Back to School Starts Austin Real Estate Fall Season

PoolMother Nature offers two options in Central Texas – either extreme heat or extreme rain. Heat indexes got as high as 108 degrees in Austin before breaking a record for rain totals in August. Working with extreme weather can be a daunting task for a home buyer. Only those with an immediate need or searching for a lakefront property were stepping out to buy a home in Austin.

Lakefront Properties in Austin

There is always a consistent desire to live close to Lake Austin and Lady Bird Lake, but sales dropped along Lake Travis during the drought. Many homes that were once lakefront, were no longer as desirable without water present. Things have changed quite a bit. In fact, Lake Travis has reached full status for the second time this year.

Austin Lake Homes for Sale

The consistent water levels turned the lakefront property market around quite a bit this summer. Austin lake view homes for sale and lakefront properties in Austin, West Lake Hills and Lake Travis certainly saw saw an increase in sales activity.

Austin Goes Back to School

With summer vacations winding down and everyone back into school – commuting times need some adjustment. The market may soften just a bit more as everyone takes a bit of a breather as we settle into our fall schedules.

Central Texas Real Estate Market Statistics

Central Texas experienced a bit of a decline in July compared to July 2015. According to the July 2016 Central Texas Housing Report released by the Austin Board of REALTORS(R), 4,230 single-family homes were sold which was a 3.1% decline in July compared to July 2015.

Austin Home Sales Predictions for 2016

New yearsThe market is on the move with no signs of slowing down as we settle into 2016 and look at Austin home sales. The Fed did raise interest rates as expected. With the economy well on the mend, additional upticks are on the horizon as interest rates slowly drift to normal levels. The interest rate always affects the housing market because it taps into buying power. Interest is part of the monthly mortgage payment. Higher rates mean a higher payment, which affects debt-to-income ratio.

Austin Home Sales Predictions 2016 and Housing Demand

Historically, rising interest rates generally decrease home prices because buyers can afford less; but it can also create an immediate demand. Buyers want to lock into mortgages when they know rates will be increasing.

In Austin, the demand for housing was already high without the rate increase. I expect increasing rates will only create more motivation to buy a home.

Realtor.com says Austin-Round Rock will be the fifth most sought out city for 25- to 34-year-olds looking to purchase a home.

As long as the demand is high and inventory is low, housing prices in Austin will continue to rise.  There is currently about 2.6 months of single-family home inventory in Austin for sale.

Beyond Austin’s City Limits

490 W Overlook Mountain RoadI held an open house in Elliott Ranch last week, which is located in the City of Buda. About 25 people toured the home which was a pretty strong showing for a 2-hour open house right in the middle of Sunday football.

Buda borders Austin on its southern end, so some visitors were not even aware they had left the city limits. The mindset of many people who live in Central Texas is that Buda is a suburb in South Austin.

Austin Real Estate and Beyond

From a market perspective, Buda is considered part of the greater Austin area and has been experiencing the same growth challenges and low inventory of homes for sale. Buda is an area I reference, along with Kyle, Dripping Springs, Manor and Cedar Park when I talk about how Austin is growing up and growing out. Buda offers buyers a little more for their money when compared to Austin. The dollar goes further in Buda, offering a larger home, maybe a newer home and/or larger lot size for buyers when compared to the City of Austin.

Featured Home: 490 W Overlook Mountain Road, Buda Texas

  • 3 bedrooms
  • 2.5 baths
  • 2,566 square feet (tax record)
  • 2.269 acres
  • in-ground pool
  • fire pit
  • 3-car garage

Located in the gated community of Elliott Ranch

Austin City Limits Music Festival Real Estate Recap

Austin City Limits Music FestivalThe Austin City Limits Music Festival has come and gone for 2014 leaving a large boost for Austin’s economy in its wake. Headliners including Outcast, Eminem and Pearl Jam contributed to both 3-day weekends selling out to roughly 75,000 visitors per day. The estimated total in revenue was $175 million for Austin in 2013.

Much of the economic contribution is from out of town guests visiting and staying in Austin for the festival. Roughly sixty-six percent of ACL festival attendees are from out of town and spend an average of nearly $900 per day on food, lodging and retail.

For attendees curious to know what homes are worth near the Austin City Limits Music Festival, below lists up-to-date market data specific to real estate for sale located within 1 mile of Zilker Park:

Austin Condominiums for Sale near Zilker Park:

  • Current Number of Active Homes: 23
  • Total Number of Pending and Active homes: 31
  • Average List Price: $487,884

Austin Single Family Houses for Sale near Zilker Park:

  • Current Number of Active Homes: 14
  • Total Number of Pending and Active homes: 25
  • Average List Price: $1,465,393

Other Zilker Park events include the Zilker Kite Festival, Blues on the Green and the Zilker Trail of Lights lending it to be a source of  consistent entertainment year round.  Homes located near Zilker Park are considered prime real estate and are consistently low in supply and high in demand.

Holiday Season Home Inventory in Austin

house

Once upon a time November and December were the months that home buyers slowed down and investors came out of hibernation. During the holiday season days are shorter, not only because of the amount of daylight hours, but because of the added tasks taken on this time of year. Shopping for presents, food, cleaning, parties and travel can add to the daily grind and often put the thought of buying a home on the back burner. Historically, with fewer buyers in the real estate market this time of year, inventory would tend to rise a bit because houses would tend to stay on the market longer than spring and summer. With a larger supply of homes available, prices would tend to fall and investors would enter the market to get a good deal or two.

Austin Home Sales

That was then, this is now. The Austin real estate inventory hasn’t really grown that much in the past month and in many select markets, it has only gone down which has pushed prices up. The home buyer that expected to be settled by now who had plans to host Thanksgiving dinner is still in the real estate market. Interest rates and home prices have gone up in the last 6 months, but inventory has not.

Inventory on Austin Investment Properties

The inventory of multiple family units, like duplexes, has not increased either. The buyer pool albeit is smaller, but the supply and demand is not any more level in that market which is leading to multiple offers, even for investors.

Keep the New Home Bug Alive during the Holidays

Do not cross that new home off your holiday wish list. Stay in the market at whatever level you can. It is a lot easier to find the time to see one or two houses a week you really might like, than to see 10 you really won’t, which is what happens when buyers start over. Buyers who bow out this time of year with too much to do will literally be starting from scratch in January along with a new crop of people with New Year’s resolutions to buy a new home.

Finding the perfect home is often about being in the right place, at the right time. If it’s meant to be while everyone else is at the mall, then so be it.

Austin is Hot

hot earthAustin is hot and I’m not just talking about the weather.  Austin’s growth is outpacing the supply of homes in inventory which is making it a competitive market to buy and even rent in.  Over 25,000 people moved to Austin between July 2011 and July 2012, according to the U.S. Census Bureau.  The growth moved Austin’s ranking of the nation’s largest cities from the 13th spot to number 11.

Austin Real Estate Market sees more new construction

Austin is expecting to 27,000 people moving into town each year for the next 3 years.  The Austin Board of Realtors has reported a 32% increase year-over-year in new home construction in the second quarter of this year.

New Year New Home

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!