Austin Real Estate | Austin Homes for Sale » economy

Austin Ranks Number One Nationwide in Economic Recovery

Austin Realtor — Wed, 10 Mar 2010 01:34:01 +0000

According to the Forbes Business Journal, Austin is tied for first place as the metropolitan area showing the most signs of economic recovery; Washington, D.C. was the other first-place contender. This is in line with 2009 estimates by Forbes that Austin was positioned for a swift rebound; financial analysts predicted at that time that Austin’s economy would grow by $5 billion before 2011. Austin’s speedy recovery was attributed to its strong government sector; as the capital of Texas, Austin benefits significantly from stable government employment in the area.

Austin tops in economic recovery

Aggressive moves to attract new companies by both the city of Austin and the state of Texas have also provided additional employment opportunities. The Austin area has attracted several new employers in recent years including the Hanger Orthopedic Group; Austin is currently in negotiations with Facebook to open an office, as well. Austin’s historically strong education, healthcare, and green technology sectors have ensured that unemployment rates in the metropolitan area remain lower than the state and national average. Recent figures indicate that Austin’s employment picture continues to improve. Job growth in Austin over the past two years approached one percent, the best in the nation; while this growth rate may seem small, it’s worth noting that over the same period the United States as a whole lost jobs and saw unemployment rates skyrocket. In fact, Austin’s employment picture is expected to improve even more over the next three years, with jobs in the area increasing by approximately eight percent overall. One major factor in the stability of the Austin economy is the housing market. While other regions experienced serious declines in property values and increases in foreclosures and unsold homes, homes in Texas retained almost all of their initial value and demand for these homes remained high throughout most of the industry crisis. Most analysts credit reasonable real estate pricing and lack of overbuilding for Austin’s relative stability and economic performance; because Texas real estate prices were never overinflated due to real estate speculation, the collapse of the housing bubble had little effect on the area. These recent figures and predictions spell good news for the Austin real estate and business community. Increased growth and employment is expected to bolster the commercial and residential real estate market and boost new construction, creating still more jobs and growth in the area. This synergy will maintain Austin’s position as one of the best cities in the nation in which to live and work.

Real Estate Recovery

J Cline — Tue, 25 Aug 2009 05:25:50 +0000

Over the last three years there has been sharp downswing in housing prices. In many markets the prices dropped out quickly, not stabilizing until only recently. As foreclosures rose, many didn’t believe they housing market was going to stabilize any time soon. This thankfully, has not proven to be the case. Recent reports and studies have revealed that in 2009, specifically since the second half has begun the housing market in stabilizing and reestablishing solid markets where a loss was drastic previously. Home sales are up creating the most stable market since the mortgage crisis began. The 8 thousand dollar tax credit is being given some credit for easing the decline and initiating the incline in single family home purchases. This tax credit will expire on November 31st, 2009, this crucial deadline combined with lower interest rates have become the saviors of the housing market. In May of 2009 the OFHEO or Office of Federal Housing Enterprise and Oversight announced the first of a steady increase in home prices, over previous months. It edged up that first month with .09% and has continued every month since. In one area of significant concern with the mortgage crisis, the pacific coast has registered one month with an increase of 2.7% showing significant improvement. As the market continues to stabilize, buyers come out of the woodwork, and housing prices are starting to inch back up to more anticipated levels. This proves real estate and the economy as a whole has entered a state of recovery.

Energy Audit and Disclosure in Austin

J Cline — Fri, 17 Apr 2009 06:58:30 +0000

Starting this June, those who wish to sell a home in Austin will be required to have their home inspected for energy efficiency. This new ordinance does not require the seller to upgrade any leaks or other problems that may be found, but it does state that the buyer be made aware of the outcome of the audit via disclosure. Of course, given the current market and economy, anything that may decrease the value of a home should be repaired prior to sale. Buyers don’t want to think of what needs to be fixed when looking at a home, so it will be better to make any necessary upgrades before putting the house on the market. The energy audit will be looking into four areas of energy efficiency. There will be a duct pressure check on the air conditioning unit to check for leaks. Weather stripping around doors will be inspected. Shades and screens, especially on the east, west, and south sides of a home will be looked at, as will the type of insulation found in an attic. Energy Raters can be found online at Austin Energy’s Website, and will generally run about $300 for every 2,000 square feet. If you decide to go ahead with the upgrades, the home will need to be inspected again when complete. There is another option considered in compliance with the new ordinance. Homeowners can participate in the Home Performance with Energy Star Certificate program. Homes that have already done so within the last ten years are exempt from the ordinance. In this case, a home performance contractor will inspect the home, sometimes for free with a bid for work. The same areas will be reviewed as with the energy audit, and then the information will be sent to Austin Energy for review. To receive a certificate of completion, three of the requirements must be met or the homeowner must have received a rebate of $500 or more from Austin Energy. In either case, Austin Energy must approve the upgrades for energy efficiency. The information must be contained within the Seller’s Disclosure and is good for ten years.

