Austin’s real estate market is a “market of markets”, and thus the overall news reported about real estate activity in the Austin Metro area may or may not be reflective of conditions in the specific area in which you live, or the home you own, or the home you want to buy. Each quarter I break down the Austin Real Estate market year-to-date stats into MLS area-specific comparisons of the year before so we can take a look at the variations among different pockets of Austin.
If you follow these quarterly Austin MLS breakdowns, you know that there is always variation among different MLS areas and price ranges, for better or worse. This Year-to-Date report through Sept 2009 is a head scratcher for me though, mainly because the number of Austin MLS areas that normally outperform the overall market has dwindled substantially. Based on what Sylvia and I are experiencing in the field, I would have guessed the opposite to be true. And the market overall is holding up.
But here’s what I’m talking about …
Of the 44 Austin Metro MLS areas tracked below…
5 Austin MLS areas had an increase in average sold prices (3 months ago it was 11)
7 Austin MLS areas had an increase in median sold prices (3 months ago it was 11)
1 Austin MLS area had an increase in average sold price per square foot (3 months ago it was 7).
4 of the Austin MLS areas saw a decrease in average days on market (same as 3 months ago)
7 of the Austin MLS areas saw a decrease in median days on market (3 months ago it was 6).
1 (only 1) Austin MLS area saw an increase in the three main pricing metrics – avg and median sold, and price per square foot. Three areas were in this clug at mid-year.
So does this mean the Austin real estate market is getting worse? As usual, it depends. From a statistical standpoint, more areas are trending down than up. But if you ask Sylvia and I if we’re busy, yes we are. We had 4 closings in October and three on the board already for November, which is unusual for the slow season. On the other hand, if you ask an agent who specializes in luxury homes in Lakeway, they will probably say things are dismal. And I do in fact have a listing on 10 acres in Dripping Springs that isn’t getting any showings even though we think it’s under priced.
Add in the government interference/intervention in normal real estate market activity with the tax credit incentives, the nervous jitters of the stock market, artificially low interest rates, appraisal issues, and what we have is a number of variables pulling and tugging with and against one another. Bottom line, overall, at 3% down for the year on average sold price and about even on medial sold price, Austin’s market is doing about what we think it should, as a whole. It’s just interesting to see all the underlying cross currents.
That said, below is the breakdown summary, then you can study the chart yourself and see how your areas of interest are doing. As usual, questions and comments are welcome.
Austin Real Estate Sales by MLS Area – YTD Sept 2009 | ||||||||
Houses only – Condos, Duplexes, etc not included | ||||||||
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
All Areas | 2009 | 13928 | $245,616 | $192,000 | 2,184 | $112.46 | 75 | 48 |
2008 | 16317 | $253,320 | $193,000 | 2,142 | $118.26 | 65 | 43 | |
Change | -14.64% | -3.04% | -0.52% | 1.96% | -4.91% | 15.38% | 11.63% | |
