Phil Hutson

Area Market Statistics

The Austin Board of REALTORS® has just released the latest sales figures for July 2008 and Austin-area home prices continue their upward trend, according to the latest Multiple Listing Service (MLS) report. The median price for single family homes reached a record high for July, up three percent from one year ago to $195,000. Not surprisingly, total sales volume was down, listings were up - in line with the national trend of a slowing economy.

In July, 2,071 single-family homes were sold, down 21 percent from one year ago. These sales contributed $534,206,166 to the local economy. July saw active listings rise 15 percent from one year ago to 10,913, representing five-and-a-half months of housing inventory.

"Unlike many other areas of the country, Austin continues to enjoy increasing home values," says ABoR Chairman Socar Chatmon-Thomas. "This, coupled with low unemployment rates and a steadily growing population, makes Central Texas a great choice for home buyers."

Another contributing factor to an increase in median sales prices is the inability of a large number of first-time home buyers to obtain a loan, as these buyers generally buy a lesser priced home. Conversely, the number of more expensive homes, especially in the "custom home buyer" price range, remained fairly steady - less sales at higher prices = median price increase (this price increase percentage would have been higher if the New Home Builders were not discounting their inventory so drastically!)

While housing sales relaxed, the leasing market remained strong. The 1,469 properties leased in July reflect a 20 percent increase from the previous year, while the median price of these properties rose by two percent to $1,200. The average number of days a lease property sat on the market totaled 37 in July, an eight percent decrease from July 2007.

July 2008 - Single-Family Homes

• 2,071 was the number of homes sold, a 21 percent decrease from one year ago
  
• $195,000 was the median price, a 3 percent increase from one year ago and a record for July
• $534,206,166 was the total dollar volume of properties sold

Although the Austin real estate market is experiencing the same slow-down as most of the markets across the U.S., it is still very viable, especially in the "luxury home" price ranges. Austin continues to outpace most of the nation in home construction, and the Custom Home Builders have taken advantage of this growth! In the last several years, the number of Custom homes in the $1,000,000 range have averaged from 60-80 consistently in the Austin MLS, and beautiful golf/lake communities such as Barton Creek, Lake Travis, Spanish Oaks, Rough Hollow, Steiner Ranch, and Flintrock Falls are but a few of the magnificent communities that have been developed to accommodate this growth.

If you've ever built a Custom home, you know the process can be very tedious and time consuming. So if a move to Austin, Texas, is in your future, and a beautiful luxury home is your desire, give me a call. My services (below) as an exclusive "Buyer's Broker" will be invaluable to you in this process!

• Inventory of available or soon-to-be-completed homes; access to all "appointment only" homes

• Synopsis of selected Builder, community history (appreciation/depreciation), school analysis

• Builder sites/lots available for construction -or- we'll find you a lot to build on

• Market/cost analysis including site procurement (lot cost), price/sf, sold comparables, etc.

• Architectural/structural/feature recommendations based on over 24 years experience selling custom homes

• Construction walk-through inspections through completion, and final inspection w/builder

• Mortgage companies/interest rates (when applicable), and title and closing documentation review

• Total "fiduciary" responsibility representation to you, the buyer ("buyer agency") - no "seller-agency" that you would expect from the Builder or his/her representative

There are over 150 Custom Builders in the Austin metro area. A partial list of these Builders can be found on my web site www.showcaseofhomes.com under the icon Austin Custom Home Builders, and a current list of available Custom Home inventory under the icon Austin Luxury Homes. In my continuing quest to spotlight these Custom Home Builders in the Austin Metro area, I will be featuring some of them on my blog sites over the next several weeks. Each is unique in their own way, and each has a story to tell. This is but one of those Builders, and what they have to offer - in their own words:

