Richard Cain

May 2009
Units for Sale: (compared to May 2008)
New listings were down 30.65%.

Pendings were down 1.76%.

Solds decreased by 27.72%.

As for Average Prices:
The "New Listings" average list price is up 12.11% to 355,139. In May 2008 the average list price was $316,768.

Sold average sales prices decreased 3.35% to $250,014. For May 2008 it was $258,675.

*Keep in mind that these numbers represent the entire Central Texas Multiple Listing Service area. Every area and even different neighborhoods within a certain area are performing differently. To get an accurate depiction of the market in your area, obtain a FREE Market Snapshot by clicking here.

May 2009
Units for Sale: (compared to May 2008)
New listings were down 30.65%.

Pendings were down 1.76%.

Solds decreased by 27.72%.

As for Average Prices:
The "New Listings" average list price is up 12.11% to 355,139. In May 2008 the average list price was $316,768.

Sold average sales prices decreased 3.35% to $250,014. For May 2008 it was $258,675.

*Keep in mind that these numbers represent the entire Central Texas Multiple Listing Service area. Every area and even different neighborhoods within a certain area are performing differently. To get an accurate depiction of the market in your area, obtain a FREE Market Snapshot by clicking here.

Having gone to a handful of classes offered by both the city of Austin, the Austin Board of Realtors and those being offered from various Auditing companies, I now have a firm grip on the new mandatory prior to sale Austin Energy Audit. Hopefully this will help to clear up any rumors or misconceptions that you may have and please feel free to give me a call for further clarification.

Austin Energy Audit Basics

• The energy audit belongs to the address of the property
• It is good for 10 years
• It will NOT prevent the sale of the property from closing
• The city WILL be monitoring title transfers and checking against their database for energy audit compliance
• The owner of record prior to sale can expect the legal department for the city of Austin to contact them if the audit was not performed
• Violations are a class C misdemeanor
• Audits can take anywhere from 2-3 hours
• The average audit will cost between $200 and $300

What A Seller Must Provide To The Auditor

• Their Austin Energy electric account number

What The Audit Covers

• Windows and shading
• Attic insulation
• Heating and cooling duct system
• Air infiltration
• Data collection

Exemptions

• Homes that are outside of the city limits
• Homes that are served by a company other than Austin Energy
• Homes that are less than 10 years at the time of sale.
• Homes that have had at least three energy-efficiency improvements or a total of $500 in rebates through Austin Energy residential offerings within 10 years before the sale
• Homes that have received free-energy efficiency improvements through Austin Energy residential energy within the last 10 years
• Condominiums are currently exempt
• Manufactured homes that are not on a permanent foundation are also exempt
• Homes that change ownership and transfer of title occurs under one of the following conditions:*Foreclosure sale, trustee's sale, or deed in lieu of foreclosure
  *Pre-foreclosure sale, in which the seller reached an agreement with the mortgage holder to sell the property for an amount less than the amount owed on the mortgage
  *Threat or exercise of eminent domain
  *Gift from one family member to another family member without consideration
  *Court order or probate proceedings
  *Decree of legal separation, dissolution of marriage or property settlement agreement incidental to such decree

Variances

A home may receive a variance if it meets one of the following conditions:

• No later than six months after the sale, the buyer applies for a permit to demolish the home. The seller and buyer must enter into a binding agreement in which the buyer agrees to apply for a permit to demolish the home no later than six months after the sale.
• No later than six months after the sale, the buyer applies for a permit to substantially remodel the home. The seller and buyer must enter into a binding agreement in which the buyer agrees to file an application for a building permit to substantially remodel the home no later than six months after the sale. The buyer then must agree to complete an energy audit within a specified time after the remodel is complete.

Where To Get More Information

Website for Austin Energy's Energy Conservation Audit & Disclosure

• www.austinenergy.com/go/ecad

Energy efficiency records can be researched by calling 974-7827. You will need to provide the property address and phone number. you may also email the property address and phone number to conservation@austinenergy.com.

Did you know there may NEVER be a better time, in our lifetime, to buy an Austin area home than right now? I originally had intended on saving this information for next week's monthly newsletter but I felt like the message was too important to wait even one more day before sending out. Let me explain why.

