Real Estate Information

One statistic to which no one pays much attention, is in my opinion one of the very most important statistics we have. The ratio of homes under contract to those actively for sale is a strong indication of how the market area is performing right now. Its pretty straighforward - the higher this ratio is, the better home sales are!

The Austin Multiple Listing Service defines 59 geographic areas and publishes statistics for each.  An amazing statistic is that Round Rock West, (the area of Round Rock located west of Interstate 35) had never broken the top 10, but has been one of the top 10 areas for four months in a row! As a matter fact, Round Rock home sales in this area ranked number 3 in November after having ranked #19 only two months before!

What this means is simply that home sellers in this area are more likely to sell their homes than they were only a few months ago.

Historically suburban areas such as Round Rock, Cedar Park, Leander, Georgetown, Buda and others have performed well below MLS areas in Austin. AS a matter of fact, a suburban MLS area rarely ever even broker the top ten and sometimes are not found until the top 15 or even top 20.

The fact that Round Rock West is ranked so high repeatedly is a tremendous sign of the improving strength of home sales in this market area. We have been predicting it, we have been expecting it, but quite sincerely, we did not anticipate Round Rock home sales to improve this dramatically!

FYI, homes sales in South Austin have for years been ranked at or near the top of this list!

I know, I know, I have a tendency to continue beating a dead horse, BUT This One Isn't Dead yet!! Austin TX home buyers should be looking night and day to find the right home!

That's because the Federal tax credit is over, finito, finished, as of April 30, 2010.  Everyone is asking if it will be extended.  Don't know... there is no indication of that.  It could happen, but I would certainly not depend on it.

Austin home sales have been increasing steadily since October, 2009 because that $8,000 is just FREE money for doing something you would have, or should have done anyway.. buying a home!

The Austin real estate market is PERFECT for move up buyers as well.  Sure, you may have to take a little less than you had hoped when you sell your home, but you make up for that when you buy a home!

Remember - First time buyers receive an $8,000 tax CREDIT... that is not a deduction, it is a CREDIT, meaning it is $8,000 CASH in your pocket.  Home buyer who had lived in their home for 5 years or more, can buy a home and receive a $6,500 Tax CREDIT.  Still pretty impressive... its CASH, remember that... CASH!

AND if you need to sell your home, do not wait until April or May like many Austin home sellers do each year... the more time you have on the market prior to that tax credit deadline, the better chance you will sell your home.

As a matter of fact demand is increasing to the point that we are willing to step up and GUARANTEE the sale of any home we list by the April 30th tax credit deadline... We offer a 60 Day Guarantee all year, but any Austin area home owner who lists their home by March 15th will receive our Guarantee to sell it by April 30th!  That's how confident we are!!

Austin home buyers are so intent on buying homes, that they are even looking in the snow!  Not a big deal for home buyers in Chicago I am sure, but in Texas, whoa, no one really understands that wet streets means slick streets, and remembering that old rule from Driver's Ed about staying 1 thousand, 2 thousand,  behind other vehicles is not enough in snow conditions!

This is a STRONG indication of Austin real estate and its progessing market strength! What, buyers looking in the snow reflects market strenbth? It sounds trite, but when buyers want to see homes in this kind of weather in Texas, it means they are serious... we have 3 buyers wanting to see homes in Round Rock TODAY!

Remember the tried and true market predictors I have mentioned... first buyers look online, so we pay close attention to online traffic, then they take the next step and physically see homes for sale... only then do they buy them.  Thus, motivated buyers are a great sign in an improving real estate market like Austin!

Yes, the tax credit deadline is April 30, 2010, so that is looming in everyone's mind, so even a little snow can't keep Round Rock home buyers at home!

As a matter of fact, that deadline is so important, that we are offering a GUARANTEE... we will sell any home listed with us before that April 30th deadline... GUARANTEED, and we back it up!

E-mail Stuart@RealEstatebyStuart.com for details!

According to the Multiple Listing Service report by the Austin Board of REALTORS®, the volume of Austin area home sales in January 2010 was up five percent from the same month in 2009. The median price of real estate in the Austin area remained stable in the same time period, up one percent to $179,250.

