Home Buying in Austin>Question Details

Tim Moncrief, Real Estate Pro in Austin, TX

Is the Austin Market getting worse??

Asked by Tim Moncrief, Austin, TX Thu Jul 3, 2008

Here are some interesting real estate stats that, in an odd way, are encouraging. Not great, but encouraging. The one thing I have learned over my 27 years in this business is that no one can predict the market, as no one can predict human behavior….no one. The stock market tanked last week, oil prices hit an all time high, yet we saw a noticeable spike in physical and internet traffic for the last 10 days. Perhaps a fluke, but the one thing that I know is that people will make changes in behavior when you do not think they will. So we will see…..

City wide new listings have decreased for the 4th week in a row (by14%). Though overall listings are substantially higher than last year, this is a good sign. Normally we would be seeing new listing increases through July in a normal market, and even more in a decreasing market. We are impatiently waiting for the oil market to crack. The Saudi's are worried about decreased demand, but no one else is yet.....

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6
Austin is till seller's market right now.
The hike of property values (+30~+60%) between 2004~2008 had not started settling.
Austin definitely experinced price hikes just like the rest of the national market.
It appeared the Austin Market has a lagging reaction for boom, and maybe will be lagged for bust as well.
1 vote Thank Flag Link Tue Jul 8, 2008
I wish I were psychic and could tell you what the future holds. The thing I can tell you is according to the Austin Chamber of Commerce there are still 1000 people moving here every week. There are homes available to buy in just about every neighborhood and price range. While the number of homes sold has decreased slightly since this time last year, the individual price for those homes went up an average of 8%! So Austin is still a great place to buy a home.
Web Reference: http://www.BetinaForeman.com
0 votes Thank Flag Link Tue Sep 30, 2008
I think the market is getting better. Here are the latest stats from Alamo title.

Week in Review




July 13-July 19, 2008

(compared to the same week in 2007)

New listings down this week 12.04%

Pendings down 76.86%

Solds down 17.10%

As for Average Prices: July 13 - July 19, 2008

(compared to the same week in 2007)

Sold average sales prices increased 12.29% to $322,010. In 2007 it was $286,762 for the same week.

Check it out at http://www.alamotitle-austin.com/mls_statistics.php




Month in Review

June 2008

Units for sale (compared to June 2007)

New listings were up 23.22%.

Pendings were down 53.42%.

Solds decreased by 18.27%.


As for Average Prices:

The "New Listings" average list price is down 2.79% to 316,032. In June 2007 the average list price was $325,115.




Sold average sales prices increased 4.71% to $266,175. For June 2007 it was $254,211.
0 votes Thank Flag Link Sun Jul 27, 2008
Based on a recent economic summary by the Chamber of Commerce the Austin market is still going strong. Please see the following market updates:
2008 Mid Year Economic Summary
• In the past 10 years, Austin’s population has increased by 487,000
• 1,000 persons per week are moving to Austin MSA
• By the year 2030, Austin’s MSA population is predicted to be 35 million
• Williamson county has increased by 53% since 2004
• Williamson county population is expected to be 1 million by 2030
• 20% of jobs in Austin require a Bachelor’s Degree
• 42% of workers have a Bachelor’s Degree
• Professional/ Business Services have added the most jobs in the last 12 months
• Since 2000 Austin MSA has experienced approx 14% decline in Hi Tech jobs
• Hi Tech compensation has declined 7% since 2000. Private sector wages have increased 6%
• There are approx 3000 Hi Tech companies within the Austin MSA which comprise 33% of payroll
• The average income for Hi Tech workers is $80K
• Residential building permits peaked in 2005
• Austin had an average of 4 months inventory of residential properties available for purchase in 2007. In 2008, this number has increased to 4.7 months. The nationwide average is 6 months, so Austin is below the average in respect to residential inventory.
• Austin is one of the nation’s biggest targets in Venture Capital.
• Austin’s MSA population is less than 7% of Texas’ population, but holds 48% of Venture Capital funding in Texas.
• 129 companies relocated to Austin since 2004
• 34 companies relocated to Austin from other cities within Texas. California follows in second with 29 companies relocating to Austin & 17 companies have relocated internationally to Austin.
• The Chamber’s plan is to bring 72K jobs to Austin within the next 5 years.
• Ana last, but not least…. By the time you drive home this evening, there will be 84 more vehicles on the roads than there were whenever you went to work.
0 votes Thank Flag Link Mon Jul 14, 2008
Alamo Title has reported that last month, June 2008, residential sales in Austin were DOWN 18.27% compared to last June. The good news is that Sold average sales price is UP 4% compared to average sales price last June. This means that price of homes are still appreciating although sales are down. Compare that to other states!
0 votes Thank Flag Link Mon Jul 7, 2008
I think you will still see pockets. Lots of kneejerk reactions. I think you will see a spike in prices for downtown properties, smaller properties, and newer more energy efficient properties. The big mosters and suburban properties could become ghost towns.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Fri Jul 4, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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