1. When I put a contract on Willow branch lofts for $179 a foot a year ago. Now it's worth $280 a ft.
2. When I sold my home at the Towers of town lake for $220K in Oct 04 and swore that it was overpriced. That buyer sold that place 4 months ago for $369K.
3. Buying at Star Riverside in December and now the prices are up 5%.
OMG - We have to stop living in fear. We have lots of new people wanting the downtown lifestyle. It's cheaper than owning a home. I curse a little bit every time I pay that $250 pool bill thinking how I had it easy at a condo. The reality is that with gas prices going up and more and more people are buying "lifestyle living" where lots of activities are packed into smaller areas.
Dena has a point to say that you should buy carefully. i like to buy projects that are unique and provide some sort of insulation against depreciation. That again is why I bought at Star Riverside. There I don't have to worry about more buildings going up next to me ruining my views of the waterfront or the city. Not to mention that it is $150K less than the W or 4 -seasons and I get more stufff. I hear that a few local celebrities are buying in the project. That'll help protect the investment too.
PS. my mother still complains about the $3200 she paid for her first house in 1971. Yes $3200
With 40,0000+ students in either city and only half as many affordable rental listing available, one wonders how they fill up all those thousands of high-prices units.
I moved to Austin from La. I lived in LA for 10 years. LA is different. They had to build up because there was just no more land. The scarcity of land is more immediate. Some of these condos are 1200 sq. ft for 600K. You could buy a small home in Tarrytown for that. Typical condo buyer is someone without children. I just dont think that there are 4500 people high income people with no children who want to live downtown.
There is too much supply. I think the brand Name projects -- such as the W hotel, Four Seasons Residences will be "safer" investments because it will attract second home buyers. Creative types from New York and LA who want a second home in creative but more laid back Austin.
Believe me-- if I thought they were good investments,I would be pushing them through my investment group. But I see them as one of the riskier investments in town.