In the fall of 2009, sales volume for Austin homes began outperforming 2008 and surged in October and November, spurred by the original deadline for the first-time homebuyer tax credit. In December 2009, sales volume returned to a modest increase of five percent when compared to December 2008, a growth rate which was maintained in January 2010.

January 2010 Statistics for Austin, TX Home Sales

• $216,094,684 – Total dollar volume of single-family properties sold, an 11 percent increase from January 2009.



• $179,250 – Median price for single-family homes, a one percent increase from January 2009.



• 884 – Single-family homes sold, a five percent increase from January 2009.

We expect demand to continue to go up in 2010. Demand will increase in part because of Federal Government Tax Incentives in the first four months of 2010 for first time and resale buyers.

Demand will also increase as Austin continues to add jobs and population. Economists project the Austin area will add 9,200 jobs in 2010 and another 17,100 jobs in 2011. In fact they expect it will only take the Austin area two months to replace the jobs lost during the recession. By comparison it could take the entire country as long as 10 years to replace the over 7 million jobs lost in the USA during the recession.

With the start of 2010 we are experiencing the best sales in three years, and we have great expectations that 2010 will continue to be a very good year.

OK, real estate brokers and agents always always expect next year to be very good, but this year should prove us to be exactly right!

The federal tax credit of $8,000 for first time home buyers and $6,500 for buyer who have owned a home previously will end April 30th.  It sounds like a sales person I know, but my advice is to act now, not later.  There are many reasons:

1) There will be many Austin home buyers trying to complete contracts near April 30, and there could be competition for some homes.  If more than one buyer makes an offer on the same home, only one buyer will get that home.  If time is too short, there may be no second chances.

2) When a buyer purchases a home, they have the chance to have it inspected, and then request repairs if needed.  The seller does not have to make those repairs.. it is actually negotiable.  If a seller knows that their buyer does not have time to purchase another home in time for the tax credit, how negotiable do you think they will be in making repairs?

3) Even more difficult will be getting sellers to negotiate repairs if the contract date was close to April 30th, and the actual inspection took place on May 3.  Now the buyer has NO chance to get that $8,000 tax credit!

Planning on buying a home in Austin area?  Start taking action now! Don't put yourself in the position of having to buy a home that is less than desirable to you, or having to pay top dollar because time is short, or having to forego repairs because you waited too long. Act now, and put yourself in the best position possible!

There is an advantage to home owners as well.  Having a home on the market now will be a huge advantage over waiting until later in March or April. As a matter of fact, we  feel so strongly about this that we will GUARANTEE to sell any home by April 30th.  Feel free to call or email for details.

Austin, Texas homes present some terrific values... and rest assured that home buyers are aware of the better values.  As April 30th gets closer, buyers will be looking to buy homes and the better homes on the market will see the first offers.

Remember, in 2009 October and November showed the largest increases in Austin home sales of the entire year, and those were the two months before the November 30th tax credit deadline!  That shows how important that tax credit is to home buyers!

Don't depend on the tax credit being extended... it seems unlkely at this time.  There is always that chance, but if you were planning to buy anyway, why take the risk.

That tax credit is $8,000 CASH in Your Pocket!

I don't want to beat a dead horse, but maybe a nudge wouldn't hurt... Short Sales HELP everyone involved.  Yes, we all know the home owner is provided with a beneficial alternative.  A Short Sale will provide the home owner with a way to get out of the mortgage without going to foreclosure. A Short Sale will create less damage to credit, and have an impact financially for a shorter time period than a foreclosure.

The buyer benefits because they will purchase a home well below market value.  While not as deeply discounted as a foreclosed home, the Short Sales will often be in good condition because the home owner still occupies the home and maintains it.  The motivation for the home owner is to get the home sold, and maintaining it will help accomplish that.

IMPORTANT NOTE:  the buyer MUST be patient... Even in a stronger market like Austin, Short Sales can take months to process, and patience is critical to reaching closing.  We have seen buyers back out due to lack of patience, and have the buyer with the second best offer end up closing on the home only a few weeks later.

