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Michelle Adams' Blog

By Michelle Adams | Agent in Austin, TX
  • FHFA Unveils New Plans to Make Mortgages Easier to Obtain

    Posted Under: Home Buying in Austin, Home Selling in Austin, Financing in Austin  |  May 14, 2014 11:08 AM  |  402 views  |  No comments
    DAILY REAL ESTATE NEWS | WEDNESDAY, MAY 14, 2014

    Tight lending conditions have been blamed for hindering the housing recovery, but a series of announcements by the Federal Housing Finance Agency on Tuesday could be the long-awaited easing that many sidelined borrowers had been hoping for.

    The FHFA’s new director, Mel Watt, made several announcements Tuesday that departed from his predecessors and aim to maintain Fannie Mae and Freddie Mac’s role in the housing market as well as broaden home lending by the mortgage giants.

    In one reversal, Watt said that Fannie Mae and Freddie Mac would keep current loan limits in place that the mortgage giants guarantee. The FHFA had planned to reduce the current limits on loans, which had set off an outcry in the housing industry that such a move could further hamper lending. Fannie Mae and Freddie Mac own or guarantee about 60 percent of mortgages in the United States. Last year, the FHFA had announced it was weighing a plan to gradually reduce the maximum loan amounts that Freddie Mac and Fannie Mae would be able to purchase for single-family mortgages.The FHFA wanted to reduce the current loan limits from $417,000 in most areas of the country and $625,500 in high-cost areas to $400,000 and $600,000, respectively, a reduction of 4.1 percent.

    “This decision is motivated by concerns about how such a reduction could adversely impact the health and current housing finance market,” Watt said at an event at the Brookings Institution in Washington, D.C., on Tuesday, to keep current limits in place.

    Watt also announced that the FHFA would ease standards that it provides to banks on buying back faulty loans. For example, lenders will now allow two delinquent payments in the first 36 months after their acquisition of a loan. The change is intended to increase mortgage lending. Many banks tightened credit standards, partially because of a requirement that they take losses if a borrower defaults.

    “Our overriding objective is to ensure that there is broad liquidity in the housing finance market and to do so in a way that is safe and sound,” Watt said.

    Fannie and Freddie remain under U.S. conservatorship, and lawmakers' efforts to reduce the GSEs’ footprint in the market in recent months in order to make room for more private lending have resulted in rising costs for government-backed loans.

    "I don't think it's FHFA's role to contract the footprint of Fannie and Freddie," Watt said. Without proof that private investors will step in to fill the void, Watt said it “would be irresponsible” for Fannie Mae and Freddie Mac to retreat on lending.

    Also on Tuesday, the Federal Housing Administration released plans to expand credit access for underserved borrowers through a pilot program called Homeowners Armed with Knowledge (or HAWK). Home buyers may be able to qualify for savings on their FHFA-insured loans by completing counseling provided by an independent nonprofit organization. 

    Source: “U.S. Regulator Opens Door Wider for Americans on Mortgages,” Reuters (May 13, 2014); “U.S. Backs Off Tight Mortgage Rules,” The Wall Street Journal (May 13, 2014); and “A Major Lift for Fannie and Freddie,” The New York Times (May 13, 2014)

  • Transportation update; East Austin TLC

    Posted Under: Traffic & Public Transportation in Austin, Home Buying in Austin, Home Selling in Austin  |  December 2, 2013 3:35 PM  |  712 views  |  No comments

    Transit Advisory Group to consider next Central Austin Corridor investment on Dec. 6

     

    The Central Corridor Advisory Group (CCAG) will consider the priority sub-corridor(s) to receive Austin's next transit investment Friday, Dec. 6.
     
    While all of the sub-corridors are viable options, the East Riverside and Highland sub-corridors emerged as the top prospects for the region's next investment in high-capacity transit and were recommended by the Central Corridor team to the advisory group on Nov. 15. Now, the CCAG has the opportunity to move the team recommendation forward, or identify other alternatives.

