Jeff Harris Your True Austin Home Specialist

Austin, Texas home sales were up about 7% area wide in 2011 vs. 2010. Some Austin neighborhoods saw even bigger sales increases. Austin condos had a 1% sales increase. Many price segments and neighborhoods saw prices higher vs. 2010, while some remained flat. The luxury market firmed again as higher priced homes in Central & West Austin, as well as Westlake, drew higher prices than the year before. Inventory has changed quite a bit in the last 12 months. The number of homes for sale continues to shrink as the number of homes for sale is 15% lower than a year ago. It would take about 4 months to sell all the homes currently on the market at the current pace city-wide--representing the lowest inventory-to-sales ratio in at least 3 years.

Price segment matters. The lowest priced properties (under 250k) have the lowest inventory vs. high sales rate, while the luxury segment has the highest number of homes for sale vs. sales rate, as is usually the case. In general, Austin properties priced under $450,000 show the greatest demand relative to inventory, and thus upward pressure on prices in some areas. I sold a couple of properties in 2011 for a higher price than they had last sold for about 2 years prior.

Downtown Austin condo inventory is lower now too. Active MLS listings downtown(which include some developer inventory), have declined by about 30%. Developer inventory is dropping as almost all units under 500k have been sold and no new projects are coming on-line for at least the next 3 years (none are under construction). Resales will dominate this market in 2012 and 2013 at least, and already we are seeing signs that prices for units under $450,000 are firming in the most favored buildings, especially if they have good views. The Austin luxury downtown condo market has excess supply in my opinion...but sales continue to occur there, and prices are fairly steady. There have been several multi-million dollar sales in the W, 555 Hilton and Austonian in the past few months.

In Austin and Texas, the Texas Forest Service says the severe drought has cost us millions of trees across the state. Between 100 million and 500 million Texas trees have not survived record high temperatures and record low rainfall. This is estimated to be 5-10% of the tree population in Texas. How does this impact real estate? Trees add value to your home. A home nestled beneath a large tree canopy can sell for thousands more than one on a barren lot. Trees help keep temperatures down, especially in urban areas and tree shaded buildings have lower energy usage.

Keep your trees watered in these extreme climate times. The recent rains have helped tremendously, but when it dries up again, be sure your trees are getting the moisture they need. A simple lawn watering is not enough to get to tree roots. Save your trees, it will help preserve and enhance the value of your Austin home.

Jeff Harris, Broker

jeff@trueaustinhomes.com

direct: 512-917-8142

I have written before about the new W Residence condos in Downtown Austin. Yesterday, The W hosted a select group of 80 Austin Realtors to tour the property and enjoy a reception by the resident pool. I really like this property! The finish out is impeccable and the views are spectacular. 10' ceilings, wide plank hardwood floors, Miele appliances, Bulthaup cabinetry, marble counters and baths. The residents have their own pool separate from the hotel, and receive a 20% discount on food and drinks from the hotel restaurant, bars and the W Away Spa. Concierge services are at each resident's disposal as well.

Service at W Austin residences is a priority as is making sure upscale living is enjoyed by all who purchase here. The petite one bedroom is a great pied-a-terre and starts in the upper $300's. HOA fees are 55 cents per square foot--lower than other luxury buildings but much higher than other new buildings that offer slightly less service and amenities.

According to the sales director at W, 65% of the residences are under contract and/or sold. That leaves 50 or 60 units still available in the 37 story building with prices up to a few million dollars. One of the upper level 3 bedrooms just went under contract for over $2 million.

W is a great addition to Downtown Austin living. I think I prefer the W to the Four Seasons or Austonian because the design is edgier and the building has a more energetic vibe, although I know every person must decide for themselves what environment suits them best.

Contact me any time for an appointment to see the W or any other Downtown Austin luxury condominium.

SEARCH Downtown Austin Condos For Sale

Jeff Harris, Broker

jeff@trueaustinhomes.com

512-917-8142

Having been through the marketing of Austin lots and home building sites a few times recently, it struck me how much information must be dispersed to potential buyers. Most people have never built a home from scratch before and simply don't realize all the things that can add up to make a home site ready to build on, and how those things should be considered when comparing the prices of various lots and land.

In Austin, we have to think about slope and access quite often. If a lot barrels straight down from the street, you might have to build on concrete pillars or pour the mother load of foundations. This can add tens of thousands to building costs. That cheap lot that careens to the bottom of the canyon is not so cheap when you consider what it costs to get a home built there. That more expensive flat lot may be cheaper in the long run.

Also consider access. Is it an easy curb cut or is there a need to blast through a 10 foot stone embankment to get a driveway in? And what about retaining walls? Will the adjacent hillside end up in your living room unless you spend thousands to brace it with a wall? And then there are utilities. Is sewer and water available at the street? Or do you have to build a septic system or drill a well? Is the area environmentally restricted? Is it over an aquifer or in a critical watershed or near a creek?

Check with city zoning rules and environmental regulations before going forward. I find many Austin lot buyers think the regulations that exist within Austin are far more stringent than they really are. They hear water quality mentioned and they run fast in the other direction. Much of Austin is environmentally "sensitive" but can be built on anyway with reasonable restrictions. Impervious cover limits are another thing to watch for when comparing sites.

All these things should be considered when deciding whether to purchase Austin lots or land to build a new home. Consult a builder to determine how these unseen costs can add to the bottom line. When shopping for Austin lots, understand all the costs that go into construction at each individual site so you can make a true comparison when faced with many seemingly similar home sites. This will help you know what to pay and what you are really going to spend to build that dream home you have always wanted.

Thinking of building? Contact me for a list of Austin home sites for sale.

Jeff Harris, Broker 512-917-8142 direct

jeff@trueaustinhomes.com www.trueaustinhomes.com

In a 3-2 vote, Travis County commissioners did the right thing today and retained the historic property tax exemption for 2011. Judge Biscoe and Commissioners Gomez and Huber gave a thumbs up to historic preservation tax incentives. City of Austin and AISD are still mulling over whether to change their policies. Let's hope our elected officials continue to see the value of preserving our past.

This vote was a victory for the history and heritage of our town. Commissioners expressed an interest in identifying more properties east of I-35 for historic designation...a great idea! Meanwhile residents of buiildings like the Brown Building are happy that they retain part of their low property tax rate.

UPDATE: Austin Independent School District also voted to put in place the historic exemption for 2011 along with the City of Austin.

Historic Brown Building Lofts for sale: http://trueaustinhomes.com/listings.asp

Jeff Harris, Broker

jeff@trueaustinhomes.com