Austin Real Estate Blog

the Austin Real Estate Market is still going strong!

Austin has withstood the national mortgage crisis very well. Though the area has seen an increase in foreclosures and a decrease in new home sales, the overall pictures still shows that Austin has been steady throughout. The numbers here are nowhere near other markets, placing Austin high on the list of desired cities. While a recent study concluded that the local housing market is lower than it was last year, the median home prices remain steady.

In the third quarter, local homebuilders began construction on over 2,000 homes, which is a 37% decline from the same time period in 2007. Home closings fell 33% from last year as well. During the first nine months of 2008, there was new construction of over 7,000 homes, showing a decline of 30% from the first nine months of last year. Again, closings have also declined for that same period. While these studies do show that the Austin market has declined, a recent PMI Mortgage Insurance Co study shows that Austin is one market least likely to see a decrease in home prices. This is due to the local inventory. Most builders are keeping their inventory of new homes at about a six and a half month rate.

Six month inventory is considered a balanced rate. This means that the supply and demand for homes in Austin is still close enough to keep the market from dropping dramatically. The median home price for Austin is still a reasonable amount, and with employment rates still very high, the overall market outlook remains good. This creates the best possible environment for home buyers and sellers in the Austin/Round Rock area.