    During Phase 1 of the Central Corridor Study, the team hosted five in-person open houses and workshops, two webinars, a televised "community conversation" and numerous briefings with neighborhood associations, businesses, chambers and interest groups. More information, including the evaluation measures and methodology being used, is posted online in the Resources section ofProjectConnect.com. 

    The Central Corridor Study is loosely bounded by Ranch-to-Market 2222 to the North, Oltorf to the South, Springdale/Grove to the East and MoPac to the West and is part of the larger Project Connect vision. Project Connect is the multi-modal high-capacity transit vision for the Central Texas region being led by a partnership between Capital Metro, the City of Austin, Lone Star Rail District and theCapital Area Metropolitan Planning Organization. 
     
    Learn more at projectconnect.com. 

    Data Dig for transit wonks Dec 3: Project Connect: Central Corridor data review

     

    Join the Central Corridor team in the Capital Metro Boardroom (2901 E. 5th Street, Austin, TX 78702) or online via webinar from 11:30am-1:30pm on Dec. 3 for an interactive review of the approach, process, methodology, data and evaluation results. 

    Caution: this is not a layman's discussion; this is an in-depth data-dig and technical review. For those of you who can't make it in person or tune in online, this event will be recorded and posted at ProjectConnect.com as soon as possible. 

    South Central 'Waterfront Walkabout' and development process on Dec. 7 

     

    The City of Austin will host a walking tour Dec. 7 along and near Lady Bird Lake to launch the South Central Waterfront Initiative. 

    The "Waterfront Walkabout" from 10 a.m. to noon Saturday, Dec. 7, will feature knowledgeable guides, local music and an opportunity to explore the area before planning or development begins. Attendees should meet at One Texas Center, 505 Barton Springs Road, and be prepared to walk 1.5 miles outside for about two hours, weather permitting.  

     

    The walking tour kicks off a series of community events to engage Austinites in developing a vision to help guide public and private development during the next 20-plus years. With growing redevelopment interest in the area, the Austin City Council adopted a resolution in August initiating a comprehensive small-area plan for the 97-acre area now known as the South Central Waterfront, which encompasses tracts south to Riverside Drive and Barton Springs Road, as well as land directly along the waterfront. 
  • Urgent; Call to action - Please write your representative; Flood Insurance Premiums expected to raise

    Posted Under: Market Conditions in Austin, Home Buying in Austin, Home Selling in Austin  |  December 2, 2013 3:29 PM  |  728 views  |  No comments

    Here's a copy of my letter to Ted Cruz. 

    Whether you agree or disagree, please write your representative. Tell them what you think, get involved.


    Dec 2, 2013


    Senator Ted Cruz

    Dirksen Senate Office Building, Room 185

    100 Constitution Avenue, NE

    Washington, DC 20510-4306


    Dear Senator Cruz,


    I am writing to you as a member of the National Association of REALTORS and a homeowner, to urge immediate Congressional action on the Homeowner Flood Insurance Affordability Act.This bipartisan, bicameral legislation takes the crucial first step of delaying further implementation of some rate increases contained in the National Flood Insurance Program (NFIP) reauthorization known as the Biggert-Waters law (BW12). 


    Calling a time-out will enable the Federal Emergency Management Agency (FEMA) to complete the affordability study already mandated by BW12, propose targeted regulations to address affordability issues found in the study, and give Congress adequate time to review these regulations.


    The Homeowner Flood Insurance Affordability Act prudently defers rate increases until FEMA can complete the affordability study mandated by BW12 and propose regulations to target affordability relief. The bill would also create an office of the Advocate for flood insurance rate and mapping concerns. We believe that this is a necessary provision. Other than insurance agents, property owners and real estate professionals do not have an effective avenue to pursue concerns regarding flood insurance rating errors and discrepancies.


    REALTORS support the Homeowner Flood Insurance Affordability Act and urge its immediate consideration.  


    Sincerely,



    Ms. Michelle Adams





    Please find a link to the Biggert-Waters Flood Insurance Reform Act of 2012 (BW12) Timeline Here


    Questions about the Biggert-Waters Flood Insurance Reform Act of 2012 1.    What is the Biggert-Waters Flood Insurance Reform Act of 2012?