Whether it is a first time purchase or a move up purchase, there are usually three main fears when it comes to buying a home. These fears are:

1. Lack of inventory. Buyers are concerned that they will not be able to find a home in the Austin area that meets their needs and the needs of their family. For a limited time, Austin area inventory is much higher than it has been over the past few years. This means more choices and MORE opportunities. Sellers are also willing to negotiate a little more than in the past and some are even buying out buyers' leases!
2. Home prices are high. Home prices have been stable throughout much of Central Texas and have been for the past 12 months. Compare this to a few years ago and prices were going up what seemed like every day. Down payment options also start at only 3.5% for many homebuyers.
3. Financing is too costly. Interest rates are historically low...40 year lows to be exact! Lenders are also fighting for your business and visiting with more than one can often result in an even lower rate! How long will this last...well my crystal ball isn't working so great but I wouldn't want to miss the boat. Nothing is forever and I would say the rates will be high again sooner than later.

Many current Austin homeowners think it's not the right time to sell because the market is soft. Well priced homes that show well are selling and they are selling quickly. You may not make the profit you had expected to make but you have to remember one thing. You are also BUYING a home at a reduced price AND your rate would be far better than the rate on your current home! So the win far outweighs the loss. You know it's the right time to buy when the media starts talking about it! Once "all" of the media is on board, then it would be too late. The media only talks about issues that keeps the viewers watching, which then sells advertising. Good news does not sell as much ad time! Watch this story that was featured Wednesday, on Austin's K-EYE News. For Austin area first time home buyers, those still renting or those that have not owned a home in the past three years, there should be NO fear and only a GREEN LIGHT. The government is actually PAYING you up to $8,000 to buy a home!! The three fears of buying have been vanished and now you get free money for buying a home...what would someone be waiting for? The only thing waiting will do is cause you to possibly not be able to afford a home, not get the home that meets you and your family's needs or possibly not getting to move to your desired neighborhood. I will take what's behind curtain "A" Chuck! Everyone knows someone that is currently renting, wanting to make a move or needing more/ less space. It's not a question of DO YOU KNOW but WHO DO YOU KNOW. Please forward this on to them or better yet, contact me with their information. I will be more than happy to answer any questions and/or concerns that may be out there. Let's not let one of the best times in real estate history pass us by.

Having worked with many Austin area first time home buyers in the past, I realize that it can be somewhat scary and nerve-wrecking when buying your very first home. I actually personally know how this feels since I bought my first home before I began my exciting career in real estate. It was both exciting and stressful but the ending result was well worth it!

From the very first meeting I have with first time buyer clients, to the very end and beyond, I am constantly aware of this fear and stress. While I pride myself in helping people to not only remove the fear and stress that may come with buying a home, I realize that there may be even more I can do to help. From this realization came my idea of giving every first time home buyer a FREE copy of a best selling book that was designed to inform, teach and help to remove this fear I had mentioned earlier. Most fears come from a lack of knowledge or understanding and that is why I think this book is a perfect resource. Your First Home; The Proven Path To Home Ownership is definately a must have for any future Austin area first time home buyer!

There are many fears that sometime come with buying your first home. This book not only lists the most common fears but it also gives first time home buyers the REAL facts. Those who have the most fulfilling lives base their decisions on facts, not fears. Below are just a few of the common fears and the facts that come with them. In the book, the facts are thoroughly explained but here I am just giving the summary of each fact.

• Fear: I can't afford to buy a new home now.
• Fact: Actually, you can't afford not to buy a home

• Fear: I should wait until the real estate market gets better.
• Fact: There is never a wrong time to buy the right home.

• Fear: I don't have money for a down payment.
• Fact: There are a WIDE variety of down payment options available to you. Some require $0 down and others are $100 down or 3.5% down!

• Fear: I can't buy a home because my credit isn't very good.
• Fact: A less-than-perfect credit score won't necessarily prevent you from buying a home.

• Fear: I can't afford to buy my dream home.
• Fact: The best way to get closer to buying your dream home is to buy your first home.

• Fear: I should wait to buy a home until I get married.
• Fact: There is no reason to wait!

• Fear: Buying a home seems way too complicated.
• Fact: Buying a home is complicated, but that is why you have a professional to help.

Again...within the book, all of the facts are explained in detail. To actually read excerpts from this best selling book and to find out how to get your FREE copy, visit Austin's online home for real estate, CainSellsAustin.com. Feel free to also view a few testimonials from past clients that bought their first home with me or feel free to search for your next home using my state of the art home search solution. I have no doubt you will find everything you need on my site. Feel free to give me a call at anytime with any questions you may have. Have a wonderful day!

Richard Cain, Owner, Realtor®, GRI
Cain and Company - Keller Williams Realty
512.794.6601