Good idea. I have put it on my blogging short list. I’ll be interested to see how things look 3 years later as well. I think I know, but let’s see what the data says.

Steve

venkat

“Sell now or keep” questions depend on several factors. If you’ve lived in the home 2 of the past 5 years, you have a capital gains exclusion that will expire once you’ve been out of the home 3 years, and that can be a factor.

If your tenant wants to renew and everything is running smooth with the home and you don’t need your equity, you might want to hang on to it. In other words, if you take your money out of the home, where will you put it and will it grow better than it would if left in the home.

If the tenant decides to move, and the home needs makeready repairs, paint, new carpet, etc., that can be a good time to go ahead and sell after you get the place looking nice, provided you intend to sell in the next year or two anyway.

There are income tax factors along with the capital gains that you’d need to discuss with your accountant.

I’d be happy to discuss it with you further if you email me direct or call.

Steve

We own a nice 4BR house in one of the more modest neighborhoods in Area 8E, Woodhaven, and currently have it rented for $2050 per month. Our tenant’s lease comes up for renewal May 15th. Do you think we would be better off to let the tenants renew for another year and then put it on the market next year? Or is this year’s market looking good enough to sell it this year for a good price?

David

Hi Rich,

I’m still working on year-end stats. It’s a LOT slower and more cumbersome with our new MLS system.

Steve

“In the first 3 months of 2006 in Circle C, 17 homes have leased (compared to 58 that have sold – a more balanced rent/sales ratio of 29%). The average lease amount is $1806 per month, which is $0.72 per square foot on average.”

Do you have the 2007 numbers on average lease amount for Circle C vs. Avery Ranch? Thanks!

4 years from now is hard to predict. Avery Ranch is a solid neighborhood and should remain popular for years to come. The schools are good. The downside, unless you work North Austin or in Round Rock, is the location. But for people who need to be North, it’s a great neighborhood.

Steve

– Sam

I might do an updated vesion though, with 2007 stats.
Steve

I challenge you to re-do your analysis that takes different strategies out of the equation, if you can find a way.

Data source is MLS sales. I would not be concerned about buying in Circle C. It’s rock solid, and yes, prices have moved up a great deal over the past two years. Homes below $250K are becoming fewer and farter between in Circle C.

I’ll try to run an updated comparison when I have time.

Steve

What are the source of your data points?

Do you plan to publish this same data comparison for 2007 Q1? Circle C vs Avery Ranch?

We were told by a realtor that prices at Circle C are hyped?

We plan to close on a home at Circle C and we got concened.

Your thoughts are highly appreciated.

Funny you should ask. Sylvia and I have been paying very close attention to Lost Creek lately. We have a current 8th grader in private school and would like her to attend Westlake High School next year, which may mean moving (if we don’t get an out-of-district transfer approval). If we do have to move into Eanes, we’d probably be looking hard at Lost Creek.

The location is great. We timed it at 9 minutes to our Keller Williams office on Mopac. But many of the homes are outdated with boxy floorplans, which is ok in some cases, but we’ve seen floor plans that would be tough to modernize. That said, it’s Eanes Schools and I just don’t see how that area will ever go anywhere but up.

But does that make it a good area for pure investment? I’m not sure. The rent/value gap will be bigger for sure, but area 8W is up 30% on average sold price and 14% on median sold price in 2006 over 2005. I haven’t run the numbers specifically on Lost Creek, but it wouldn’t surprise me if it’s not right in there on the median uptick.

If I owned a home there and was moving up, I think I’d hang on and rent it for a year or two before selling if I could. Would I buy one there today as a pure investment? Still not sure, I’d have to analyze it closer.

Steve

I found your comments on the comparison of Avery and Circle C to be quite informative. I am considering a relocation from the North East to Austin and have been trying to determine if NW or SW Austin was where I’d prefer to settle. You briefly mentioned at the end the various priorities home owners may have such as commuting. Can you offer any insight in comparing commutes from these two areas? Assuming one was heading into downtown?
Also, on brief visits it had seemed to me that the SW area offered larger properties than other areas and thus an increase in privacy. It did seem less developed in terms of shopping, roads, etc but it seemed to me this was the new growing area. Are these misconceptions?

Any insight is MUCH appreciated.

Thanks
Sandy

But if we look at MLS area 6, within which the Bouldin and other popular south/central neighborhoods such as Travis Heights are located, and comparing Jan-Apr 2005 to Jan-Apr 2006, we see …

Avg sales price increased from $243K to $301K = +24%
Median sold price increase from $225K to $265K = +18%
Avg sold per sqft increased from $182 to $206 = +13%

This is from 67 sales in the Jan-Apr 2005 time span, and 103 sales in the Jan-Apr 2006 time span.

Thank you for your comparisons of Circle C and Avery Ranch. Could you provide the same information for Belterra (vs. Circle C)?

Thanks..
Debbie