Chris Tinnell

We have all seen several recent stories about homes being purchased for incredible prices in depressed markets. Let's face it, the investors are making a huge gamble that at some point, the area will recover. In many of these areas (and other areas), the root cause is not only due to higher unemployment but also partly due to an over-built market by homebuilders. Many new homes have sat finished for many months.

While Central Texas' economy is relatively strong (compared to other parts of the country) and we are not one of the severely depressed markets, we are definitely being impacted -- which may also be creating some great opportunities. Because many national builders are stuck with finished homes in other parts of the country, they do not have the resources to build in areas with stronger markets (i.e. Central Texas).

Because of these woes, new home construction may halt in a still-vibrant Austin market, Angelos Angelou, a principal executive officer for AngelouEconomics, predicted in his 2009 economic forecast, released in January.

"My fear is that national developers may have overreacted, and Austin may be penalized in the form of lower home starts, which eventually can create an artificial shortage," said Angelou, principal executive officer for AngelouEconomics. So, it does not take a rocket scientist to figure out that where prices will go when you have a relatively healthy demand and lower production.

The Community Impact News recently wrote an article about the possibilities of a housing shortage. See http://www.impactnews.com/central-austin/news/3549-rising-home-values-may-be-silver-lining-for-austins-housing-market .

I have to admit that I was a little skeptical after reading the reports and hearing this news. But, after speaking with several other builder sales representatives and looking into my current situation at Buffington Homes (sold out of quick move-in inventory homes) I am a believer. The article states "now is an ideal time to buy, but those thinking of selling should wait for the housing shortage."

So, if you are in a position to purchase a home in Central Texas now, you are fortunate. If you are in a position to buy now and can wait to sell (in Central Texas), you may be really fortunate.

If on the other hand, you must sell your current home in order to purchase a new one, all is not lost. You might be able to take advantage of both markets as well. Since building takes approximately 7 to 8 months, you might be able to take advantage by purchasing a "to-be-built" home now but wait to list your current home a few months later. A healthy buyer and sellers market rarely, if ever, exists at the same time. But, if everything turns out as predicted, this will be the closest you will ever come.

While you will never hear a sales representative say it's not a good time to buy, this data, along with low interest rates, give many buyers the confidence to purchase at one of the best possible times in Central Texas history.

To learn more about the opportunities I offer, please go to http://www.buffingtonsignaturehomes.com/community.asp?PageID=5&CommunityID=6n