The Heart of Austin

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).

Prepare Your Home for Arctic Air to Hit Austin

 The weather forecasters predict 20 degree temperatures and possible snow and ice to hit Austin later this week. Prepare your home to prevent damage to water pipes and landscaping.

Drip all indoor and outdoor faucets before the cold snap hits. Wrap exposed pipes. Open the door to utitlity rooms that have an exterior wall so that the heat of the house keeps connections from freezing. Turn thermostats to the 60's in buildings that are vacant.

Water lawns and flower beds thoroughly before the temperatures fall. Watering will help protect the plants from freezing. Add some protective mulch around bedding plants. A protective covering that resembles cloth can be purchased from Home Depot to cover sensitive plants. Plastic will not give the protection delicate plants need. Secure the covering with rocks or stakes since most of the fronts come in with strong winds. Taking a little precautionary action can protect your home and your garden.

Thursday, the overnight temperature at Camp Mabry is predicted to hit 21 degrees in West Austin and as low as 19 degrees at Bergstrom airport. This is supposed to be some of the coldest weather that we have had for two years. Highs on Friday are expected to remain in the low 30's. The weather service predicts that January will have below average temperatures this year.  So, bundle up, light a fire and read that new book that you got over the holidays!

Austin Events – December

December has begun with what is as much Winter as we typically see in a year—cold and wet. There is plenty to this holiday season in Austin.

UT Football is going into the post-season with a perfect record. UT will be facing a strong Nebraska team in the Big 12 Championship on their way to the National Championship in the Rose Bowl.

December 5th, UT v. Nebraska, 7pm. Kickoff in Arlington, Texas at Cowboys Stadium

The UT basketball team has started their season off. Check the website for upcoming games, there will be about 5 home games in December.

For more information, visit www.TexasSports.com.

On Friday, December 4th, the McDonald’s Lights of Love 5K will take place at the Mueller Development. The race is in support of the Ronald McDonald house. For more information, visit http://budurl.com/McDs5K.

 

Ballet Austin’s 47th production of The Nutcracker will take place at The Long Center. It is the longest running performance of The Nutcracker in Texas. The Austin Symphony accompanies the Ballet and depending on the night, you will see one of Austin’s local celebrities playing the role of Mother Ginger.

The Nutcracker will take place beginning December 5th – 23rd. For more information, visit http://www.balletaustin.org/atb/nutcracker.php.     

 December 11^th- 24^th, the Armadillo Christmas Bazaar is a great place to get a lot of your Christmas shopping done. Combination shopping venue and music festival this Austin tradition is over three decades old. For more information, visit http://www.armadillobazaar.com/.

 

Zilker Park Trail of Lights is one of the best family events of the season. It starts with the tree lighting on Sunday, December 6^th, at 6pm. The tree stands 155 feet tall and contains over 3,300 lights.

The next event is the Zilker Tree Holiday Fun Run that will take place Saturday, December 12^th, at 6:30pm through the trail of lights and Zilker Park.

The Trail of Lights will be closed with a grand finale on December 21st, 8:30 pm - Asleep at the Wheel & Friends Holiday Sing-a-Long.

For more information about the Zilker Park Trail of Lights, visit http://www.ci.austin.tx.us/tol/.  

  

The Annual Holiday Sing-Along and Downtown Stroll will begin at the steps of The Capitol on Saturday, December 5^th at 6pm. The event begins with a group sing-along featuring John Aielli. At 7pm the countdown to the tree lightning begins. Shops and restaurants will be open late for the event. For more information, visit http://downtownaustin.com/holidays/?rewrite=holidays&query=.

 
 

The last major event every year in Austin is First Night Austin. This takes place on New Year’s Eve in the streets of Downtown. The event is a family-friendly alternative to traditional celebrations is in its fifth year. For more information, visit http://www.firstnightaustin.org/.

What are you doing this month that we should know about?

Patrick Birdsong is a Realtor with West Austin Properties. He is a second generation Realtor with over 7 years of experience in the Austin Real Estate Market. He can be reached at (512) 345-1252 or via email at patrick@westaustin.com. Follow him on twitter: @patrickbirdsong

Considering selling your home this Winter? That’s a great Idea!

We’ve been talking to a lot of sellers lately that are in the mindset that it is better to wait for the spring market to list their homes. These sellers are correct in knowing that more homes are sold in the Spring than any other time of the year. Over 30% of homes sell in May, June and July.

The Fall and Winter can also be a great time to put your home on the market. For one, the competition for buyers is a lot lower. If you look at the chart below, you will notice that there are always more homes on the market in the Spring and less in the Fall leading into the Winter months. This unneeded competition in the Spring can end up hurting the value of your home.

