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 [...]
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.
Round Rock is not just a suburb of Austin. It is a community that has flourished amid the recent economic woes. The schools here are top notch and the cost of living is still reasonable. It is home to some big companies, which helps to maintain a low unemployment rate. Residents of Round Rock consider [...]
Round Rock is not just a suburb of Austin. It is a community that has flourished amid the recent economic woes. The schools here are top notch and the cost of living is still reasonable. It is home to some big companies, which helps to maintain a low unemployment rate. Residents of Round Rock consider it a town that would be a good choice to live, no matter who you are.
Founded in 1851, and later named for a smooth rock in the center of Brushy Creek nearby, Round Rock has made it to the top of several lists such as best place for young people and best place for relocating families. Dell has headquarters here supplying about 9,000 jobs. The unemployment rate as of early 2008 was 3.6%, at a time when nationally it is more than 5%. The median home price remains around $250,000. Business Week named Round Rock as one of the best areas for real estate bargains. The city itself boasts many shopping attractions, including an outlet mall. Sports are another big attraction here. Nolan Ryan owns the Round Rock Express, the city’s own minor league team. Parks are maintained beautifully, leaving a lot of room for residents to relax and enjoy nature or golf.
Those who call Round Rock home love it for all it has to offer. There is a small town feel to this city that has all the amenities. Commutable to Austin, many have chosen to live here for this community feel. The future looks bright in this city.
The Austin area has been recognized nationally for staying strong among the mortgage crisis. Median house prices have remained fairly steady in area such as Round Rock. The job market has remained healthy here, creating even more security during a tough economic year where everyone is concerned for their jobs. Companies are still moving to [...]
The Austin area has been recognized nationally for staying strong among the mortgage crisis. Median house prices have remained fairly steady in area such as Round Rock. The job market has remained healthy here, creating even more security during a tough economic year where everyone is concerned for their jobs. Companies are still moving to Austin, thus keeping a steady demand for houses. While many builders have slowed down a bit, the supply is still readily available.
Of course, Austin has not been completely impact free. The housing market has slowed down a bit. In September, just over 1,800 homes were sold in and around Austin. According to data maintained by the Texas A&M Real Estate Center, this is down about 10% from the same time last year. The median price for a house in Austin is around $183,000. This is a small increase from last year. It seems this is exactly how Austin has fared so well. Real estate markets are governed by the basic supply vs. demand. Most local builders have decreased their inventory to about six months. This is considered a good amount for a solid market. Housing prices have never exploded in Austin, which is what has happened in other areas of the country affect badly by the mortgage issues. This small, but steady, increase has been leveled with steady employment rates. What this creates is an area where the real estate market can still flourish. The Austin area has made it to the top ten of several studies as one of the best areas for both housing and job growth.
According to new data from the US Census Bureau, Austin’s population grew by 18,000 new residents between July 2006 and July 2007. This makes Austin the eighth fastest growing city in the US during this year. Houston led the pack with 39,000 new residents.
In July 2007, Austin’s population stood at 743,074, a growth of 2.4 [...]
According to new data from the US Census Bureau, Austin’s population grew by 18,000 new residents between July 2006 and July 2007. This makes Austin the eighth fastest growing city in the US during this year. Houston led the pack with 39,000 new residents.
In July 2007, Austin’s population stood at 743,074, a growth of 2.4 from 2006. Many of the neighborhoods immediately surrounding the city of Austin showed significant growth between 6 percent and 25 percent, many in the 11 percent to 25 percent range. This increase in population offers opportunities as well as posing challenges for managing and controlling the growth.
Within Texas, four suburbs around Austin made showed significant growth during the year between July 2006 and 2007, and were numbered among the 25 fastest growing cities in the state. Cedar Park ranked 11th, Round Rock was 16th, Georgetown came in at 19th and Pflugerville was 22nd.
