on the market, and it takes longer to sell your home in Austin than it did a few years ago.  But Prices are not only holding steady, but are continuing to rise a strong and steady growth rate.

When you compare our home sales volume to the past two years, things look like they may be as bleak as we keep hearing about.  But don’t forget, 2006 was the strongest year EVER in Austin real estate, so many will argue that we are leveling out after a mini-boom.  This is why prices are staying strong, but the market is moving more slowly.

Compare 2008 to other years this decade.  With Austin’s steady growth, we do expect each year to increase over the next.  2005 began our mini-boom that peaked in 2006 and trailed off in 2007.  It is dissapointing to see 2008 dip below the number of homes sold at this time in 2004, and this is where the months of inventory ties into the overall picture of our current market.  The number of homes sold is related to the amount of homes currently available, and is displayed by the Months of Inventory currently available.  This shows the speed of the movement of homes in our market.  Although the volume is holding, this low level demonstrates a buyer’s market.

So don’t avoid buying real estate in Austin just because of fears of the market.  Our prices hold steady even in the worst of times.  If you are buying now, you have the luxury of taking extra time selecting and negotiating the deal.  If you are selling, be prepared to have your home on the market longer than expected.  Selling your home is a lot of work in this market, which is why the role of the good Realtor® is becoming appreciated once more.  It will help to have someone available to market your home full-time and meet for showings when you have other things to do because you are likely to be in for the long haul.

Tags: austin, austin real estate, market // Add Comment »

Yesterday I explained how Months of Inventory helps us follow the health of Austin’s real estate market.  Pricing is another factor that gives experts insight into the health of our housing economy.

Generally, a buyer’s market has two major simptoms:  1) High Months of Inventory Figure; 2) Falling Average Home Sales Price.  We are currently seeing a relatively high amount of inventory in Austin that experts estimate will take 6.1 months to sell which puts us in line with the numbers we saw in 2003 & 2004 as I explained in my Tuesday market update.  However, the average price of a home in Austin is remaining strong, meeting or beating 2007’s figures, and amazingly beating the average home sales price of the 2006 boom.  The Median Sales Price figures are above the levels that we have seen all decade!

I know you’ve had your doubts about what you keep hearing from both me and the experts, so I hope these numbers, from the Texas A&M Real Estate Center, demonstrates the helth of Austin’s real estate market even in this buyer’s market.

What does this all mean?
It means that homes are staying on the market longer, but are bringing higher prices than they did in any year in history.  Unlike other areas in the nation, Austin home prices are not falling.  Austin remains a top buy for investors and transplants from elsewhere in the country.  Our real estate here in Austin is still considered a bargain.

Tags: austin, austin real estate, market statistics // Add Comment »

Real Estate has been all the buzz still.  Is is as bad as it seems?  Is Austin immune?  Is the market going to crash?  Is inventory still on the rise?  Are prices really falling?  There are literally questions flying all around me lately.  I’ll let the numbers speak for themselves.

Austin’s Real Estate Inventory Statistical Data Chart

Months of Inventory is said to show the general health of a market.  A high figure means a buyer’s market (less healthy) and a low number means a seller’s market (generally considered a strong market).  Compared to the previous 5 years, Austin’s residential home inventory started around average.  It has climbed into 2003 & 2004 territory, proving that we are currently experiencing a buyer’s market where buyers can generally spend more time looking and offer lower.  In Austin, we are still seeing strong prices.  Experts agree that although we are in a buyer’s market with a cooling sales record, prices have not declined, only the amount of time that a home spends on the market has increased.

Check the blog all this week for more statistical insight into today’s real estate market in Austin.

Tags: austin, austin real estate, market statistics // Add Comment »

Weekly Green Tip

Diaper Conscience
Babies fly through 5,000 to 8,000 diapers before using the “big kid underpants”.  That’s 3.5 million TONS of waste in American landfills.  Can you imagine that kind of mass?  It’s nearly 2.5 million cars worth of baby waste and diapers!  There are environmentally friendly versions of diapers as well as washable cloth diapers.  And mothers report potty training goes much more quickly with cloth diapers because children learn to associate the behavior when they can feel wet creating their own desire to potty like a big kid.

Tags: Green Tips // Add Comment »

Tyler Colman has an interesting piece in The New York Times about how boxed whine is more environmentally friendly than bottled, therefore wineries should switch to the box immediately.  “Drink Outside The Box” is a must read!  Austinites love both the environment and wine, so learn how to turn the red or white into green.

Tags: austin, carbon footprint, green // Add Comment »

Many of us are expecting residential sales to normalize sometime next year, but today the Statesman has a gloomy outlook.  They usually do, as any strong opinion will sell more news than a weak one, however this outlook has some similarities with what local Austin real estate experts expect.

Mark Dotzour of the Texas A&M Real Estate Center has an expert voice that many of us trust when it comes to Central Texas real estate.  Dotzour expects job growth to slow to 1.1% in Austin in the next year, a factor Austin depends on for its strength.  This still represents growth, but should correspond with a decline in new housing starts as fewer Austin immigrants will need homes.  Dotzour expects our economy to spend a year leveling out the effects of the decline in Austin’s growth rate and the growth of our residential real estate inventory.

Austin’s real estate climate, like its weather, overall maintains a better outlook that the rest of the country.  While harsh real estate storms hit the coasts, Austin has remained fairly sheltered, receiving only a trickling effect of the national forecast.  Dotzour expects the summer of 2009 to be key.  This is when the influx of new builders that we saw in 2005-2006 will be tested, and those who fail will likely be forced out of business.  According to Dotzour’s predictions, those who can hang on through to 2010 will likely see the new home market pick back up.

If you ask me, this is good news.  A survival of the fittest for builders, if you will.  Those who create the bad reputation that the good builders have to fight will hopefully move on.  I am hoping for the same for real estate agents.  Those who are passionate about their education and careers will weather the storm while those looking for that quick buck will move on to other ventures.

In the end, Austin’s resilience and relatively low cost of living means experts expect Austin to reep the benefits of the upturn of the economy, whether it appears in 2009, 2010, or later.

Tags: austin real estate // Add Comment »

Weekly Green Tip

Recycle Glass
Glass takes 1 million years to decompose.  If you’re not going to wait around to see those benefits, recycle glass containers as well as broken glass (like mirrors and picture frames) to reduce glass related air pollution by 20% and water related pollution by 50%.  That was easy!

Tags: Green Tips // Add Comment »