Here is a belated posting of my regular monthly Austin Sales and Rental Market Update. I was unable to log into my blog for a couple of weeks and finally determined it was because of a new firewall I installed on my computer. That’s another story entirely…
On to the update:
Homes in Austin are now leasing below the prices of a year ago. Too much inventory is being created by investors. Sales continue to improve and the outlook moving forward is promising. See the graphs below.
The leasing graph below shows that October 2005 Average lease price for single family homes in Austin fell to $1200 from $1224 the year before.
The over-supply of rental homes will eventually be corrected by market forces, but I personally think it may take another year or two. As I often repeat, Austin is still renting homes for less than the prices we got in the year 1999, so we are in the process of a long slow crawl back to the rates that favor landlords.
The sales graph below shows the modest gains in Austin resale home values, but this somewhat hides the momentum many of us see gathering. Yet another offer I submitted today is in a multiple offer situation. We are seeing this much more often. Also, the available stock of bread and butter rental homes in South Austin is shrinking. It’s becoming very difficult to find good investment homes under $160K. Last summer, $150K was the cutoff.
If you have any questions about the Austin Sales or Rental Markets, do not hesitate to call me or Sylvia at (512) 301-5811.