The Heart of Austin

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Thank you so much for reading our blog at HeartofAustin.com! The West Austin Properties Team loves sharing information with you, and we will continue to share events, real estate news, stories and more at our new site www.WestAustinMarketplace.com. This new site will feature video blogs, as well as our traditional written blogs, enabling us to better inform you of what is going on in and around Austin, Texas! We can't wait to see you there and encourage you to leave comments and questions!

www.WestAustinMarketplace.com

Austin's Economy Still Hot

Austin's economy is still cooking because of all of the diversity we have in our market. Check out this 2 minute CNN video that shows why we are still hot when others are not!

If you have always wanted to live where there is lots of life, action and character, Austin is your destination.  Everyone does their part to Keep Austin Weird, the city's slogo.

Austin End of Year and December Real Estate Report

 In 2009, the Austin area reported 18,734 home sold.  This represents a 7 year low in one year sales.  And while the number of homes sold continued to decline, the average length of time a home was on the market increased to 88 days, the longest time in 11 years.

 However, the average home sales price for the year was at the highest level ever, at $261,372!  This average sales price for 2009 represents a 4.2% increase over the prior year.  (Across the country, most communities are experiencing a drop in average value of homes sold, meaning the Austin market overall  is more stable, in our opinion.)

 General area numbers do not provide a clear picture of what is happening in Austin.  Within the area wide numbers there are some housing markets within Austin that are Sellers' Markets where demand exceeds supply, others housing markets that are Buyers Markets where supply exceeds demand, and some markets that are Balanced.  And reviewing monthly trends help you understand if markets are getting stronger or weaker.   So to really understand the Austin market, you need to start with two  charts that show December numbers and 2009 overall, that are divided by:

·         Sales by Price Band, and

·         Sales by Region

 Sales by Price Band

 During December 2009, 1,299 homes sold in Austin.  The low sold was $23,710 and the high sold was $2,958,500 and the average sold was $263, 736.  The average days of the market was 82 days.

 During December the best selling markets were below $200,000 and were Seller's Market's, where months of inventory was less than five months.  Above $400,000 , where inventory exceeds 8 months, it is a Buyers' Market.

 Sales by Region

The following chart provides detail of how well each region of Austin and surrounding city is selling for the month of December and during the year.  The North Central Austin region has the least amount of houses for sale and they are on average selling faster than other areas.

These charts and nine additional charts on the Austin market are available in the following link:

 

http://www.box.net/shared/fpu6z979l6

West Austin Properties can provide you with a more specific analysis for either your home or your buying price range, by combining the Sales Band and Sales by Region information.  Contact Laura@westaustin.com  (512-750.2425) or Patrick@westaustin.com (512- 585.1571).

Austin Home Sales By Price Band for July, 2009

 

While sales in many areas of the country are slow and prices have dropped significantly, the Austin real estate market continues to be a relatively balanced market with an average of 5 months of inventory in price ranges below $400,000. This segment of the market represented 87% of the home sales last month.  Homes priced over $400,000 saw a significant increase in the absorption rate.

Several key factors are contributing to these numbers. The up to $8000 tax credit that the government is giving to first time homebuyers (or buyers that have not owned a home for the past 3 years) has driven sales in the $100,000-300,000 price range significantly. This buyer credit ends November 31, 2009, so buyers have been racing to get these homes contracted and closed before that deadline. 

Also, interest rates still remain at a very appealing rate between 5 and 6% for buyers with good credit. In many cases, Austin tenants are finding that they can own a home and pay at or below what they were paying in rent, and receive a deduction for mortgage interest as an added bonus. Why pay rent when you can buy?  With sellers contributing to closing costs, a buyer can still purchase a home with very little downpayment and enjoy all of the privileges of home ownership. 