Russell Eppright Custom Homes sets the standard for excellence in the custom home industry. The hallmark of our company is customer satisfaction. We promote and maintain a genuine customer service attitude toward our clients and among our employees. Our standards for integrity, quality and professionalism are the industry benchmark for Austin and translate into the maximization of our product value and customer satisfaction. Since each home is totally custom, the process begins and ends with the customer. Russell continually emphasizes, "We recognize the customer as the most valuable player on the team. We include the customer in each phase of the home building process. Our state-of-the-art, Internet-based programs link our clients directly to our construction managers in the field, home office and subcontractors. Together, we find innovative ways to meet their demands and exceed their expectations. This is the spirit of a true custom home builder." The company's quality team of dedicated professionals consistently achieves our primary goal - to make your home building experience as enjoyable as possible, while at the same time, offering value and maximization of your investment without compromising quality. "When we build a home, we employ an innovative approach to doing business, and teamwork is the basis of our philosophy. From the moment you purchase your lot, to your move-in date and beyond, you are supported by (and become a member of) our experienced and talented team."

Starting Sept. 1, Texas state law requires inspections for residential construction in unincorporated areas or in areas not subject to municipal inspections. There are three required inspections: foundation, framing and mechanical systems, and final sign-off. These requirements apply to new construction or qualified remodeling projects that begin on or after Sept. 1.

"Residential builders and certain remodelers are required to register with the Texas Residential Construction Commission. Property Code Section 401.003 defines a builder/remodeler as any person who, for a fixed price, commission, fee, wage, or other compensation, sells, constructs, or supervises or manages the construction of, or contracts for the construction of or the supervision or management of the construction of: a new home; a material improvement that either increases or decreases the home's total square footage of living space and also modifies the home's foundation, perimeter walls or roof; or an interior remodeling/renovation project that exceeds $10,000" (see the entire "County Inspection Form and Instructions" here).

The commission can take disciplinary action against a builder or remodeler who fails to comply with the inspection requirements. It is the builder and remodeler's responsibility to secure the three required inspections for qualified residential construction projects in unincorporated areas or areas not subject to municipal inspections.

This is a huge step in the right direction by the TRCC (Texas Residential Construction Commission) to insure the quality and integrity of the new home builders construction for workmanship and defects. I have always strongly recommended to ALL my home buyers to monitor their new home construction, but most do not have the time/expertise to know what to look for. On EVERY new or custom home I sell, I monitor this construction and send my home buyers copies of my inspections - very few REALTORS do this, but it is extremely important that a REALTOR follow-up with the Builder Superintendents and report back to his client after these inspections are done! There have been many times where inspections were either not done or insuffiently done, and the homeowner suffered the consequences.

Keep in mind these new inspection rules are different from existing building codes already in effect for Tecas Builders - codes dictate how a builder must build a home. The building and performance standards spell out how a home must perform after it is built. The performance standards offer all Texans the promise that their newly purchased home will remain structurally sound for years to come.

The TRCC has started a voluntary program called "Texas Star Builders." This program, detailed in the Star Builder brochure, acknowledges a registered builder/remodeler's exemplary experience and business practices. A builder or remodeler that qualifies for the program must meet certain criteria regarding experience, educational levels, training, financial stability and insurance. They must also show a commitment to building to meet the commission's warranties and building performance standards. These requirements vary based on the volume of home projects the builder registers with the commission each year.

In order to qualify, a builder or remodeler must also provide documentation that indicates an excellent financial history and overall positive association with a financial institution, as well as information about their experience, training, education, building practices and participation in the building community.

How will a homeowner or a builder get more information on warranties and performance standards?
The commission-adopted limited warranties and building and performance standards - effective June 1, 2005 - apply to all home construction projects. The warranties and performance standards in effect at the time of construction are the ones that will govern a dispute between the homeowner and builder. Current standards are available on the commission Web site. If a homeowner or builder has a question about the warranties and building and performance standards applicable to a particular construction project built at some time in the past, they should contact the commission for guidance on how to identify the applicable standards.

Most people outside of Texas (except those in the semiconductor business and those that happen to read my blog posts!), have never heard of Round Rock - suburb of Austin and home of Dell Computers. But this community of about 90,000 just north of Austin has AGAIN made a list of "America's Best Places to Live"! There's more than one reason why I and my family moved here almost 8 years ago, and obviously more than reason why it is #7 on the Money list! The story below only touches on some of the reasons - for the "rest of them" contact me!

