Austin Market Update

News of gloom and doom have been frightening, but the every-day buyer is still out there. Long-term investors are still here. So why are our numbers still down? The boom in 2006 was well above and beyond Austin’s typical appreciation of 4-6% per year. (see statistics here) We saw many new do-it-yourself’ers inspired by HGTV and the money professional investors were making. They bought at prices the old-timers were waiting out. After all the first rule of investments is “buy low, sell high.” Now the old-timers are getting back in the game, bravely buying in the emerging mini-markets such as condos and the suburbs.

Families who want to buy a home to stay in are still buying where they always do. Many are looking central for the convenience and find flippers carrying projects much longer than they budgeted for who are ready to make a deal. Unlike 2006, this year buyers can look and then think. This luxury was not available to last year’s new investors who had to run through houses the day they were listed without taking full account of all the work that needed to be done. So now we have many homes priced high for the neighborhoods with buyers who can take their time. If you’ve been looking in central Austin, pay special attention to these new construction homes with reduced prices!

Elsewhere, the mortgage woes are keeping some potential home buyers waiting for approval on sub-prime and jumbo loans, but the mortgage industry is catching up thanks to some good-old-fashined free market creativity. Naturally the first to solve the problem has the first pick-me-up. And lenders are hungry too.

So although we are still watching the “months of inventory” climb in Austin’s Real Estate Market, practical buyers are finding great deals they can afford and sellers are learning to be practical again.

This Realtor sees great things ahead in 2008 and 2009. Watch the numbers and think about your investments carefully. If you plan on staying in your home for years to come, today’s low interest rates are likely to make Austin’s steady appreciation a great deal. If you’re looking for a quick buck, Austin isn’t your market. Long-term investors will never panic and are watching Austin carefully. They know that a steady market like Austin is a great opportunity.

Happy House Hunting,

Aria McIntosh
BridgeOne Properties
ariamcintosh.com
aria@ariamcintosh.com
(512) 771-1776