Austin Real Estate Predictions for 2015

by Steve Crossland, REALTOR in Austin TX on January 2, 2015 · 4 comments

Austin home sales 2005-2014

Austin home sales 2005-2014

What will the real estate market in Austin do for 2015?

Most likely, more of the same. More of what we saw in 2013 and 2014 Spring/Summer selling seasons, which was strong price increases caused by limited supply and increasing demand. Especially in the central core areas of Austin but not limited to just those areas. Even homes in Pflugerville get multiple offers now.

The increasing demand is coming from job growth in Austin, which is showing no signs of abating in 2015. Unemployment in Austin is a low 4%. Simply put, barring a major macroeconomic event that affects our local economy and job growth, our housing market will keep chugging along and prices will continue to rise. Nothing will stop it short term, but it will top out eventually and take a breather. Maybe in 2 or 3 years from now.

The recent drop in oil prices will affect Texas to some small degree, maybe Houston mostly, but represents nothing more than a pothole in the road for Austin currently. If anything, it could free up a bunch of construction labor that fled to the oil fields for higher pay, which would help the new home builders increase volume. New home construction is currently restricted by labor shortage and low availability of build-ready lots, which exasperates the effort to meet demand.

Current, Past and Future Values
The median value of a home in the Austin Metro area is now about $250,000. Average value will probably break $350K this summer. A decade ago median sales price was about $150,000 and the average was $225,000. That’s really only a 5% annual increase roughly, which is what we expect over a decade of time, but so much of it has happened the past few years that it feels like too much too fast.

Also, and of concern, much of the appreciation is concentrated in the central “core” areas of Austin proper, which is no longer affordable to service workers or median income families. I sold a home last summer in 78704 zipcode for $290K which sold for $58K 18 years earlier. That’s bumping a 10% annual appreciation rate over two decades. Same with a home we bought in Westlake in the low $300s in 2010 and sold for $500K in 2014. That’s a 10% annual increase over 4 years.

And wages haven’t kept up, so the median income buyer who wants to live in Austin proper, close in, will continue to be pushed out into the suburbs like Leander where a home at or near $200K is still doable, but where they will have to endure ever worsening and soul crushing commutes on our congested roads.

How Should Austintes feel about this?
The value appreciation of Austin home prices gives me mixed feelings. [click to continue…]

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And just like that, we’re moving again

by Steve Crossland, REALTOR in Austin TX on May 23, 2014 · 9 comments

moving_outHave you ever woken up on a Friday morning with no intention of moving and by 5PM that day have submitted an offer on a home? That’s what Sylvia and I recently did, and it’s not the first time.

We really thought our current place in Westlake would be our “forever” retirement home. We’ve slowly improved and updated it, but still had a major kitchen and master bath redo and expansion in our future. The location is, in my opinion, the best in Austin for both our current working/family and future empty-nester lifestyles. 8 minutes to Town Lake, Zilker or Downtown, easy access to Mopac or 360, walking distance Trianon Coffee, FroYoyo, a Thundercloud Subs and more. Even a Cap Metro bus stop 6 minutes walk from our front door goes through Zilker Park and into downtown.

Our daughter can walk to Westlake High, and we’re within even closer proximity to the elementary and middle schools, which is what draws so many families and gives the Woodhaven neighborhood such a good mix of great people. It’s really perfect. A geographically “central” location without the quirky annoyances and absurdities of the 78704 areas.

But …Prices in the ‘hood have gone through the roof. It’s not going to be affordable or practical as a retirement home. If we make the contemplated improvements, our “retirement” home – a basic 1970s rancher – would be transformed and more highly valued and thus produce an annual property tax bill bigger than I want to swallow for the next 30 years. Sure, we’d be building equity, but still, property taxes seem to have gone too high already.

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Every Austin Real Estate Offer is an Emergency Now

by Steve Crossland, REALTOR in Austin TX on February 11, 2014 · 5 comments

RedAlertLife as an Austin Realtor requires a varied set of skills. Add to those now the ability to operate under constant Red Alert conditions if you hope to be an effective Buyer’s Agent. Here is the latest example.

Sylvia had buyers in from out of town last Saturday. Both houses they liked already had multiple offers. They went in on one of the homes. It wasn’t until Monday morning we found out another offer was selected. Meanwhile 5 new properties came on the market. The buyers were leaving town Monday night. Sylvia wasn’t feeling well so I took her buyers out Monday. We found a home they liked, checked with the agent and was told at 2PM that the owner was already reviewing multiple offers from the weekend.

