We bought a condo in the Govalle neighborhood of Austin, TX. I keep seeing the average listing price go down. Should we be concerned? Was buying in

Asked by Texas_football, Austin, TX Fri Jul 23, 2010

Govalle a mistake?

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Anne Edwards…, Agent, Austin, TX
Fri Jul 23, 2010
Hey Texas Football,
Read this and enjoy living in Austin:

The 5 counties that make up the Austin metropolitan area (Travis, Williamson, Hayes, Bastrop and Caldwell counties):

●lead the nation in job growth during the last year - both in percentage increase and actual number of new jobs - wow!!

●Forbes magazine ranked Austin #1 in the nation on its list of best large cities/regions for job growth.

●Monster.com also named Austin as the #1 city in America for job growth.

●Kiplinger's Personal Finance magazine ranked Austin #1 in America on its list of Ten Best Cities for the Next Decade

●The Milken Institute ranked Austin #1 in America on its list of Best Performing Cities In 2009 where jobs are created and sustained.

●Porfolio.com ranks Austin #1 in America in its Small Business Vitality rankings for 2010.

●RelocateAmerica.com ranked Austin the 3rd best city in the United States to move to.

●America's Top 100 Places to Live For 2010 ranked Austin the 2nd best City in America.

●Airports Council International's survey of passengers at 118 airports worldwide ranked Austin's airport as #1 in North America - and #2 worldwide.

●The Brookings Institution named Austin as one of only 10 American Cities as a "Next Frontier" Metro Area based on exceeding national averages on population growth, diversity and educational attainment.

●The Brookings Institution also reports that Austin and Raleigh, North Carolina lead the nation in growth among "pre-seniors" (55 to 64 year old) - translation, Austin area is a great place to retire.

●Add on top of all of that Samsung's recently announced $3.6 Billion direct investment for Phase 2 of its semi-conductor fabrication plant in northeast Austin - the largest private capital investment so far this year in the U.S. - and in the top ten largest private capital investments in America in the last decade - creating 500 new, high paying permanent jobs and more than 1,000 construction jobs - and total payroll of $105 million per year - double wow!!

●Plus Hanger Orthopedic, Pioneer Surgical, Face Book, Legal Zoom, Formula One Racing.........all coming to Austin.

Even two of our local bars took best of show in Playboy's best places to drink list , then there is the news that Dell sales up 19%, reclaims No. 2 ranking on the world’s computer maker ladder.

I am hot on Austin,

Web Reference:  http://www.hookemhomes.com
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John Crowe, Agent, Austin, TX
Fri Jul 23, 2010
What were your goals when you purchased the unit? Take a look at them and see how you are tracking. Next, are you comfortable in the condo? If so, don't worry about what you read today. There is so much negative news making rounds that it's hard to pull back and focus on your needs. You mentioned a 5 year plan, moving in Feb. of this year - go ahead, catch your breath and enjoy your new home (and life).
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Texas_footba…, Home Buyer, Austin, TX
Fri Jul 23, 2010
Thank you for all your input. We aren't planning on flipping it. In fact we are planning to live there for at least 5 years (and we just moved in February). All the information everyone provided to my question has been extremely helpful (and comforting).
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Shawn Rooker, Agent, Austin, TX
Fri Jul 23, 2010
This is basically what's happening right now in the Austin Real Estate market, there are more homes than EVER on the market. So with the law of supply and demand prices will go down. Will this happen for years? Probably not, but we can't really crystal ball that far into the future.

Shawn Monshaugen is on target here. I would emphasize the question, "When do I plan to sell?" If you plan to live there for a bit, then I wouldn't worry at all.
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Cindy Crawfo…, Agent, Round Rock, TX
Fri Jul 23, 2010
Hi Texas Football!
Prices are dropping, but not drastically. You must also consider condition of units. There are a number of foreclosures/bank owned properties hitting the market right now that typically aren't in as great a condition as those being sold by homeowners. There are so many factors to take into consideration, that listing price and price per square foot often doesn't really signify much of anything except "average"...but what is really average???? Generally speaking, real estate is always a better investment over the long haul than any other commodity. Hang on, you'll be glad you did!
Cindy Crawford, REALTOR
Keller Williams Realty-Lake Travis
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1st Zero-Emi…, , Austin, TX
Fri Jul 23, 2010
If you planned on flipping the Condo, then I'd say yes, it may have been a mistake to attempt a flip, unless you line up your margins and exit strategy prior to purchasing (and it made sense for you to execute).

If you were buying the Condo in order to begin putting your rent money towards home ownership and you don't have any immediate plans of flipping or selling, then I'd say no, you shouldn't be concerned about Austin.

The real answer for you comes down to these questions:
- when did you buy?
- did your Agent help you buy "ahead" of the market?
- when do you plan to sell?
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Betina Forem…, Agent, Austin, TX
Fri Jul 23, 2010
If you bought with a higher interest rate, you might consider doing a refinance. Right now rates are low, I just had someone get a 4.25% interest rate!
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Charles Runn…, Agent, Austin, TX
Fri Jul 23, 2010
If you plan on staying for awhile, no neighborhood is a mistake. Condos, in almost every neighborhood in Austin, have seen some depreciation; Central East, Downtown, Southwest, etc. If for some reason you can't sell, check out the rental prices, and become a landlord for a time, while your condo rebounds in value. Also, I highly recommend getting very involved in your HOA and if you have enough equity in your condo, explore a refinance. Since there's nothing you can do about depreciation, explore your options, and just enjoy your home.
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