The growth has slowed, due in part to the real estate meltdown that, while hasn’t been as significant as the rest of the country, still has had a small impact on the Austin area economy, and the state as a whole. Even so, Betty Voights, executive director of the Capital Area Council of Governments (CAPCOG) declares that, “while fewer people may be moving here now compared to the last few years, we’ve seen five cities in the region double in population size over the last five years regardless of the housing downturn.”
Plans are in the works to develop a 1,000 acre area northeast of Round Rock near the new Seton Medical Center and the Higher Education Center. The land is owned by the Avery family and they have partnered with the Waterstone Development company to begin a mix use development project in the area.
The project, named [...]
Plans are in the works to develop a 1,000 acre area northeast of Round Rock near the new Seton Medical Center and the Higher Education Center. The land is owned by the Avery family and they have partnered with the Waterstone Development company to begin a mix use development project in the area.
The project, named the Avery Center, calls for as many as 1,200 single family homes and 5,500 rental units. Townhouses, student housing, and higher end homes are planned, along with a 132 acre retail area which will include stores, restaurants and professional office space. Open space is planned, with a lake, trails and park areas, with 100 acres being set aside for this purpose. The plans also include a church, school, and a child care center.
The developer is working with Round Rock city officials on a plan for bus service for residents of the development to Seton, Austin Community College, the State University, and other places of study and employment.
The project is expected to take 10 to 15 years to complete and add $1.6 billion to the tax rolls. This area of Round Rock is one that is doing well developmentally, in spite of financial troubles that have slowed or halted other projects. The national real estate and credit crisis that has affected so much of the markets hasn’t had the same impact in the central Texas area.
Robert Wunsch, chief executive officer of Waterstone, is being picky about who he chooses to build the homes and rental units. He wishes to stay close to the vision that the Avery family has for their land and intends to maintain a high set of standards for construction and design. The houses will range in price from $180,000 to over $1 million.
Newsweek’s annual list of nationally ranked top high schools this year includes three Round Rock Independent School District schools. Westlake High School was the highest ranking of the four Central Texas schools, coming in at 52. Among the Round Rock schools that ranked is Westwood at 78, McNeil High School coming in at 680 and [...]
Newsweek’s annual list of nationally ranked top high schools this year includes three Round Rock Independent School District schools. Westlake High School was the highest ranking of the four Central Texas schools, coming in at 52. Among the Round Rock schools that ranked is Westwood at 78, McNeil High School coming in at 680 and Round Rock High School at 827. This is out of a 1422 schools that submitted their data to the Newsweek staff.
Jay Mathews, a writer for Newsweek, created the ranking using a ratio derived by taking the number of Advanced Placement, International Baccalaureate, and/or Cambridge tests taken by students divided by the number of graduating seniors. Other statistics gathered by the author include percentage of subsidized lunches and percentage of graduating seniors that have at least one passing grade on one Advanced Placement or International Baccalaureate test.
This is Westwood’s fifth appearance on the list, having taken rankings of 92, 104, 76, and 60 in 2007, 2006, 2006 and 2003 respectively. McNeil has been on the list twice previously, in 2006 and 2007. Westlake has also appeared in 2007, 2006, 2005 and 2003 with rankings of 97, 106, 72, and 37 respectively. Round Rock has made the same number of appearances, in the same years, ranking 671, 433, 448 and 475.
There were a number of other Austin area schools included on the list. LBJ, which showed up on the list last year has moved up in the rankings, from 144 in 2007 to 97 in 2008. L.C. Anderson also appears for the second time. Other Austin schools on the list are W.Charles Akins, David Crockett, Stephen F. Austin, McCallum, Lake Travis, and James Bowie.
Austin Area Market Summary – From Coldwell Banker Austin
December 2007:
Compared to 2006, the number of single-family homes sold dropped by 8%. During the same time, the average sales price increased 6% to $250,552.
The total number of single-family listings is up 10% compared to this time last year.
The months of inventory in the Austin market [...]
Austin Area Market Summary – From Coldwell Banker Austin
December 2007:
Compared to 2006, the number of single-family homes sold dropped by 8%. During the same time, the average sales price increased 6% to $250,552.
