2012 Austin Housing Market Forecast: Positive Trend to Continue

According to the Fourth Annual Housing Forecast held by the Austin Board of Realtors and Home Builders Association, the housing market in Austin will continue to see improvement in 2012. Austin’s housing market saw growth in 2011 and that trend is expected to continue in 2012. 

Austin’s job growth, increasing population and tightening rental market should result in higher demand for housing in Austin and surrounding areas, according to Eldon Rude with Metrostudy.  

Texas experienced a 2.2% increase in job growth when comparing November 2010 to November 2011. One out of seven jobs created in the US have been in Texas. As a result, Texas consumer confidence is much higher than the overall south central region of the nation. The Austin/Round Rock/San Marcos MSA saw a 1.2% increase in job growth year over year which meant 9,600 new jobs. 

Texas had over 63,000 housing permits pulled for new construction in 2011. This is double the amount of the next highest state, California with over 33,000 new housing permits.  For 2012, Eldon Rude expects new home production in the Austin region to increase for the second straight year. There were 6,115 new home “starts” in the Austin region in 2011 which represents a nearly five percent increase in starts from 2010. The starts barely exceeded closings so inventory is declining....which is a good sign. Demand must be met by supply so builders must start building to meet that demand.  

Home starts in 2011 were up over 2010 levels in every price range except under $150,000, with the strongest increases in the move-up price points between $200,000 and $300,000.  

A factor that might limit new home starts in 2012, especially in more high demand areas, is a lack of developed lots to accommodate new home construction. Weather and water resources are also major concerns for homebuilders. 

According to 2010 and 2011 migration patterns, Texas nets more people moving into the state versus moving out. The IRS information census shows a strong population growth trend in the Austin MSA over the past 10 years.   

In 2011 the Austin MSA population was approximately 1.763 million. By 2020, Eldon Rude with Metrostudy predicts a population of approximately 2.304 million. This growth of 540,000 in population is equivalent to 31% total growth which is 3.4% per year. At 60% home ownership the result is 13,333 new homes per year in Austin. 

The upcoming Presidential election should generate confidence that the economy will improve, reflecting in many home buyer's decision to purchase. Due to continued job growth, a strong rental market and strong inward migration, we should experience a housing market that continues to improve in 2012.

Obama Sets a Plan to Help Home Owners Refinance

President Obama urged Congress in his State of the Union speech on January 24th to pass a plan to help millions of underwater home owners refinance into loans with historically low interest rates by charging banks a fee to help expedite the transactions.

"I'm sending this Congress a plan that gives every responsible homeowner the chance to save about $3,000 a year on their mortgage by refinancing at historically low rates," Obama announced. "No more red tape. No more runaround from the banks. A small fee on the largest financial institutions will ensure that it won't add to the deficit and will give those banks that were rescued by taxpayers a chance to repay a deficit of trust."

This isn't the first time Congress considered a proposal to charge banks a fee to help homeowners who remain underwater, but it's not clear from the details Obama provided how similar this plan is to the one Congress has previously looked at.

If you're looking for help refinancing your current loan with your existing lender and have questions, I'd be happy to help!

Austin Home Sales Up, Median Price Down in July

There was an increase in the number of homes purchased in Austin this July than a year ago, although they tended towards less expensive ones. There was a 32% increase over July 2010 numbers meaning more than 1,970 single-family homes were sold in Austin in July 2011. The median sales price, however, declined to $196,750, an 11% drop. Those homes also were on the marked 5% longer than July 2010.

The drop in median price reflects a demand for lower-priced homes in the city. Austinites are searching for bargains right now. With interest rates at historic lows, the number of investors looking to take advantage of the savings could be driving the increase in number of homes sold. With the Federal Reserve announcing rates staying low until 2013 coupled with the busy summer sales season, August numbers could reflect a similar increase.

Even with a decrease in the median sales price, the total value of Austin-area homes sold in July was nearly $525 million, up 23% from last July. All of these homes getting snatched up has created a 20% drop in inventory to 9,393 single-family homes currently on the market.

If you are a condo or townhome owner, it's good news all around! 205 townhouses and condominiums were sold in July, a 45% increase over July 2010. In addition, the median price for condos and townhomes grew 5% to $164,250.

Federal Reserve to Keep Interest Rates Low Until 2013!

With all that has been going on with our economy, a little bit of good news never hurts! The Federal Reserve last Tuesday announced that they would maintain rates at it's exceptionally low level (near zero) though 2013 to promote on going economic recovery and control inflation. This decision was based on the labor markets nationwide showing little improvement since their last meeting along with slow signs of growth, inflation in the energy markets, and only a slow decline in the unemployment rate.

