Austin Real Estate Update: North and South are HOT
by DeeinAustin™
Someone help me out here. Why do people prefer to buy when the market is "hot" i.e. a seller's market? Then, when sellers are motivated to sell quickly and at better prices, they shy away because it's a "buyer's market".
I ask because buyers now have a problem. North & South Austin real estate is hot. In fact, February has been a stellar month for the Austin real estate agents who hung in there through the slump of Fall and Winter 2007.
VIEW THE AUSTIN MARKET UPDATE SLIDESHOW BELOW OR (DOWNLOAD)
ADVICE FOR INVESTORS AND SELLERS STUCK WITH HOMES IN PREVIOUS "HOT" AREAS
78704. A lot of investors were led by their agents to central areas like zip 78704 (Soco/South Soco). That market is now in a slump. There were 96 homes on market and only 8 sold. Even worse...hundreds of condos are coming soon. ADVICE: Sellers should stay priced under $300-350k for the fastest sale. Keep price per square foot competitive and negotiate with the buyer ...or you'll regret it.
East Central Austin. The average days on market for Area 3 in East Austin was 120. Home sales in zips 78702 (Area 5) and 78723 slowed significantly due to unusually-fast appreciation in 2005 and 2006. Sellers have finally started to realize this, so are dropping prices and offering financing incentives.
AUSTIN REAL ESTATE MARKET SUMMARY
HINT: If a television or newspaper reporter says an area is "hot", it's too late to get a good deal as a buyer. Go to areas where sellers don't think their homes are laden with gold, but there are strong growth factors. At the very least, carefully evaluate the particular home you're buying to make sure it's right for you. Don't bet on appreciation.
If you didn't purchase during the latter half of 2007, you may compete with other buyers in certain hot areas of North and South Austin (see the Austin market update slideshow). Other areas are still game. Your agent will determine the average days on market for a given area so you determine how to best write your offer.
READ MORE MARKET NEWS
- Realty Times Market Conditions for Austin.
- Steve Crossland's January 2008 Market Update.
- Our Austin Market Update from November 2007
- Year End Austin Market Update: Winners and Losers in 2007.
- Is the U.S. Housing Gloom Lifting?
- Top Trend in 2008: Green Real Estate
- Why Austin Real Estate will bloom in 2010.
WINNING ARTICLE !
HONORABLE MENTION IN THE NATIONAL CARNIVAL OF REAL ESTATE (#80).
All Rights Reserved, Copyright 2008 © Dee Copeland.
Great slideshow. That slideshare site that allows you to post such things seems like a great find!
Posted by: Santa Fe Real Estate | Monday, February 25, 2008 at 12:16 PM
Thanks! I really like Slideshare except their site is slow at times. I've heard that it takes 45 minutes to load when it's really busy, which is why I started offering the PDF download.
I really wanted to stress that it's important to evaluate each area and get a strong CMA whether you're a buyer or seller. There are some really great areas in Austin selling quickly, so sellers will leave money on the table if they aren't aware of this. On the other hand, buyers will think they have more room than they actually do.
I'm excited to see the market heat up. Listings that have been sitting since the Summer are starting to sell, which is great for those owners.
Posted by: Dee Copeland | Monday, February 25, 2008 at 01:38 PM
It makes no sense, Dee, admittedly. Part of the problem is, people look at real estate like a stock certificate, and all they see are prices going up or down. What they don't look at is cash flow -- which is what they really should be focused on.
Posted by: John Lockwood | Monday, February 25, 2008 at 07:34 PM
Dee... I LUVVV your site... absolutely "smashing"!!
I've been surfing for quite a while this evening & just before crashing for the night I find this little jewel!!!
You're now on my blogroll... I don't want to lose sight of you!
I've also subscribed to your feed.
Anyway... to get back to the post... I analyzed various market segments in The Woodlands the other day... between $250k & $500k homes are selling within 44 days on average for the months of January. That, my friend, is a seller's market!!!
So, the markets in certain specific areas in certain price segments are still very good... pick the right niche and your properties fly off the shelf!
Posted by: Lance - Houston Texas Real Estate Expert | Monday, February 25, 2008 at 11:35 PM
Oh, the other thing I noticed & forgot to mention in my earlier post.... you're with Keller Williams!!! Bonus!
I need someone in Austin that I can refer business to.
Do you have someone in the Houston area that you work with on a regular basis?
Posted by: Lance - Houston Real Estate Expert | Monday, February 25, 2008 at 11:37 PM
Hi Lance and John. Thank you for commenting.
Lance- No I don't have anyone I sent to Houston, but I LOVE the Woodlands. My 'future' in-laws live in Magnolia, so I stop by the Woodlands in Houston when we visit them.
John- I agree. Housing is being treated like stock, which is no good for a variety of reasons. More families are negatively affected when speculators start buying up a neighborhood. You should see the hundreds and hundreds of condos coming into 78704 because it was a "hot" area. If someone wants to buy in 78704, maybe it can be a house because home sellers are now hurting.
I value infill development, obviously, but developers can get over-zealous at the detriment of the people who want to live in their homes and enjoy the peace. Some of these condo projects should be postponed until we have enough buyers to support them.
Posted by: Dee Copeland | Tuesday, February 26, 2008 at 10:47 AM
There are many great reasons…
…to feel very good about Texas real estate
As the housing market continues to make national headlines, I want to clarify that our strong economy in Texas is supporting a stable housing market.
According to the latest report from the National Association of Realtors®, seven of the eight Texas major metropolitan areas monitored had an increase in their median home price from the fourth quarter of 2006 to the fourth quarter of 2007. Those cities are Amarillo, San Antonio, Austin, Corpus Christi, El Paso, Houston and Dallas. Pearland is also following this trend. The price trend for Pearland real estate is still on the increase as well.
Other Factors contributing to a positive outlook for Texas housing include:
• A relentless growth in population will fuel the need for homes. In the next 15 years, enough people will move to Texas to create a new Dallas, Austin, Houston and San Antonio.
• Texas has one of the best real estate climates in the nation with affordable housing and affordable lifestyles.
• Texas has the best tax structure for business and will continue to outperform other states in attracting relocating companies and job growth.
Most media reports capture real estate at the national level, but our industry is very localized. As a member of the board of directors for the Houston Association of Realtors®, I encourage you to turn to a REALTOR® who is monitoring the trends and conditions in your community when you need real estate information or assistance.
With appreciation,
Danny Frank
http://www.danfrankrealty.com
Board Member, Houston Association of Realtors®
Posted by: Danny Frank | Thursday, February 28, 2008 at 07:52 AM