MLS Area | YTD-Apr | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
1A | 2009 | 131 | $477,754 | $432,000 | 2,779 | $171.92 | 80 | 47 |
2008 | 161 | $500,373 | $469,000 | 2,707 | $184.84 | 59 | 36 | |
Change | -18.63% | -4.52% | -7.89% | 2.66% | -6.99% | 35.59% | 30.56% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
1B | 2009 | 177 | $620,504 | $540,000 | 2,471 | $251.11 | 107 | 79 |
2008 | 196 | $705,289 | $557,498 | 2,382 | $296.09 | 52 | 37 | |
Change | -9.69% | -12.02% | -3.14% | 3.74% | -15.19% | 105.77% | 113.51% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
1N | 2009 | 323 | $298,164 | $262,000 | 2,188 | $136.27 | 50 | 32 |
2008 | 346 | $292,265 | $263,000 | 2,101 | $139.11 | 39 | 22 | |
Change | -6.65% | 2.02% | -0.38% | 4.14% | -2.04% | 28.21% | 45.45% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
2 | 2009 | 244 | $252,058 | $249,000 | 1,403 | $179.66 | 53 | 32 |
2008 | 258 | $267,376 | $257,000 | 1,439 | $185.81 | 51 | 33 | |
Change | -5.43% | -5.73% | -3.11% | -2.50% | -3.31% | 3.92% | -3.03% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
2N | 2009 | 194 | $151,973 | $144,750 | 1,558 | $97.54 | 54 | 34 |
2008 | 227 | $155,527 | $150,000 | 1,439 | $108.08 | 51 | 33 | |
Change | -14.54% | -2.29% | -3.50% | 8.27% | -9.75% | 5.88% | 3.03% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
3 | 2009 | 239 | $221,094 | $208,000 | 1,580 | $139.93 | 80 | 54 |
2008 | 233 | $223,216 | $206,000 | 1,522 | $146.66 | 60 | 41 | |
Change | 2.58% | -0.95% | 0.97% | 3.81% | -4.59% | 33.33% | 31.71% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
3E | 2009 | 95 | $144,189 | $125,000 | 1,523 | $94.67 | 87 | 49 |
2008 | 114 | $155,202 | $146,725 | 1,596 | $97.24 | 69 | 52 | |
Change | -16.67% | -7.10% | -14.81% | -4.57% | -2.64% | 26.09% | -5.77% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
4 | 2009 | 187 | $356,178 | $325,000 | 1,559 | $228.47 | 71 | 47 |
2008 | 234 | $367,404 | $335,000 | 1,543 | $238.11 | 58 | 43 | |
Change | -20.09% | -3.06% | -2.99% | 1.04% | -4.05% | 22.41% | 9.30% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
5 | 2009 | 159 | $179,345 | $157,200 | 1,242 | $144.40 | 68 | 51 |
2008 | 230 | $187,117 | $170,000 | 1,216 | $153.88 | 66 | 49 | |
Change | -30.87% | -4.15% | -7.53% | 2.14% | -6.16% | 3.03% | 4.08% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
5E | 2009 | 78 | $105,785 | $106,934 | 1,421 | $74.44 | 54 | 43 |
2008 | 65 | $113,467 | $110,000 | 1,651 | $68.73 | 51 | 36 | |
Change | 20.00% | -6.77% | -2.79% | -13.93% | 8.32% | 5.88% | 19.44% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
6 | 2009 | 130 | $366,213 | $320,000 | 1,573 | $232.81 | 79 | 49 |
2008 | 157 | $368,887 | $326,700 | 1,498 | $246.25 | 60 | 39 | |
Change | -17.20% | -0.72% | -2.05% | 5.01% | -5.46% | 31.67% | 25.64% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
7 | 2009 | 53 | $429,826 | $390,000 | 1,773 | $242.43 | 76 | 51 |
2008 | 89 | $426,637 | $371,500 | 1,744 | $244.63 | 53 | 32 | |
Change | -40.45% | 0.75% | 4.98% | 1.66% | -0.90% | 43.40% | 59% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
8E | 2009 | 138 | $828,166 | $625,500 | 3,589 | $230.75 | 91 | 53 |
2008 | 146 | $863,337 | $730,250 | 3,327 | $259.49 | 70 | 42 | |
Change | -5.48% | -4.07% | -14.34% | 7.87% | -11.08% | 30.00% | 26% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
8W | 2009 | 171 | $623,611 | $490,000 | 3,353 | $185.99 | 85 | 53 |
