The Supreme Court’s recent decision to strike down the “Chevron decision” heralds what could be the end of the absurd Emotional Support Animal (ESA) scams that have plagued landlords and property managers since HUD administratively stretched Fair Housing laws to include anyone claiming “anxiety” or “whatever”.
Steve Crossland
Austin Downtown Condo Over-Supply
Wow, 24 months of inventory for DT Condos as of June 20, 2024. This is extraordinary. And we see an inverted price pattern on the right side of this chart telling us at a glance that listings are over-priced for demand. (Mine is one of them). In a *rising* market, Actives can be priced higher than Pendings, which are priced higher than Solds (skate to where the puck will be). In a declining market, those price relationships result in a 2 year inventory. Pricing has to catch the falling market. As I am my own seller on my Seaholm unit, I ask myself, should I cut the price by 10%, or hold tight and wait for the market to rebound in perhaps two years? FYI – ChatGPT create this chart upon my instructions. Charts like this tell stories that are easy for buyers and sellers to understand.
Understanding the Recent NAR Commissions Lawsuit: A Realtor’s Perspective
The recent lawsuit involving the National Association of Realtors (NAR) and subsequent news coverage have sparked significant discussion within the Realtor community. I’d like to take this opportunity to share my perspective on the home buying and selling process, how Realtors are compensated, and the concept of ‘Uncompensated Effort.’
Realtors earn what is known as a ‘Success Fee.’ Essentially, we provide all our services for free until the transaction is closed and funded, at which point we receive a commission. Efforts that do not result in a closing are what I call ‘Uncompensated Effort.’ Every Realtor incurs this overhead, and it’s an integral part of a system that benefits consumers.
Both buyers and sellers appreciate this system because it allows them to access services at no cost, even if they never purchase a home or their property doesn’t sell.
Travis County Appraisal Protest Result 2024
I’ve been protesting property tax values with Travis County for 30 years. Not only for myself, but back in the 1990s, into the 2000s for my property management and real estate clients as well. And also assisting by providing market information to clients and others who ask for help from our Free CMA page, which I think I first put up in 2005. For 2023, TCAD valued a property I owned in Southwest Austin in Legend Oaks neighborhood at $677k. This was excessively high, by more than $100k, but I was unsuccessful at the ARB Hearing (Arbitration Review Board), despite presenting clear objective data. They did lower it to $651k though, still about $100k too high. So for the first time ever, I filed for a Binding Arbitration hearing, paid the $500 deposit, and hired an appraiser to value the property for me as of Jan 1, 2023. TCAD generally … Read more
Austin Real Estate Market Update Aug 2018
The Austin real estate market has begun to level off and slow down a bit, but that fact is not yet fully reflected in the market statistics, other than Days on Market creeping up. Nevertheless, Median Sold price is up to $322K, an increase of 8% over August 2017.
I see more price drops coming across the listing update feeds I follow as well, and I also see more “back on market” listings. This softening of the Austin real estate market may more fully appear in the September through December stats as I expect Days on Market to keep rising and price increases to slow.
How to Save for a Home Purchase In Austin TX
Historically in Texas, homes have appreciated at 4.5% annually (according to Texas A&M Real Estate Center). This is the expected appreciation we use when making real estate investment assumptions as well. For example, a $200,000 home would increase in value to $209,000 if appreciation was 4.5% for that year.
If you wanted to save for 1 year a 5% downpayment for a $200,000 home in Austin, you would save 5% of the future value of the home, not the current value. You would save for a $209K purchase, $10,450, not $10,000, if saving just for 1 year.
Starting in about 2012, homes in Austin have appreciated at a much greater rate, closer to 8% annually. This makes it harder to save for a down payment, like chasing a vanishing horizon. Also, there are no more $200,000 homes. The median value of a home in Austin is now about $400,000 if you want to actually be in Austin itself, versus the greater Austin outskirts areas.
So, today, if you want to save for a $400K median value Austin home, and you want to buy it in 3 years with a 5% downpayment, for example, and 8% annual appreciation rates continue, you will need to assume the median value Austin home will cost $503,885 in 3 year. That really sucks doesn’t it? If you are trying to live cheap and save for a downpayment? Waiting 3 years will cost you another $100K in purchase price.