Austin Housing Demand Still Higher than Average

By OLGA CAMPOS KVUE News

Nationally, home sales in January fell to the lowest level in nearly a decade while the median price for a home continues to decline. But in Austin, it's the opposite. While sales are down from year to year, 2007 is still on record as the second best ever for home sales with an increase in the median price.

In Austin sales are up 4 percent, the median price is up by 7 percent with houses staying on the market for about four months. While nationally home sales dropped by 13 percent with the median price down by 6 percent. Houses are staying on the market for more than nine months before selling.

The Austin Board of Realtors says homes sales in January 2008 are down 10 percent from January of the previous year, but even with that month-to-month decline, Gay Puckett, of J.B. Goodwin Realtors, says Austin is a hot housing market. "It was the second best year in the history of Austin real estate," says Puckett.

She says new homes are selling, others are being remodeled and local businesses are booming in neighborhoods like Crestview.
"It makes me thrilled because we just bought our house a year ago," said Jaime Brydson. Brydson is tracking the value of her new home in her North Central Austin neighborhood.
"I read the paper and I'll see how percentage wise our property has already gone up in the past year. I feel like not only did we get a great house, but we made a fantastic investment," she said.
Experts predict 41,000 new jobs will be created over the next two years making increasing population and new employment the key reasons why the local housing market stays in better shape than the national average.

Here are more housing stats: 1,321 single family homes sold last month and the Median price of a home was $183,000.

05:47 PM CST on Monday, February 25, 2008

AUSTIN: Top 10 Best Performing Housing Markets

As anybody who has ever sold real estate knows, there are no national markets, only local markets. That adage holds true when you look at the condition of the real estate business nationwide. Business may be tough in many places, but it’s not tough all over.

In Salt Lake City, Charlotte, N.C., and San Jose, Calif., prices have climbed relentlessly. In the Northeast, the biggest gainers are the gritty cities of Buffalo, N.Y., Pittsburgh, Pa., and Philadelphia.

In the West, business is brisk in Northern California and the Pacific Northwest.

Here are the top 10 best performing housing markets, according to Forbes magazine, their third quarter median home sale prices, and the percentage that prices have risen compared to third quarter 2006.

Salt Lake City — median home sales price: $246,700; Percent change: 14.1 percent
Charlotte, N.C. — $220,000, 11 percent
San Jose, Calif. — $852,500, 9.4 percent
San Francisco — $825,400, 8.6 percent
Raleigh, N.C. — $229,500, 7.5 percent
Austin — $188,200, 7.2 percent
Pittsburgh — $127,700, 6.1 percent
Seattle — $394,700, 6 percent
San Antonio — $154,700, 5.7 percent
Portland, Ore. — $299,700, 5.2 percent

Source: Forbes, Matt Woolsey (11/21/07)

The State of Austin's Housing Market

The end of 2007 will see the Austin Housing Market sell about 94% of the number of homes that were sold through the Austin area MLS in 2006, the most prolific year ever in Austin home sales. Historically this will place 2007 Austin homes sales in second place.

Yet, concert has arisen about the slowing housing market due mostly to headlines comparing ’07 with ’06. Comparing any year to the best year ever is going to give less than impressive numbers; however, our average home price is up $16,000 over ’06 (through October ’07). Our total value of homes closed is above ’06, but the number of homes sales is down 5.7% and the days on the market is up slightly.

Austin’s job and population growth is very strong (4+%) and appears to be getting stronger. The report that Property & Portfolio Research, Inc. of Boston recently completed indicates that Austin has possibly the highest office rent growth in the nation and is projecting 2008 at a 9.2% increase. Google is nearing finalization of a lease for 25,000 square feet in the downtown area (ABJ) and is one of many such companies locating offices here. Our direct monetary impact from tourism is up 19% over three years (ABJ). Apartment occupancy rates rose 1.43% in the third quarter to 94.14% overall at a rate of $.95 per square foot (highest in the state and rose 6.2% over ’06) on an average of 834 SF apartment (Austin Trends Report and ALN). Unemployment is at 3.5% and more employers are being announced weekly.

So, why all the concern? Too many people read national stories and apply it locally. Austin is not a declining market. Austin’s inventory is growing and this means more days on the market and more motivated sellers. Our inventory is growing for only two reasons: fewer buyers and more homes. Why has this happened? We have fewer Buyers due to lack of easy money. We have more homes a 4.6 months supply which is up from our 3.1 months supply in 2006. The truth is, we has drifted into a period that anyone who wanted a loan could get one and the foreclosures are mounting so the lenders went back to the former standard.
Bottom line, this is healthy adjustment. Austin just happens to be in the right place at the right rime. The nation’s situation is bringing interest rates down while we are experiencing a rental boom.
There is no better place to invest today than Austin!