America's Best Places to Live 2008

by Kate Ashford, Carolyn Bigda, Lawrence Lanahan, Sarah Max, Caren Weiner Campbell
Monday, July 14, 2008provided by

Great jobs, schools, housing-these 10 small cities have all that and more

Courtesy of City of Plymouth, Photo: Martha Johnston

Plymouth's Medicine Lake at sunset

Chances are, you love the corner of the nation your family calls home. And that's exactly as it should be. But let's face it: Certain towns have more of the things that make a place great for raising a family and building a rich life-like plentiful jobs, excellent schools, scenic beauty and houses that won't suck away your last dime.

As we do every year, we set out to identify those communities that just seem to have it all. We analyzed the nation's small cities, those with populations of 50,000 to 300,000.

These 10 towns aren't mere suburbs; they're places in their own right, with thriving commerce and job growth. That means many residents need not leave town for work-a huge plus with gas at $4-and some rarely need to drive at all. One result: a strong sense of community. "One of the great things about walkable cities is that if you're constantly passing by someone you don't know, eventually you say hello," says Elizabeth Plater-Zyberk, dean of the University of Miami's School of Architecture.

No 7: Round Rock, Texas

Courtesy: City of Round Rock

Population: 92,400

Miles from Austin: 17

Typical single-family home: $192,500

Job growth since 2000: 46.8%

Pros: Affordable homes, loads of outdoor amenities

Con: One employer dominates the economy

When Walter Rock, 49, moved here in 1990, he says, the biggest entertainment was watching people play dominoes in front of the gas station. Now, says the engineer turned real estate agent, "I rarely have to leave Round Rock for anything."

Once merely a bedroom community of Austin, Round Rock today is very much its own city thanks largely to three things: affordable housing, excellent schools and computer maker Dell, which has established its headquarters here.

The city boasts three medical centers and a campus of Texas State University. There's a lot of shopping, from an IKEA to a premium outlet mall, and a minor league baseball team, the Round Rock Express. Residents enjoy more than 800 acres of open space, two golf courses and 64-mile-long Lake Travis, just west of the city.

A recent study has found that Austin, Texas, is one of the most affordable college football towns in the United States, with home prices in 2007 averaging $243,250 for a 2200 square foot home. Muncie, Indiana (Ball State Cardinals) had the distinction of being the most affordable ($150,000), while for the third straight year Palo Alto, Ca. (Stanford Cardinals), being the most expensive ($1,677,000) for the same size home. The study was done by Coldwell Banker, using what they call their College Home Price Comparison Index (HPCI), and examined the markets in 119 Football Bowl Subdivision (1-A) schools, and ranked over 300 markets in the US and Puerto Rico.

Having been a Realtor in Austin for over 24 years, this comes as no surprise to me. I have sold numerous homes to not only parents of college-aged sons/daughters, but also to investors looking for long-term rentals with virtually guaranteed occupancy. Parents sometimes purchase these homes simply to give their child a much more desirable lifestyle while at college than simply dorm living, then sell the property to the next set of parents 3-5 years later. Some continue to hold the property for the rents, and some actually hold the property for an eventual retirement home. Since Austin has several other colleges (Concordia University, Austin Community College, Southwestern University) within its metro area other than the University of Texas, and since Austin continues to outshine most of the rest of the nation in real estate sales, even homes in the suburbs of Round Rock, Pflugerville, and Cedar Park are excellent investments.

Helen Edwards, President/COO of Coldwell Banker United, sums it up pretty well - "College towns like Austin remain a popular living destination - whether for first-time homeowners or alumni looking for great retirement spots. School spirit draws many alumni back to Austin and for others, continuing their education, pursuing jobs, enjoying culture and following college sports makes it ideal!" Couldn't have said it better myself - Austin is the jewel of Texas! For more information about this great city, go to www.showcaseofhomes.com, or call (888) 410-5858.