Two key measures now suggest it's an excellent time to buy a house, either to live in for the long term or for investment income (but not for a quick flip). First, the nation's ratio of house prices to yearly rents is nearly restored to its prebubble average. Second, when mortgage rates are taken into consideration, houses are the most affordable they have been in decades.
This very well may be the historically very best time for you to purchase a home, as experts are forecasting increasing prices through 2012 and a rebound in our market. You should call 512-627-3711 if you're interested in purchase, sales, or leasing a home--never has there been a better time to buy-- investors included, and you'll love our outstanding service!
For August 2011, comparing units for Sale to August 2010, new listings are down 11.18%, pendings are up 15.07% and solds increased by 31.51%
As for average prices, the "New Listings" average list price is up 5.94% to $306,964. In August 2010 the average list price was $289,761. Sold average sales prices decreased 3.92% to $250,783. For August 2010 it was $261,006.
Those of us who think we can participate in a housing market recovery sooner rather than later just got welcome support from some industry experts. As reported by Fortune on CNNMoney.com, "After four years of plunging home prices, the most attractive asset class in America is housing." Research firm Metrostudy, which tracks new-home inventories for 65% of the U.S. market, reports that the steep drop in construction over the last few years has reversed the supply glut, with starts now well below closings. The firm believes the low inventory should eventually lead to higher prices.
Fortune further reports that where existing home inventories average close to seven months, a modest boost in demand will result in solid gains in home prices and new construction. This could happen quickly in markets now showing good job growth. Moody's Analytics forecasts prices going up three to four points faster than inflation over the next few years in virtually all such markets. They see home prices rising with rents, with apartments in short supply. Of course, the housing recovery still requires job creation and consumer confidence back to normal, but we finally seem headed in that direction.
The positive Pending Home Sales report was particularly welcome after Tuesday's Standard & Poor's/Case-Shiller Home Price Index for October. Their 20-City Composite Index registered a 0.8% price decline year-over-year. Some say this threatens a "double dip" in housing prices, an interesting observation now that the "double dip" recession threat has all but evaporated.
The negative talk ignored the facts that 4 of the 20 cities showed annual price GAINS and the index is still above its spring 2009 low. In addition, the Case-Shiller 10-City Index showed a year-over-year price gain. It's important to remember that real estate is local and these indexes average only 10 or 20 metro areas. Some analysts feel home prices have bottomed in most markets and a few intrepid observers are even predicting a strong comeback for housing in 2011! In fact, the average home price for 2010 vs. 2009 is UP, from $250,871 to $260,322!
Austin was among the top ten most searched real estate markets last year, according to a recent Realtor.com report. Austin ranked highest in October last year, coming in fourth most searched that month. The city didn't appear at all on the top 10 in the first three months last year, then moved mostly between eighth and 10th.
Austin was ranked the third best city to move to in the United States, according to a Relocate America.com report. Austin ranked the third most Recession-Resistant city by the Brookings Institute. Back in April of 2008, Austin was ranked the third most recession proof city by Forbes because of a lack of a housing bubble, low median home price, low unemployment, and strong job growth segments that would recover more quickly. Plus, Austin is becoming known as the new Silicon Hills for its growing tech sector industries.
The Brookings Institute has released their quarterly in-depth analysis which also ranks Austin the third most recession proof city in the U.S. The Brookings Institute analyzes the health of America?s 100 largest metropolitan economies. It examines trends in metropolitan-level employment, output, and housing conditions to look beneath the hood of national economic statistics to portray the diverse metropolitan trajectories of recession and recovery across the country.
The Texas State capital took the No. 2 spot on the "America's Top 100 Places to Live for 2010" report for recovery, among others less impacted by recession and therefore expecting a swift recovery. Huntsville, Ala. was ranked first on that list.
Austin was also listed as the fifth-best "earth-friendly" location behind Portland, Ore. (No. 1); Boston, Mass. (No. 2); Madison, Wis. (No. 3); and Boulder, Colo. (No. 4). Out of 100 most popular retirement towns for 2010, Austin ranks number 5! The cultural and other activities associated with the University of Texas is a major draw. Our cosmopolitan and high-tech, quirky soul is another. Plus, we have a relatively low cost of living (Robert Powell, Retirement Weekly; Austin Business Journal).