2008 | 190 | $626,800 | $465,500 | 3,202 | $195.75 | 75 | 48 | |
Change | -10.00% | -0.51% | 5.26% | 4.72% | -4.99% | 13.33% | 10% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
9 | 2009 | 39 | $151,388 | $144,300 | 1,455 | $104.05 | 71 | 44 |
2008 | 40 | $188,769 | $172,101 | 1,523 | $123.95 | 52 | 44 | |
Change | -2.50% | -19.80% | -16.15% | -4.46% | -16.05% | 36.54% | 0% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
10N | 2009 | 196 | $183,624 | $172,000 | 1,402 | $130.97 | 50 | 23 |
2008 | 215 | $194,601 | $175,000 | 1,441 | $135.05 | 45 | 23 | |
Change | -8.84% | -5.64% | -1.71% | -2.71% | -3.02% | 11.11% | 0% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
10S | 2009 | 462 | $179,339 | $175,000 | 1,659 | $108.10 | 47 | 25 |
2008 | 510 | $180,213 | $174,000 | 1,634 | $110.29 | 40 | 25 | |
Change | -9.41% | -0.48% | 0.57% | 1.53% | -1.98% | 17.50% | 0% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
11 | 2009 | 152 | $109,601 | $109,250 | 1,445 | $75.85 | 54 | 44 |
2008 | 172 | $119,005 | $113,605 | 1,414 | $84.16 | 50 | 34 | |
Change | -11.63% | -7.90% | -3.83% | 2.19% | -9.88% | 8.00% | 29% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
BA | 2009 | 179 | $149,659 | $136,000 | 1,784 | $83.89 | 71 | 43 |
2008 | 215 | $156,100 | $148,206 | 1,819 | $85.82 | 75 | 47 | |
Change | -16.74% | -4.13% | -8.24% | -1.92% | -2.25% | -5.33% | -9% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
BW | 2009 | 78 | $202,815 | $174,945 | 2,197 | $92.31 | 81 | 57 |
2008 | 102 | $216,134 | $190,750 | 2,210 | $97.80 | 67 | 55 | |
Change | -23.53% | -6.16% | -8.29% | -0.59% | -5.61% | 20.90% | 4% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
CLN | 2009 | 705 | $184,146 | $155,000 | 2,115 | $87.07 | 67 | 41 |
2008 | 873 | $178,014 | $156,500 | 2,017 | $88.26 | 57 | 36 | |
Change | -19.24% | 3.44% | -0.96% | 4.86% | -1.35% | 17.54% | 14% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
CLS | 2009 | 746 | $239,825 | $216,313 | 2,436 | $98.45 | 70 | 50 |
2008 | 831 | $240,601 | $217,800 | 2,382 | $101.01 | 67 | 48 | |
Change | -10.23% | -0.32% | -0.68% | 2.27% | -2.53% | 4.48% | 4% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
EL | 2009 | 147 | $115,700 | $97,850 | 1,842 | $62.81 | 58 | 41 |
2008 | 187 | $124,215 | $118,000 | 1,771 | $70.14 | 64 | 47 | |
Change | -21.39% | -6.86% | -17.08% | 4.01% | -10.45% | -9.38% | -13% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
GTE | 2009 | 163 | $162,128 | $146,000 | 1,912 | $84.79 | 74 | 35 |
2008 | 235 | $163,301 | $153,225 | 1,853 | $88.13 | 66 | 43 | |
Change | -30.64% | -0.72% | -4.72% | 3.18% | -3.78% | 12.12% | -19% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
GTW | 2009 | 535 | $249,324 | $215,000 | 2,327 | $107.14 | 112 | 82 |
2008 | 621 | $247,025 | $213,950 | 2,218 | $111.37 | 89 | 64 | |
Change | -13.85% | 0.93% | 0.49% | 4.91% | -3.80% | 25.84% | 28% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
HD | 2009 | 267 | $335,106 | $310,000 | 2,905 | $115.35 | 110 | 77 |
2008 | 316 | $360,345 | $345,495 | 2,896 | $124.43 | 102 | 77 | |
Change | -15.51% | -7.00% | -10.27% | 0.31% | -7.29% | 7.84% | 0% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
HH | 2009 | 622 | $166,668 | $149,900 | 2,029 | $82.14 | 71 | 45 |
2008 | 769 | $180,966 | $156,483 | 2,101 | $86.13 | 64 | 44 | |
