So 2006 – Crossland Team

Archive Yearly Archives: 2006

Austin Real Estate Market – Another Favorable News Article

Here is another favorable news article regarding the Austin real estate market and expected homes sales activity in 2007.

Thursday, December 28, 2006

Austin home market expected to remain strong next year
Home prices up significantly in 2006 and expected to be higher in 2007.

Central Texas home builders have been offering plenty of year-end discounts and bonuses to boost sales, but that doesn’t mean that the Austin area housing market is cooling or that prices are falling.

Strong job growth, a steady influx of new residents and relatively affordable prices have kept the Austin housing market strong, even as markets on the East and West coasts faltered.

That isn’t likely to change in the coming year.

Angelou Economics predicts the Austin area will add about 20,000 jobs and 40,000 residents next year, about as many as were added in 2006. According to Texas Workforce Commission, Central Texas’ total work force reached a record 728,100 in 2006.
Read more …

Posted by Steve
11 years ago

Austin Real estate to remain strong in ‘07

This article is about commercial real estate, but good news for commercial real estate is good news for residential real estate as well.

From the Austin Business Journal
Friday Dec 29, 2006

A new report from a national real estate services firm is telling investors what many of them already know–Austin’s a good bet in 2007.

The capital city’s retail sector placed third in Integra Realty Resources’ annual IRR-Viewpoint, which ranks U.S. markets with the greatest commercial real estate potential in the coming year. The report looks at the four main commercial property sectors: office, retail, industrial and multifamily. Austin’s office and multifamily markets ranked fifth in their respective classes.

The booming city of Las Vegas ranked No. 1 in the office, retail and multifamily categories with Miami taking the lead in the industrial sector. Among other Texas cities, Fort Worth ranked No. 2 in the office category while Houston placed fourth in industrial.

Integra determined the rankings through a national survey and research that looked for markets with positive growth patterns, strong current conditions and enough absorption to accommodate current vacancy and planned projects.

Posted by Steve
11 years ago

Austin Real Estate Market – November 2006 Sales Stats Update

Austin Average Sales Prices for Nov 2006 are up 5.7% from Nov 2005, and up 9.7% year to date. The Austin market sold 10% more single-family homes so far this year than last, and the Day on Market are about the same as Nov last year but down 11% Year to date. The Austin real estate market continnues to move in a positive direction overall.

Out of 55 Austin MLS areas charted below, only 3 have year over year decreases in average sales prices. Of the 55 Austin MLS areas, 30 have double digit appreciation of average sales prices. Of those 30 MLS areas, 13 areas have appreciation of 15% or greater. Austin’s real estate market is very strong and will continue to do well in the coming years, in my opinion.

Austin Sales Stats November 2006
Previous Month and Year Comparison
All MLS Areas - Houses Only

October 2006
Nov 2006
Nov 2005
Yr % Change
# Sold
Avg List Price
Median List Price
Avg Sold Price
Med Sold Price
Avg Size SQFT
Median SQFT
Avg $ per SQFT
Avg Days on Mkt
Median Days on Mkt

Below is the 2006 year to date totals compared to the same period of time (through November) of 2005.

Read more …

Posted by Steve
11 years ago

Austin Job Market Looks Good – hiring managers optimistic

This article is from the Austin Business Journal. Job growth drives the real estate market more than anything else. Austin’s job growth continues to look better than the nation as a whole.

Austin Business Journal (12/13/2006)

More than a third of Austin employers will look to hire in the first quarter of 2007, according a recently released report.

The Manpower Employment Outlook Survey, a quarterly employment forecast, finds that 38 percent of companies expect to hire more employees from January to March. Only 3 percent surveyed were planning to let people go during that period.

However, those numbers aren’t as rosy as they were a year ago, when 47 percent of employers were looking to add jobs and none expected to cut them.

The best job prospects are in construction, durable goods manufacturing, services and public administration.

The Austin area might outpace the nation as a whole, in regard to job growth. According to the survey, about 23 percent of U.S. employers were expecting to hire in the first quarter of 2007, while 11 percent were going to cut staff.

The Manpower Employment Outlook Survey has run for more than 40 years, and polls more than 14,000 public and private employers in 460 U.S. markets. Manpower Inc. (NYSE: MAN) is a $16 billion employment services company.

Posted by Steve
11 years ago

Austin Rental Market – Nov 2006 Update

The Austin Rental Market for single family homes continues to show modest gains over a year ago. As you can see on the graph below, 2006 looks like it will be the year when rent values in Austin finally took a turn upward after falling for 4 years in a row.

Austin Rental Market - Nov 2006 YTD

See below for more charts and the complete update. This month I’ve added a new column to the MLS Area breakout of YTD Leasing stats. More on that below.

Read more …

Posted by Steve
11 years ago

Foreclosures: Blame It on Second Mortgages

I thought this was interesting. Again, people are over-borrowing against real estate and getting into trouble. At our sales meeting this morning a Mortgage person updated us on a few things and then wanted to make sure we knew that they can do so-called 80/20 loans (80% first mortgage, 20% second mortgage = 100% loan) so our buyers can buy property with zero down and no PMI. I have to bite my lip. I want to shout out “quit giving people loans who can’t afford to pay a downpayment to buy real estate!”

The article below backs me up. Unless used purly as a leveraging strategy by investors who know what they are doing (and have the cash on hand to buy out if needed), I can’t think of a good reason for anyone to borrow 100% when purchasing a home, thereby becoming upside down on the mortgage payoff vs. attainable sales proceeds from day one.

From the Wall Street Journal:

Mortgage lenders are tightening their underwriting standards as more homeownership ends in foreclosure, but a new study suggests that the popularity of second mortgages could undermine their efforts.

New data in a research report from securities firm UBS shows that nearly half of all loans delinquent for more than 90 days this year also have second mortgages, while 30 percent of loans that are current have them, according to the UBS report.

“Mortgages that have a second mortgage behind them run a far higher risk of default,” says Zach Gast, a financial analyst in Rockville, Md., for the Center for Financial Research and Analysis, an independent research group. Gast says borrowers’ debt-to-income levels are similar for all mortgages, regardless of whether payments are late or current, suggesting the second mortgages are pushing borrowers into delinquency or default.

Posted by Steve
11 years ago
1 2 3 23