If you follow this blog, you know that I keep preaching about how Austin is sheltered from other parts of the country, along with their booms and busts in real estate.  Yes, it is a tough economy out there, but our local economy is still strong despite, or in spite of, economic news.  It’s simple economics, really.  Today, I will focus on how steady growth is one of the main ingredients of a healthy local economy like Austin’s.

From: http://ariaschoenfelt.com/statistics/austin_population_data/

The chart above, with data from The US Census Bureau, demonstraits the steady growth in Austin since 1990.  The trend is similar to home sales volume because with more people, we sell more homes.

Many experts account our drop in 2007 to outside factors like fears induced by the media and the mini-boom we had around Austin’s McMansion Era of 2005 & 2006.  What we experienced was a local mini-bust, but on a tiny scale.  Few prices dropped, instead, sales slowed while the volume played catch-up with time.

Now take a look at charts from one of the markets that has a heavy influence on the media, like southern California.

Notice anything?  I notice how home sales volume is extremely volitile in these markets as compared to Austin’s.  Sure, there was money to be made in this real estate gold rush, but was it the tortoise or the hare that won the race?

Austin, like the tortoise, appreciates slowly and steadily.  That’s why big-time investors that have long-ago learned the art of patience, buy Austin to hold.  It’s a growth stock of real estate, it you will.  Sure, it will fluctuate, but in general, it’s on the way up and in the long haul, holding on to your investment in Austin real estate can pay off big long-term.  Markets on the coasts, like southern California, are the tech stocks.  They demand more care and attention to the buy low, sell high and fast strategy.  If you’re a casual investor, I would recommend a growth stock every time.

If you are looking to make money in Austin over a more short-term period, there are areas that appreciate more quickly.  They take a careful eye and careful watching, and that is a topic for another day or to discuss one-on-one.

Tags: austin real estate, market by Aria
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Renters have a different view of real estate economy than homeowners.

Source: PEW Research Center

It seems that renters are much more pessimistic about rising home prices. I’m not sure of the participants in this study were planning on buying a home in the near future, but this study does show something interesting about how you see the market when you own property versus when your at the mercy of a landlord.

More renters believe home prices are rising.

Are they pessimistic about their buying power? They may be feeling left out of the prosperity homeowners found during the boom years leading up to our current conditions.

Renters aren’t worried about the housing economy.

Renters expect prices to climb more than homeowners do. So why aren’t they buying? First-time home-buyers are seeing harder times with mortgage woes. It takes some patience and hard work to get a home loan, and perhaps renters aren’t willing to go through with it.

Americans are not optimistic about the economy.

Source: PEW Research Center

Yet this study is extremely interesting. We saw some of the greatest appreciations in Austin real estate in 2006. Many people sold out to collect their equity while late-comers created a building and flipping surge, especially in central Austin real estate. 2007 was much slower than 2006, especially in the last two quarters. Yet, the number of those who believe the economy is in poor shape has not increased as dramatically as I would expect. I think this shows how pessimistic people are about the economy anyway. We live in a fairly prosperous country and Austin has a steady growth rate which leads to steady real estate prices, yet I would expect similar numbers on a local study based on the fears and questions I receive.

Is this thing on?

I still wonder if anyone can actually hear me. Don’t be afraid to buy. We are currently in a RARE buyer’s market here in the Austin real estate market and at the same time, interest rates are at HISTORIC lows. I’m shopping for real estate in Austin now so don’t blame me if you don’t get in on this buyer’s market! Get your head out of that national news paper, turn off CNN, and get real. We’ve seen studies showing that people think the bottom is falling out of the American economy for years and it hasn’t. In fact, the primary reason for the housing slowdown and the buyer’s market here in Austin is the attitudes of people, not actual economic fact. Now that sellers are getting real, take a chance and think about investing in Austin’s real estate market. I’ll show you how!

Tags: austin real estate, buyers, development, economy, finance, hot market, housing, market, market statistics, money, mortgage, real estate, statistics by Aria
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It’s quick and easy to find out! Visit Real Estate Financing or use this calculator!