Meet: Brewster McCracken – running for Mayor

J Cline — Wed, 15 Apr 2009 06:57:13 +0000

Like many cities in the nation, Austin is facing some serious issues that need to be handled by a new Mayor beginning in May. There are several candidates to choose from this election, including two that currently sit on the Austin City Council. McCracken has been an intense supporter of Austin’s ever growing technology sector. He chairs the council’s Emerging Technologies Committee and the Land Use-Transportation Committee. A Corpus Christi native and graduate of Princeton and the University of Texas School of Law, McCracken has served as a prosecutor for Harris County in Texas. McCracken has also been a staunch supporter of all things green in Austin, helping to make Austin Energy the first utility nationwide to open its grid for clean energy companies to test their technologies. The major issues faced by Austinites during this election include the city’s budget, transportation and infrastructure, and the environment. McCracken’s way to a better economy entails the embrace of emerging technologies within clean energy, biotech, film and digital media. McCracken hopes to commit to puting solar power onto 100,000 homes in the next ten years, again by investing in emerging technologies. He plans to create an endowment to ensure that Austinites have every opportunity to learn green collar jobs and healthcare professions, citing “we want everyone to be included…including the less fortunate.” With so many issues facing the candidates, it is important to know where each one stands on the matters that are important to Austin. Remember, early voting begins April 27th, with Election Day on Saturday, May 9th. For more information about Brewster McCracken, visit his website www.brewstermccracken.com

Unemployment Worsens in Rio Grande Valley

J Cline — Sat, 04 Apr 2009 06:45:22 +0000

The state of Texas has a much better unemployment rate than the nation does at this moment. Several strong city economies have helped to keep Texas below the 7% unemployment rate thus far. Austin, for example, has an unemployment rate of less than 4%, and has actually managed to create jobs despite our stumbling economy. There are areas in Texas, however, that have not been spared the drag of the current recession. The Rio Grande Valley, which borders Mexico, has a current unemployment rate of 9.5%. The Labor Workforce Commission released a report recently that stated 1 in 10 residents of this area were out of work in the month of March. There are several reasons why this part of Texas has been hit so hard when compared with the rest of the state. First off, its proximity to Mexico means that it is more affected by the decline in value of the peso. Also, there are many migrant workers who make residence here, but travel to harvest crops. They will then return home and remain unemployed while living off of what they have earned elsewhere. It is also believed that many residents do travel out of state for other employment, such as factory work, which has been hit hard by the economy. When they are laid off, residents return home to an equally sparse job market. The most recent report has the state of Texas’ unemployment rate at 6.7%. The national rate as of now is 9%. At the moment, it is anyone’s guess as to when the recession will begin to turn. Most experts believe that 2009 will see more of the same as we did in January and February. While Texas may hang on better as a state, there will still be areas in need of help to recover.

Austin Home Prices Increase Despite Economy

J Cline — Mon, 30 Mar 2009 12:21:03 +0000

It should be no secret by now that Austin and its surrounding areas have fared well throughout the recession. The city has been named to numerous Top Ten lists in magazines such as Forbes, and online on various websites. The plans for downtown reconstruction and remodeling will only serve to increase the city’s charm for businesses and residents alike. Austin did not share in the nation’s real estate boom several years ago, so while many comparable cities have faced huge losses in home values, Austin has not fallen quite so hard. There has been a slowdown in the real estate market, of course. Houses have sat longer than in previous years, but affordability and location have kept people looking to Austin for a place to settle. This week, the Federal Housing Finance Agency released a report stating that Texas home prices increased by just over 2% in 2008. The Austin-Round Rock area actually increased home prices by 4.4%, according to the same report. January saw an increase in home sales for the area. While many economists believe that 2009 will be a bleak year, it is important to note that the Austin economy is in better condition when compared to the nation. The bottom of the real estate crisis is expected this year, with home values and prices beginning to increase in 2010, according to many experts. Austin has maintained so well due to many factors. As previously mentioned, the housing bubble did not exist here. Homes in the last several years were in high demand, while supply was limited. Add to this the fact that Austin actually managed to create about 20,000 new jobs in the past year. The unemployment rate here is less than 4%. The Austin area is expected to emerge from this recession well above many other similarly sized cities throughout the nation.

