Real Estate Information

Well, we have seen some major changes in our market over the last 12 months, but this month's statistics still show a market that is virtually unchanged.  Austin real estate statistics show that home sales are still being affected by Short Sales and foreclosures, but the affect is similar to a year ago... not really any worse or any better.

Short Sale homes available for sale in Round Rock account for 1 in 13 of the active homes for sale.  Since this stat does has not changed, it is unlikely that market conditions will show change.

Because Short Sale homes are simply homes which have mortgages in excess of the home's value... until the number of these these homes diminishes, the market conditions will probably not change.  Because banks are allowing owners to sell homes, while taking less than what is owed, it shows that Austin home values are still weak, and while Short Sales are still being actively marketed and sold, increased home values are virtually impossible.

The good news... yes there is good news... the number of Round Rock and Austin area Short Sale homes is virtually unchanged, meaning that market conditions have not worsened, as has been predicted by many economists.

We do still have some time before a true recovery... which has been predicted for as early as 2010 or 2011, and as late as 2020.  No matter what the predictions, I will be watching the number of Short Sale homes being marketed, sold and closed because it provides a great indication of current market conditions!

The halt to foreclosures started by the Texas Attorney General will impact the Austin real estate market in multiple ways, and in stages. 

??First, since a sizeable percentage of Austin home sales are foreclosures, the absence of those homes from the market could result in rising home prices in the short term.  However, since we do not know the extent of and the timing of the resolution of the foreclosure debacle, buyers may be hesitant to buy because of fear of what will happen when foreclosures become available again... more forelcosures, declining prices.

Though optimists might speculate that there could be some short term positive impact on Austin homes for sale, it is more likely that the negative impact will negate any short term benefit.

There is always a positive though and for Austin home owners, that is simply that our economy is stronger than nearly any other U.S. city, meaning that a smaller percentage of our home sales are foreclosures than virtually any other U.S. market.  E, and itven if you buy now and see a drop in values due to forelcosures, there will  will be a rebound driven by Austin's economic strength because its job growth is consistent and is out-performing most cities nationwide.

Those are not just the opinions of a humble real estate broker, but of Forbes, Money, The Wall Street Journal and more!

So, although you will hear and read a variety of predictions regarding the foreclosure moratorium, just know that buying a home in Austin, TX is a good thing for the mid to long term.  I am certainly against buying a home if you will have to sell in a year or 2, but I advise against that in nearly any market.

Its your choice, so Make it a Powerful Day!

The consumer determines what products and services are offered in nearly every industry and in every market.  The Austin  and Round Rock real estate market is no different.  Because so many home owners are in situations in which their home's value is less than their current mortgage, the demand for agents who are knowledgeable about the Short Sale process is at the highest level we have ever seen. When 1 out of every 12 homes for sale in Round Rock is a Short Sale, that pretty much causes the demand.

Many agents now claim to be able to process Short Sales, and more agents will close Round Rock Short Sales this year than in any previous year.  As a matter of fact, Short Sale training programs are more common than "Get Rich" Infomercials on TV after midnight.  As a result, more agents are getting into Short Sales in order to help home sellers.  There are plenty of home sellers who need help with their Short Sale and there are now plenty of agents who can help them. (though only a precious few are truly successful at this process)

What about the other consumers though?  No, I don't mean the home owners who don't need a Short Sale, I mean the home buyers who need help. There is no such thing as a Short Buyer of course, (well, maybe there is, but not in the real estate sense) but this economy has resulted in a higher percentage of prospective home buyers whose credit will not allow them to buy a home.

Thus, the demand for "credit repair" has hit an all time high as well. And like the precious few real estate brokers who are truly successful in naviating the complex Short Sale Process, there are truly a precious few companies who offer Credit Repair service that is effective and affordable.

Most consumers who have tried any kind of Credit Repair Service have overpaid, received little to no results, and are nothing less than cynical about the whole process.

There are Credit Repair Services that offer true value and successful results.  As a real estate broker, my goal is certainly a little selfish, but if I can help prospective home buyers restore their credit, they can buy homes and well, I may just be the broker who assists with the purchase.

So, take a look at www.TruthBehindCreditRepair.com and remember that our goal is to help you buy a home, and we are soooo confident in the Credit Restoration Service we refer that we Guarantee that you will be able to buy a home or you pay NOTHING.  Take a look... you couold truly be buying a home in as little as 45 days!

Most of us are aware the Texas Attorney General has called for the halt to foreclosures at least until Oct 15.  Several other states have followed these actions.  Bank of America has put a stop to their foreclosures, and though the legal strangth of the states' demands are not completely ironclad, it is expected that other banks will follow BOA's example.