Homes priced above $400,000 may require borrowers to find a non-conforming loan for financing. Loan amounts that exceed $417,000 require borrowers to meet different underwriting standards and buyers usually pay higher interest rates. New appraisal guidelines are increasing the challenge to get these homes sold. Appraisers must substantiate value with three comparable sales in the area in the last 90 days. Unique properties or those that have unique intangible features, such as a killer view, are finding the process difficult and sometimes unsatisfactory when the appraiser can't find comparables and then loans are denied due to their inability to meet underwriting guidelines with the lender. 

If you are selling a home in the price range above $400,000, you may need to consider offering to finance the property or carry a 2nd mortgage to get your home sold.

The next few months should remain a great time to purchase a home in Austin, Texas. If you know someone who is renting, and could own a home, please refer them to us.  There has never been a better time to buy real estate.

Laura Duggan, West Austin Properties, 512-345-1252, Laura@WestAustin.com

Austin Real Estate Market Snapshot

Tax valuations are up in the Austin area even though homeowners feel that their home values have dropped. Many Austin homeowners have called us over the past few weeks to get market statistics for the purpose of protesting their tax evaluations. We have all of the current market data for every neighborhood in Austin and are happy to assist homeowners by pulling a report of the sold information for any time period. We can also provide detailed information about each sold property so that you are prepared to compare your property with the sold data and identify points of difference in the protest hearing, something you likely will be asked to do.

However, if you want to keep track of the home values in your neighborhood in real time, we have a proprietary tool that we call Market Snapshot that will provide you with information about homes for sale and those that have sold in you neighborhood. To subscribe to the data, go to our website at www.WestAustin.com and click on the Market Snapshot icon. You can set the parameters of the snapshot to include homes in your particular neighborhood and designate how often you would like to receive the report. It comes automatically into your inbox complete with photos of each home.

Staying on top of home values and being prepared is your best defense when valuation time rolls around. The service is free and easy to subscribe and unsubscribe should your interest change.

Posted by Laura Duggan, West Austin Properties, on June 8, 2009. For detailed information about any homes in the Austin area or to learn about our other marketing tools, contact us at homes@westausitn.com

 

New Austin Energy Ordinance Begins June 1st

   The City of Austin and Austin Energy Utility customers will be required beginning June 1st, 2009 to have a home energy audit performed by a certified energy auditor before they can close on the sale of their homes. This new ordinance, the City of Austin Energy Conservation Audit and Disclosure Ordinance, applies to all homes 10 years old or older at the time of sale. Sellers have to have the audit done prior to closing even if the property was listed prior to June 1st.

Sellers who have had energy audits and made at least three energy efficiency improvements or who have received rebates totaling $500 or more through the current energy efficiency program offered by the City of Austin and Austin Energy in the last 10 years are exempt. Some other exemptions apply relating to estate properties, foreclosures and such.

The audit among other things will examine the insulation, duct work and air conditioning systems in the property. Deficiencies will be noted and recorded for disclosure to the buyer. The seller is not required to make repairs or remediate the property, only to disclose the report regarding the home's energy efficiency. The cost of the audit is approximately $400-500.

For more information about the new ordinance and to watch a licensed auditor explain the process, go to our website and click on the Austin Energy Audit button on the bottom left side. If you are thinking of selling your home, we can arrange the audit with a licensed auditor and supervise the process for you as part of our service.

This entry was posted on Tuesday, May 19th, by Laura Duggan, Broker/Owner of West Austin Properties. For more information about this topic or any real estate related topic, call us at 512.750.2425 or email homes@westaustin.com

Buying a Home Just Got Easier for First Time Home Buyers

First time home buyers, or those who have not owned a home in the past three years, can now receive a 10% of the purchase price credit up to $8000 toward the purchase of a home at closing as a down payment.  Shaun Donovan, Secretary of the US Housing and Urban Development made the announcement yesterday at the Real Estate Summit: Advancing the US Economy here in Washington, DC in conjunction with the National Association of Realtors May meetings. Several thousand Realtors and I applauded the move to stabilize and energize the housing market while providing an opportunity to homebuyers to realize the American dream of home ownership and all of the benefits it affords.

