I typed this to an investor client today, and thought it would be good to go ahead & post it here as a “quick & dirty market update.”
The market here has somewhat stagnated. Properties are still moving, but they’re taking longer than previously. Prices aren’t going down, but we’re not seeing the rapid appreciation we saw last year. This spring will be telling to see what kind of appreciation we’ll see until 2009. The California market has affected us because not as many Californians can sell their homes, so we’ve seen a slight decrease in migration. The mortgage market has had the biggest effect on our market - it took ~25% of the buyers out of the market. Everything I’ve read indicates that the mortgage market will have worked itself out by the first of 2009, so I expect our market to be gunning full bore ahead at that time.
I honestly believe that this is the best time to buy real estate in Austin for the foreseeable future. We’re able to come in ~5-10% below asking and be taken seriously. I’m seeing my clients successfully negotiate the prices to ~95% of asking price.
I agree that Austin will come back strong. Take a look at all the top ten cities lists coming out showing Austin as a top 10. We’re top 10 (#2) for golf cities, top 10 for housing appreciation, top 10 for most desirable cities for relocation for jobs - and the list just grows. Austin isn’t a secret any more and people are coming here fromn all over. But what you might not know is that the state with the most inmogration to Austin is actually Texas!
The Augusta market is in the doldrums as well. Inventory is very high, making it quite the buyers market. I’m a little more optimistic than you, as I suspect we might start pulling out next year. Other than that, we are in the same boat, for better or worse.
Inventory here in Austin is going up and we’ve seen a dropoff on pendings the last couple of months so I predict homes sales will drop in the next month or two. The average price is remaining stable though. But with more competition coming, home sellers who have been sitting on the market awhile holding out for their price are going to have to reduce to get their homes sold. We aren’t in a buyers market yet but could be if the trend continues over the next few months.
Austin’s real estate market will bounce back on its feet. I personally love Austin although have visited it only trice. I was eyeing on some lovely houses that was being offered by a friend who happens to be a broker for a well established real estate firm.
Every market comes to a hault every now and then. It will definitely return to its glory once the economy stabilizes.
Eric,
We’ve been doing some research on Austin and it does seem to be a pretty strong market. Definitely fairing better than most. I read recently, and again just above, that homes in Austin aren’t decreasing in value - this screams stable in my book and with the interest rates as they are, I can’t see why anyone considering and able to buy, wouldn’t.