Take a Test Drive

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traffic jamI have spent the last few weeks in Mueller, Clarksville, Barton Hills and Downtown districts, the Oak Hill area of Austin, and a little time Round Rock and Pflugerville for good measure.  I had a conversation with someone recently regarding distance versus travel time.  Time is a very hard thing to judge in Austin simply due to the unpredictability of the traffic if you are not used to a flight path.  As you probably know, my office is close to the corner of Spicewood Springs Road and Mesa.  I can get to the office from Mopac, 360 or even I-35.  With no traffic on a Sunday afternoon, it will take me about 15 minutes regardless of my flight path.  During the week the story changes quite a bit.  During morning and evening rush hours, it can at least 45 minutes to get to and from the office on Mopac and 360. For many,  I-35 at end of day can be equivalent to sitting in a parking lot.

Austin Real Estate

It’s important to find the time during the initial stages of the home buying in Austin to see if a particular area is going to work for you.  Getting around Austin on the weekend is easy breezy for the most part, but during the week can be a much different story.  Nine miles doesn’t necessary mean about nine minutes of travel time.  It’s hard to plan for because buyers are often looking at homes on the weekend, because that’s when they have time.  It’s important to take the time though at least once before work or after to just to a test drive.

Austin Traffic

If you are tech savy, phone apps and GPS devices can also be helpful.  Very often current traffic conditions are taken into account when the program is calculating the estimated travel time.  You can often see the traffic to on the device.  Plugging the address into these devices when you would normally be doing the drive will help you estimate commuting times as well.

House of Now

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house of nowThe Austin Real Estate Market ended 2012 with a low inventory and substantial supply of buyers.  January has picked up exactly where 2012 left off only with more buyers.  A common new year’s resolution is to buy a new home, which means that on January 1st my phone starts ringing even more.  Every buyer starts off on the same path in that they look at homes that entered the market in the past.  Whether the house was put on the market 2 days ago or 2 months ago, it is new to the buyer who has just entered the market.

The strange dynamic that I often see is when a house has been on the market say 70 days, which by today’s standards is kind of long, and all of a sudden on day 71 it’s in multiple offers.  For 70 days nobody wanted the house and on day 71 it is in a bidding war.  Some buyers pass houses by that have been sitting, because they feel like there is something wrong or it’s overpriced.  More often than not, buyers pass by a house because they think they have time.  Whether it is day 3 or day 70, they think the home is going to be around until they decide if they want to buy it.

I have had more than one client who has lost an opportunity to put an offer on a house that was on the market for 3 days in the last 2 weeks.  These clients are now referred to as my Zen clients because we are looking in the now. We have looked at every home that might be a possibility and are now looking at what comes on the market – when it comes on the market.  If a house comes on the market that might be the right fit – we go see it within 24 hours.  My Zen buyers are not only pre-qualified, but they have a thorough understanding of what to expect in terms of closing costs and pre-paid costs like homeowners insurance and escrows for taxes.  I can write an offer the same day my Zen buyer wants to buy the house because we are that prepared.

How to Buy a home in Austin now

If you want to buy a house in Austin you need to be a Zen buyer.  Understand, it’s ok to just look, but you are constantly going to be looking in the past until you are ready to buy.  The houses presently for sale are going to sell, so it’s kind of waste of time.  A better use of time is to get pre-qualified to see how much you can spend or want to spend and then get closing costs and pre-paids estimated in order to have a solid idea of you can afford.  It costs money to buy a house, but it costs a lot of time too.

If you are planning to buy a house now – you need to prepare now.

New Year New Home

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New yearsSellers had much to do leading up to Christmas, which created a slowdown in terms of new inventory for Austin Real Estate coming on the market. Have no fear your search will render new results over the next few days as people are able to clean up from the holiday, family and friends go back to the daily grind and our schedules go back to normal. I expect your inventory will pick up over the next week and buyers will as well.

If you aren’t on a custom home search with me and are considering purchasing a home in 2013, now is the time to contact me.

Real Estate Austin

The Austin real estate market is booming! Here are some fun facts:

  • Austin will have 60,000 new jobs over the next 2 years.
  • The Austin unemployment rate dropped to 4.9% (the national average is 7.8%)
  • 130,000 people will be moving to Austin over the next 2 years
  • Apple may become Austin’s largest employer
  • Austin home sales could increase 20% to 25% over the next 12 to 18 months.
  • All-cash transactions made up 30 percent of all home sales in November 2012
  • 30 percent of November home purchases were first-time buyers
  • Investors made up 19 percent of all closings in November

Homes for Sale in Austin

From what I have read the future over the next 2 years looks very bright. As the price of homes rise in Austin, the how far your dollar will go decreases. For example, if economists are right, you will need to pay $240,000 in the future to get a house that is now worth $200,000.

I wish you a safe, happy and prosperous 2013!

Time to Deck the Halls

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holiday decor

‘Tis the season for shopping, baking, cooking, cleaning and maybe a little pepper spray in your eye. With all of the added things to find time for during the holidays, selling a home can seem an additional job we may not have time for. There are benefits though to selling during the holiday season and certainly things to be mindful of.

