Saturday, February 13, 2010
by Stuart Sutton
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.
Sunday, October 18, 2009
by Stuart Sutton
There are 63 defined areas in the Austin Multiple Listing Service, and although real estate statistics for the Austin area are pretty easy to follow, knowing more about these MLS areas gives you a better perspective of how Austin homes sales are really performing.
Its easy to say Austin home values are down approximately 4% from this time a year ago, but when you investigate more closely, there are actually areas of Austin where home values are UP!
As a matter of fact, 16 of the 63 areas defined in the Austin MLS actually experienced increases in median home values since a year ago... some as much as 7.5%. Its hard to quantify where and why some areas see improved sales... for example in north Austin experienced decreased home values, while the adjacent MLS area had decreased home values. Home values in one area in Round Rock increased, while the other area in Round Rock decreased, one area in South Austin decreased while the area across the street increased.
The factors causing the differences do not seem to be consistent... although the two areas with the best median price performance were in close in locations in West Austin. However, the next two best performing areas were located well outside of Austin's city limits.
Without specific factors identifying which areas would perform best, the list seems fairly scrambled, so if you'd like to know the areas that performed best, just drop us and email and we'll send you the list.
Overall though, Austin's real estate market is still weak compared to the recent past, as there are areas with 10 to 20% decreases in median home values, some close to downtown, and some in the suburbs. Austin remains one of the best real estate markets in the country, however, and buying and selling here are far more appealing than in other U.S. markets.
Wednesday, September 16, 2009
by Stuart Sutton
More Short Sales properties in more price ranges are available in Round Rock and Austin real estate markets than at any time. This may sound like bad news, BUT the fact that home owners are taking advantage of Short Sales means that more homeowners are avoiding foreclosure.
This is good news because Short Sale homes are discounted less than foreclosures, and thus have less negative affect on Austin area home values. It is true that Short Sales homes sell for less than market value, but they will typically sell at 85-90% of fair market value compared to foreclosures, which sell for an average of approximately 70% of fair market value.
It is also a positive for the home owners because taking advantage of the opportunity to use the Short Sale process means less negative impact on their personal credit than a foreclosure would.
It is also positive in a less obvious way, since the fewer homes that banks and mortgage companies repossess, the better their balance sheet, and the more profitable they will be. The strength of financial institutions is vital in our economy and managing Short Sales properly plays a small but important role.
As an everyday part of the Austin market, Short Sales help home buyers and home sellers. As mentioned, home sellers avoid foreclosure and do less damage to their credit, while home buyers are able to purchase homes below market value, while getting them in better condition, with home warranties and more secure Title.
Yes, Short Sales are just an everyday part of the Austin real estate market, and may continue to be for another couple of years, but accomplishing Short Sales helps Austin home values, it helps the home owners, and home buyers, so how can we not manage this process as professionally as possible... we owe to our clients and to ourselves!
Sunday, September 13, 2009
by Stuart Sutton
Austin, Texas is one of the best cities in the U.S. to earn a living according to Forbes. Austin is ranked as the number one city for the location of the country's Top 400 Big businesses, BUT it does not stop there... Austin is also the top ranked city for the location of the Best Small Companies in the U.S.
Whether your aim is to be part of an established, respected corporation or a top notch small business, Austin, Texas has to be a place you would consider living.
Since earning a living leads to buying a home, we in the Austin real estate market are thrilled to see stories just like this repeated about Austin again and again.
More employment opportunities obviously means more relocating familes, which inevitably leads to more home sales. Despite the woes of the national economy, Austin's local economy maintains its strength and continues to support its real estate market.
Austin homes have maintained their values regardless of the foreclosure and short sales that have affected the overall market value of real estate. Although sales have decreased over the last 18 months, Austin has actually experienced improving home sales, as well as an improvement in the number of homes for sale.
With Austin's economy continuing to impress the likes of Forbes, our real estate market will continue to benefit.
Read the story from Forbes...
Monday, January 12, 2009
by Stuart Sutton
How do we know if the Austin real estate market is gaining strength before before we actually see statistics? How do we know if things are getting better before the market analyists give us their statistics?
Actvity is the best measuring stick. Real Estate activity is easily observed by paying attention to a few areas where real estate prospects leave their mark.
