Austin listed as Best Place to Buy a Home by Entrepreneur.com

Best and Worst Places to Buy a House - Whether you're looking for an investment property or a place to live, here's a look at the cities you should seek out and avoid in 2008.
By Danielle Babb January 23, 2008

The housing crunch and the excessive inventory--exceeding 10 months on resale homes--continues to take its toll on housing prices. But over the long term, housing is still a good investment. In fact, it's more than an investment; it's a home. Plus, you're not really saving anything by renting, as the costs of renting and owning are about equal (well, owning may be a little more). The tax benefits of home ownership far outweigh renting, too. With good housing prices in many great areas, this may indeed be the time to buy.
So now that I've convinced you this is a good time to buy a home, the next question is, Where do you buy one? No matter where you look, you should check out some basic economic fundamentals before buying. Is job growth stable in the area? Is income keeping up with inflation? Is crime above the national average? Is there a higher-than-average rate of foreclosures? These issues and others play a factor when deciding where to buy a house.
As a real estate investor and analyst, it's my job to provide buyers with qualified information on where to buy--and where to stay away from. Here are my thoughts for 2008 based on the indicators noted above.

The Top Places to Buy

Whether you're an investor like me or you're looking to purchase that next move up, here are my picks for the best areas to buy a home:

• Killeen, Round Rock, Austin, Texas: Killeen has the lowest average home price in any market in the nation while still maintaining quality. Round Rock and Austin have seen incredible job growth and very stable home prices despite the downturn nationwide. Jobs continue to grow here--a factor for keeping inventory low and prices stable.
  
• Mission Viejo, California: Mission Viejo has the lowest crime statistics in the nation. With no murders in 2007 and a low rate of violent crime, this is a good place to raise a family. Prices are relatively stable, and the job market in the nearby cities of Irvine and San Diego means there is consistent demand from job seekers.
  
• Palm Beach, Florida: I'm taking a risk here because this area has been pummeled by foreclosures in 2007. But there are also a lot of boomers retiring, and Palm Beach is looking mighty attractive. If you don't like this high of a risk (which translates to great prices), check out Tampa or Clearwater in the same state.
  
• Las Vegas, Nevada: Yes, Las Vegas has been hit hard by incoming investors, who watched their home values disappear and then left those homes empty. Las Vegas comes in quite high on the national foreclosure list, almost always within the top three metro areas. But there's an upside--a very strong job market. In 2007, Las Vegas experienced a 12 percent increase in population, partly driven by retirees looking for Sunbelt states to move to. Coupled with low prices, we could see inventories reduced here, which would also stabilize prices. Be careful what you buy, but I like it.

To see the Places to Avoid: see the full article at: http://www.entrepreneur.com/money/personalfinance/article189454.html

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!