Mary's Austin Texas Real Estate Blog

Austin Real Estate Market Report – June 2010

July 28th, 2010

The Austin area has rebounded strongly this year with written business and closings up significantly. Written business in May and June slowed below last year’s numbers due to the tax credit expiring at the end of April. Interest rates on 30-year loans dropping below 4.5% has renewed buyer and home refinance activity, which should create a healthy 3^rd quarter.

Austin as well as the State of Texas received some wonderful recognition recently. Austin was named by Kiplinger Personal Finance as the “Best City for the Next Decade”. Austin was also named the best city for Commercial Investment in 2010 by Grubb & Ellis. The State of Texas was ranked #1 for Business in general and #2 for Small Business by CNBC. We are indeed so very fortunate to be where we are!

If you average the number of sales for the last 12 months and divide that figure into the number of current active listings, the result is called the number of Months of Inventory (MOI). In a balanced market, the MOI is between 3.5 and 4.5 months. This important figure is included for the Austin area and each submarket below:

The Austin Real Estate Market:

Average sold price – up 2% from a year ago to $247,999

Number of Sales YTD – up an impressive 13% compared to this time last year

Number of Active Listings – up 15% from a year ago to 10,322 listings

Months of Inventory – there is 7.7 months of inventory; an oversupply, favoring home buyers

Average days on market – decreasing slightly to 71 days

The Georgetown Real Estate Market:

Average sold price – down 2.5% from a year ago to $216,362

Number of Sales YTD – up an impressive 24% compared to this time last year

Number of Active Listings – up 8.4% from last June to 565 listings

Months of Inventory – there is 8.3 months of inventory; an oversupply

The Round Rock Real Estate Market:

Average sold price – up 2% from last June to $217,189

Number of Sales YTD – up 10% compared to this time last year

Number of Active Listings – up 2.7% from last June to 892 listings

Months of Inventory – there is 5.8 months of inventory; an oversupply

The Pflugerville Real Estate Market:

Average sold price – down 2% from a year ago to $161,638

Number of Sales YTD – up 10.5% compared to this time last year

Number of Active Listings – up 36% compared last June to 513 listings

Months of Inventory – there is 6.2 months of inventory; an oversupply

The Cedar Park & Leander Real Estate Market: (comparisons to last year are not valid)

Average sold price – is currently $202,048 which is up 1% from last month

Number of Sales YTD – is at 1013

Number of Active Listings – currently total 771 down 2.8% from last month

Months of Inventory – steady at 5.8 months; a slight oversupply

The North & Northwest Market:

Average sold price – up 8.2% from a year ago to $311,389

Number of Sales YTD – up 6.5% compared to this time last year

Number of Active Listings – up 20% from February to 459 listings

Months of Inventory – increased to 5.7 months of inventory

The River North (FM 2222) Market:

Average sold price – up 1.1% from a year ago to $483,090

Number of Sales YTD – up 13.9% compared to this time last year

Number of Active Listings – down 15 from last June to 281 listings

Months of Inventory – there is 10 months of inventory; an oversupply

The Austin Westlake Market:

Average sold price – down 1% from a year ago to $693,191

Number of Sales YTD – up an impressive 44% compared to last June

Number of Active Listings – 10.3% less than a year ago to 305 listings

Months of Inventory – there is 9.7 months of inventory; an oversupply

The Southwest Austin Real Estate Market:

Average sold price – up 1.3% from a year ago to $229,438

Number of Sales YTD – up 11% compared to this time last year

Number of Active Listings – up 29% from last June to 684 listings

Months of Inventory – increased to 4.7 MOI, a slight oversupply

Lake (South shore) Real Estate Market:

Average sold price – down 1.6%% from a year ago to $419,407

Number of Sales YTD – up 20% compared to this time last year

Number of Active Listings – down 5.4% compared to last June to 730 listings

Months of Inventory – decreased slightly to 13 MOI, an oversupply

Tags: Austin market report, Austin real estate, Austin real estate statistics, Cedar Park market report, Georgetown market report, Lakeway market report, Northwest Austin market report, Round Rock market report, Southwest Austin market report, Westlake market report
Posted in Austin Real Estate Market Report | No Comments »

Austin Area Real Estate Market Report – March 2010

May 7th, 2010

The Austin area has rebounded strongly this year. The Austin metro area added 6000 jobs in March which lowered the unemployment rate to 7.1% (Texas 8.2%; U.S. 9.7%). Recent articles in CNN Money and Forbes have noted Austin’s relative economic health nationally as the #1 metro area in the nation. Dallas and Houston have also remained relatively healthy, which reflects the strength of the Texas economy as a whole.