Yes, the Short Sale process can be frustrating, and agonizing, but it can also be well worth it!

There are lovely Short Sale homes in great condition all over the Austin market. Take this home at 209 Baldwin in Hutto, Texas...

     This Four bedroom 2 bath, 1 story home has a full 2 car garage, neutral colors throughout, and is very well maintained home

     Its bright, open family room and kitchen are inviting to guests and so convenient for entertaining.  Formal dining area also.  Kitchen has a nice big breakfast area and from there you can step right out onto the covered patio...great for grilling!  The hard tile floors and backsplash are beautiful and easy to clean. 

     Master suite is spacious and has full bath with tub, separate shower and walk-in closet.

     The kids will love the jogging/biking paths, community pool & playground.  And you’ll love the location with quick access to new toll roads! 

      Yes, this home is a Short Sale, and yes, the purchaser will get it below market, it is currently priced at $190,000, and yes, everyone will benefit.

We keep watching home sales in Austin, Round Rock and surrounding areas and we continue to see statistics for central Texas home sales that are far better than virtually any area across the U.S.

But despite being better than other areas across the U.S., 2009 was not a positive year for home sales in Travis and Williamson counties. Understand that compared to other markets, ours is terrific, but we keep waiting for the day when our market will not just be better compared to other markets, but better when compared basis to our own market.

Well, we had 3 months of improvement, as October, November and December all resulted in more home sales than the same months in 2008.

January, 2010 broke that streak though, as the Austin Multiple Listing Service reported fewer home sales than in January, 2009.

Complete data is not available yet, but it is known that January, 2010 experienced fewer home sales in the Austin real estate market than in 2009. 

However, more homes came on the market than in January, 2009, and predictions are that Austin home sales will see a huge increase in February, March and April due to the Federal Tax credit. Based on market activity in January and early February, I would fully expect those predcitions to hold. 

We'll pass that information on as it comes available.

By definition, a Short Sale occurs when the mortgage company allows the sale of a home to take place even though funds to pay off the mortgage in that sale are actually short of the full amount needed.

Having completed Short Sales in Austin, Round Rock, Georgetown, Cedar Park, Leander with sellers having all kinds of individual situations, I can assure you that complete cooperation is absolutely necessary to accomplish a sale that ends up closing... cooperation from the home seller, the real estate agent and the prospective buyer.

Three area of approval are needed... frist, the seller has to be approved - the mortgage company will only help a seller by allowing a short sale if the seller is truly in a situation that will not allow them to continue making payments.

Secondly, the property needs to be approved - the lender will want to know the value of the home by getting a detailed opinion of value from us or from an appraiser.  The reason is simply that the mortgage company is only allowed to accept a loss of a certain percentage and will only approve a sale if a contract is received that meets that number.

The buyer also need to be approved, and that is accomplished with a letter when the buyer submits their contract. 

When we are involved in processing a Short Sale, the seller of the home must cooperate fully with us and with the bank or mortgage company.  It is a frsustrating process, providing all financial information and personal letters explaining why the Short Sale is needed. There is no question that is can be very frustrating, but providing everything needed to the mortgage company when needed is critical toward getting the seller approved.

The agent representing the seller must cooperate by providing everything needed by the mortgage company including all listing documents, the home valuation, an estimate of closing costs and more.  Even if the lender asks for this over and over and over, it must be sent immediately uipon request, or the chances of accomplishing a Short Sale is neglible.

The buyer and their agent must cooperate by providing everything required, including proof of loan qualification by a letter from their lender.

Then a Short Sale requires everyone to cooperation by being patient.  It can take 60, 90, 120 days or longer just to get a response from the mortgage company.  In their defense, mortgage companies are so swamped with Short Sales that they are literally have too little man power to get your approvals any sooner.

First, let me share with you that we recently had a home in Short Sale in Round Rock end up in foreclosure because the seller would never provide fully what the lender asked, and the lender was not going to stall foreclosure when the seller would not even make the effort to provide what they asked for.  The shame of it is that we could have sold that home and saved that seller a lot of future money and frustration.

We just closed a Short Sale in Steiner Ranch by stalling foreclosure two times, because everyone involved cooperated every step fo the way.