    Answer: The Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12) is a law passed by Congress and signed by the President in 2012 that extends the National Flood Insurance Program (NFIP) for five years, while requiring significant program reform. The law requires changes to all major components of the program, including flood insurance, flood hazard mapping, grants, and the management of floodplains. Many of the changes are designed to make the NFIP more financially stable, and ensure that flood insurance rates more accurately reflect the real risk of flooding. The changes will be phased in over time, beginning this year.

    2.    Why was the Biggert-Waters Reform Act of 2012 passed?

    Answer: Flooding has been, and continues to be, a serious risk in the United States—so serious that most insurance companies have specifically excluded flood damage from homeowners insurance. To address the need, in 1968 the U.S. Congress established the NFIP as a Federal program. It enabled property owners in participating communities to purchase flood insurance if the community adopted floodplain management ordinances and minimum standards for new construction. However, owners of existing homes and businesses did not have to rebuild to the higher standards, and many received subsidized rates that did not reflect their true risk.

    Over the years, the costs and consequences of flooding have continued to increase. For the NFIP to remain sustainable, its premium structure must reflect the true risks and costs of flooding. This is a primary driver for many of the changes required under the law.

    Insurance Cost/Rate Questions

    3.    What changes to insurance operations are anticipated?

    Answer: Many of the proposed changes are designed to increase the fiscal soundness of the NFIP. For example, beginning this year there will be changes addressing rate subsidies and a new Reserve Fund charge will start being assessed. There are also provisions to adjust premium rates to more accurately reflect flood risk.

    Other provisions of the law address coverage modifications and claims handling. Studies will be conducted to address issues of affordability, privatization, and reinsurance, among other topics.

    4.    Will all policyholders see changes in insurance rates as a result of BW-12?

    More than 80 percent of policyholders (representing approximately 4.48 million of the 5.6 million policies in force) do not pay subsidized rates.

    About 20 percent of all NFIP policies pay subsidized rates. Only a portion of those policies that are currently paying subsidized premiums will see larger premium increases of 25% annually starting this year, until their premiums are full-risk premiums. Five percent of policyholders – those with subsidized policies for non-primary residences, businesses, and severe repetitive

    loss properties - will see the 25% annual increases immediately. . Subsidies will no longer be offered for policies covering newly purchased properties, lapsed policies, or new policies covering properties for the first time.

    The 80% of all NFIP policies that already pay full-risk premiums will not see these large premium increases. Most policyholders will see a new charge on their premiums to cover the Reserve Fund assessment that is mandated by BW-12. Initially, there will be a 5% assessment to all policies except Preferred Risk Policies (PRPs). The Reserve Fund will increase over time and will also be assessed on PRPs at some undetermined future date.

    Additional changes to premium rates will occur upon remapping, the provision calling for these premium rate changes will not be implemented until the latter half of 2014.

    5.    In general, which properties will be most affected by changes in rates?

    Answer: Rate changes will have the greatest effect on properties located within a Special Flood Hazard Area (SFHA) that were constructed before a community adopted its first Flood Insurance Rate Map (FIRM) and have not been elevated. For many communities the initial FIRM would have been adopted in the 1970’s and 1980’s. Your local insurance agent will be able to provide you the initial FIRM date for your community.

    Many of these pre-FIRM properties have been receiving subsidized rates. Subsidies are already being phased out for non-primary residences. Starting this fall, subsidies will be phased out for businesses; properties of one to four residences that have experienced severe repetitive loss; and properties that have incurred flood-related damages where claims payments exceed the fair market value of the property. Premiums for these properties will increase by 25% per year until they reach the full risk rate.

    Subsidies are not being phased out for existing policies covering primary residences. However, the subsidy provided to primary residences could still be lost under conditions that apply to all subsidized policies. Subsidies will be immediately phased out for all new and lapsed policies and upon sale of the property. There may also be premium changes for policyholders after their community is remapped. But that provision of the Act is still under review and will be implemented in the future.