The tax credits combined with record low interest rates around 5% started 2010 off strong. With the historically active Spring and Summer seasons approaching, the future is bright.

If you average the number of sales for the last 12 months and divide that figure into the number of current active listings, the result is called the number of Months of Inventory (MOI). In a balanced market, the MOI is between 3.5 and 4.5 months. Currently, the MOI in the Austin market is at 7.8 months, which favors home buyers. The average days on the market for single-family homes to sell has dropped slightly to 73 days.

The Austin Real Estate Market:
Average sold price – up 2% from a year ago to $240,107
Number of Sales YTD – up an impressive 12% compared to March ‘09
Number of Active Listings – up less than 1% from Feb. to 9401 listings
Months of Inventory – there is 7.8 MOI; an oversupply, favoring buyers
Average days on market – decreasing slightly to 73 days

The Georgetown Real Estate Market:
Average sold price – up 2.2% from a year ago to $229,407
Number of Sales YTD – up an impressive 50% compared to last March
Number of Active Listings – up 4% from February to 579 listings
Months of Inventory – there is 8.3 MOI; an oversupply

The Round Rock Real Estate Market:
Average sold price – up 1.4% from last March to $215,600
Number of Sales YTD – up 17.4% compared to last March
Number of Active Listings – up 6.4% from February to 811 listings
Months of Inventory – there is 5.6 MOI; an oversupply

The Pflugerville Real Estate Market:
Average sold price – down slightly from a year ago to $162,737
Number of Sales YTD – up 12.6% compared to this time last year
Number of Active Listings – up 4.1% from February to 459 listings
Months of Inventory – there is 6.2 MOI; an oversupply

The Cedar Park & Leander Real Estate Market:
Average sold price – down 1.9% from a year ago to $203,251
Number of Sales YTD – up 10% compared to this time last year
Number of Active Listings – up 35% from February to 701 listings
Months of Inventory – increasing to 5.8 MOI; a slight oversupply

The North & Northwest Market:
Average sold price – up 14.3% from a year ago to $304,430
Number of Sales YTD – down 2.4% compared to this time last year
Number of Active Listings – up 11.7% from February to 373 listings
Months of Inventory – increased to 5.2 MOI, a slight oversupply

The River North (FM 2222) Market:
Average sold price – down 11.3% from a year ago to $464,522
Number of Sales YTD – up 10.2% compared to this time last year
Number of Active Listings – up 3% from last month to 240 listings
Months of Inventory – there is 9 MOI; an oversupply

The Austin Westlake Market:
Average sold price – up 2.4% from a year ago to $695,389
Number of Sales YTD – up an impressive 41% compared to last March
Number of Active Listings – up 7.3% from February to 263 listings
Months of Inventory – there is 9.6 MOI; an oversupply

The Southwest Austin Real Estate Market:
Average sold price – up 1.3% from a year ago to $221,989
Number of Sales YTD – up 18% compared to this time last year
Number of Active Listings – up 9.5% from February to 596 listings
Months of Inventory – increased to 4.8 MOI, a slight oversupply

Lake (South shore) Real Estate Market:
Average sold price – up 6.2% from a year ago to $421,161
Number of Sales YTD – up 13.9% compared to this time last year
Number of Active Listings – up 4.6% compared to February at 664 listings
Months of Inventory – increased to 13.9 MOI, an oversupply

Protesting Your County Appraisal District’s Assessed Value

April 9th, 2010

Yes, it’s that time of year again in Texas – time to receive your property’s assessed value for the 2010 fiscal year.

If you own your property, you should receive your property valuation from your county appraisal district on or around May 1st. It is quite possible that your assessed value will increase; or maybe not. News articles are divided on the subject with predictions ranging from a 2% decrease to a 5% increase on average. This year should be interesting, since the average price of single-family homes sold through the Austin MLS in 2009 was 2% less than in 2008. Even the median price of homes sold was down 1% from 2008. Since these are averages, some areas around Austin area fared better, and others worse. [ but either way, I am SO GLAD that I am here in Austin instead of any other metro area in the U.S.! ]

But back to the topic; if you feel that the assessed value you receive is too high, you have until May 31st to send your protest to the county appraisal district. As in past years, I am available to help you through the process of filing your protest. To make the process easier and more understandable, here are a few suggestions:

First, keep in mind that your assessed value is not the same as the market value of your home. Many people confuse the two terms, and it is likely that these two values on your property are different. The county does not evaluate comparables or perform a market analysis on every home, which is what I would do in giving you the market value of your property. The county simply values your property according to the area, and the value may be too high or too low, depending on the size, condition, location and upgrades of your property.