The Federal Housing Administration is going to permit its lenders to allow home buyers to use this credit as a down payment. Donovan said, "We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment."   The president of the National Association of Realtors, Texan Charles McMillan, championed the role Realtors are playing in promoting stability in the housing market and the U.S. economy. A group of distinguished panelists discussed the housing market, the economy and the role of the federal government in the recovery and as well as its reponsibility to the taxpayer

With interest rates still hovering around 5% and this added incentive to purchase, there has never been a better time to purchase a home. While my daughter saw a 30% drop in her investment account a few months ago, she was able to sell her home this week and net over $12,000 in less than two years of homeownership. Not every market is going to return those kinds of results, but right now prices are low and it is a great time in any market to get into a home, not only for the enjoyability of owning a home, but the opportunity to build wealth through equity. Search for homes in the Austin area at our website, www.westaustin.com  We are happy to help you realize your dreams!

Posted by Laura Duggan, West Austin Properties, May 14th in Washington, D.C.

Austinites Can Avoid Foreclosure

There are a number of reasons that a property and its homeowner can fall into a distress situation with foreclosure looming on the horizon. The inability for a homeowner to make their payment once it has "adjusted" to a higher interest rate is certainly at the top or the list.

Subprime mortgage loans and less than ethical loan officers lured unsuspecting and sometimes marginally qualified buyers into the housing market with introductory mortgage rates considerably below the prevailing interest rates. Now, thousands of homeowners can't make their mortgage payments and many are facing imminent foreclosure.

These loans came in all varieties with adjustments in interest rates tied to a volatile index. A once "affordable" property climbed out of reach as the mortgage rate "reset". Complicated and complex, it is not unusual to find mortgage payments that have increased dramatically leaving these homeowners with little capacity to keep making them. Some homeowners have seen their mortgage payments more than double and in some cases triple the original amount. Once a mortgage payment is missed, the lender begins the process of foreclosing on the property. In Texas, foreclosure can happen very quickly unless a homeowner acts fast to stop the process.

One remedy for this situation is to refinance the subprime loan. However, many homeowners with these types of loans find that they cannot refinance them for typically two reasons. They are not qualified now under the lending guidelines for the mortgage amount of their current loan or their property value has decreased since they purchased the property, and they now owe more than their property is worth. In either case, they are "short" whether they try to refinance or sell the property.

The Distressed Property Institute is teaching real estate professionals across the country to counsel these homeowners to avoid foreclosure. Through negotiations with the homeowner's lender, these real estate professionals who have been designated as Certified Distressed Property Experts are helping lenders and homeowners avoid foreclosure, a costly proposition for both parties. Through a negotiated "short sale" the CDPE agent is able to find a buyer for the property and work with the bank to accept an offer. In a short sale, the lender accepts less than the distressed homeowner owes and many times does so without recourse. While a foreclosure becomes a permanent record for the homeowner and damages their credit for years to come, a short sale allows the homeowner to resolve the debt and get on with their lives. For homeowners that have a security clearance necessary for their employment, foreclosure can jeopardize their security clearance resulting in difficult finding or keeping a job.

As a designated Certified Distressed Property Expert, I am uniquely qualified and committed to helping Austin homeowners who find they can't make their payments because of mortgage payment increase, loss of job, divorce or any other hardship to avoid foreclosure. Please call me if you know someone who could benefit from my expertise. All consultations will be kept stricltly confidential.  I can be reached by email at Laura@WestAustin.com or by phone at 512-750-2425.

Posted by Laura Duggan, CDPE, West Austin Properties, Austin, Texas, on February 23, 2009.

 

Home Buyers Benefit from New Restrictions

The federal government recently passed some major reforms to the settlement, or "closing" rules for home purchases which will make it much easier for consumers to compare costs between the Good Faith Estimate that a buyer receives from their lender at loan application and the Hud-1, Settlement Statement that itemizes their expenses at closing. Aimed at making the yield spread premiums that are paid to a mortgage broker and the actual closing costs more transparent, there is now less likelihood that there will be large discrepencies between what was provided in the Good Faith Estimate and what is actually being charged on the Settlement Statement at closing. 

