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North Austin Real Estate Market Report October 2010

jmorelli — Tue, 30 Nov 2010 16:54:53 +0000

As we move into the fall and winter home selling season my market report will take on a slightly different look and feel. As you all know, home sales usually fall off a bit during this time. However, please keep in mind that homes do and will sell this time of year. When volume drops buyers become more particular in what they will place offers on, so price and condition become paramount.

As the chart below shows, volume is running behind previous years. What is also interesting is that preliminary numbers for November indicate pending sales are down 23%, which drives numbers well behind 2009.

Absorption rates for the entire MLS show a trend of increasing inventory with almost 9 months of supply. The numbers for North Austin are slightly better at 8 months of supply. When I zoom in on the Northeast (including Pflugerville) things look better at 7 months of supply.

The under $150k segment of the market seems to be slowing down at an accelerated pace, with 14 months of supply. It seems clear that the lower end of the market has slowed considerably. But keep in mind that homes in this area are still selling. As previously noted, 12060 Trotwood was listed and sold in Copperfield in 13days. So remember: it’s about marketing, price, condition and location.

If you are in need of detailed market information on any area please feel free to ask.

North Austin Real Estate Market Report September 2010

jmorelli — Tue, 19 Oct 2010 17:28:14 +0000

As mentioned in our August report, home sales in Austin have dropped off by approximately 25%when compared to 2009. I also mentioned that after the steep drop off in sales this spring sales would begin to level out. As the chart below shows that now seems to be happening. While most would expect the curve to drop off some more, my hope and thinking here is that with the historically low interest rates we have on home loans the drop may not be as severe as some think.

An examination of absorption rates for the key North Austin areas indicates to me an interesting trend - that the low end of the market has slowed to a snail’s pace while the higher end remains fairly healthy. Last week I displayed absorption for some of the key North Austin MLS areas. That chart showed Northeast Austin and Pflugerville reaching double digits in terms of inventory (or months of supply). This is certainly great news to buyers but not so good to sellers. It should be noted that these two areas are dominated by entry-level homes sought by first-time buyers.

Absorption rates for September show more of the same. Condos, Pioneer Crossing and Copperfield, three segments of the North Austin market dominated by first-time buyers, have all reached double-digit inventory levels. During the same time period, Steiner Ranch, Avery Ranch and Scofield Farms have remained fairly stable. I expect all this to continue during the non-prime winter months as there seems to be few first-time buyers currently in the marketplace.

All the data backs up the point I’ve been stressing here for several months - it is a great time to buy real estate in North Austin! As for seller, you don’t necessarily need to feel left out: homes priced well and marketed properly are still selling. Case in point is that I just put 12060 Trotwood in Copperfield under contract in 13 days!

Please feel free to comment, call or email with any questions.

New Northeast Austin Listing on Greenbelt Not Yet In MLS

jmorelli — Wed, 08 Sep 2010 15:46:16 +0000

We will have a new listing in the Copperfield subdivision on a greenbelt cul-de-sac lot coming soon and not yet in the Austin MLS. The property is at 1111 Gatehouse drive Austin Texas 78753. The property feature a wonderful private backyard backing to a greenbelt with multiple decks. The home has had many recent updates including air conditioning and duct work, exterior paint, garage door and flooring just to name a few. Please watch for this listing coming your way. Asking price is $104,900. For more information call today 512.744.4155

More Great News For Home Buyers

jmorelli — Thu, 22 Jul 2010 16:47:13 +0000

We have some great news in the home buying world, and we want to make sure to share it with you. For the second week in a row, mortgage rates are at 25 year lows. I checked the rate today, and it’s averaging at 4.70%! What does this mean for you? It means that you can afford more house or you can save money on your monthly mortgage payment. This great news coupled with great prices in the Austin Area make it a great time to buy real estate in Austin Texas.

Secondly, the Texas Department of Housing and Community Affairs has approved a bond to help First Time Home Buyers. Bond 77 can do 1 of 2 things for a buyer. It can either provide Down Payment Assistance or it can help buyers by providing a low interest rate. The details are below.

If you missed out on the home buyer tax credit, don’t worry. We want to help you find a home that is right for you and your family. Low interest rates, down payment assistance, and/or low home prices are all reasons to look forward to purchasing a home now.

BOND 77
What You Need to Know

Bond loans are reserved, not locked.
For owner-occupied only.

It’s possible to get a loan up to $288,750.

FHA loan requirements.
Interest rate:

4.99% fixed rate, 30-yr no assistance OR
5.74% fixed rate, 30yr 5% down payment
Assistance: DPA – is due on sale or vacating the property

Income caps (100% Applicable Median Family Income):

AMFI for 1 or 2 person families
115% AMFI for 3 or more person families

Fees:

1% participation fee
1% origination fee
$325 bond application fee payable to TDHCA

All borrowers must complete an approved home buyer education class which can be done online.
Income tax recapture provisions may apply

Recapture: 6.25% of original mortgage amount if borrower vacates, sells, or rents within the first 9 years.

North Austin Real Estate Market Report June 2010

jmorelli — Tue, 20 Jul 2010 15:47:47 +0000

While the deadline to close transaction from the April 30, 2010 tax credit has been extended, it’s my opinion that the majority of those deals have now closed. Those transaction that are lingering are either due to homes not being ready from the builders or lender issue (any many deals with lender issues may never close). When I get inside the numbers I see that the normal summer peak of closings which normally happens in July has come much earlier this year due to the tax credit. This was mentioned in one of my recent posts It’s a Great Time to Buy Real Estate In Austin Texas, in it I wrote about June 2010 pending sales numbers being off by 31%! As a result, expect to see pressure on list and sales prices in the coming months.

Looking at the Market Activity report for the major North Austin areas, I saw much of the same drop off, with Cedar Park, Northwest Austin and Lake Travis South leading in volume. The North Lake Travis area again continues to see a huge disparity between average list price to average sold price. The take here is the high end luxury buyers are buying the south shore of Lake Travis while the inventory is high and demand is low. As a result, the higher priced listings on the north shore are not selling, which drives down the average sold price for the area.

When absorption rates are examined, the trend will show that supply is shrinking in all areas. I believe this is due to the early summer rush from the tax credit and expect these to rise quickly over the next 3-6 months. Again keep in mind we just ended 9 months of huge buyer incentive and there is not many left in the market place.

When I examined average price per square foot in 5 select communities in North Austin the trend verses May 2010 was rather flat except for Scofield Farms which was down 4.3%. This is a sign of things to come.

If you or anyone you know is in need of a market report on a specific property or want to discuss buying or selling. Feel free to call Jim Morelli at512.918.1562