Archive Monthly Archives: October 2005

Austin Economy Gaining Steam

Downtown Austin, TX

Austin’s economy on a roll again Confident employers pick up hiring pace

This article from today’s Austin Statesman is a great read. It outlines what is happening with Austin’s economy at present – and it’s all good news. Real Estate in Austin has returned to a Seller’s Market in the price ranges below $400,000, and we’re seeing multiple offers quite often again. Is this a good time to buy Austin Real Estate? You bet it is!
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Posted by Steve
11 years ago

Buying Austin real estate in booming suburban areas outside Austin

Young couple home buyer

Buyers often ask me about small towns surrounding Austin, such as Kyle, Manor and Hutto, where new homes can be purchased much cheaper than in Austin. Investors and first time buyers have flocked to these areas and purchased many of the homes sold there in the past 4 years, and continue to do so because of the better prices.

I’ve never personally, as an investor, liked these areas simply because it’s hard to know what they will be like in 5 or 10 years from now. I’d rather buy a beat up duplex close to downtown. I believe many of the small outlying areas are over-sold to investors and that they are also over-sold first time buyers (who are really, as far as how they take care of their homes, renters now making a mortgage payment). If you’ve read my investment page on this website, I touch on that in outlining the pros and cons of buying existing homes in established areas versus buying new homes in newly populated outskirt areas. It’s somewhat a roll of the dice, in my opinion, buying in some of “starter home” areas.
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Posted by Steve
11 years ago

Austin office market continues rebound

job growth in austin

Amid strong job growth, rents hit a three-year high; vacancy rates are lowest in four years.

The article below, from the Austin Statesman, is yet another indication that Austin’s real estate sales and rental markets may have seen the bottom of the recent three year dip. Back in 2001, when Austin bled jobs, we felt it almost immediately in the residential real estate market. In order for the rental and sales market to thrive, there has to be a steady stream of newcomers to the area coming to fill new jobs. When that activity stopped in 2001, the rental and resale markets suffered – that is all except for the new home builders who sinply sold to all of our remaining good renters.

With job growth in Austin looking good again and companies hiring, the office market becomes a leading indicator of what’s in store for the residential market. The investors that are buying large office buildings in Austin have done a lor more research than you or I, and they like what they see with regard to Austin’s economy and job market. Read the article below.
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Posted by Steve
11 years ago

August Austin Real Estate Sales Market Update

Austin Sales Market Update

Austin continues to see sales activity supporting the notion that Austin is headed toward a seller’s market. There are 4 key indicators of a tightening market – Number of Homes Sold, Active Listings, Average and Median Sales Prices, and Average Days on Market.

All four of these indicators are moving in the direction of a tightening market. Let’s take a closer look.
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Posted by Steve
11 years ago

Austin Area housing market still in high gear

Why we should invest in Real Estate

The article below is from the Austin American Statesman.

Housing starts and closings in Central Texas set a record even as mortgage rates rose and job growth slowed.
AMERICAN-STATESMAN STAFF
Thursday, October 06, 2005

Central Texas home builders continue to build and sell houses at a torrid pace, despite rising mortgage interest rates and a slowing job growth rate.

Market research firm Residential Strategies Inc. reports that annual housing starts and closings set a record in the 12 months that ended in September, with starts up 21 percent compared with the same period a year earlier and closings up 26 percent.
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Posted by Steve
11 years ago

Austin Rental Market Update – October 2005

Rental Market Update October 2005

Average rents in Austin improved very slightly in August over July to $1258 per month. The average rented price per square foot remains at $0.69 citywide and the average size rental home is 1823 square feet.

A total 4,456 single-family homes have leased through the Austin MLS Jan 2005 thru Sep 2005, an average of 495 homes per month. We continue to have just below 3 months of rental inventory in Austin, which is an over-supply and remains a renter’s market. Homes take an average of 58 days to rent in Austin.
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Posted by Steve
11 years ago