North Austin Real Estate Market Report June 2010
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
Written by Jim MorelliREMAX Capital City | 13018 Research Blvd. | Austin TX 78750
Direct 512.918.1562 | Fax 512.331.7480
http://www.LivingNorthAustin.com
jim@livingnorthaustin.com
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