Austin Real Estate Blog

Right now the real estate market in places across the country is pretty shaky. In places that experienced unsustainable appreciation, prices have tumbled and combined with the mortgage crisis, prices have been depressed. Understandably, many buyers are afraid to make a move due to the uncertainty being spread by the media and folks who sell stocks.

Consumers need to remember that commodity brokers want to sell you commodities, stock brokers want to sell you stocks and so on and so forth. That said, take an example such as Enron. When Enron collapsed, many people lost their entire retirement, pension, or and/or savings. The company was a sham.

Does this ever happen in real estate? I personally can’t imagine anyone buying a property and then having it evaporate overnight. I suppose if you bought a property with a nuclear waste dump on it, then it’s possible, but aside from that, real estate is a much safer investment.

Additionally, real estate needs to be managed. In that respect, if you buy a property in Austin or Las Vegas and are a good owner you might want to take a trip there to make sure your property is being managed properly. This is called a tax deduction. :) You get the picture. Of course, that is just one perk of owning real estate. You get additional benefits such as tax write-offs, depreciation, and leverage.

With prices down, rates cheap, and lots of inventory, it may be counter intuitive, but it could be the perfect time to buy.

Builders remain cautious although more buyers visit model homes

Paul Lopez
National Association of Home Builders

WASHINGTON, D.C. – - Builder confidence in the market for new single-family homes edged marginally higher in February as traffic of prospective buyers through model homes improved considerably, according to the latest National Association of Home Builders//Wells Fargo Housing Market Index , released Tuesday.

The index rose a single point to 20 this month, still close to its recent historic low reading of 18 (the series began in January of 1985).

“While builders remain very cautious about the outlook for new-home sales, given today’s economic environment, the fact that more consumers appear to be checking out their options is a good sign,” said Sandy Dunn, a home builder from Point Pleasant, W.Va. and the newly elected 2008 president of the National Association of Home Builders.

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“Some potential buyers who have been sitting on the sidelines are starting to at least research a new home purchase given improving affordability factors and the large selection of units on the market,” said the builders’ chief economist David Seiders. “That said, builders know there’s a difference between people looking and people buying, and their current outlook remains quite subdued. Additional stimulative measures on the legislative and policy side are definitely needed to bolster consumer confidence and help bring about a housing and economic recovery.”

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In February, the index gaging current sales conditions for single-family homes rose one point to 20, while the index gaging sales expectations for the next six months declined one point to 27. Meanwhile, the index gaging traffic of prospective buyers rose five points to 19, its highest level since July of 2007.
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