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Romeo Manzanilla

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June Real Estate Newsletter

06-11-09
Romeo Manzanilla

This month's newsletter was the easiest to write in quite some time. It seems as though the press just can't stop saying enough good things about Austin. Take a look at some of these amazing headlines from some very reputable news sources:

  • Forbes: Austin is nation's best bargain city
  • Austin only major city to gain jobs in last 12 months
  • Austin forecasted as 5th fastest growing US city
  • Austin best city for a 'fresh start'
  • Austin home prices rise, continue to drop elsewhere
  • Texas in top 5 states to lead nation out of recession
  • Texas foreclosures decline 9% in April 2009
  • Austin unemployment rate drops in April 2009


First time home buyers also got another dose of good news as the Federal Government rolled out a new plan that allows the $8,000 first time home buyer tax credit to be used at closing toward down payment and closing costs instead of waiting until they receive their tax refund next year.

Now that school is out, the summertime home buying season is in full swing and I have noticed a definite increase in buyer activity. While the statistics indicate that we aren't selling as many homes in Austin as in recent years, the overall trend is improving.

If you'd like me to email you any of these articles or statistics, please email me at Romeo@RomeoM.com

For more Austin Texas Real Estate news and information please visit http://www.RomeoM.com

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April / May Austin Real Estate Newsletter

05-12-09
Romeo Manzanilla

Many people I talk to are feeling a bit more optimistic these days. Even President Obama believes the economy is showing 'glimmers of hope.' In Austin, we are by no means immune to the economic crisis, but we feel very fortunate that our local economy has remained relatively strong in spite of the challenges we've faced as a nation. To support this statement, I have included a number of links to some very relevant and respected news publications and economic data.

1. Austin's unemployment rate actually FELL in February as the Austin area added about 6,000 jobs. Our overall rate of only 6.3 percent remains well below the national average.

2. While many cities across the nation are shrinking, the Austin metro area continues to grow. More people continue to move in to Austin than out of Austin. New census data shows that Austin was the 2nd fastest growing metro area from 2007 to 2008.

3. According to Forbes Magazine, Austin is the 8th best place in the US to do business. Forbes.com is predicting Austin's job market will grow at 2.3 percent, which is the 5th fastest in the US. Austin was also chosen because of its relatively low exposure to sub-prime mortgages, which is the primary reason our home prices have held steady.

4. A good selection of homes is available in virtually every area and price range. For the time being, it's still a buyer's market, and if you act quickly you can still find some great deals. However, with the number of homes going under contract on the rise, the best deals are going fast.

5. New home starts in the Austin area were down 47% in the first quarter of 2009. This lack of new home construction is beginning to shift the new home market into a 'sellers market' as available new home inventory drops and builders begin to raise prices. Experts predict that as new home inventory subsides, the demand for resale homes will increase, ultimately driving prices higher.

6. Home prices in Austin are relatively stable. While most of the nation saw huge price increases from 2001 to 2006, Austin chugged along at a slow 3% to 9% annual appreciation rate. As a result, Austin home prices have held steady and even slightly increased in some areas.

7. Austin is home to the second hottest zip code in the nation. According to Business Week, homes in southwest Austin's 78749 zip code are selling quickly and maintaining their value.

8. Mortgage interest rates are at or near their lowest point in over 50 years. This means your mortgage payment takes you a lot farther than it did before. Most experts are predicting that rates are not likely to go lower, so it is smart to take advantage of the low mortgage rates while they are still available.

9. The refundable tax credit of up to $8,000 for the purchase of a primary residence, which is available to first-time homebuyers as well as those not owning a home in the last 3 years, along with lower home prices and a better selection, are tempting first time home buyers to stop renting and get into the market.

For more Austin Texas Real Estate information please visit http://www.RomeoM.com

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How the Stimulus package affects homebuyers

04-01-09
Romeo Manzanilla

First-Time Home buyer Credit of Up to $8,000
Qualified first-time home buyers who purchase a home in 2009 before December 1, 2009 will receive a tax credit of up to 10% of the purchase price (up to $8,000). Home buyers can claim the credit on their income taxes and receive money back in excess of taxes. For example, if you are owed a refund of $1,000, you could now receive up to $9,000 back.

Program details:

  • The credit does not have to be repaid, provided the home is owned for more than three years.
  • To be considered a first-time home buyer, the purchaser (and spouse) must not have owned a home for three years prior to home purchase.
  • The home must be the purchaser's primary residence; only single family homes qualify.
  • Full credit will be issued to individuals with an adjusted gross income of no more than $75,000 ($150,000 on a joint return). Individuals with incomes over $95,000 ($170,000 on a joint return) will not receive the credit.
  • The new credit may be combined with state/local revenue bond money to help finance the home purchase.

