Austin Home Sales Surge While Commercial Properties Continue to Lag Behind

Austin Realtor — Wed, 21 Apr 2010 01:14:43 +0000

Commercial Foreclosures Up

Austin home sales rebounded dramatically in the month of March according to figures just released by the Austin Board of Realtors, up 27% over the same time period last year. The median home price remained stable year-to-year at approximately $180,000; this is widely regarded as good news for Austin’s real estate market, which has proven remarkably resilient during the recent housing industry downturn. While some of the increase in sales can be attributed to the extension of federal home buyer’s credits, Austin’s forward-thinking approach to development and green energy attracts a sizable number of buyers as well. The Austin area real estate market has experienced three straight months of increased sales in 2010, providing further evidence that the housing crisis may be over in Austin and the surrounding areas. High demand has boosted confidence among investors and resulted in fewer days on the market for most homes; the average number of days on the market has fallen by 16% compared to March 2009. Condominiums and townhome properties have been among the most popular, which may indicate adoption of downsizing and a “living small” approach among new homebuyers. Another factor may be the increases in residential rental costs in the Austin area, which are among the highest in the nation in recent months. The good news in the housing market is in sharp contrast to recent developments in the commercial real estate world. Austin and the Central Texas area have recently experienced a significant increase in commercial foreclosures, many of which have already been auctioned off or are expected to face the auction block soon. This increase in foreclosures has begun to drive down commercial real estate prices throughout the Austin area. So far the price reduction is not as drastic as that experienced in some other parts of the country; this is in part due to a major slowdown in construction of office buildings and other commercial projects over the last year. As demand continues to increase, the rental and lease rates for commercial properties are expected to rise accordingly throughout the rest of 2010.

November 2009 Home Sales Increase by 58% over 2008 Figures

Austin Realtor — Wed, 30 Dec 2009 19:37:30 +0000

After a year of sluggish sales, Austin saw a large jump in November '09.

A last-minute scramble to take advantage of tax credits and low interest rates is credited with a 58% increase in Austin home sales in November 2009 over the same period last year. The increase in sales is the largest in over a decade, and offers hope for recovery in the beleaguered residential real estate market. While overall home prices in Austin continue to fall, the decrease has begun to level off and seems to be reaching a state of equilibrium, allowing anxious sellers a well-deserved sigh of relief. Analysts point to the recently extended First-Time Homebuyer Credit and interest rates that have dipped below five percent as the primary causes for this significant increase in sales. Additionally, while median home prices in Austin have not fallen as sharply as some experts had predicted, appreciable reductions in the asking prices of many homes have led to a surge in bargain-hunting by home buyers who might otherwise be priced out of the market. The median price of a single-family residence in Austin has decreased only two percent over the past year, demonstrating the resiliency and stability of the housing market in the metropolitan area. Most real estate experts are cautiously optimistic about Austin’s residential real estate market going into 2010. Sales are expected to continue to grow more slowly, with no repeat of November’s record-setting figures. The expansion of the federal tax credit for first-time home buyers and continued low interest rates will likely continue to attract buyers to the market, especially in entry-level communities. However, as the economy begins to rebound, interest rates are expected to return to over five percent, and home sales will slow as a result. As consumer confidence improves, economic conditions in Austin and throughout Texas are expected to continue to rebound, providing employment opportunities and spurring additional sales of new and existing homes. Home prices are expected to increase as well in correlation with the anticipated growth in demand. With ultra-low interest rates, federal incentives, and the current undervaluing of homes on the market, most real estate advisors believe that now is the time to invest in residential real estate, before interest rates and values return to higher levels later in 2010.

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Austin Home Sales Surge While Commercial Properties Continue to Lag Behind

November 2009 Home Sales Increase by 58% over 2008 Figures