Austin Texas Real Estate

As home sales are starting to increase across all the markets, the town home and condo market is still on the decline. This aspect of the market has been on a steady decline for the last 7 consecutive months. March prices vs a year ago were down yet again. In Houston along the sales prices fell 8.5% in March alone with the median price going down another 6% to 126,950 based on numbers release by the Houston Association of Realtors. One common solution among the owners is leasing the properties.

Overall the market is down in the county and foreclosures are up 17%. The effect on the neighborhoods could be a prolonged and negative one. This would be due to the fact that many of the properties are becoming vacant and are not being maintained. This lack of maintenance will lead to squatters and others staking a claim in the properties, especially as the heat rises during the summer. Even with this in mind, investors are still looking into the purchase of these homes.

Two of the top ten real estate investment cities are in Texas, Dallas and Houston based on first quarter reports from HomeVestors of America. The numbers are based on the number of houses bought in each market by the franchised network during the first 3 months in 2008. Economists are noting that alongside the investor properties are a rising number of rental signs. The lack of rent coming in is not a good sign for the condo and town home market.

Hope all is well with you and yours,

Joe

Steiner Ranch Texas Listings | Sendero Springs Listings

Across the majority of the country, listings of pre-existing homes are skyrocketing and prices are dropping, due to the mortgage crisis we are facing. Many cities and states are seeing enough homes on the market to sustain buyers for the next two years, or even longer in some areas. One area that has been missed by this national trend is Dallas-Fort Worth. This metro area has only seen a slight increase in listed pre-existing homes in the past year, staying very close to their four-year average.

A recent article in the Dallas Morning News states that the tight market in the Dallas-Fort Worth area is helping to keep the real estate values very stable, considering the country’s rocky real estate market. The average value for an existing home has only dropped and average of two percent over the past few months, which is a minor drop compared to what other areas in the region are facing.

The only portions of the metro area that seems to be struggling in the wake of the current market situation are the more affluent areas, like Park Cities. Homes in these neighborhoods can list into the millions, and homes are sitting on the market for far longer than in middle class neighborhoods. These areas have seen an increase in listed homes since the beginning of this year and turnover time has shown an increase.

Price drops on newly built homes could make a difference in whether this trend of stability continues. With thousands of newly built homes sitting vacant, the pressure on builders to sell is growing, and these prices may drop significantly in the near future, putting a strain on the market for pre-existing housing. Even with the streak of luck the area has had, keeping one eye on the market is a good idea for both buyers and sellers, alike.

Joe

Cardinal Hills Real Estate | Austin Texas Real Estate Blog

According to an article in the Austin American-Statesman in February 2008, existing home sales in the central Texas area fell to a two-year low in January 2008, but prices rose 7 percent, bucking the national trend. This means Austin's real estate market is still in decent shape compared to the rest of the nation.

Home sales fell over 22 percent in January nationwide, with median prices down 5 percent. The market is saturated with a 10-month supply of houses for sale. In the Austin area, however, sales fell only 10 percent and the number of homes on the market rose 24 percent – a mere 4 ½ month supply.

While the Austin market remains fairly resilient for the time being, experts say this trend is not a good thing for the long run. Tougher loan requirements coupled with lack of investor interest are helping to feed the slowdown that began mid-year in 2007. It's a definite buyers market right now as mortgage interest rates remain below 6 percent. With experts predicting another slight drop in sales of between 5 and 10 percent by the end of 2008, sellers need to be more realistic about the price and the length of time it will take to move the home. Currently, it's taking nearly three months and sellers need to be prepared to drop their prices in accordance with the difficult market.

As construction of new homes slows, buyers are looking to the resale market more and more and it's hoped this will help move existing inventory. Central Texas remains a hot spot for relocation, however, and this will help to keep the real estate market strong in the Austin area.

Joe

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