We convinced the agent to wait for our offer. Saw the house, liked it, drove to my home where we all sat around our embarrassingly unclean kitchen table while I wrote it up. We did “old school” signatures on paper instead of DocuSign. I scanned and emailed to the agent with a pre-approval letter, followed by a phone call to “sell it” to the agent that this was the right buyer to select. This is all done with a sense of urgency, but not panic. Nevertheless, no room for mistakes, delays or incompetence. For adrenaline junkies like me, it’s fun. But not for most people.

How did it turn out? [click to continue…]

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Enjoying the Quiet Uncrowded Austin

by Steve Crossland, REALTOR in Austin TX on January 20, 2014 · 1 comment

1497760_10152090346201998_111468925_n-2I often experience something many Austinites will never know. A quiet uncrowded Austin. No traffic. No noise. No crowds. Just peaceful serenity and bliss.

There is no turning back – no solution – for Austin’s traffic problems, congestion, growth, commercial encroachment into central neighborhoods, and myriad other small and big annoyances caused by Austin’s economic “success”. We all have to develop coping mechanisms to keep our sanity intact. Resistance is futile. You will either assimilate, or move away in disgust. I don’t want to leave Austin, I want to Love Austin. I want to keep that love alive. So I’ve adjusted my personal lifestyle and business practices in ways that equip me to better cope with the new reality of life in Austin. Here’s what I do.

Wake up at 5AM and go Running
You don’t have to run, you can walk, or do something else. Either out your front door through your still-sleeping neighborhood, or drive to your favorite hike and bike trail, park, or the gym. There will be no traffic. The city will be yours. At 5-6AM, there are typically only about 3 cars parked under the Mopac bridge at Town Lake.

Running (or walking) around Town Lake (aka Lady Bird Lake) in the pre-dawn silence, under the dim light of the Zilker Moon Tower, and the distant glow of downtown Austin, is as peaceful and quieting an experience as one can know. When I do this, usually Sunday, Monday and Thursdays, I do it unplugged. No iPod music. Just the dark silence of the morning. I usually encounter no more than a few others on the trail, depending on the weather and how early I go. By 6AM, the trail starts slowly populating, but is still uncrowded, and by 7AM, the normal early birds are there, the sun is up, and it’s no longer deserted. [click to continue…]

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Austin City vs Metro Home Prices 2013

January 12, 2014

When you read a news article about Austin real estate that reports average and median home prices, the values quoted are often those from total Austin MLS sales. Those sales figures are compiled from the entire Austin MLS service area, including suburbs, nearby cities as well as some far flung areas. The “Austin MLS” might […]

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Do Austin Production Builders Differ in Quality?

January 9, 2014

Buyers will sometimes ask “is Builder X a good builder?” My answer is that your builder’s brand name doesn’t matter enough to make it a decision point in your new home purchase decision. In other words, if a hypothetical buyer is torn between two similar to-be-built home options in the same neighborhood, I will tell that […]

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Austin Real Estate Market 2014 to Remain on Fire

January 7, 2014

Sylvia and I usually attend an annual Austin Real Estate Economic Update to find out what the coming year holds. This year, I exclaimed to her, “Why bother?  It’s going to be full tilt boogie, just like 2013“. I mean, Austin is rumbling along with all cylinders firing. There is nothing I need to hear […]

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Austin Realtors: Time to Pull the Plug on Zillow and Trulia

October 27, 2013

As of this writing, there are 837 homes for sale in the Austin MLS for which the “Syndication” choice is set to “no” in the MLS settings. That’s 14% of current Austin single-family homes for sale, a sizable number, spanning all price ranges. I applaud those Broker/Agents for not drinking the syndication Kool-Aid. This means, […]

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Would Edward Snowden Work For Zillow?

August 21, 2013

As you have no doubt heard, computer analysis Edward Snowden was so appalled by what he deemed to be egregious privacy violations and spying on U.S. Citizens by his employers the CIA and NSA, that he leaked classified information to the press to prove it, then fled to Russia where he remains. Would he have […]

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The State of Professionalism Among Austin Realtors is Poor

July 21, 2013

One of the things I struggle with as a real estate blogger is finding the balance between positive, upbeat stories and dreary negative truths about the real estate industry and the people in it. My sweet wife/Broker Sylvia has reprimanded me in the past for being too negative. So did my former “big name” Broker, […]

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The data relating to real estate for sale on this web site comes in part from the Austin/Central Texas Realty Information Service (ACTRIS).

 

Disclaimer: All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Crossland Real Estate shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless.