Tuesday, September 16, 2008
by Stuart Sutton
The question is posed more often now that ever... "Is it a good time to sell?"
Because Austin real estate is by far superior to other markets, that question does require a case by case answer. If you are moving up within the local area, it may be a great time to sell.
Unfortunately, you may not be able to sell your current home at quite the price level you had hoped, but if you are moving up in the Austin area, you should be able to buy your new place a little cheaper as well. Thus you are coming out ahead.
An even better scenario would be to keep your current home as rental if it makes sense, and buy another home in this market. Then sell your home in a few years when the Austin real estate market improves. Now you bought low and are selling, well higher anyway.
The Austin rental market is great, by the way! If you keep your current home as a rental, be sure to pay attention to the current tax laws, which allow you to pay no capital gains tax if you lived in the home at least 2 of the last 5 years. Yes, you can rent it for 3 years max... but must close the sale before the end of the 5th year in order to avoid income taxes on your gain.
If renting your current home does not make sense, you are still coming out ahead if you are buying a more expensive home.
If you are moving out of town, you may want to consider renting your home for a few years. Some owners just can't swallow being a landlord, so if you must sell, just remember there are steps you can take to maximize your value even in a down market.
Monday, September 15, 2008
by Stuart Sutton
This lake front home in Lago Vista is just outside Austin, Texas, and offers what many central Texas home purchasers truly dream of... a gorgeous home and a breath-taking setting.
Take a look at
3608 Parliament Cove and see for yourself.
Fabulous decor, incredible views, magnificent quality and a lake front setting are nearly impossible to find in the Austin area at this price.
Within 30 minutes of Austin, located on the north shore of Lake Travis in the Lago Vista area, this location on a quiet cul-de-sac, on a lake front lot, may not be too hard to find, BUT finding this kind of fabulous home is!
This property also offers an incredible walk-out basement of over 3000 SF! It could be used as storage, and it makes a fabulous party area!
Compare this home to any other on Lake Travis, and it still stand out as a fantastic value!
Wednesday, September 03, 2008
by Stuart Sutton
Austin is the most expensive real estate market in Texas. Most people who live in Texas are aware of that. The median price in Austin is about $30,000 higher than in Houston, Dallas or San Antonio. That converts to about an extra $188 a month for the median price home in Austin as compared to other cities in Texas.
Well, anyone who lives in Austin knows that the extra $188 a month is well worth living here. Take into consideration the area lakes, hill country, rivers, golf courses, climate, and well, and extra $188 a month is worth every penny!
Realistically, let's look at some numbers. If you could buy a $165,000 house in Houston, you may have to spend $195,000 in Austin, or instead of purchasing that median priced house at $195,000, and paying $188 more per month, you could actually just buy a little less house.
You could buy a house for $165,000 and still get a pretty darn nice home because you can still buy a lovely home in a wonderful neighborhood in Pflugerville that offers you around 2,500 square feet (or more) for that price. That kind of price per square foot sounds pretty good no matter where you are from.
The reason I am pointing this out is that more buyers are moving to the Austin area from Houston and Dallas than from California or Florida. A home seller told me just last week that he needed an agent who had access to all the buyers moving from out of state.... this is a prevailing thought since so many people have moved here over the years from California and recenlty from Florida. But the most likely buyer for a home in Austin will be somone moving from within the great state of Texas!
Friday, August 22, 2008
by Stuart Sutton
The area northeast or Round Rock and southeast of Georgetown in Williamson County has been a hotbed of activity. Obviously the huge new Seton hospital is having a huge impact. In the initial years of operation, the new Seton medical center will generate more than 1,400 new jobs and provide an estimated total positive economic impact of more than $190 million.
Also, Austin Community College and Texas State University currently share space at the Round Rock Higher Education Center near A.W. Grimes and University Boulevards. Each plans to expand to their own campuses nearby.
Texas A&M’s Health Science Center is also planning a campus off A.W. Grimes in Round Rock.
If you are not aware, the area being discussed is just east of where the Round Rock Outlet Mall sits at IH-35 and FM 1431.
Now Texas Tech University and Texas Tech Health Sciences Center have signed on to become academic partners at the East Williamson County Higher Education Center outside Taylor.
Officials from Texas Tech, which has its main campus is in Lubbock, made the announcement at a news conference at the campus of Temple College at Taylor. The yet-to-be-opened center, which will be built on 68 acres west of Taylor, will also be home to Temple College at Taylor and will house a campus of Texas State Technical College.
Several other universities and schools are planning to expand or locate campuses in Williamson County. Result - more jobs, positive economic impact, more support service businesses, even more jobs.
This only helps Williamson County real estate, which has seen decreasing home sales the last 12 months. More jobs means more home buyers and/or renters.
Wednesday, August 20, 2008
by Stuart Sutton
There are certainly alternatives to losing a home to foreclosure, or renting a home from long distance if you cannot sell the home for enough to cover your closing costs and pay off your mortgage. The Austin real estate market is still experiencing more short sales than last year, and the trend is no decreasing.
Most people think that you must to be behind in payments to even have your mortgage company consider a short sale. Sometimes true, BUT there are exceptions.