Change | -19.12% | -7.90% | -4.21% | -3.43% | -4.63% | 10.94% | 2% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
HU | 2009 | 333 | $149,721 | $136,000 | 1,986 | $75.39 | 67 | 48 |
2008 | 373 | $154,442 | $143,490 | 1,985 | $77.80 | 59 | 38 | |
Change | -10.72% | -3.06% | -5.22% | 0.05% | -3.11% | 13.56% | 26% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
LN | 2009 | 129 | $266,867 | $195,000 | 2,092 | $127.57 | 119 | 79 |
2008 | 160 | $293,980 | $222,000 | 2,114 | $139.06 | 81 | 59 | |
Change | -19.38% | -9.22% | -12.16% | -1.04% | -8.27% | 46.91% | 34% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
LS | 2009 | 520 | $426,690 | $348,200 | 2,945 | $144.89 | 116 | 81 |
2008 | 567 | $487,974 | $365,000 | 2,873 | $169.85 | 103 | 74 | |
Change | -8.29% | -12.56% | -4.60% | 2.51% | -14.70% | 12.62% | 9% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
MA | 2009 | 181 | $119,592 | $107,000 | 1,684 | $71.02 | 67 | 37 |
2008 | 215 | $146,815 | $133,000 | 1,974 | $74.37 | 73 | 44 | |
Change | -15.81% | -18.54% | -19.55% | -14.69% | -4.51% | -8.22% | -16% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
N | 2009 | 260 | $186,044 | $183,000 | 1,935 | $96.15 | 39 | 24 |
2008 | 298 | $191,580 | $185,000 | 1,842 | $104.01 | 38 | 22 | |
Change | -12.75% | -2.89% | -1.08% | 5.05% | -7.56% | 2.63% | 9% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
NE | 2009 | 235 | $150,056 | $150,215 | 1,824 | $82.27 | 59 | 41 |
2008 | 259 | $154,840 | $154,168 | 1,812 | $85.45 | 53 | 35 | |
Change | -9.27% | -3.09% | -2.56% | 0.66% | -3.73% | 11.32% | 17% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
NW | 2009 | 478 | $246,332 | $214,250 | 2,244 | $109.77 | 51 | 28 |
2008 | 466 | $255,267 | $211,000 | 2,248 | $113.55 | 40 | 20 | |
Change | 2.58% | -3.50% | 1.54% | -0.18% | -3.33% | 27.50% | 40% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
PF | 2009 | 849 | $165,319 | $156,000 | 2,123 | $77.87 | 63 | 39 |
2008 | 995 | $166,183 | $156,500 | 2,007 | $82.80 | 61 | 41 | |
Change | -14.67% | -0.52% | -0.32% | 5.78% | -5.96% | 3.28% | -5% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
RN | 2009 | 313 | $483,611 | $400,000 | 3,490 | $138.57 | 100 | 77 |
2008 | 354 | $529,716 | $412,500 | 3,327 | $159.22 | 98 | 75 | |
Change | -11.58% | -8.70% | -3.03% | 4.90% | -12.97% | 2.04% | 3% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
RRE | 2009 | 833 | $187,815 | $164,000 | 2,303 | $81.55 | 79 | 50 |
2008 | 1082 | $188,380 | $163,000 | 2,222 | $84.78 | 65 | 42 | |
Change | -23.01% | -0.30% | 0.61% | 3.65% | -3.81% | 21.54% | 19% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
RRW | 2009 | 810 | $231,932 | $221,250 | 2,553 | $90.85 | 76 | 54 |
2008 | 1004 | $244,905 | $229,000 | 2,563 | $95.55 | 66 | 47 | |
Change | -19.32% | -5.30% | -3.38% | -0.39% | -4.93% | 15.15% | 15% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
SC | 2009 | 118 | $175,037 | $148,869 | 2,029 | $86.27 | 62 | 38 |
2008 | 133 | $189,828 | $163,740 | 2,166 | $87.64 | 52 | 37 | |
Change | -11.28% | -7.79% | -9.08% | -6.33% | -1.57% | 19.23% | 3% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
SE | 2009 | 96 | $111,697 | $108,200 | 1,791 | $62.37 | 57 | 39 |
2008 | 141 | $127,430 | $128,000 | 1,847 | $68.99 | 59 | 41 | |
Change | -31.91% | -12.35% | -15.47% | -3.03% | -9.61% | -3.39% | -5% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
SWE | 2009 | 479 | $227,999 | $210,000 | 2,188 | $104.20 | 67 | 42 |