US Foreclosures Create Good Deals for Foreign Buyers

J Cline — Sun, 15 Mar 2009 06:28:19 +0000

The United States has been gripped in an economic downfall for years. The first and most dramatic show of the dwindling economy has been the national real estate market. Home foreclosures have risen so dramatically that the Federal government has had to bailout several financial institutions and in the process of creating a new plan to help save homes. The national job market has equally been affected by economic woes, making it even more difficult for many people to even consider buying a home. For all of the hardships that we are currently coping with, it appears that opportunity is knocking for foreign investors. Homes in many of the nation’s hardest hit areas are being sold for taxes due. This has encouraged many foreign buyers, as far away as Australia, to purchase several homes in the U.S. as investment opportunities. Homes have been listed for as low as $1. Australian vacuum cleaner manufacturer Theo Szinger has already purchased several homes in the Detroit, Michigan area for less than $5,000. There are many houses available now for mere thousands of dollars that less than two years ago had been valued at more than $200,000. Many of these homes are in excellent condition; the current owners are just unable to keep up with payments. As Americans continue to struggle to keep their homes, foreign parties are expected to continue to take advantage of the deals now offered throughout the nation. Homes are now available for less than the price of a used car. These homes have become a good source of income for buyers.

Mixed Use Property to Open in Summer

J Cline — Sun, 15 Feb 2009 06:37:39 +0000

Downtown Austin is under construction. As the national commercial market continues to struggle, Austin is still a perfect spot for companies and investors. The workforce is strong here, and unemployment has stayed low despite the national increase. The city has undertaken several plans to better the area downtown for residents and businesses. The Downtown Austin Plan has five major goals, including keeping the area a competitive place in the region, and to reinvest in the public realm. To achieve its goals, Austin has become a mixed use development haven where residential and commercial properties are one in the same. The purpose of these developments is to help encourage more people to move within city limits where they will be at easier access to the steady workforce here.

One such development will be opening midsummer with a fully pre-leased property. The Capstar at Compass Plaza will be adding 115,000 square feet of residential and commercial space to W Fifth Street. This includes offices, apartments, and retail space and is the first major downtown office building since 2001. Major tenants for this building include BBV Compass Bank and Capstar Investment Partners LP. The building will also be home to Girling Healthcare Texas LP and DMX, Inc. The site was developed by Capital City Partners. There are several more mixed use developments in various stages throughout downtown. Austin’s economy and unemployment rates continue to be below the national average, making it a safer place for investing. As the city strives to maintain its place, more opportunities will arise to take advantage of all of Austin’s resources.

Home Sales Looking Up

J Cline — Wed, 11 Feb 2009 06:36:37 +0000

We are in a very tough economy right now. In the past couple of years, the housing market has been at the forefront of this. Home values have dropped so significantly in some areas, many homeowners face a current mortgage loan worth more than their home. Foreclosures have increased nationwide, and even the Federal Bailout plan has not seemed to help the market as much as expected. Banks have tightened their lending practices and have made it nearly impossible for those with less than perfect credit to purchase a home. Many investors have chosen to stay out of the market as they wait for it to get better. Most experts believe that the national housing market will begin to see increases sometime in 2010. In the meantime, some good news has recently been released in the form of a report stating that pending home sales have actually risen more than 6% since November of last year.

The National Association of Realtors reported that pending home sales for December were at 87.7 for previously owned homes. That is a 6.3% rise from November, the lowest month on record as 82.5. Realtors are hopeful this increase is the beginning of the end of the national market crisis, but do remain aware that the overall economy must also get better to fully pull out of the crisis. It is important to note that these increases were from the South and the Midwest. Pending home sales in the West and Northeast continue to decline. Sales of newly built homes are also low. While several investors are cautiously reentering the market, no one is quite prepared to go all in yet. There is more funding in the Federal Bailout plan that will hopefully help to better the overall market and help to stimulate the economy.

Commercial Woes in Austin

J Cline — Wed, 07 Jan 2009 06:19:15 +0000

Austin has been a haven for many businesses, even throughout the recent economic crisis. Dell has its headquarters here. The fast population growth, technology enterprises, and proximity to colleges have made it a great city for business development. The current state of the economy, however, has put a damper on planned building for 2009. Mixed used properties are the most recent addition to the downtown Austin skyline. There remains demand for apartment space as well as commercial in this area. With an increase in supplies for building at lower rates has only helped in these developments. Unfortunately, it appears that the demand is not as high as originally expected. Many mixed use and commercial properties are being built without pre-leasing. There are many buildings that sit vacant in Austin. Experts blame the same factors that have drawn people here for the current crisis. Apartments have been in high demand here based on local college. The tech boom brought many new employees to the area in the last several years and while the population is expected to continue its increase, less people are able to move now with the credit crunch. Many developers have put construction projects on hold as they wait for the economy to steady. Austin is still expected to come out of the recession in better condition than many other cities. Unemployment rates here remain lower than the national average, and it is still considered a good investment city for many businesses. The economy is expected to get better here by 2010.