The Austin real estate market ended the 2nd quarter of 2010 with 6.9 months of single family homes for sale – a balanced market inventory.  However, the state of the market varies by geographic area and price range.  Here is a closer look at the 2nd Quarter of 2010, area by area:

2nd Quarter, 2010, Market Report

Summary of 2nd Quarter:

We ended the 2nd Quarter with a rise in inventory compared to the 1st Quarter, which had 5.9 months of supply.  A review of the real estate sections in the Market Report above shows that there are now 20 “balanced” markets and 25 “buyers” markets throughout the Austin area.  This is due in part to a seasonal rise in inventory.  We normally see rising supply during the first half of the year, and waning supply later in the year.

It is due in part to some pent up inventory coming on the market.  Many sellers held back during the past two years and are now coming on the market.  However, demand for homes has not spiked to meet pent up supply.  In fact, we see a lot of potential buyers who are leasing and waiting to buy.  This is in spite of the best interest rates of a lifetime – under 5% - available today. 

Foreclosures:

Foreclosures at the end of the 2nd Quarter were at 3.9% - not a significant part of our overall market.  However in a few sections foreclosures were as high as 10% of homes on the market.  

Foreclosures in Austin area:
2009
1st      3.7%
2nd     3.6%
3rd     3.1%
4th     4.6%

2010
1st      3.3%
2nd     3.9%

Realty Trac shows this data on foreclosures for June, 2010: 

Nevada: 1 in 87 homes
Florida: 1 in 170 homes
Arizona: 1 in 188 homes
California: 1 in 193 homes
Georgia: 1 in 334 homes
Texas: 1 in 788 homes
Travis County: 1 in 858 homes

Austin Experience:

Kiplinger named Austin as the best city for the next decade.  Forbes named Austin as the best large city for job growth.  Austin consistently tops the list in studies done by the Milken Institute, Forbes, Brookings Institute, New Geography, Kiplinger, and other economic trend spotters. 

We are in a good place now because Austin did not experience an excessive run up in home prices from 2001 – 2006.  The bursting of the dot.com bubble in 2001 kept home prices from expanding to dangerous levels in Austin.  It slowed down price appreciation, and kept us out of trouble.  Today we enjoy momentum from the truest of sources – job growth and people who want to move to Austin for new jobs.    

This is the Austin story, and we are very fortunate to have this story widely broadcast around the world.  A recovering job market in Austin will raise demand for houses, and this will soak up supply.  

Opportunity Market: 

We have seen great opportunity markets like this come and go.  The combination of extra inventory and very low interest rates make this a prime time to buy a home or investment property. 

Here is a recent example:  One of our clients purchased a fixer upper in Hyde Park with their daughter.  Because their daughter will occupy the house, a 3.5% down payment FHA loan was used.  They made use of the FHA “fix up” program, which includes funds to repair and upgrade the house after closing.  The result is that they got into an investment, helped their daughter, used an established loan program, and borrowed money at a fabulous rate.  

Thanks for listening, and stay in the shade!
 

Roselind Hejl, CRS
Coldwell Banker United
512-327-0385 office
512-789-4563 cell
www.weloveaustin.com

 

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