Tags: austin real estate, finance, hot market, housing, info, loans, market, money, mortgage by Aria
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The February MLS statistics from the Austin Board of Realtors showed some surprises.  That’s 2008 in blue above with prices still on the rise over 2007 prices despite this year’s media-watching, weary consumer.  The median sales price of single-family homes grew 2% over February 2007 even though the number of sales was down 10%.  This is proof of the economic growth we keep seeing in Austin even with the national news watering down the performance of our local market.

Remember, real estate is local!  Austin has bucked so-called national trends time and again, along with many other cities.  March statistics are due out soon and will be posted to the blog as soon as they are available.

Tags: austin real estate, hot market, market, market statistics by Aria
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I’m at it with my numbers again! While I was logged into MLS to update my listings, I decided to do a quick search for the most expensive home sale for 2008 to date (as of 4/14/2008). With so much unfounded real estate panic floating around, wouldn’t the rich and famous be weary of making a home purchase right now? Of course not! Those in the know are taking full advantage of this buyer’s market before it turns. And at the rising rate of multiple offers that my office has seen this year, another seller’s market could be just around the corner. Of course, I still recommend buying if you need to move closer to work or find a larger home for your growing family, not as an investor unless you are really up for it. Like buying stocks, real estate goes up and down and it’s best to be in it for the long hall.

Anyway, the most expensive home sold so far this year was listed at $3,800,000 in Northwest Travis County. The sales price was under asking, but I don’t believe in revealing those details! This home was one of two homes to sell for over $3 million so far this year.

5 homes have sold for $2,000,000 to 2,999,999 and 37 have sold from $1,000,000 to $1,999,999 this year alone in the 4.5 months we’ve had so far.

According to my ABOR MLS search, 4858 homes total have sold so far this year by Austin’s Realtors.

Tags: austin real estate, buyers, economy, estates, hot market, housing, info, luxury, market, money, sales, seller, sellers, statistics by Aria
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Austin has been making national headlines lately, and good ones at that. While we hear that the real estate market nation-wide is in a slump, we also keep hearing that Austin’s economy is still strong (even if it is no longer booming). It should be no surprise, then that Austin topped Forbe’s list for big metros.

Check it out!

Of course, if one looks at economic growth in the country’s largest 100 metros, the usual suspects jump to the top of the list. With an estimated 32% GMP growth from 2007-2012, Austin, Texas, is the winner for big metros. Atlanta, Seattle, Orlando, Houston and San Jose, Calif., also appear high on the list. What do they all have in common? They’re tech hubs with proximity to universities and a healthy increase in population. Austin’s population, for example, is expected to increase by nearly 15% by 2012, according to Moody’s Economy.com forecasts.

Once again, Austinites, you live in one of the top cities in the nation. Austin is a great place to live, work, make movies, listen to music, and buy real estate!

Tags: austin, austin real estate, development, facts, hot market, housing, info, living, market, money, planning, real estate, statistics by Aria
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AUSTIN’S REAL ESTATE MARKET UPDATE

My last post was on the 11th, where have I been? Busy, busy, busy. All of a sudden earlier this month, the phones started ringing again and emails where flying in faster than I could answer them. It sounds like the word is out that now is indeed a good time to buy. Offers are coming in to sellers and although they are still lower than expected, sellers aren’t feeling the desperation from November, December and January. Things are looking up.

If you are looking to buy, you still have a great chance. Just don’t insult sellers with unreasonable offers because showing activity is way up. Leave negotiating to the professionals. Listen to your Realtor’s advice in times like these because the little things are still important.

If you are looking to sell, get your house ready! Search this blog as well as the headlines section for tips on how to get your house ready and consult with a professional. This spring should bring plenty of activity, but you still want your house to WOW buyers with the still overwhelming inventory still available. You can sell in this market, but you still can’t expect to have buyers knocking down your door unless your house stands above the rest.

As always, if you would like any more information, that is my job! Feel free to call me at (512) 771-1776 or email.

Keeping you up to date,

Aria Schoenfelt McIntosh
liveaustinrealestate.com

Tags: austin, austin real estate, hot market, housing, living, market, money, planning, real estate, realtor, sales, seller by Aria
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