Its expected that the current real estate environment, including the volume of Short Sales in Round Rock, Austin and surrounding areas will remain unchanged unless this moratorium is extended. If this halt to foreclosures is extended, then logically the sheer number of Short Sales will increase because fewer homes will be going to foreclosure.

Though it is certainly too soon to make those predictions, we have to look ahead and plan market strategies based on potential and probable market changes, and the complete clamp down on foreclosures would be a market change that will have more than a little impact!

Currently, about 1 in 12.5 homes are Short Sales in Round Rock... slightly more than three months ago, more than a year ago, and that number wil probably rise if foreclosures are decreased. If foreclosures are not processed, and home owners are behind on payments, Short Sales are an extremely likley adaptation to that scenario.

Since Austin Short Sales are selling at a higher value than foreclosures, this would result in a slightly better situation for home sellers and possibly Austin real estate values.

Once again, its too soon to make these predictions, but we will keep close tabs on the situation.

One of the most common questions asked of me is "When should I sell my home, should we wait until Spring or wait until the market improves?" Most real estate agents, by nature and by training want to make sure the reasons for selling "Now" are well known to any home owner who asks.

Granted, there are some pretty darn good reasons to sell now... if you are selling in a soft market, then buying in a soft market will compensate for taking a little less for a home than the seller might have anticipated.  However, if there is a choice, I have pointed out to my prospects and clients that 2, or even 3 years or more may be needed to see some strength return to the Austin real estate estate market.

As indicated in recent blogs, the sheer volume of Short Sales and foreclosures on the market and coming to the market will continue to impact home values in Austin, Round Rock and surrounding areas. When Short Sale homes are available at prices below competing homes, its probably even more impactful than the foreclosures. This is because Short Sale homes are often still owner occupied, still maintained, and still in reasonalbe, if not good condition, thus they will compete more readily with typical home owners. 

The reason homes continue to sell in competition with foreclosures is becuase many buyers do not want the risk of a foreclosure, even if it is priced below market.  That is not the case with Short Sales.

This Round Rock Short Sale is in excellent condition, is still maintained by the owner and is priced well below market.

Getting to the point... the inventory of short sales and foreclosures must decrease and even become neglible once again for home values in Austin to rebound. As long as buyers have choices that include homes priced well below market including homes priced belwo market that are in good condition, it will be difficult for Austin home values to appreciate.

To see this home and every other "Bargain" home in the Austin and Round Rock markets, take a look at www.SeeAustinShortSales.com.

For now, and the near future Short Sales in Round Rock, Austin, and surounding areas are part of the market and do impact values... they are not going away soon, but they have to in order for values to start appreciating again.

The number of Short Sales available in any real estate market is an indication of the current status of that market. Since a Short Sale by definition means that selling that home at market value will not cover the mortgage, more Short Sales on the market means more time needed before market recovery.

Short Sales show us the number of home owners who are taking steps to avoid foreclosure in a weak real estate market. As this number decreases, it means that values are inching up enough that fewer homeowners need to use a Short Sale to move their property.

If you just look at the homes for sale in Round Rock, 1 in 14 is a Short Sale, a very similar percentage to this time last year. Because there has been little change in the number of Round Rock Short Sale homes available since a year ago, it is not hard to mane the assumption that real estate has not made much progress since that time.  When you consider the fact that homes for sale has increased slightly, values have remained fairly similar and the number of sales year to date is within a few percentage points of last year, it points to the number of Short Sales being a pretty good indication of current market strength.

Since Short Sales available in Round Rock mean that home values in Round Rock have not rebounded enough to provide equity needed to sell those homes, how about the success of selling those homes.  I have said often over tha  last few years that in order for the market to recover, the Short Sales and foreclosures must sell first.

Actually, Short Sales in Round Rock are selling at a quicker pace than the typical market. The reason is because Short Sales are often still owner occupied, well maintained, and sell 15-25% below market.  Unlike foreclosures, which are often in poor condition, Short Sales offer the best of both worlds... well maintained homes at below market prices.

We will continue to watch this part of the market, and we will continue to help home owners and buyers with Short Sales as long as they are necessary in the Austin real estate market!

According to the Multiple Listing Service (MLS) report released for July, 2010 by the Austin Board of REALTORS®, the Austin real estate market appears to have experienced its summer peak early this year due to the expiration of federal homebuyer tax credits in April.

The volume of Austin area home sales in July 2010 was 1,518, down 25 percent from the same month in 2009.  The median price for July 2010 was $222,000, up 15 percent from July 2009. In addition, the number of days on market decreased three percent to 73 days for July 2010 when compared to July 2009.