Applications for U.S. home mortgages rose last week as interest rates fell to their lowest level this year. The turmoil in the stock market has caused a dive in interest rates; we are currently seeing conventional loans at 3.99% and FHA as low as 3.5%.  

What does this mean to you? An interest rate change of 1% equals about a 12% change in buying power, so if you could afford $200,000 loan at 5%, at a 4% interest rate you can now afford a $224,000 loan for the same monthly payment. Even refinancing into a lower rate can save you hundreds in your mortgage payment!

Interest rates are at their lowest point in history and it appears as though we will see them stay at about this level for a little longer. If you are looking to take advantage of this fantastic opportunity to capitalize on the tremendous investment that we have in property ownership, now is the time! Whether you or a friend, family member, or business colleague is looking to purchase or sell to up-size or down-size I can help with that! Even if you just want to refinance to take advantage of these interest rates, I know of several great lender's who can assist that have low closing costs to maximize your savings! Let me know how I can help!

FHA Loan Limits Being Reduced for Travis & Williamson County

The maximum FHA loan amount in Travis, Williamson, Hays, Caldwell and Bastrop Counties is projected to decline from $288,750 to $271,050 - a $17,700 decline. The decline, set to occur in October 2011, is meant to reduce the government footprint in housing, but the real estate and mortgage industry fears it could lead to lower prices on an already injured housing market. 

By comparison, the maximum loan amount in Monroe County, Florida will decline by $200,750 to $529,000 and $184,000 in San Joaquin, California, going from $488,750 to $304,750. So the decline is significantly less that experienced by other areas nationwide.

The article does not disclose the maximum Freddie and Fannie loan amount for Austin but Houston and Dallas will remain unchanged at 417,000 - more than likely Austin's conforming limit for non-FHA loans will likewise remain at $417,000. 

See the Wall Street Journal article, Sellers Brace for New Mortgage Caps, here:

http://online.wsj.com/article/SB10001424052702303763404576420101788878440.html?mod=WSJ_hp_LEFTWhatsNewsCollection

STELLAR NEW AUSTIN LISTING! Ready to Go Spotless Clean!

Priced at $147,500! (MLS# 7741109) MOVE IN READY! Four Monster-sized rooms! POPULAR floorplan! Check out that curb appeal! Few in the neighborhood look like this! Lots of trees, open kitchen to living room, Breakfast bar, PLENTY of space upstairs and down! Large backyard! Faces a greenbelt with over a MILE of hike and bike trails! Beautiful fireplace! Community ammenities only a 2 minute walk away and include pool,  wading children's pool, playground, picnic tables and more! Just MINUTES from Walter Long Metro Park with a large lake, BBQ Pits, Volleyball, Trails, Fishing, Canoeing, Kayaking, and more!! A gorgeous blank canvas for you to sculpt into your dream home!

SEE TOUR HERE: Video Tour

MORE INFO:  9013 Quick Stream Dr. Property Info

As usual you can see more on this property 
and EVERY property for sale at: www.I-Am-Real-Estate.com!

Fannie Mae Homepath Foreclosure BUYER INCENTIVE!!

It can pay off pretty big to be clued in to deals in real estate. For many of us, a house is the most expensive investment many of us will every make in our lives. So having someone that can really help you make a smart decision and ease the burden on your wallet can prove to be an invaluable resource. ESPECIALLY knowing that the vast majority of the time, buyer's don't pay their representation a cent. Whoa whoa whoa. What do I mean you say? Seller's agree to pay their listing agent a commission. The listing agent then offers a portion of that commission to a buyer's agent to bring and represent the buyer's side. Thus, the buyer's don't pay their agent anything. 

So, as a buyer you effectively are getting someone to help you locate the perfect home, schedule appointments to see them, handle contracts and other necessary documents, negotiate on your behalf, have referrals for appraisers, surveyors, inspectors, adhere to timelines, deliver monies, walk you through inspections, possibly re-negotiate, preparing amendments/addendums, make sure your financing is progressing along with regard to the deadline, review documents before closing, make sure closing goes smoothly, and after closing make sure you have a good referral for moving companies, flooring, handymen, painters, landscapers, and much more ALL FOR FREE!? In addition to providing advice on the scope of risk as an investment? If you are going to purchase a home and the representation is free, why would you not want someone who can assist in potentially maximizing the potential of one of the largest investments you will make in your life?

It's my duty to the people to inform the public of particular happenings in the market that could minimize the risk to their wallets. My website, www.I-Am-Real-Estate.com serves as a moniker of the service I provide to the people of the Austin metro. At the end of a grand opera performance they throw roses, at a wedding celebration they throw rice, at a Detroit Red Wings game they throw octopus, but Chris Matthews throws SAVINGS!! 