2008 | 547 | $235,192 | $219,000 | 2,154 | $109.19 | 50 | 34 | |
Change | -12.43% | -3.06% | -4.11% | 1.58% | -4.56% | 34.00% | 24% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
SWW | 2009 | 437 | $292,965 | $275,000 | 2,548 | $114.98 | 62 | 37 |
2008 | 547 | $310,213 | $285,000 | 2,523 | $122.95 | 51 | 32 | |
Change | -20.11% | -5.56% | -3.51% | 0.99% | -6.49% | 21.57% | 16% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
UT | 2009 | 26 | $459,141 | $427,500 | 1,936 | $237.16 | 91 | 76 |
2008 | 40 | $473,759 | $419,750 | 1,855 | $255.40 | 56 | 39 | |
Change | -35.00% | -3.09% | 1.85% | 4.37% | -7.14% | 62.50% | 95% | |
MLS Area | Year | # Sold | Avg Sold | Med Sold | Avg SQFT | Avg PSF | Avg Days | Med Days |
W | 2009 | 209 | $481,490 | $335,000 | 2,963 | $162.50 | 83 | 50 |
2008 | 208 | $441,902 | $335,000 | 2,796 | $158.05 | 68 | 47 | |
Change | 0.48% | 8.96% | 0.00% | 5.97% | 2.82% | 22.06% | 6% |
i see you did not include condos. if you did, what the stats wouldn’t show are the abundant off-market transactions. This is especially prevalent in downtown and east austin, where developers control a chunk of the inventory and only put a handful of units on the MLS. For instance, there are at least 100 sales in downtown this year from The Shore and 360 that aren’t reflected in the MLS numbers.
Just an additional perspective on a small portion of the market. Thanks for a great blog – consistently high quality info.
-Jude
1B’s stats are wild. The avg square foot price sats are interesting.
Hi New Austinite,
Yes, 1B looks like it’s correcting a bit. Doesn’t mean individual homes have dropped that much (though the upper end homes may have dropped even more), but the demand has settled back down.
Steve
How many of these MLS deals were actually ‘sold’ by buyers agents – with a listing agent privileged by their broker affiliation to just ‘go fishing’ from the comfort of their easy chair for a quick and easy $10,000+ with nothing more than MLS access, mark down price, a recycled sign and a couple of 10 minute internet listings, waiting for the phone to ring with an offer? In this market mood the emphasis being placed on quick commission. Is that a free and effective market place that puts the needs of clients ahead of those for a commission? What are the FSBO stats for Austin?
Hi Ray,
Thanks for your comment. Not sure what your point is. Sounds like you think buyer agents are overpaid?
We don’t have stats on FSBO.
Thanks,
Steve
Steve, I was looking at houses in the almost completed Rancho Alto subdivision at Frate Barker/Manchacha and had concerns. Zillow shows existing houses for sale in the $80-$100/sf range. There are also “groups” of houses that appear to be offered by the builder; only renderings are available, but they are built nonetheless. These are priced at a whopping $130-$140/sf range across the board. What does this say about the neighborhood? Although I would be living in this house, is this a wise purchase from an investment standpoint?
Thanks
Johan
Hi Jonah,
I don’t really like Rancho Alto. Sorry. I think you’d find better value in a resale in Olympic Heights across Frate Barker. If you really must have a new home, I’d stick with a basic stock home in Rancho Alto and make sure you plan to remain at least 5 years. If doing that, it should work out ok based just on the strength of the geographic location.
Steve