Another upside to listing right now is that you will be dealing with serious and motivated buyers only. A look-loo will not waste your time looking during the Winter months. Buyer’s looking right now are typically have-to buyers. The majority of corporate relocations happen in January. This means they are more than likely looking to buy during November and December. And buyers have an extra incentive to buy right now that they won’t have in the Spring—the extended and expanded tax credit.

All first time home buyers will still receive up to an $8,000 tax credit when they purchase a home. Now, any buyer who has not bought a home in the last 5 years will receive a tax credit up to $6,500. This offer ends April 30^th, 2010. Remember, if you plan to take advantage of this offer, the purchase must be a primary residence.

Another great benefit to selling right now is that your home will be automatically staged. Having holiday decorations out always creates a sense warmth and welcome. Buying a home is definitely an emotional purchase—nothing evokes the feeling of home more than the holidays. Remember, HOME is the second most emotional word in the English language.

Speaking of home, many people travel during the Winter months visiting family and friends. If you are thinking of selling right now, but don’t want to have to worry about having your home on the market at the same time---we understand. We always work with sellers to block out dates they don’t want buyer’s coming through their home. We also help negotiate favorable moving timelines and possession dates in our contracts that won’t interfere with your holiday plans.

We hope you enjoy this holiday season and want you to know that we are here to help with all your real estate needs. Feel free to call or email us anytime.

We can be reached at (512) 345-1252 or via email at homes@westaustin.com. Follow us on twitter: @westaustinprop.

Austin Event Calendar - November

It is a crisp Monday morning, highly appropriate for the beginning of November. There is plenty to do in Austin this month, along with your traditional holiday events. 

UT Football is in high gear. Riding on a perfect season, the Horns are rounding the corner and in the home stretch of regular season action. Many fans are saying it feels like 2005 again, when UT had a perfect season in route to a National Championship in the Rose Bowl. Home games in November are as follows:

November 7^th, UT v. University of Central Florida, 11a.m. kickoff

November 21^st, UT v. Kansas, kickoff time is TBA

For more information, visit www.TexasSports.com.

On Sunday, November 8^th, The Run for the Water will take place in Downtown Austin. The race features a 10 mile run, 5K run and a 1K run for the kids. Every race participant that enters helps one person in the country of Burundi gain access to fresh drinking water for the rest of their life.

For more information, visit http://gazellefoundation.com/runforthewater2009/.

Veterans’ Day falls on Wednesday, November 11th this year. The Annual Travis County and City of Austin Veterans’ Day Parade will take place Wednesday morning on Congress Avenue. The parade will start at 9am and proceed from Ann Richards Congress Avenue Bridge up to the Texas State Capitol.

For more information, visit http://nov11.org/.

The City of Austin’s Green City Festival will take place Saturday, November 14^th from 10am – 3pm at City Hall. The event will be held to celebrate and learn more about Austin’s Environment. The Mayor will kickoff the event with a speech at 11am. There will be musical acts, presentations and tours throughout the day. 

For more information, visit www.greencityfest.org.

 

The 19^th Annual ThunderCloud Subs Turkey Trot will take place the morning of Thanksgiving, November 26^th. The race starts at 9:30am and begins at Waterloo Park. This is a great Austin tradition and a healthy way to start off Turkey Day! All proceeds raised during the race go to benefiting Caritas of Austin.   

For more information, visit www.thundercloud.com.   

The 21^st Annual Chuy's Children Giving to Children Parade will take place on Saturday, November 28^th in Downtown Austin. This parade is a fun way to give back to your community and share in some holiday fun. Supporting Operation Blue Santa, this parade give back to Austin by asking Austinite’s to bring toys for children who might not otherwise get presents at Christmas.  

For more information, visit http://www.chuysparade.com/.

If you feel like taking a quick trip down I-35, Wurstfest in New Braunfels started up over the weekend and will continue on until November 8^th.  This “Salute to Sausage” is in its 49^th year and features fun for all! Carnival rides, bands and plenty of food and drinks will keep you entertained and invoke your inner-German all day and all night!

For more information, visit www.wurstfest.com.  

What are you doing this month that we should know about?

Patrick Birdsong is a Realtor with West Austin Properties. He is a second generation Realtor with over 7 years of experience in the Austin Real Estate Market. He can be reached at (512) 345-1252 or via email at patrick@westaustin.com. Follow him on twitter: @patrickbirdsong

Austin Real Estate Market – A Look at the First 3 Quarters of 2009

Everyone in town has been raving about our small real estate victory in Austin this past week. The big news is that month-over-month single family home sales for September increased from this year over last for the first time since May of 2007. That means we have been in a declining market for 28 months straight and this is the first sign that Austin may be in a recovery. See the chart below for more details.