Tax Credit for Energy Efficient Home Improvements
The tax credit is now 30% of the cost of the improvements (up to $1,500). Eligible improvements include insulation, central A/C units, heat pumps, water heaters and energy efficient exterior doors and windows.

FHA, Fannie Mae and Freddie Mac Loan Limits
The new law reinstates 2008's loan limits for FHA, Fannie Mae and Freddie Mac through December 31, 2009. The limits were equal to the greater of 125% of the local area median home price, or $271,050 for FHA and $417,000 for Fannie and Freddie (overall maximum cap of $729,750). In some areas where the limits were higher, the higher limits will apply.

Tax Relief and Benefits for Families

  • A payroll tax credit will provide up to $400 per worker ($800 per couple filing jointly). The credit phases out at $200,000 for couples filing jointly and $100,000 for single taxpayers.
  • A new (partially refundable) tax credit offers a maximum of $2,500 toward college tuition and related expenses for 2009 and 2010.
  • Unemployed Americans can now claim up to 33 weeks of benefits through December 2009. Benefits will be increased by $25 a week, while the first $2,400 received will be exempt from federal taxes.
  • Laid-off workers who buy into their former employer's health insurance through the COBRA program will receive a 65% subsidy on premiums for up to nine months.

For more Austin Texas Real Estate information visit http://www.RomeoM.com

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Austin Named Second Healthiest Housing Market by Builder Magazine

03-23-09
Romeo Manzanilla

TEXAS (Builder) - Five Texas cities swept the top spots on Builder magazine's list of "Healthiest Housing Markets for 2009″

Houston ranked first, Austin second, Fort Worth third, San Antonio fourth and Dallas fifth.

Rounding out the top ten were Raleigh, N.C., Seattle, Indianapolis, Ind., Fayetteville, Ark., and Washington D.C.

To compile the list, Builder analyzed the top 75 housing markets in the country, ranking them based on population trends and job growth, perennial drivers of housing demand. They also looked at home prices and the number of building permits.

to read more click on this link

http://www.builderonline.com/local-markets/the-healthiest-housing-markets-for-2009.aspx?page=14

You can alway visit http://www.RomeoM.com for additional information about Austin Texas Real Estate

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March 2009 Austin Real Estate Newsletter

03-10-09
Romeo Manzanilla

Spring is in the air and homeowners across the city are preparing to put their homes on the market. Some of my clients have managed to get ahead of the pack while others are still getting their homes ready to sell. Either way, I'm making sure they realize the statistics indicate they may have a lot of competition this summer.

I have noticed a definite increase in buyer traffic over the last month. I'm not sure how much of this is related to Obama's Housing Stimulus Plan which offers certain buyers an $8,000 income tax credit versus an overall perception that good deals can be had in this buyer's market.

While media reports continue to focus on negative news, you might be interested to know that 1,730 single family homes actually sold in the Austin area during January and February, which are the slowest months of the year. Additionally, the median sold price of $185,000 was actually $5,000 higher than the median sold price two years ago. However, those that sold took an average of 89 days compared to only 64 days two years ago.

At the end of February there were 11,519 homes on the market compared to 9,864 two years ago, representing a meager 16% increase in inventory. The homes currently on the market have a median list price of $245,000 and have been on the market an average of 114 days. The number of new listings coming on the market in February actually decreased 15% compared to February of 2007.

So what does all this mean? First of all, the data clearly indicates that home prices in Austin are holding steady. Inventory is climbing, but not at an alarming rate. This is likely because fewer people are putting their homes on the market when they don't absolutely have to move. Unfortunately, this also means there are fewer local buyers in the market. However, of those that are moving locally, I am starting to see a trend of families looking to ‘right size' their home in order to reduce the overall expenses involved in having a larger home than they actually need. This is certainly a reversal from the 'move-up' trend that has been so common over the last 5-10 years.

Many people I talk to from other cities find it hard to believe that Austin continues to stand out as a relatively bright spot in the national housing market. As I've said before, Austin did not experience the big upswing in home prices and has therefore been less susceptible to price depreciation. Builder Magazine, a national trade magazine for the home building industry, just released their list of healthiest housing markets in the United States. The top five were all Texas cities: Houston ranked first, Austin second, Fort Worth third, San Antonio fourth and Dallas fifth.

If you like to look at charts and analyze the data, you can see how the market has evolved over the past 2 years at our Austin Market Statistics page. If you would like to see similar charts for a specific neighborhood, community, price range or property type, please let me know.

For more Austin Texas Real Estate information, please visit http://www.RomeoM.com

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