We could not measure this activity 10 years ago, but today we can see how many visitors we have on web sites, web pages, video tours, and a lot more detailed data than ever before. This was the second weekend in 2009 and the second weekend in a row where a new record was set for the number of prospects looking at Austin area homes on our web pages and video tours. Austin area home buying prospects weren't just a little more active than usual after Jan. 1, but were far more active online than in any weekend in 2008!!
Another statistic that is easily observes is open house activity. Austin area home buyers were out in force, once again in record numbers over the first two weekends of 2009. Not just in Austin, but in suburbs such as Round Rock and Cedar Park, open houses saw more traffic from home buyers than any weekend in 2008.
One more statistic that you will not get from market analyists... the number of buyers looking at Austin area homes with real estate agents tells us how many buyer have gone past web surfing and walking through open houses. We can measure the number of showings per house in the first 11 days of 2009 to any 11 day period in 2008. Guess what... though no records were set, the number of buyers looking at homes with real estate agents in the Austin area since Jan 1, 2009 would rate as one of the top 5 in 2008. Most of those strong weekends were in the spring and summer! We have only past 11 days in 2009, in the middle of winter!
I may be going out on a limb, but it could be that mortgage rates below 5% are motivating home buyers to take a look at what is available right now in the Austin real estate estate market. The first two weekends are only a snapshot, but if they are any indication, 2009 will be a better year than 2008!!
Monday, February 12, 2007
by Stuart Sutton
A 30 year fixed rate mortgage was 5 7/8% as of Friday, slightly lower than the previous week. Buyers are still taking advanatage of the low rates, but are wary of the increases and are buying homes in record numbers for this early in the year.
If you purchased a home in the recent past and have a rate higher than you'd like, you may want to consider refinancing. Buyers often obtain a rate at higher than market and do not refinance because they forget, or do not think they can. You may be surprised at the possibilities if your rate is not in the 6% range. A little time cures many credit woes and refinancing will save you money monthly and tens of thousands of dollars over time.
If you are considering refinancing, let me know and I'll give you the name of a lender who provides the same benefits we provide to our buyers... up to $10,000 in Cash Rewards after closing
Tuesday, January 16, 2007
by Stuart Sutton
Winter is here! The Austin, Texas area is pretty well shut down due to ice on the roads. If you are in this area, I hope you enjoy the day whether you stay at home by a fire and watch a movie, or have to spend a little time working.
The 2007 market has started with a bang! It's a little easier to document two weeks into the year because sales are literally double, compared to the first two weeks of 2006. That is a small window to compare of course, but it's a start, and a better start often means a better year.
Since the number of homes that have been placed on the market is slightly less, the result would be less inventory and a stronger market regarding pricing and values.
I certainly cannot predict a stronger real estate market in Austin, Round Rock, Georgetown, Leander, Cedar Park, Pflugerville and other areas, from only two weeks of statistical information, but it does follow a continuing trend. The Austin, Texas real estate market in 2007 is predicted to be stronger than previous years based on many sources of information, and the first two weeks support that.
Remember that our Clients can receive up to $10,000 after closing! Correction, that's now $20,000!, Oops, another correction, that's now $30,000!!
Wednesday, January 10, 2007
by Stuart Sutton
Many people, including agents, believe that private mortgage insurance (PMI) must be included in the loan in order to initiate a short sale. This is not necesarily true, as a home with no PMI, but no equity could be a candidate for a short sale as well.
Why would a mortage lender consider taking a loss on a mortgage with no insurance to cover them? Because their goal is to minimize their potential loss.
Example: If you have a $200,000 home, and you put 20% down and thus were not required to purchase PMI with your loan, you would start with a $160,000 mortgage. Assume that your property value falls to $160,000 over the next few years, and you have to sell due to financial reasons or a job transfer. You do not have enough equity in your home to sell it, so you should still approach the lender for assistance.
The lender will want to know that the appraised value of your home is truly around $160,000 in order to consider taking a loss. They will also want to know that you do not have the financial capability of taking the loss yourself.
If you can prove both of these to the lender, they may agree to take the loss in your home sale rather than risk foreclosing and selling the home later at a larger loss.
PMI is not a requirement for a short sale, so consider all options when needed.