By January 1, 2010, a new three page Good Faith Estimate will replace the current two pager and requires lenders to calculate and disclose yield-spread premiums, extra money that the lender can pocket if the interest rate changes, as part of their origination fee. Known as "playing the market" these premiums benefitted lenders when the rate dropped and the mortgage broker pocketed the difference, sometimes thousands of dollars. While not all lenders compensated themselves with this undisclosed bonus, many did requiring a change in the guidelines to protect the consumer. A lender with the buyer's best interest at heart should pass the "savings" along to the buyer.

While the current changes in the law are important and will help consumers, choosing an honest lender is fundamental.  If you have wisely employed a buyer's representative, a real estate broker that represents you in the purchase of a home, he or she has a fiduciary duty to help you, the client, select a lender that will treat you with honesty and integrity and provide financing that is in your best interest rather than that of the lender. The loan program that the lender recommends should be determined by your best interest and not by how much the lender is going to make off of your loan. Ask your broker to provide you the name of an honest and reputable lender that puts your interests first not theirs when you are making a home purchase. The lender we recommend to our clients at West Austin Properties has a proven track record with our clients and has been saving our clients thousands of dollars for years because he puts their needs first.

On January 16, 2009, the RESPA reform law also required builders to quit steering buyers to loan companies and title companies that the builder owned in exchange for " builder concessions" or rebates. This is good news also for the consumer who can now get the same builder benefits and choose the service providers, lender and title company that provides the best rates and services rather than being locked in to one that had an affiliated business relationship with the builder.  

This article by Laura Duggan,
West Austin Properties, January 25, 2009.

Happy Birthday to daughter, Kerry, who is celebrating her 25th birthday today!

File Homestead Exemptions for Free

Don't fall for the "official' looking form and request to send money, usually $35, to have your homestead exemption filed with the county appraisal district if you live in Texas. Filing is free.  All you have to do is download the Homestead Exemption form from the appraisal district website in the Texas county where you live, fill in the requested information and return it to the appraisal district. (see the sample form for Travis County). The form must be filed by May 1st, and you only have to file it one time unless the ownership of the property or your status changes.

In order to claim a property as your homestead, you must own and be living in the property as your primary residence on January 1st of the year you are claiming it. You cannot have claimed a Homestead Exemption on any other property. Any change in status, must be reported on this form. Other exemptions include an Over 65 exemption, Over 65 Surviving Spouse exemption and a Disabled Person exemption.

The form asks for the address of the property, the legal description and the parcel identification number. All of these can be found in the tax record for the property. You are required to give an identification such as a driver's license number or a social security number. You are NOT legally required to put down the purchase price of the property. This year's form in Travis County also asks for a birthdate to determine whether or not you qualify for the Over 65 Exemption. If you are 65 or older, you may want to check to see if they have your exemption noted. Exemptions appear on the tax record for the proeprty. It is important to file these exemptions because the taxing districts that make up your total tax bill give tax breaks for certain exemptions.

In April, the county will send a valuation of each property to the property owner. These statements of value should be reviewed and, if necessary, must be disputed prior to May 31st. Instructions for disputing the value arrive with the statement. As always, we at West Austin Properties, are happy to review your appraised value statements with you and do our own analysis of the market value of your property. We have saved our clients thousands of dollars in taxes over the years!

There has never been a better time to buy real estate in Austin, Texas. Contact us for a current market analysis of the homes in your neighborhood, or a list of homes that meet your investment criteria. Loans for residential property are still available at all time low rates below 5%. Call Patrick Birdsong, 512-585-1571, or Laura Duggan, 512-750-2425, and let us show you the town!

Posted by Laura Duggan, West Austin Properties, January 5, 2009.  Happy Birthday, Katy!