    6.    What happens if a policy with subsidized rates is allowed to lapse or the property is sold?

    Answer: Starting this fall, for all currently subsidized policies, there will be an immediate increase to the full risk rates for all new and lapsed policies and upon the sale/purchase of a property. Full risk rates will be charged to the next owner of the policy.

    7.    What does “full risk rate” actually mean?

    Answer: Simply put, it means that the premium reflects both the risk assumed by the program (that is, the expected average claims payment) and all administrative expenses. In the case of

    flood insurance, this means the premium takes into account the full range of possible flood losses, including the rare but catastrophic floods as well.

    8. How can someone find out what a property’s full risk rate will be?

    Answer: Of the many factors that determine the full risk rate of a structure, the single most important is the elevation of the structure in relation to the Base Flood Elevation (BFE). A community’s Flood Insurance Rate Map (FIRM) indicates the area of the community that has a 1% or greater annual chance of flooding. That area is called the Special Flood Hazard Area, or high-risk zone. Put another way, the BFE is the elevation where there is a 1% or greater annual chance of flooding. For a property in the high-risk zone, you need to know the elevation of the structure in relation to the BFE. Generally, the higher the elevation above the BFE, the lower the flood risk. The information is shown on an Elevation Certificate, which is a form completed and signed by a licensed engineer or surveyor. So to determine the premium for a property in a high-risk zone, you first need an elevation certificate. Then, an insurance agent can calculate the premium based on the amount of coverage desired.

    9. What percentage of policies nationwide, and in high risk zones, actually receives these subsidized rates?

    Answer: More than 80 percent of policyholders (representing approximately 4.48 million of the 5.6 million policies in force) do not pay subsidized rates. About 20 percent of all NFIP policies pay subsidized rates. However, only 5 percent of policyholders – those subsidized policies covering non-primary residences, businesses, and severe repetitive loss properties - will see immediate increases to their premiums.

    10. When will NFIP Grandfathering be eliminated?

    Answer: Currently, the NFIP Grandfather procedure provides eligible property owners the option of using risk data from previous Flood Insurance Rate Maps (FIRMs) if a policyholder maintained continuous coverage through a period of a FIRM revision or if a building was constructed “in compliance” with the requirements for the zone and BFE reflected on a previous FIRM. A provision of BW-12, however, requires FEMA to use revised flood risk data (zone and BFE) after a map revision. The legislation provides a 5-year mechanism to phase-in the new rates. This provision impacts the NFIP Grandfather procedure and will be implemented in the latter half of 2014. Many of the precise details of this implementation are still under development.

    11. Is there any option for people who are now in a flood zone, did not have substantial damage, but now the BFE is 10 feet higher than previously and face dramatic rate increases?

    Answer: FEMA’s Hazard Mitigation Assistance (HMA) HMA programs provide funds for projects that reduce the risk to individuals and property from natural hazards. These programs enable mitigation measures to be implemented before, during, and after disaster recovery. Local jurisdictions develop projects that reduce property damage from future disasters and submit

    grant applications to the State. The States submit applications to FEMA based on State criteria and available funding. The HMA programs include:

    •    Hazard Mitigation Grant Program (HMGP) - The Hazard Mitigation Grant Program provides grants to implement long-term hazard mitigation measures after a major disaster declaration. The purpose of HMGP is to reduce the loss of life and property due to natural disasters and to enable mitigation measures to be implemented during recovery from a disaster.

    •    Flood Mitigation Assistance (FMA) - The Flood Mitigation Assistance program provides funds on an annual basis so that measures can be taken to reduce or eliminate risk of flood damage to buildings insured under the NFIP.

    •    Pre-Disaster Mitigation Program (PDM) - The Pre-Disaster Mitigation Program provides nationally competitive grants for hazard mitigation plans and projects before a disaster event. States can receive PDM funds regardless of whether or not there has been a disaster declared in that state.

    FEMA encourages property and business owners interested in implementing mitigation activities to contact their local community planning, emergency management, or State Hazard Mitigation Officer for more information. Individuals and businesses may not apply directly to the State or FEMA, but eligible local governments may apply on behalf of a private entity. Your community will be working with the State to develop applications for HMA funding and implement the approved mitigation projects. Information about the HMA programs can be found at http://www.fema.gov/hazard-mitigation-assistance.