 

Keep in mind that this only pertains to number of homes sold in Austin. This does not take into consideration the sales price of the homes, the number of days it takes to sale, where these home sales take place in Austin, etc., etc. We will get to that in a bit.

First, I would like to look at the sales for the first three quarters in comparison to the first three quarters of the past decade. This, in my humble opinion, is a better gauge of where we are as a real estate market. As you can see from the chart below, what we have been referring to as normal growth from 2002-2006, was more like a bubble than anything else. What we have been experiencing for the past year is a soft landing, as opposed to a thud. And, can also be considered the natural cycle of a real estate market.

Home Prices

Despite the drop in sales in the market, we have experienced steady average and median home prices. From the chart below you will see that prices are actually up slightly from last year. We have discussed this at length to try and figure out how this is possible with sales being down almost 25% from last year at this time. The only logical reasoning that we can agree on, is that prices have not reached their lowest point. The first time homebuyers rushing into the market really picked up the slack last month, but with the $8,000 tax credit expiring on November 30^th, we may see prices begin to decline.

Day on Market

For those of you in a hurry to sell your home, you may want to pay close attention to the next two charts. The first chart below is the average days on market for the entire year. As you can see, it is taking right around 76 days to sell a home. We haven’t experienced anything like this since the dot-com bust at the turn of the century.

The majority of homes that sit on the market for an extended period of time are still pricing their home as if the market is still moving up. Right now, to sell a home you have to win a beauty contest and a pricing war. In years past you could win one or the other and we are just not seeing much of that anymore.

 

The good news can be found in the following chart. It goes into more detail about when the best time of the year is to sale your home in the shortest amount of time. In previous years, the trend has been the same—sell during the summer. The interesting phenomenon is happening this year, where the average days on the market has dropped almost every month since November of last year.

Home Sales by Price Band, Year-to-Date

In the past we have discussed what sales were doing by price band for a single month. The chart below takes into consideration all sales from the beginning of the year through September.

As you can see, homes priced under $200,000 are still selling at a rather quick pace. With an inventory lasting less than 5 month’s, homes priced under $200,000 are considered to be in a seller’s market.

Homes priced between $200,000 and $400,000 are selling at a decent pace as well. With an inventory lasting between 5-7 month’s, homes priced between $200,000 and $400,000 are considered to be in a balanced market.

Homes priced over $400,000 are having a hard time on the market. With an inventory lasting over 7 month’s, homes priced over $400,000 are considered in a buyer’s market.

Home Sales by Region, Year-to-Date

To break down the market even further, we have divided Austin and the surrounding cities into very distinct regions. From the chart below you can see how well sales are doing across Central Texas, including the average prices and days on market. The region experiencing the best market right now is Southwest Austin. The region experiencing the worst of the down market is Northwest Travis County. This region includes many properties on Lake Travis, which has been severely hurt by the two-year long drought. Hopefully, with the rain coming down in buckets, the market will be on its way to recovery.

 

This is a lot to take in and a lot to process. If you are considering selling your home in the near future, the best way to gauge the value of your home is to have an experienced Realtor visit your property and take into consideration all the factors that may affect the value of your home.

If you aren’t quite ready for that step, you can always sign up for our Market Snapshot program. It is an amazing tool that you can read more about here: http://budurl.com/zaqk

Patrick Birdsong is a Realtor with West Austin Properties. He is a second generation Realtor with over 7 years of experience in the Austin Real Estate Market. He can be reached at (512) 345-1252 or via email at patrick@westaustin.com.

An Austin - Dallas – Norman Tradition – Red River Rivalry Weekend!

Pack your bags and get on the road with your burnt orange or crimson and cream, because it is Red River Rivalry time at the Cotton Bowl in Dallas!

Formerly known as the Red River Shootout, this annual football game is one of the greatest rivalries in college football. The Red River itself lies along the Texas-Oklahoma border; representing a dividing line between two states and two states of mind. 

This year’s game will be the 104^th meeting of the two teams and will determine the future of the Texas Longhorn’s National Championship hopes. The Oklahoma Sooners come into the game plagued by injury, youthfulness and two heavy loses. Their goal for the Sooners is to salvage what is left of their season. A win against Texas might be their saving grace.

This blog post is not an analysis of the match up or a prediction of the results. It is a celebration of the tradition. Both schools represent the pinnacle of public school education. Just visit the websites for each school (www.utexas.edu and www.ou.edu) and you will get a feel for how hard hitting both schools are academically.

The Cotton Bowl, in which the game is played, is more storied than the rivalry itself. Visit their website to view the history of the stadium, http://www.attcottonbowl.com/stadium/, and you will be awakened by the spirit of the game of football.

