Comments on: Austin Real Estate Market Update – Nov 2009 http://crosslandteam.com/blog/2010/01/05/austin-real-estate-market-update-nov-2009/ Austin Real Estate Blog Fri, 11 May 2012 17:13:15 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Brian http://crosslandteam.com/blog/2010/01/05/austin-real-estate-market-update-nov-2009/#comment-108720 Brian Thu, 14 Jan 2010 12:15:14 +0000 http://crosslandteam.com/?p=1566#comment-108720 You think TCAD will be honest enough to subtract the $8K from their comps - yeah I didn't think so either. I will definitely be pushing that scenario when it comes time to protest again. You think TCAD will be honest enough to subtract the $8K from their comps – yeah I didn’t think so either. I will definitely be pushing that scenario when it comes time to protest again.

]]> By: Brett http://crosslandteam.com/blog/2010/01/05/austin-real-estate-market-update-nov-2009/#comment-108482 Brett Mon, 11 Jan 2010 19:37:52 +0000 http://crosslandteam.com/?p=1566#comment-108482 People are out-bidding each other and end up paying 20k over the market value to get a 8k credit... that math makes no sense! 78745 and 78749 were not always 'hot' in the real estate market for obvious reasons, but it seems properties are selling quick and with multiple offers People are out-bidding each other and end up paying 20k over the market value to get a 8k credit… that math makes no sense!

78745 and 78749 were not always ‘hot’ in the real estate market for obvious reasons, but it seems properties are selling quick and with multiple offers

]]> By: Steve Crossland http://crosslandteam.com/blog/2010/01/05/austin-real-estate-market-update-nov-2009/#comment-108479 Steve Crossland Mon, 11 Jan 2010 18:06:24 +0000 http://crosslandteam.com/?p=1566#comment-108479 Hi Brett, Yes, and unfortunately, if your theory proves out, the price drop will be not from a market value but from an inflated value caused by the artificial demand created by the $8K tax credit. Back in Oactober we were seeing a lot of multiple offers on houses that noirmally would not be receiving that much attention. Thusly, many sold for list price or higher as the $8K buyers competed against each other and created a seller's market in the sub-$200K homes in desirable areas. Also, unfortunately, the government boondoggle did nothing to help the really struggling areas further out, as those prices continued to fall. Steve Hi Brett,

Yes, and unfortunately, if your theory proves out, the price drop will be not from a market value but from an inflated value caused by the artificial demand created by the $8K tax credit. Back in Oactober we were seeing a lot of multiple offers on houses that noirmally would not be receiving that much attention. Thusly, many sold for list price or higher as the $8K buyers competed against each other and created a seller’s market in the sub-$200K homes in desirable areas.

Also, unfortunately, the government boondoggle did nothing to help the really struggling areas further out, as those prices continued to fall.

Steve

]]> By: Brett http://crosslandteam.com/blog/2010/01/05/austin-real-estate-market-update-nov-2009/#comment-108476 Brett Mon, 11 Jan 2010 17:39:33 +0000 http://crosslandteam.com/?p=1566#comment-108476 I am you on this. The government is artificially increasing demand for housing within a constrained amount of time in the lower end of the market (<250k) by using the 8k tax credit. People who are buying higher-end homes could care less about the 8k credit since it's such a small portion of the total price. As we know, higher demand results in better prices as competition increases; thus, the 8k credit aims to stop housing prices from falling. However, this will have the opposite effect once the 8k credit expires because the lower-end market will have no buyers, which will increase inventory, and will probably result in lower home prices. Obviously, people who bought during the 8k credit time frame will see their property values decrease and more people will be under water. I am you on this. The government is artificially increasing demand for housing within a constrained amount of time in the lower end of the market (<250k) by using the 8k tax credit. People who are buying higher-end homes could care less about the 8k credit since it's such a small portion of the total price.

As we know, higher demand results in better prices as competition increases; thus, the 8k credit aims to stop housing prices from falling.

However, this will have the opposite effect once the 8k credit expires because the lower-end market will have no buyers, which will increase inventory, and will probably result in lower home prices. Obviously, people who bought during the 8k credit time frame will see their property values decrease and more people will be under water.

]]>