If your job takes you to a new location and you cannot sell you home for enough to cover the mortgage, and you cannot afford to rent the house, your mortgage company may assist you with the sale.
Provide detailed documentation as to the home's value, your income and budget and the fact that you cannot carry two mortgages when the home is vacant. Your mortgage company may consider this a reasonable situation in which to provide assistance. No guarantees, but we have accomplished it in this situation more than once.
Being located in the Austin real estate market may not hurt because the lender's position is much better than it would be in a less desirable market. Losing a few percentage points off the mortgage is a lot easier decision than losing 20% of the mortgage.
Being in a market with stable values could be the difference in getting the assistance you need from the mortgage company.
Monday, August 18, 2008
by Stuart Sutton
According to the Austin Business Journal, the number of Austin area residential foreclosures posted for the coming September rose 33 percent from last year, new data shows.
There are 765 postings for September in the four-county region, up from 574 in the year-earlier month, according to a report from Addison-based Foreclosure Listing Service Inc.
Travis County saw the largest increase in activity, with the number of postings rising 45 percent to 401 from 276 a year ago. This is the eighth consecutive month Travis postings have exceeded 300.
Austin metro foreclosures in the first eight months of the year rose 21 percent to 6,480 from 5,339 in the same period last year.
In the four counties included in the Austin metro, year-to-date postings are:
Travis: 3,303, up 26 percent
Williamson: 2,018, up 24 percent
Hays: 712, up 10 percent
Bastrop: 447, up 3 percent
www.dfwforeclosures.com
These foreclosures are not unexpected, and the Austin real estate market is still holding its own, maintaining values when no one expected as much!
Tuesday, August 12, 2008
by Stuart Sutton
Despite all of the negative press regarding real estate, nationally, Austin, Texas remains one of the shining stars of the real estate industry.
Although the number of homes sales has decreased, and have actually been decreasing steadily for over a year, home values are still increasing! What makes this even more impressive is that the number of homes on the market has been increasing over the last year as well.
The combination of increasing inventory and decreasing sales would typically spell bad news for home values in any market, but the Austin, Texas real estate market has maintained values throughout the downward trend in other statistical areas!
Although Austin has thus far escaped the type of tumultuous market that other U.S. cities have experienced, it has not kept consumers from being a little worried. Hearing the negative news regarding national real estate statistics has led many Austin residents to stay on the sideline, waiting to see what the market will do. Thus, the decrease in home sales.
The lower number of home sales is hard to explain otherwise, since employment is still increasing and unemployment is still one of the nation's lowest.
Is Austin, Texas a good place to buy real estate? Well, everywhere you turn, Forbes, Money, Texas A&M Research Center... are pointing to the Austin market.
Tuesday, February 12, 2008
by Stuart Sutton
Well, the real estate market has certainly seen some uncertainty that was not there in previous years. Everyone expected 2007 to be another fabulous year in Austin real estate. Factors such as the sub-prime mortgage issues became important in nationwide housing and to lesser degree, the Austin market.
We keep a close watch on four main statistics, and all four have been positive for over 3 years. In March, the first of those four stats turned negative, then in April the second, and in September, the third, logically fell into negative territory as well.
The Number of homes sales decreased 16.24% in December 2007 compared to December, 2006, and although the year did end with a down turn in home sales, 2007 was still one of the best years in Austin real estate sales.
The number of homes for sale has increased more than slightly... actually the number of homes for sale in December, 2007 showed a 20.83% increase over December of 2006. The increase in homes for sale actually began in March of 2007 and has continued every month since.
The average days on the market for a home in Austin Texas climbed 11.4%, since December of 2006. With more homes on the market and fewer sales, it was just a matter of time before the days on market stat climbed.
One piece of good news remains... median home prices still continue to increase! Also, the average home price in December, 2007 was approximately 8% higher than in December, 2006. Yes it is contrary to the media's description and the other statistics, but in the Austin real estate market, home values are still increasing!
I think we can all reason that with statistics of number of sales and number of homes available being supply and demand, that demand has weakened, while supply has grown. The result may logically be a decrease in home prices. BUT, it has not happened yet, and who is to say that Austin's economy won't keep that from happening? Home sales could increase BEFORE home prices decrease.
Wednesday, February 21, 2007
by Stuart Sutton
The market determines a home's value, just like the market determines the value of a stock, or a psitning, or an antique automobile.
We just sold a home that had 6 contract offers over 6 months. The interesting thing about these offers is that all were within a few thousand dollars of each other. The sellers had determined that they needed to net a specific amount in order to accept an offer. Therefore, they countered each and every offer at a price slightly above the level that buyers were willing to pay.
After having 5 buyers respond with a top dollar that was below the sellers counter offer, and after losing 5 buyers, the sellers came to understand that the market was responding to their determination regarding the value of their home. This home is now under contract at a price that various buyers had offered all along.
The market determines value... the sellers need for a certain amount of equity does not, the buyers desire to improve a home to their tastes does not, the sellers emotional attachment to a home does not, and a buyers desire to be strong negotiator does not. The market is basically the sum of real estate agents and buyers who see the data, and the home and determine the price at which the home should sell. That is what happened in this case, and that is what happens in nearly every other situation as well.
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