Fannie Mae is offering up to 3.5% closing cost assistance for their REO Foreclosure Homepath properties. The incentive is offered in an effort to help more buyers afford their new homes. The incentive begins on April 11th 2011 and running through June 30th 2011. So in addition to getting a foreclosure-type deal on price, you also get the benefit of tremendous savings on closing costs. YAY! Search for Fannie Mae foreclosures at www.Homepath.com

Eligibility Details:

•  Initial offers must be submitted on or after April 1, 2011
• Buyers must be owner occupants (i.e. primary residence and will have to sign an Affidavit stating so that needs to accompany the initial offer)
• The sale must close on or before June 30, 2011
• Other restrictions apply.  For more information visit the "Special Offers" tab at www.HomePath.com

Advice! 10 No-No's While Trying To Get Approved For A Loan!

Many are taking advantage of interest rates at historic lows, either by re-structuring debt with a refinance or purchasing a new home. However, the recent economic crisis has ushered in some even tougher guidelines and credit requirements and there are some things that consumers must be aware of when applying for a loan.

Here is some advice on 10 things NOT to do leading up to a home purchase or under contract on a home to not harm your loan approval. It's best to just wait until after you've signed off at closing and the home is already yours.

1. Don't do anything that will cause a red flag to be raised by the scoring system
2. Don't apply for new credit of any kind
3. Don't pay off collections or charge offs
4. Don't max out or over charge on your credit card accounts
5. Don't consolidate your debt onto 1 or 2 credit cards
6. Don't close credit card accounts
7. Don't pay late
8. Don't allow any accounts to run past due-even one day!
9. Don't dispute anything on your credit report
10. Don't lose contact with your mortgage and real estate professionals

Austin Achieves YET ANOTHER Ranking! #2 in Country for JOBS!!

Ajilon Professional Staffing, a leader in recruiting and project consulting, has just released their list of the 10 best cities for finding employment in the United States. Guess who ranked #2? AUSTIN, TEXAS of course! The only city surpassing Austin for the top spot is Minneapolis-St. Paul. This ranking only adds to the massive pile that Austin has achieved in the past few years. Austin has become a staple of resilience in an national economic crisis with the ability to keep unemployment low by generating new jobs and featuring a variety of available employment fields.

Ajilon Professional Staffing had this to say regarding Austin: "Austin, Texas came in second place on the list as a result of the city’s low cost of living and diverse talent pool. Austin’s robust educational community also contributed to boosting job growth in the market. Home to several major universities, including the University of Texas, local businesses have a vast pool of well-educated recent graduates to choose from for local employment opportunities in Austin."

As a man who's job it is to sell Austin, these rankings definitely make my job easier. I've lived all over the country, even living abroad, and I've travelled the vast majority of the United States and if there is a city that has it ALL, it's Austin. Night life, outdoor recreation, festivals, culture, lake fun, parks, low-cost of living, outstanding property values, job market, events, live music, and friendliness of the people... Austin is without a doubt one of the BEST places to live in the United States.

If you're interested in Austin, TX real estate and purchasing your piece of this great city, contact me at the numbers on the sidebar. I'd be happy to help! View my own personal compilation of Austin's rankings over just the past 3 years here:

http://www.i-am-real-estate.com/austin-rankings-c23311.html

NEW HOT LISTING!! 18661 Dry Pond Dr. Next to Lake Pflugerville!

Priced at $135,000! (MLS# 7929575) Amazing Home with designer-taste upgrades including beautiful flooring, window treatments, neutral color tones, and a massive stained concrete patio! Villages of Hidden Lake has an astronomical amount of amenities including Lake Pflugerville where you can bike, jog, swim, picnic, fish, and more! Also, Blackhawk Golf Course is a quarter mile away where you can play a round of golf on a gorgeous course.

SEE VIDEO TOUR FOR FULL VIEW OF UPGRADES! A guaranteed charmer in Villages of Hidden Lake! Functional floorplan with spacious rooms! Cute as a button! VERY LOW PRICE! Tons of natural light, durable wood laminate flooring, vaulted ceilings, window treatments included. Neighbors are super friendly & welcoming w/great community feel. Amenities incl. pool, splash park, playground, & jogging paths. Neighborhood borders Lake Pflugerville! Perfect place for a lake swim, beach areas, scenic jogging, or picnic! Well-loved PERFECT Home, Outdoor Activities, & Academically Recognized Schools!

SEE TOUR HERE: Video Tour

MORE INFO: 18661 Dry Pond Dr. Property Info

As usual you can see more on this property and EVERY property for sale at: www.I-Am-Real-Estate.com!