Austin Winter Real Estate Market

The holiday season is also the start of colder weather. In other parts of the country snow can really impact winter home sales. Fortunately, for the Austin real estate market snow and ice days are little and far between. Buyers can generally shop year round though it may be hard to find the time.

Austin Multi-Family Investment Properties

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The Austin real estate market has experienced just as much sales growth over the last year for multi-family residences as it has for single family houses. Austin duplexes, tri-plexes, four-plexes, condominium and apartment developments are all considered multi-family real estate. Low inventory coupled by high occupancy and higher rents are creating increased positive flows which is fueling demand. So, how did we get here?

It all comes back to lack inventory and what had been a slowdown of development projects. The recession and the collapse of the sub-prime market are associated with job loss with increases in foreclosures and short sales. When banks started losing money they tightened the criteria for getting a loan, but also cut back on the development capital used to fund multi-family projects.

Investing in Austin

Two tenant profiles spiked very quickly in a short amount of time: the single family home owners who now have to rent and the first rental opportunity for the graduates who are now employed. What did not spike initially were the multi-family development projects to house them.

Four years ago we had plenty of housing. Although the downtown Austin skyline changed very quickly in 2007, it leveled out fairly fast. Some condominium development was even altered or placed on the backburner which help prevent what would have been over saturation.

Austin Multi-Family Homes

Now Austin is playing catch up. You only need to take a short drive around Austin to see that times have changed and new projects have broken ground. As Austin investment properties continue to be developed, lease amounts will level out a bit. Keep in mind though that Austin keeps growing. Half of my active client base right now does not even live in Austin – they are moving here. The need for Austin multi-family properties will always be in demand for both investors and tenants alike.

Austin Real Estate Spotlights

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I have selected random subdivisions in Austin Texas real estate market areas and listed current data on active listings. The data is subdivision specific, so there may be additional homes available for purchase in the neighborhood.  Average Days on Market below 90 days are considered Seller’s markets, because homes are moving quickly.  Austin neighborhoods with homes on the market between 3 and 6 months are considered neutral.

Real Estate Austin

The data below is specific to Austin single family homes for sale. If there is an area you want me to spotlight -please let me know.

Barton Hills (Zilker Park Area)

Number of Active Houses on the Market: 2

Average Days on Market: 37

Median List Price: $ 444,450

Circle C Ranch (Southwest Austin)

Number of Active Houses on the Market: 24

Average Days on Market: 50

Median List Price: $ 359,450

Hyde Park (Central Austin)

Number of Active Houses on the Market: 7

Average Days on Market: 95

Median List Price: $ 549,000

City of West Lake Hills

Number of Active Houses on the Market: 18

Average Days on Market: 196

Median List Price: $ 1,224,925

Jester (North Austin)

Number of Active Houses on the Market: 4

Average Days on Market: 88

Median List Price: $ 475,250

Northwest Hills (North Central Austin)

Number of Active Houses on the Market: 11

Average Days on Market: 164

Median List Price: $ 675,000

Tarrytown (Central Austin)

Number of Active Houses on the Market: 14

Average Days on Market: 119

Median List Price: $ 1,049,750

Travis Heights (Central Austin)

Number of Active Houses on the Market: 11

Average Days on Market: 104

Median List Price: $  599,000

Buying the Perfect Austin Home

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So you think you’ve found the perfect home, but is it perfect for you?  The path to actually buying it can prove otherwise if you haven’t done your homework.  The Austin Real Estate market is very strong.  Interest rates are low, many people have jobs and companies are moving here creating more opportunities for people.  Formula 1 has also added yet another head turning reason to consider moving to Austin for those out of state.  Houses in Austin are selling.  If you found the perfect house today and don’t know how you could buy it, you shouldn’t be looking…yet.  After all, if you can’t afford it…the house is not so perfect anymore.

Austin Homes for Sale

Whether you are purchasing a first home or simply want to move to another, you need to do some homework.  Everyone has an idea in their head of what they want to spend on a home, but many don’t know how that translates in terms of how much of a house they can actually afford.  Your debt to income ratio is only part of the formula.  The other consideration that lenders will look at is your credit score.  Many buyers I talk to have no idea what their credit score is.  Credit scores run between 300 and 850.  A credit score of 650 – 699 is generally considered moderate, while numbers between 700 and 850 are considered good to excellent.  The combination of the debt to income ratio and credit score will determine what loan programs are available, what the interest rate will be and ultimately how much you will qualify for.

Buying the Perfect Home

A lender will explain what your options are and then we will talk about them.  I always try and keep lifestyle in the mix to help you decide what you want to spend.  You may need to be at the high end of what you can qualify for if living near Downtown Austin is important.  Likewise, if you are planning to expand your family or will need to purchase a car and know your monthly expenses are going to increase as a result; you may want to spend less.   Once you do your homework, you will find a home that fits your financial and lifestyle criteria. It will be the perfect home – that is perfect for you.