Austin Real Estate Blog

I was watching an HGTV real estate show yesterday and I finally got around to posting about oneof the things that the sell this house-type shows do, that are kind of hokie. In this particular episode, the sellers were getting ready to sell their condo. The condo was terribly dated and had low end appliances. The designer came in and proceeded to cover the appliances with a stick on faux stainless steel veneer. In the show, the owners did replace the stove and microwave vent hood with real stainless steel appliances, but when they had the open house they let the prospective buyers comment on the wonderful stainless steel appliances and didn’t correct them or inform them that only two of the appliances were stainless steel and that the dishwasher and refrigerator were actually covered with the veneer.

Granted it’s a tv show, but I think that some people out there might think that it’s acceptable to use this stick on and then advertise stainless steel appliances when they are actually not stainless. I’m not a lawyer, but if the appliances looked like stainless and were advertised as stainless steel and after the sale closed the buyer found out the appliances were covered with veneer and not really stainless, I’d be seriously worried as a seller or listing agent. I think the veneer is a neat product, but if you play above board you’d have to advertise it as something like “faux stainless steel” appliances. In the last 5 years of selling residential real estate, I’ve not run across anything like that, but I know I’d really pause if I read “faux stainless steel” on a brochure. I think it might work for some properties and it may look great, but some research will show that it is only heat tolerant to 122 degrees Fahrenheit. 122 degrees is not very hot and I think dishwashers and stoves could damage the faux finish because they may get hotter than that.

Bottom line: If you try this technique to update your appliances be sure to disclose what you did to the prospective seller and avoid misrepresenting the appliances. It could be a costly mistake.

If any agents, brokers or owners have used the veneer and have feedback or know more technical information about it, I’d love to hear from you.

What a wonderful Christmas gift!

Austin Market Update

Texas seems to have fared well in comparison to other states in the national adjustment scene. With Houston, Dallas, and Fort Worth all ranking in the top 5 undervalued markets (Austin ranks number 52 across the nation) in the nation, now is a good time to be a buyer in Texas. Austin, while not in the top 5 undervalue markets is still measured to be undervalued by approximately 9 percent.

Interestingly, as the graph below shows, Texas has many cities that are currently considered good buys (undervalued). With the job growth in Texas and Austin in particular out pacing the national and many state job growth rates, it’s a wonder so many locals in Texas are still under valued. But why look a gift horse in the mouth. It’s time to buy. :)

You can check out the value of your home using out Austin Home Value Tool.

Merry Xmas Everyone!

This should be good for a laugh!

The tightened credit in the home mortgage field may actually be helpful to Austin area businesses. As we have reported, the impact of the subprime mortgage crisis has slammed the door on many borrowers — even those with “good”credit.More and more Austin area residents who, just a few months ago, might have sailed through a second mortgage application, a refinancing or a home purchase are finding it more difficult – if not impossible – to be approved for those loans today.This is where business borrowers come in. For the most part, Austin area financial institutions are eager to lend to businesses – especially small businesses with good credit records. This helps to offset their dwindling mortgage income. Not to minimize the crisis that is tightening the screws in the mortgage market. It’s a serious problem. But out of this problem an opportunity is emerging for businesses that may need to seek more money.

Jobs are a basic driver of the economy. And the Austin area is among the strongest in the nation in creating new jobs.For more than two years now, the Austin metro area has been adding new jobs at one of the strongest paces in the nation.Our metro includes the counties of Travis (Austin), Williamson (Round Rock, Georgetown), Hays (San Marcos) Caldwell (Lockhart, Luling) and Bastrop. The pace of job growth shows no signs of letting up.

Not only does Austin lead the state economically, but by at least one measure Austin is the best place in the US for business.

Moody’s Economy.com Inc. gave Austin the top spot over almost 400 US metro areas, based on current conditions and expected trends as well as potential risks.

- Excerpt from From The Neal Spelce Austin Letter (www.AustinLetter.com).

The Austin Market
When I read these tidbits yesterday I remembered that, like all markets and businesses, there are ups and downs. While the mortgage fiasco has made the real estate market slow a bit, Austin is still outperforming most places in the United States. I think the reactions from people has to do with the incredible (by Austin standards) year that 2006 turned out to be for real estate. Comparing the 2007 real estate market to the 2006 real estate market and going bearish, resembles stock market investors worrying about a few hundred point drops when the DJIA is higher than it’s ever been.

As you might guess, I’m still optimistic about the market in Austin as a whole.

That said, there’s at least one place where I wouldn’t want my money right now.

Downtown Austin Condos
Yesterday, Avera Development removed The Magnolia development from it’s website and is reevaluating it’s development plans. The Magnolia was planned to be 139 units and no definitive direction was announced by the owners although some sources expect the land to be used for an apartment complex.

Additionally, another development group working on a project announced as The View is selling the land and scrapping plans for their 69 unit green development.It’s understandable that people are starting to reevaluate their developments. With the number of planned and in development units for downtown at an all time high, I’d hate to be the last guy to complete my condos. While the condos in many of the developments have sold quickly, if the pace of building keeps up I wonder if we’ll wind up like Denver or Miami were 2006. Given that our market generally lags the nation a bit, we could be in for a bumpy ride in the chic downtown Austin condo market.