The buyer must cooperate and be patient because that lender can take longer than anyone expects.  The seller's lender may ask for documents that they already have, they may promise response timelines and not meet them, and continue delays with no explanations.

I saw at least 3 occasions in 2009 where we had a buyer for a Short Sale pull their contract because they were tired of the delays, only to have the second buyer in line buy that home at 25% under market.

If a buyer really wants a bargain, after having put 2 months into a Short Sale contract, they will either start over with another Short Sale, or forego the chance to get a bargain by purchasing a typical home.  Waiting just a few more weeks or even a couple of months could have saved them tens of thousands of dollars.

So if you plan to become involved in a Short Sale, make sure EVERYONE is willing to cooperate! If you are considering a Short Sale for your home, read www.ShortSaleDetails.com before you do anything.

If you want a bargain on a home that is well maintained, consider buying a Short Sale, see all Short Sale home available in the Austin / Round Rock real estate markets at www.SeeShortSales.com

Austin area home sales up in December; 2009 year-end down slightly from 2008

Austin Board of REALTORS® releases December 2009 and year-end real estate statistics

January 20, 2010 - According to the Multiple Listing Service report by the Austin Board of REALTORS®, the volume of Austin area home sales in December 2009 was 1,373, up five percent from the same month in 2008. The median price of real estate in the Austin area also showed an increase, up six percent from December 2008 to $194,000.

Year-end real estate totals for 2009 showed improvement in sales volume and stability in home prices over the course of the year. In 2009, 19,005 homes were sold in the Austin area, a six percent decrease from 2008. The median price for the region in 2009 was $188,480, down one percent from 2008.

Although year end sales totals decreased from 2008, the the six percent decline in year-end home sales marks a significant improvement when compared to the double-digit decreases in home sales seen in the first quarter of 2009.

December 2009 Statistics

• $358,863,756 – Total dollar volume of single-family properties sold, an 11 percent increase from December 2008.


• $194,000 – Median price for single-family homes, a six percent increase from December 2008.


• 1,373 – Single-family homes sold, a five percent increase from December 2008. Not as dramatic as the increases seen in COtober and November, but still a substantial increase over 2008.


• 8,079 – Active single-family home listings on the market, a five percent decrease from December 2008. More good news... fewer homes for sale, better chance for increased home values.

2009 Year-End Totals

• $4,612,315,236 – Total dollar volume of single-family properties sold, a nine percent decrease from 2008.


• $188,480 – Median price for single-family homes, a one percent decrease from 2008.


• 19,005 – Single-family homes sold, a six percent decrease from 2008.


• 9,335 – Active single-family home listings on the market, a five percent decrease from 2008.

Yes, year end stats for Austin real estate showed overall decreases for 2009 compared to 2008, HOWEVER, the last quarter of 2009 reflected positive statistics is all categorires!  This trend is xpected to continue into 2010!!

Short Sales are and will continue to be a part of the Austin and Round Rock real estate markets. Even though market statistics show continued improvement in Austin and Round Rock, we are still feeling the lagging effects of the overall economy, meaning job losses and mortgage problems are part of the Austin real estate market as well.

Though 2 of the last 3 months showed record improvement, the statistics are about the same today as they were 3 months ago regarding short sales... in Round Rock, about 1 in 13 homes for sales are offered via short sale.  We will continue to keep a close watch on this stat, as it is indicative of the plight of homeowners in our area.

As I have mentioned previously, Short Sales result in a positive outcome for everyone involved, since sellers are able to avoid foreclosure, buyers are able to obtain a home that is well maintained by the homeowner for up to 25% below market, and the mortgage company save money because they do not have to foreclose on a home.

Yes, homes available via Short Sale are pretty darn good bargains... take this Short Sale available in Georgetown..

Purchased for over $180,000 less than 2 year ago, it is available today for $155,965... it includes laminate floors, a closed in porch, attached side entry garage, formal dining, large master suite and more.

It is an incredible value, like many Short Sales in the Austin area real estate market.  So take a look at Short Sales as an alternative, and everyone will win!