The total number of single-family listings is up 10% compared to this time last year.
The months of inventory in the Austin market has increased to just over 5 months, which is beginning to favor buyers.
The average days n the market for single-family homes remains steady at 62.
The Austin real estate market has experienced a decline in transactions through the MLS for the first time in many years. That said, Austin’s average and median prices continue to increase. The Austin area continues to be rated in multiple categories among the nation’s top cities to live.
Georgetown: (average price is up 7% from a year ago to $224,353) Sales of single-family homes for 2007 are down 5.5% compared to 2006. There is 5.5 months of inventory and the number of active listings has increased very slightly to 484.
Round Rock: (average price is up 6% from a year ago to $211,146) Single-family home sales are down 5.6% compared to 2006. There is a balanced 4 months of inventory of homes available. Compared to last month the number of active listings has remained steady at 911. This area is among the top 20 most active Austin MLS market areas.
Cedar Park/Leander: (average price is up 10% from last year to $199,855) Single family home sales decreased 9% for the year and the active inventory is balanced at 3.6 months. The number of active listings is steady from last month to 670. This area is among the top 25 most active Austin MLS market areas.
North/Northwest: (average price for 2007 compared to 2006 is up 8% to $309,136); single family home sales in this area are off 17.6% compared to last year. The number of active listings is down 11% compared to last December, and steady from last month at 273 units. This represents a healthy 2.6 months of inventory, which favors Sellers. This area is in the top 20 most active Austin MLS markets.
Westlake: (compared to 2006, the average sales price rose in 2007 by 10% to $790,436) Single-family home sales in this area are down 12% compared to this time last year. Currently, there are 219 active listings; this is down 10.6% compared to last December. There are 5.6 months of inventory, which slightly favors buyers.
Southwest: (the average sales price for 2007 compared to 2006 is up 12.8% to $228,546) Single-family home sales are down 10.7% compared to this time last year. There is a 2.3 month supply of homes, which favors Sellers. The number of active listings is up 2% to 433. The Southwest area is among the top 10 Austin MLS markets.
South: (the average sales price compared to last December is up 11% to $150,081) Single-family home sales are identical to 2006, and there are 3.3 months of inventory, which reflects a balanced market. Active listing inventory is steady at 177.
Lake (South shore): (the average sales price for 2007 is up 7.7% over 2006 to $477,681) the number of homes sold this year is 18% less than last year. The months of inventory has dropped slightly to 9.9 months, which favors Buyers. There are 732 homes for sale, which is slightly less than last month, and 34% more than this time last year. With the average sales price continuing to increase and inventories at high levels, this is an indicator that buyers are finding greater value in higher priced properties.
High-tech, a booming film industry and the University of Texas all helped propel Austin to the top of Forbes’ 2008 list of America’s Fastest Growing Metros.The magazine ranked Austin No. 1 among the nation’s 100 largest metropolitan areas.
Even though 2007 was a record breaking year and the national economy appears to have taken a hit, Austin is going gangbusters. You’ve got to know things are going well when the mainstream media says the “Austin economy spanks the competition”. Here’s to a great 2008! If you’re thinking about moving to Austin, give us a call. It would be our pleasure to help!
bizjournals.com
Austin economy spanks the competition
Thursday January 31, 3:41 pm ET
High-tech, a booming film industry and the University of Texas all helped propel Austin to the top of Forbes’ 2008 list of America’s Fastest Growing Metros.The magazine ranked Austin No. 1 among the nation’s 100 largest metropolitan areas. The list sorted cities by their anticipated gross domestic product growth between 2007 and 2012. Austin’s GMP, or the value of goods and services produced in the area, is expected to climb 32 percent over the five-year period.
Forbes credits the local boom to high-tech employers like Dell Inc. (NASDAQ: DELL – News) and IBM (NYSE: IBM – News) as well as the University of Texas, which is producing ample engineering talent. …Forbes used GMP forecasts provided by Moody’s Economy.com. …
Published January 31, 2008 by the Austin Business Journal
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 [...]
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.