To gauge trends in the real estate market, which is cyclical, we usually compare one month’s performance to the same month the prior year.  This year, however, we have the unique situation of the homebuyer tax credits that inspired many buyers to purchase homes sooner than usual. Thus, it’s more meaningful to evaluate our market from a year-to-date perspective, instead of month-to-month, to gain a clear picture.

The good news is that so far this year, 11,260 homes have been sold in Austin, a five percent increase compared to the same time period in 2009. In addition, the median price year-to-date was $194,000, up two percent from 2009, and days on market decreased 12 percent from 2009 to 71 days.

It is fairly obvious that the tax credit for home buyers helped tremendously, as home sales since the expiration of the tax credit have been less than the same months a year ago. 

We do have a 7.4 month supply of active listings on the market, meaning that home sellers are involved in a more competitive market than they have been since 1991.

Here is s summary For July, 2010:

• $434,812,884 – Total dollar volume of single-family properties sold, a 13 percent decrease from July 2009.
• $222,000 – Median price for single-family homes, a 15 percent increase from July 2009.
• 1,518 – Single-family homes sold, a 25 percent decrease from July 2009.
• 73 – Days on market, a three percent decrease from July 2009.
• 11,774 – Active single-family home listings on the market, an 18 percent increase from July 2009.
• 1,556 – Pending sales for single-family homes, down 22 percent from July 2009.

Year-to-Date 2010 Statistics

• $2,843,689,087 – Total dollar volume of single-family properties sold, a nine percent increase from 2009.
• $194,000 – Median price for single-family homes, a two percent increase from 2009.
• 11,260 – Single-family homes sold, a five percent increase from 2009.
• 71 – Days on market, a 12 percent decrease from 2009.
• 10,529 – Active single-family home listings on the market, a nine percent increase from 2009.
• 12,960 – Pending sales for single-family homes, up two percent from 2009. 

Real Estate stats from July, 2009 prove much weaker than July 2009, but year to date, Austin home sales are still showing improvement from 2009.

Everyone seems to be focused on how to help home sellers get out of their "under water" situations... no question this is a service that is more badly needed than ever in Austin real estate.  Short Sales are the rage right now, and they should be... a Short Sale is better for the seller than getting foreclosed, it is less expensive for the lender, and the buyer purchases a home under market that is still well maintained.

Short Sales are a terrific value, but there is a group of consumers who cannot buy a Short Sale. How about those people who have credit issues, maybe even resulting from a Short Sale they have on their credit from the past?

Home buyers who are looking to take advantage of this market, these interest rates and possibly even buy a Short Sale cannot do so because credit is sooo improtant now. The only option for these buyers is owner financed homes, and there are sooo few of them even available... only about 1.2% of homes for sale offer owner financing.

The problem is that most people believe all the myths about credit and don't think they even have a chance... that is not always the case. Take a look at www.TruthBehindCreditRepair.com to learn the truths that most consumers don't even know.

In order to take advantage of these 4.5% interest rates and the incredible bargains that homes available for Short Sale offer today... at least find out the Truthg about your credit situation, and what it will take to put you in a position to buy a home... chances are you will be VERY surprised.

Don't look at only 1% of the homes on the market, only to pay an above market interest rate for your owner financed mortgage... take a look... no hassle no obligation... you could literally be looking at Short Sale homes to buy on a new mortgage in 45 days!  What else are you going to be doing in 45 days?

Many people selling their homes in the Austin area think that the very best source of buyers for their homes are people from California. Marketing to that group can be a pretty good strategy, as long as you realize you'd be focusing on the 2nd most likely state from which your buyers will probably move.

For quite some time, including this month, buyers are most likely to come to Austin from another location within the great state of Texas.  As a matter of fact, online search results show that prospects from Texas outnumber those from California every month this year by as much as 13 to 1 in some months.

Houston is still the most likely place a buyer will move from when coming to the Austin area. Dallas follows and of course Ft Worth is high on the list of Texas cities from which prospects are perusing homes in Austin. This make ssense of course, since those are among the largest cities in Texas.

What surprises most home sellers is that the highest county in CA on the list usually comes in anywhere from 6-9... while home buyers in the Austin area continue to move in from other cities in Texas.

Tennessee is 3rd to California when it comes to the number of prospects looking at homes in Austin online.

One of the reasons for this is simply that many Texans want to remain in the state, and Austin is considered the best place to be in Texas. Say what you want about those California buyers, we are HAPPY to have them, but if your home in on the market in the Austin Texas real estate market, more buyers are looking at Austin TX homes from Texas than anywhere else and your most likely buyer will be from Texas!