Comments on: Home Values for the Top 20 Markets http://crosslandteam.com/blog/2007/08/02/home-values-for-the-top-20-markets/ Austin Real Estate Blog Fri, 11 May 2012 17:13:15 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Mare http://crosslandteam.com/blog/2007/08/02/home-values-for-the-top-20-markets/#comment-812 Mare Sat, 11 Aug 2007 22:33:18 +0000 http://ben.crosslandteam.com/blog/2007/08/02/home-values-for-the-top-20-markets/#comment-812 >>I believe your point is that job growth doesn’t always drive a real estate market. That was, IMHO, the biggest point the blogger was making there - actually, I think that's the point of most of the blogger's posts. Supply and demand (and this is just what I'm deriving from the article) aren't the major driving forces of that market (as their local media tends to portray), but rather an unhealthy perception of how wonderful it is. Seattle has some great things going for it: a) The economy there is going well; b) Seattle can't sprawl like Austin - it's surrounded by mountains and ocean; c) The tech sector - and the high salaries that go with it - are an integral part of their economic base; d) The subprime fallout hasn't really hit - yet. While all of that is good, I have to agree with the blogger. They can't sustain that appreciation forever, and that market won't level out and trough like a normal cycle should. I see Austin as a miniature of Seattle - although we're seeing appreciation for the right reasons, I worry that it will get out of hand. >>I believe your point is that job growth doesn’t always drive a real estate market.

That was, IMHO, the biggest point the blogger was making there – actually, I think that’s the point of most of the blogger’s posts. Supply and demand (and this is just what I’m deriving from the article) aren’t the major driving forces of that market (as their local media tends to portray), but rather an unhealthy perception of how wonderful it is. Seattle has some great things going for it: a) The economy there is going well; b) Seattle can’t sprawl like Austin – it’s surrounded by mountains and ocean; c) The tech sector – and the high salaries that go with it – are an integral part of their economic base; d) The subprime fallout hasn’t really hit – yet. While all of that is good, I have to agree with the blogger. They can’t sustain that appreciation forever, and that market won’t level out and trough like a normal cycle should. I see Austin as a miniature of Seattle – although we’re seeing appreciation for the right reasons, I worry that it will get out of hand.

]]> By: Steve Crossland http://crosslandteam.com/blog/2007/08/02/home-values-for-the-top-20-markets/#comment-813 Steve Crossland Sat, 11 Aug 2007 21:31:53 +0000 http://ben.crosslandteam.com/blog/2007/08/02/home-values-for-the-top-20-markets/#comment-813 > Playing a little devil’s advocate here ... Always a good thing, and appreciated. The article you are referring to is: http://seattlebubble.com/blog/2007/08/06/gangbuster-job-growth-lackluster-incomes/ Basically, it's saying the job growth is happening in Seattle, but not high-paying jobs. The Seattle real estate market is slowing down while job growth is strong, so I believe your point is that job growth doesn't always drive a real estate market. I think the real estate bubble and the bad lending practices change the equation for a lot of cities. Austin sat out the real estate bubble though, so I think the old fashioned rules still apply here, but I agree that "job growth" may be too simplistic a term to use. A better statement might be that "inmigration of workers taking good paying jobs helps drive a real estate market, provided that market isn't suffering from already over-inflated prices and high levels of loan defaults". Steve > Playing a little devil’s advocate here …

Always a good thing, and appreciated. The article you are referring to is:
http://seattlebubble.com/blog/2007/08/06/gangbuster-job-growth-lackluster-incomes/

Basically, it’s saying the job growth is happening in Seattle, but not high-paying jobs. The Seattle real estate market is slowing down while job growth is strong, so I believe your point is that job growth doesn’t always drive a real estate market.

I think the real estate bubble and the bad lending practices change the equation for a lot of cities. Austin sat out the real estate bubble though, so I think the old fashioned rules still apply here, but I agree that “job growth” may be too simplistic a term to use. A better statement might be that “inmigration of workers taking good paying jobs helps drive a real estate market, provided that market isn’t suffering from already over-inflated prices and high levels of loan defaults”.

Steve

]]> By: Mare http://crosslandteam.com/blog/2007/08/02/home-values-for-the-top-20-markets/#comment-811 Mare Sat, 11 Aug 2007 06:12:42 +0000 http://ben.crosslandteam.com/blog/2007/08/02/home-values-for-the-top-20-markets/#comment-811 Playing a little devil's advocate here, I found an interesting blog about Seattle real estate: http://seattlebubble.com/blog/ There's a good entry titled 'Gangbuster Job Growth, Lackluster Incomes' worth checking out. Playing a little devil’s advocate here, I found an interesting blog about Seattle real estate:

http://seattlebubble.com/blog/

There’s a good entry titled ‘Gangbuster Job Growth, Lackluster Incomes’ worth checking out.