  • Austin July Housing Statistics

    Posted Under: Market Conditions in Austin, Home Buying in Austin, Home Selling in Austin  |  August 20, 2013 7:59 AM  |  760 views  |  No comments
    graph

    Austin-area home sales up 35 percent, most home sales on record

    Austin Board of REALTORS® releases real estate statistics for July 2013

     

    AUSTIN, Texas – August 20, 2013 – According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR), the Austin housing market experienced its highest-performing month to date in terms of home sales. 

    According to the report, 3,135 single-family homes were sold in the Austin area, which is 35 percent more than July 2012. On average, homes spent 41 days on the market, which is a decrease of 23 days from one year prior.

    Cathy Coneway, 2013 Chairman of the Austin Board of REALTORS­®, explained, “The record number of sales in July can be traced back to Austin’s job growth and strong economy. The expected rise in mortgage rates may have also encouraged buyers to act now. As home builder’s work to meet demand we can expect home prices to steadily increase, which could price many out of the area.”

    In July 2013, the median price for Austin-area homes increased to $228,250, which is eight percent more than the same month in 2012. Additionally, the market featured 2.8 months of inventory in July 2013, which is 1.5 months less than July 2012.

    The total dollar volume of single-family properties sold was $933,242,475, or 43 percent higher than the same month last year. The market also featured 22 percent more new listings, 20 percent fewer active listings and 20 percent more pending sales in July 2013 compared to the prior year. 

    Coneway concluded, “The housing affordability bond package, up for vote in November, is a key component to maintaining a healthy housing supply and ensuring future economic growth for Austin. Our community is at its strongest when there is a steady supply of affordable housing for everyone who calls Austin home.”  

    July 2013 Statistics

    • 3,135 – Single-family homes sold, 35 percent more than July 2012.
    • $228,250 – Median price for single-family homes, eight percent more than July 2012.
    • 41 – Average number of days single-family homes spent on the market, 23 days fewer than July 2012.
    • 3,523 – New single-family home listings on the market, 22 percent more than July 2012.
    • 6,104 – Active single-family home listings on the market, 20 percent fewer than July 2012.
    • 2,773 – Pending sales for single-family homes, 20 percent more than July 2012.
    • 2.8 – Months of inventory* of single-family homes, 1.5 months less than July 2012.
    • $933,242,475 – Total dollar volume of single-family properties sold, 43 percent more than July 2012.

    The following sections describe trends in other sectors of the Austin real estate market.

    Townhouses & Condominiums
    The volume of townhouses and condominiums (condos) purchased in the Austin area in July 2013 was 361, which is 31 percent more than July 2012. In the same time period, the median price for condos was $180,000, which is four percent less than the same month of the prior year. When compared to July 2012, these properties spent 20 percent less time on the market, or an average of 47 days.

    Leasing
    In July 2013, a total of 2,103 properties were leased in Austin, which is nine percent more than July 2012. The median price for Austin-area leases was $1,400, which is four percent more than the same month of the prior year. 

    The Austin Board of REALTORS® (ABoR) is a non-profit, voluntary organization dedicated to educating and supporting Central Texas REALTORS®.  ABoR proudly serves more than 9,000 members, promotes private property rights, and provides accurate, comprehensive property listing information for the Greater Austin area.


     

    * The inventory of homes for a market is measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.
  • Austin area MAY 2013 Statistics

    Posted Under: Market Conditions in Austin, Home Buying in Austin, Home Selling in Austin  |  June 20, 2013 2:21 PM  |  713 views  |  No comments
    graph

    Austin-area home sales up 29 percent, most home sales for May on record

    Austin Board of REALTORS® releases real estate statistics for May 2013

     

    AUSTIN, Texas – June 20, 2013 According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR), the volume of Austin-area home sales continues to rise, as May 2013 marked two straight years of sales volume increases and the most home sales in May on record.