Austin and San Antonio will be the first two U.S. cities to recover from the recession, according to a new national forecast from IHS Global Insight. The forecast from the Lexington, Mass. economic research firm suggests the two Texas cities will bounce back to their pre-recession job levels sometime this year. Austin is ranked #2 as the city that fared best and is recovering the most quickly:
The Economist had as its cover story the comparison of Texas versus California, the gist being that Texas is now surpassing California as the primary growth state for the union. Not only does Texas host more Fortune 500 companies than any other U.S. state, the Texas employment picture has been much more positive than most of the rest of the nation. Over the past year, the US has seen employment decline by 4.2%, but Texas has only dropped 2.6%, with only about 275,000 jobs being lost. Remarkably, of the four major cities in Texas, Austin's economy has held up the best.
Austin and San Antonio lead our list of places where your money goes farthest. Residents of both enjoy affordable housing and promising prospects for job growth in coming years (Inman News). "Texas, as a whole, is one of the few economies that's performing extremely well because of the energy and technology sectors," says Andrew Gledhill, an economist at Moody's Economy.com.
The Austin Business Journal lists Austin as #3 in the country of 'Recession Proof' cities, citing dropping unemployment and affordable home prices that continue to rise.
If you are a buyer, seller, or investor and would rather speak directly with Rob and Carolyn Abbott about Austin Real Estate and your specific Real Estate related goals, please feel free to contact us anytime at 512-627-3711 or visit our website at www.abbottrealty.net
As one of Austins top REALTOR husband wife teams, we keep up with the day to day market changes. We cannot stress enough how important it is to check in with a knowledgeable agent to determine the facts of Austin Real Estate trending, as the national news about real estate is not often a template that fits Austin's unique market place.
This is a great time to buy and hold property. This is the investment philosophy most used by out of state investors we work with. Austin was recently cited as #4 in the top 10 Tech cities in the U.S. (WIRED magazine) and we see this positioning our college/tech centered city as ripe for further growth and continued influx of Real Estate investment. Nearby Cedar Park was recently cited as a Top City for Families by the Austin Business Journal. Not only this, but Foreclosures are dropping in the Austin area; Austin fares better than other counties in the state. According to the American-Statesman on June 22 (quoting Daniel Kah), "In Central Texas, the economy is still growing strongly. The unemployment rate is almost as low as it can get. All the economic indicators are all pointing in the right direction," We agree these positive indicators point towards strong growth in the rental and resale market to continue into 2008.
From our experience helping buyers & investors purchase NEW, RESALE, HUD and PRE-FORECLOSED homes, we think it's a great time to purchase a new home, with rates low and a market moving upwards. Selling? Call us at 512-627-3711 for our complimentary market analysis or with any questions about the market in your area. Remember, different areas within Austin have their own 'micro-markets' according to demand and sales history which must be looked at individually by a professional.
We are an award winning husband and wife team. We have proven ourselves over 12 years in the business; using our effective marketing strategies and unsurpassed customer service to earn clients for life. We are on the cutting edge of new technologies in marketing your home--our listings receive comprehensive internet exposure, are frequently advertised in magazine and printed media, experience REALTOR tours for the area, open houses and much more.
NEW HOME SPECIALISTS Remember, when buying new homes (another specialty of ours) you do NOT get a better price on the new home without a REALTOR. Realtor commissions are built in and have no effect on the sales price of the house. What you DO get is no representation vs. the well represented new home companies.
INTERESTED IN FORECLOSURES/HUD/VA HOMES? We are regarded as experts regarding the sale and purchase of residential foreclosures and HUD-Owned homes. Should you desire to view these sorts of homes as well, you can with us! If you are facing foreclosure, we are experienced with the short sale and helping you through the process of getting out of your dilemma with your credit in tact (call for more information).
**Some brokers are not registered to buy HUD-owned homes, or don't have or want the experience to represent, advise, and help their buyers through the complicated process of purchasing a HUD home.
Austin is a wonderful place to live, and the time has never been better to begin ownership or take advantage of your move-up opportunities. Trust us with your real estate needs, we are dedicated to results! Find out why the majority of our clients are from referral only!
About Rob & Carolyn Abbott:
We are a husband/wife team based in Austin Texas. We are multi-million dollar producers who excel in sales and buyer representation with unsurpassed service, and also offer investors in real estate unsurpassed property management services with Abbott Property Management. We stand amongst the top Realtors in Texas. Year after year we can count ourselves one of the Top Teams in Austin. We pride ourselves on our very satisfied clients who provide us with the bulk of our thriving business through referral. We know Real Estate is a SERVICE industry, and are dedicated to helping you meet your goals and listening to your needs. We believe that honesty, integrity, and a total commitment to serve you is what it takes to exceed your expectations in reaching your Real Estate goals. Our desire is to create a hassle-free experience for you, no matter whether you are purchasing or selling. Remember, our business is well over 80% referrals from previous satisfied clients; this is great news for your real estate experience with us. We truly strive to embody our slogan: "Excellence x2!"
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
