Austin, Texas, is the Silicon Valley of the south, but a brutal tech retreat left many without jobs and home values slumping. Local Realtors say that is beginning to change.

"Austin is a captivating city full of diversity, beauty, entertainment and a wealth of job opportunities," say Realtors Rob and Carolyn Abbott. "Whether you are looking for a home in the rolling hills or a condo with cityscape view, you can find it not too far from the vibrant musical culture and gorgeous parks downtown. In Austin, whether you choose to enjoy an afternoon of major college football, dine at any of the hundreds of fantastic restaurants, or relax in a spring-fed pool amidst the beautiful preserved greenbelts of Zilker Park is up to you...it's your city to explore in your time."

The Realtors explain, "June finds Austin's real estate market showing some distinct trends continuing from the beginning of this year. Sales and pending sales are down from last year, home listings taken are up, and there just aren't enough buyers to meet demand. This is a trend that is not new. This also means that the prices on homes continues to edge downwards to encourage the buyers there are out there to make that decision.

"For example, recently there was an increase in the number of "new" listings when compared to the same month in 2002," the Abbotts explain. "New listings are up by 11.02 percent for the month when compared to last year. Pendings decreased by -7.43 percent and solds decreased by -31.10 percent. So, we still find ourselves in a buyers market with a surplus of inventory keeping demand well-satiated and sellers often anxious to see more traffic. Less buyers than sellers means more inventory and a high number of lease/sale combos--frequently in already vacant homes.

"Many foreclosed homes are now priced well under "As-Is" market value--we can say that there is more inventory in this market than we've seen in the last four years, allowing for a good chance for a great buy on a HUD-owned home for those starting out or looking for investment opportunities," they advise. "Other opportunities in this market include an opportunity to pursue a move-up plan--as the market continues to soften in the upper price ranges (especially 350,000+) and interest rates remain very attractive. Those of you considering selling should carefully consider pricing your home to market value, and not pricing yourself out of the market at a time of inventory surplus. Those of you considering purchasing in the near future are presented with incredible choice, good negotiation leverage, and low rates."

Says Realtor Jule Nelson, "I am holding my neutral position on the is-it-a-buyers/sellers-market question, and I'll preface that with the profound and oft-repeated "it depends." The best houses in central Austin under $400k that are in excellent condition, priced right (realistic and not greedy) and show well are selling quickly. I have been in numerous multiple offer situations in the past few months."

"My advice to buyers is it's a great time to buy ... don't miss the opportunity ... as the economy improves, interest rates will follow that upward trend. I am seeing buyers land at less than 5 percent ... wow! They'll never have to refinance!"

Nelson explains, "The $300k - $500k sector continues to be soft, with prices down and inventory high. Other areas with high inventory (and, thus, houses just sitting on the market ... uneasy sellers) include the outlying areas of Round Rock, Pflugerville, Hays and Buda. The $100k - $250k (ever-popular with first-time buyers)is not as soft ... the cute, hardwood floors, nicely appointed, central Austin, priced-right properties are doing fine. My advice to sellers: price it right to move fast. If you're in a "high inventory" category (right now, everyone is in a high-inventory category ... don't fool yourself) assess your bottom line, make it look better than every other house in the neighborhood and price it accordingly."

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Published: June 10, 2003

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