    According to the report, 2,991 single-family homes were sold in the Austin area in May 2013, which is 29 percent more than May 2012. On average, homes spent 44 days on the market, which is a decrease of 19 days from one year prior.

     

    Cathy Coneway, 2013 Chairman of the Austin Board of REALTORS­®, explained, “This is a great month for the Austin-area housing market. This is a record month with nearly 3,000 single-family homes sold in May—an incredible trend I expect to continue through the summer.”

     

    The total dollar volume of single-family properties sold was $904,460,454, or 40 percent higher than the same month last year. The market also featured 11 percent more new listings, 24 percent fewer active listings and 10 percent more pending sales in May 2013 compared to the prior year.

     

    In May 2013, the median price for Austin-area homes increased to $231,500, which is eight percent more than the same month in 2012. Additionally, the market featured 2.7 months of inventory in May 2013, which is 1.7 months less than May 2012.

     

    Coneway adds, “The Austin Chamber of Commerce states that 150 people move to the Austin area every day, so it’s no surprise homes are selling at a rate not seen since 2001. With these numbers, it’s important that our housing inventory remain strong to meet this unprecedented demand.” 

     

    May 2013 Statistics

    • 2,991 – Single-family homes sold, 29 percent more than May 2012.
    •  

    • $231,500 – Median price for single-family homes, eight percent more than May 2012.
    •  

    • 44 – Average number of days single-family homes spent on the market, 19 days fewer than May 2012.
    •  

    • 3,735 – New single-family home listings on the market, 11 percent more than May 2012.
    •  

    • 5,735 – Active single-family home listings on the market, 24 percent fewer than May 2012.
    •  

    • 2,857 – Pending sales for single-family homes, 10 percent more than May 2012.
    •  

    • 2.7 – Months of inventory* of single-family homes, 1.7 months less than May 2012.
    •  

    • $904,460,454 – Total dollar volume of single-family properties sold, 40 percent more than May 2012.

    The following sections describe trends in other sectors of the Austin real estate market.

     

    Townhouses & Condominiums
    The volume of townhouses and condominiums (condos) purchased in the Austin area in May 2013 was 336, which is 17 percent more than May 2012. In the same time period, the median price for condos was $194,000, which is two percent more than the same month of the prior year. When compared to May 2012, these properties spent 38 percent less time on the market, or an average of 50 days.

     

    Leasing
    In May 2013, a total of 1,532 properties were leased in Austin, which is 13 percent more than May 2012. The median price for Austin-area leases was $1,400, which is four percent more than the same month of the prior year.

     

  • Austin area market statistics, 10% increase in new home listings! Nine year high!

    Posted Under: Market Conditions in Austin, Home Buying in Austin, Home Selling in Austin  |  May 21, 2013 3:47 PM  |  457 views  |  No comments

    Area Market Statistics

    graph

    Austin-area home sales up 32 percent, hit nine-year high for April

    Austin Board of REALTORS® releases real estate statistics for April 2013

     

    AUSTIN, Texas – May 21, 2013 – According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR), the volume of Austin-area home sales continues to rise as April became the 23rd straight month of year-over-year sales volume increases, and April saw its most home sales since 2004.


    According to the report, 2,563 single-family homes were sold in the Austin area in April 2013, which is 32 percent more than April 2012. On average, homes spent 50 days on the market, which is a decrease of 19 days from one year prior.

     

    Cathy Coneway, 2013 Chairman of the Austin Board of REALTORS­®, explained, “On average, Austin-area homes are now selling in only six weeks. Buyers should think hard about the type of home, features and amenities they’re looking for and then be prepared to move quickly once they find a home that fits that description.”


    The total dollar volume of single-family properties sold was $794,158,365, or 52 percent higher. The market also featured 10 percent more new listings, 25 percent fewer active listings and 20 percent more pending sales in April 2013 compared to the prior year.

     

    In April 2013, the median price for Austin-area homes increased eight percent more than the same month last year to $227,250. Additionally, the market featured 2.7 months of inventory in April 2013, which is 1.3 months less than April 2012.


