AUSTIN SET FOR SELLER'S MARKET. Austin is moving towards a seller's market. Absorption rates are shorter and multiple offers are becoming more common.
I reported previously that Downtown Austin is seeing an overhaul. Highrise Condominiums are scattering across our skyline with many more in the works. These properties offer excellent prices with the great potential to appreciate. With Downtown being more pedestrian-friendly, they make great a vacation property or second home.
So what is causing a boom in certain areas? First, new home prices are on the rise due to increased material costs. Builders will no longer be able to offer the huge incentives that they could before Hurricane Katrina and Rita. Second, investment and relocation buyers from various parts of the country are selling their homes and moving to our warmer client and more stable housing market. Although Texas has "higher" property taxes, we do not have a state income tax, thus making our market attractive. Austin in particular is highly attractive due to our friendly, relaxed, progressive, and highly-educated population.
According to local analysts, resale home values will appreciate in 2006 and 2007. Now is definitely the time to buy because there are still less buyers paying attention to the market. Once we reach March and April, it will be markedly more difficult to buy a home before it's gone.
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