Home Buying in Austin>Question Details

Jake Johnson, Both Buyer and Seller in 78704

When will condo prices bottom out in Austin? I see new developments selling for 25-35% under original listing.

Asked by Jake Johnson, 78704 Fri May 29, 2009

Conversions are going for less.

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Answers

6
Appreciate the responses. I've been checking the numbers and the condo market does not look good. The Austin Assn of Realtors reported that the number of condos sold in April is down 48% from a year ago. Price per SF is down 18%. Even if 1000 people a week move here (where does the Chamber get those figures.!!?)
there are many months of inventory to be absorbed. Yes single family housing is doing much better, but still prices are down 3% from this time last year when you look at price per SF.

I agree that tight credit continues to have an adverse effect on the Austin market.

Jake
0 votes Thank Flag Link Sun Jun 7, 2009
While some properties have reduced prices for quick cash, many are holding steady. One thing to remember is historically Texas is the last state into a recession and the first one out.

While the number of sales has dropped prices have not dropped appreciably. In fact on average Austin home prices went up one percent last year. According to the Austin Chamber of Commerce there are still 1000 people a week moving here ,and I promise there are not a 1000 homes a week being built. So the law of supply and demand will rule home prices.

If you like I can send you a list of whats available right now if your interested just send me an email or call me.

Sincerely,
Betina Foreman, Realtor
512-771-6318
Keller Williams Realty
1801 S. MOPAC, Suite 100
Austin, TX 78746
0 votes Thank Flag Link Wed Jun 3, 2009
JJ,

Hello. Speculation is always going to surround real estate. I heard many people say ten years ago, "if I only knew back then, that it was a good time to buy." Well, considering that Austin is one of the hottest markets in the country, and has had very little decline in property prices from $160k-350k, I would say that the market is on an upswing. I am sure you can find listings that were way over priced to begin with, but if the property is in line with the fair market value, it will sell. Especially now that summer is upon us and this being home buying season. If you are in the market to find a good deal, they are out there, but determine your exit strategy always, when investing! Learn more about investing by reading our blog; http://www.buyershouserealty.com.z57preview.com/custom1.shtml

If you would like to search for some foreclosures visit our foreclosure page; http://www.buyershouserealty.com.z57preview.com/custom1.shtml

I am sure you will find this information valueable, we look forward to hearing from you. Also, keep in mind that we are in the real estate education business and like teaching our buyers and sellers about Texas real estate, and we even pay you for your education!

Gavin St.Louis
Texas Managing Broker
BuyersHouseRealty
"Showing You the Real Estate Rebate"
0 votes Thank Flag Link Sun May 31, 2009
Like the stock market prices will go up and down; and the only means to find out where the bottom is at is well after the bottom has occurred. Thus, the key in the stock market or the real estate market is to buy at the lower BAND of pricing. i.e. Buy when prices are down. I think we can all agree that prices are down; what is debatable is whether the prices will flatten, move up, or move down more.

The key to remember is that prices are down and this may be the best time to buy a home or condo in our lifetime. The mindset is can you swallow the possibility that prices may go down after you close before moving upward. If you are buying for a year and trying to flip it, buying would be too risky. If you are buying and planning on staying for a few years, odds are in your favor as long as you think that our economy will improve in the future.

If you do not think our economy will improve in the future, the stress of buying may be too much. Either the glass is half full or half empty. We are all different, so the answer to that line is up to you........
Web Reference: http://www.TopKWGroup.com
0 votes Thank Flag Link Sat May 30, 2009
As an agent in Austin, I see no shortage of buyers that want to purchase condos. In my opinion, the more significant issue effecting condo prices in our metro area has been the changes to underwriting guidelines that Fannie Mae and FHA have made regarding the financing of condominiums. These guideline changes have been devastating to the condo market as a whole. Many condo complexes in our area have lost their "warrant-able status (for conventional loans) and/or their FHA eligibility as well. This is having a dramatic market value effect on many condominium complexes in and around Austin. And many complexes have not been effected by these Fannie Mae and FHA guideline changes and thus their market prices are remaining extremely strong. This has created a very unusual (and dangerous) situation for condo buyers and sellers.
0 votes Thank Flag Link Fri May 29, 2009
Jake

It is my experience that there are not too many people that can really predict the bottom of the market. Market trends change very rapidly. If interest rates go up, then you lose buying power. If you believe that what you see are good deals and they meet your price and taste, my advice would be to jump in and buy. When I bought my home many years ago it was a Seller's market and I paid $ 10,000 over the appraised value. At that time, that bothered me a lot. Now, I don't even remember what I paid for my house. In San Diego, I see a lot of activity in the First Buyers Market. Some foreclosures in South Bay are being overbided by $ 100,000 and that was not happening two months ago. Talk to a Real Estate Professional in Austin and ask for his or her opinion. Good luck.
0 votes Thank Flag Link Fri May 29, 2009
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