]]> By: Matt Risinger http://crosslandteam.com/blog/2007/08/02/home-values-for-the-top-20-markets/#comment-806 Matt Risinger Thu, 09 Aug 2007 13:43:11 +0000 http://ben.crosslandteam.com/blog/2007/08/02/home-values-for-the-top-20-markets/#comment-806 I agree with Dave on his Seattle comments. My best friend lives there and works for Boeing. He tells me they've added thousands of jobs since he was hired two years ago. Their new jet has really pumped the economy. Plus, after living in Portland, OR for a few years I can attest to how cool Seattle is to visit. On another note, I love seeing that Austin is humming along. We're the little engine that could! -Matt Risinger I agree with Dave on his Seattle comments. My best friend lives there and works for Boeing. He tells me they’ve added thousands of jobs since he was hired two years ago. Their new jet has really pumped the economy. Plus, after living in Portland, OR for a few years I can attest to how cool Seattle is to visit.
On another note, I love seeing that Austin is humming along. We’re the little engine that could! -Matt Risinger

]]> By: dave http://crosslandteam.com/blog/2007/08/02/home-values-for-the-top-20-markets/#comment-808 dave Sat, 04 Aug 2007 05:28:57 +0000 http://ben.crosslandteam.com/blog/2007/08/02/home-values-for-the-top-20-markets/#comment-808 In answer to ARZ per seattle's rapid appreciation...simply, the tech economy has picked up big again, and aerospace is humming(boeing)with international orders for jets..its still more affordable then silicon valley, and just about as tech heavy, with possibly even more natural beauty than the Bay area, so it attracts techs from all over. The pay scale is almost on the top of the charts, with only NYC and the BAY AREA with a higher median salary level. Add it up, and you have a boom, believe it or not, even hotter than Austin by 33%(9% growth in RE). If you consider that the average house is valued at 370K as opposed to Austin on the verge of 200K, its even more impressive, In answer to ARZ per seattle’s rapid appreciation…simply, the tech economy has picked up big again, and aerospace
is humming(boeing)with international orders for jets..its still more affordable then silicon valley, and just about as
tech heavy, with possibly even more natural beauty than the Bay area, so it attracts techs from all over.
The pay scale is almost on the top of the charts, with only NYC and the BAY AREA with a higher median salary level.
Add it up, and you have a boom, believe it or not, even hotter than Austin by 33%(9% growth in RE). If you consider
that the average house is valued at 370K as opposed to Austin on the verge of 200K, its even more impressive,

]]> By: Steve Crossland http://crosslandteam.com/blog/2007/08/02/home-values-for-the-top-20-markets/#comment-807 Steve Crossland Fri, 03 Aug 2007 20:28:28 +0000 http://ben.crosslandteam.com/blog/2007/08/02/home-values-for-the-top-20-markets/#comment-807 Hi Scott, Austin is number 3 because the list is alphabetical. At the bottom of the page on the site it says: "The numbers provided here are asking prices derived from Realtor MLS listings. The data is an aggregate representation of large markets and should not be used for valuation of individual homes. While every attempt is made to deliver accurate data, the information on this website is provided as-is. No warranty or guarantee of accuracy is offered or implied. This work is licensed under a Creative Commons Attribution-Share Alike 2.5 License." It's an interesting site and I've checked it out before. Asking prices are not an accurate reflection of sales activity though, but the numbers are interesting to look at nonetheless. Steve Hi Scott,

Austin is number 3 because the list is alphabetical.

At the bottom of the page on the site it says:

“The numbers provided here are asking prices derived from Realtor MLS listings. The data is an aggregate representation of large markets and should not be used for valuation of individual homes. While every attempt is made to deliver accurate data, the information on this website is provided as-is. No warranty or guarantee of accuracy is offered or implied. This work is licensed under a Creative Commons Attribution-Share Alike 2.5 License.”

It’s an interesting site and I’ve checked it out before. Asking prices are not an accurate reflection of sales activity though, but the numbers are interesting to look at nonetheless.
Steve

]]> By: Scott http://crosslandteam.com/blog/2007/08/02/home-values-for-the-top-20-markets/#comment-809 Scott Fri, 03 Aug 2007 17:41:03 +0000 http://ben.crosslandteam.com/blog/2007/08/02/home-values-for-the-top-20-markets/#comment-809 How valid do you think a site like this is... http://www.housingtracker.net/ ? Looking at this, it seems like austin would be in the top 2 or 3. How valid do you think a site like this is… http://www.housingtracker.net/ ? Looking at this, it seems like austin would be in the top 2 or 3.

]]> By: arz http://crosslandteam.com/blog/2007/08/02/home-values-for-the-top-20-markets/#comment-810 arz Fri, 03 Aug 2007 07:33:12 +0000 http://ben.crosslandteam.com/blog/2007/08/02/home-values-for-the-top-20-markets/#comment-810 why is Seattle growing so fast? why is Seattle growing so fast?

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