    “It’s good to see a 10 percent increase in new home listings,” Coneway adds. “As Austin-area home sales continue to increase and the time homes spend on the market continues to shorten, it is integral that our housing supply also increases to meet this surging demand.” 

     

    April 2013 Statistics

    • 2,563 – Single-family homes sold, 32 percent more than April 2012.

    • $227,250 – Median price for single-family homes, eight percent more than April 2012.

    • 50 – Average number of days single-family homes spent on the market, 19 days fewer than April 2012.

    • 3,561 – New single-family home listings on the market, 10 percent more than April 2012.

    • 5,488 – Active single-family home listings on the market, 25 percent fewer than April 2012.

    • 2,976 – Pending sales for single-family homes, 20 percent more than April 2012.

    • 2.7 – Months of inventory* of single-family homes, 1.3 months less than April 2012.

    • $794,158,365 – Total dollar volume of single-family properties sold, 52 percent more than April 2012.

    The following sections describe trends in other sectors of the Austin real estate market.


    Townhouses & Condominiums
    The volume of townhouses and condominiums (condos) purchased in the Austin area in April 2013 was 251, which is 31 percent more than April 2012. In the same time period, the median price for condos was $201,250, which is 17 percent more than the same month of the prior year. When compared to April 2012, these properties spent 47 percent less time on the market, or an average of 41 days.


    Leasing
    In April 2013, a total of 1,273 properties were leased in Austin, which is 14 percent more than April 2012. The median price for Austin-area leases was $1,400, which is eight percent more than the same month of the prior year.




     

    * The inventory of homes for a market is measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.

    Michelle Adams, 
    REALTOR® GRI, CNE
    Real Estate Consultant
    512.574.2969 direct | 512.852.4412 fax  | 512.22CONDO Office

    RESIDENTIAL & COMMERCIAL
    Sales | Leasing | Purchasing | Land
  • Austin area Real Estate statistics, yearly comparison MARCH 2012 & 2013

    Posted Under: Market Conditions in Austin, Home Buying in Austin, Home Selling in Austin  |  May 3, 2013 11:43 AM  |  378 views  |  No comments

    austin-area home sales up 16 percent, spent 26 percent less time on Market

    • According to the Multiple Listing Service (MLS) report recently released by the Austin Board of REALTORS® (ABoR), the volume of Austin-area home sales continues to rise as March became the 22nd straight month of year-over-year sales volume increases—the most home sales in March since 2007.
    • According to the report, 2,166 single-family homes were sold in the Austin area in March 2013, which is 16 percent more than March 2012. On average, homes spent 64 days on the market, which is a decrease of 20 days from one year prior.
    • Cathy Coneway, 2013 Chairman of ABoR, explained, “Austin- area homes are spending almost a third less time on the market compared to March 2012, while the volume of home sales outpaced last year significantly. It’s no longer uncommon for sellers to receive multiple offers on a home within days of listing.”
    • In March 2013, the median price for Austin-area homes increased to $220,000, which is 10 percent more than the same month in 2012. Additionally, the market featured 2.6 months of inventory in March 2013, which is 1.8 months less than March 2012.
    • The total dollar volume of single-family properties sold was $616,354,794, or 28 percent higher than the same month last year. The market also featured two percent fewer new listings, 28 percent fewer active listings and 18 percent more pending sales in March 2013 compared to the prior year.
    • “Austin’s housing inventory continues to be one of the lowest in Texas,” Coneway adds. “Buyers should prepare to act fast on a home they want and to possibly offer over list price as 97.4 percent of homes are selling to list price.”
    • TOWNHOUSES & CONDOMINIUMS
    • The volume of townhouses and condominiums (condos) purchased in the Austin area in March 2013 was 275, which is 27 percent more than March 2012. In the same time period, the median price for condos was $181,750, which is three percent less than the same month of the prior year. When compared to March 2012, these properties spent one percent less time on the market, or an average of 87 days.
    • LEASING
    • In March 2013, a total of 1,205 properties were leased in Austin, which is nine percent more than March 2012. The median price for Austin-area leases was $1,380, which is six percent more than the same month of the prior year.
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