The beauty of the game is that it is always on neutral territory. The stadium sits almost exactly 3 hours from both Universities. Come mid-afternoon today, I-35 Northbound out of Austin and I-35 Southbound out of Norman will be clogged with fans making the trek to Dallas. Checkout the map below for a better idea of how ideal the location really is.

View Red River Rivalry in a larger map

Upon arrival in Dallas awaits the largest State fair in the United States. The Texas State Fair surrounds the stadium and to gain entrance to the game you must pass through roller coaster rides and vendors serving up a plethora of fried concoctions. To learn more about the State Fair of Texas, visit www.bigtex.com.   

 

If you are traveling to the game this weekend, please drive safely. We will see you there!

Patrick Birdsong, West Austin Properties, (512) 345-1252, patrick@westaustin.com.

The Austin Condo Market – September Sales by Price Band

When a market starts to turn south, the first sales to dip are in the condo market. While condos can be a cheaper alternative to buying a home, they also attract a smaller buying pool than homes. The 180 condo sales in Austin represent about 10% of all residential sales during the month of September. Historically, condo sales represent closer to 7-8% of all sales in Austin. This could point to a small trend of homeowners reconsidering how much they are budgeting for their primary residence and choosing a condo as a more economical option. 

As you can see from the chart above, about 96% of condo sales happen below $400,000; whereas only 87% of single family homes sales occurred below $400,000. The month’s of inventory report on the far right of the chart is showing that the lower price ranges are still selling well and overall, we have a balanced market. Buyers in the $200,000 and up range have more selection than they have ever had in the past. 

The portion of the Austin condominium market that is still receiving the most attention right now is the Downtown market. 

If you compare the overall market chart and downtown specific charts above, you will see a few similarities. For the most part, downtown resales over $400,000 have slowed to an inconsistent trickle. The main contributor is competition with the new condo projects. The Austonian (www.theaustonian.com), The Four Seasons Residences (residences.fourseasons.com) and The W Residences (www.block21residences.com) all have about 50% availability. Prices for these condos start in the mid $400’s and go well into the multi-million dollar range. If you are thinking of putting your condo on the resale market, do not make the mistake of ignoring these projects as competition with your condo. All three of these projects will be completed next year and will be more aggressive in their sales approach once they are complete. 

If you are concerned about the value of your condo, sign up for our Market Snapshot program. It is an amazing tool that you can read more about here: http://budurl.com/zaqk 

Look for a complete overview of the Austin real estate market, as well as a complete overview of the Austin condo market in the near future.

Patrick Birdsong, West Austin Properties, (512) 345-1252, patrick@westaustin.com

Austin Foreclosure Market – Is there one?

Many buyers that we are working with continue to ask us about the great deals to be had with foreclosed homes. Whether they are an investor, second-home or primary residence buyer—everyone wants to know where the deals are and what the benefits of buying foreclosed homes are. 

We are very fortunate to be living in Austin, Texas where we have steady job growth, good schools and a real estate market that is showing signs of improvement. Despite the sunny disposition of our market, there is a dark side. Just over 12% of all sales in Austin are foreclosed homes.

When I first read this number, my first thought was that this seems high. In our daily activities of looking at and showing homes, we rarely run across a foreclosure. How can this be if it represents a significant portion of sales? 

If you look at the first chart here, you will see that foreclosed homes are very concentrated in the lower price ranges. Approximately 90% of foreclosure sales happen below Austin’s average sales price of $246,580. In only the lowest price band does it make up over half of sales and in the $100K-$200K price range it only makes up fewer than 15% of all sales. 

Furthermore, if you consult the second chart you will see that the sales are concentrated in certain parts of our overall market. Southeast Austin has been hit the hardest with foreclosure sale making up almost 40% of all sales. Pflugerville and East Austin have also experienced significant amounts of foreclosure sales.

If you are considering buying a home right now, the majority of you will not step foot inside a foreclosed home. The people that will be buying the majority of these foreclosed homes are real estate investors.

As a homeowner, there are ways to avoid being foreclosed on. Most banks do not want you to loose your house or have you stop making your payments. For more information about preventing foreclosure, please give us a call or send us an email.

Also, encourage your neighbors to do the same if you think they may not make their mortgage payment. A foreclosure in your neighborhood can affect the value of your home too. According to the National Association of Realtors, if a home is foreclosed on in your neighborhood, it can bring the value of your home down an average of 16%.

While Austin is experiencing a small amount of what the rest of the country is dealing with, for the most part we feel very positive about the house market. Interest rates are below 6% and the overall value of homes is holding steady! If you are concerned about the value of your home, sign up for our Market Snapshot program. It is an amazing tool that you can read more about here: http://budurl.com/zaqk

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