Second, file your protest by May 31st. Travis County has a protest form. Fill out the form and send it in before May 31st, then be prepared to wait. It can take several weeks for the Travis County Appraisal District to schedule your informal hearing – this gives us plenty of time to get your presentation together.

Third, prepare your presentation. The purpose of the informal hearing (you’ll probably meet with one staff member at their desk) is for you to present evidence and facts to support your position, such as:

- A cover letter and a Market Analysis, which I will provide. The analysis is going to justify the lowest value to help you challenge your assessment.

- Document your property’s condition. Do you have foundation issues? Plumbing problems? Anything negative? Document these and take photos if possible.

- Information about your location. If your home adjoins a busy street or intersection, print a map to document your location.

- A property recently purchased in the last few months whose price justifies your position, just bring a copy of your HUD Settlement Statement.

Fourth, present your material with these facts in mind:

- The Appraisal District is responsible for setting the assessed value. They have nothing to do with the tax rate. You are not going to the hearing to protest your tax rate or how much you are paying in taxes. You are only appealing the county’s assessed value of your home.
- Be polite and courteous.
- Bring an extra copy of your supporting documentation to leave with them.

I hope this was helpful to you!!

Mary “B” Battaglia, GRI, CRS (email me for assistance)

——————————————————————————————————–

For more information on the process, contact the Travis Central Appraisal District at 512.834.9138 or visit their website. For information on the Williamson County appraisal and appeal process, call 512.930.3787 or visit their website. Although this article is mainly focused on assessed values in the Austin, Texas area some of the information may help you outside the area as well.

Tags: Homeowner tax tips, Homeowner Tips, protesting appraisal district value, protesting travis county assessed value, Travis county assessed value
Posted in Homeowners Tax Saving Tips | 4 Comments »

Austin Area Real Estate Market Report – February 2010

March 31st, 2010

The overall Austin market
- Compared to last February, the number of single-family homes sold in the Austin area is up 4%. The average sales price for single family homes is up 1% to $244,348 and the median price is unchanged compared to this time last year at $189,500. The total number of single-family listings in the Austin MLS is unchanged from last February at 9335 units.
- If you average the number of sales for the last 12 months and divide that figure into the number of current active listings, the result is the number of Months of Inventory (MOI). In a balanced market, the MOI is between 3.5 and 4.5 months. Currently, the MOI in the Austin market is at 6.9 months, which favors buyers. The average days on the market for single-family homes to sell has dropped slightly to 79 days.

The Austin area was recently named by CNN Money as the #1 metro area in the nation to recover economically. Dallas and Houston were also in the CNN top Ten areas, which reflects the strength of the Texas economy as a whole. The combination of a talented workforce, strong business climate and high quality of life will continue to serve the Austin area well into the future.

The recently extended tax credits for homebuyers will increase our market activity through the Spring, and current activity bears this out. This is indeed a special time; with prices still suppressed a good selection of homes and interest rates hovering near record lows at 5%, this market is a wonderful opportunity for buyers and move-up sellers alike.

The Georgetown Real Estate Market:
Average sold price – up 5.8% from a year ago to $237,829
Number of Sales YTD – up an impressive 53% compared to this time last year
Number of Active Listings – down 10.7% from December to 559 listings
Months of Inventory – there is 7.6 months of inventory; an oversupply

The Round Rock Real Estate Market:
Average sold price – up 3% from December to $213,545
Number of Sales YTD – up 16.8% compared to this time last year
Number of Active Listings – down 6.9% from December to 762 listings
Months of Inventory – there is 4.9 months of inventory; an slight oversupply

The Pflugerville Real Estate Market:
Average sold price – down slightly from a year ago to $160,523
Number of Sales YTD – down 1% compared to this time last year
Number of Active Listings – up 13.6% compared to December to 441 listings
Months of Inventory – there is 4.5 months of inventory; a slight oversupply

The Cedar Park & Leander Real Estate Market:
Average sold price – up 2.9% from a year ago to $209,236
Number of Sales YTD – up 2.4% compared to this time last year
Number of Active Listings – down 30 % from December to 518 listings
Months of Inventory – decreasing to 5.2 months; a slight oversupply

The North & Northwest Market:
Average sold price – up 14.5% from a year ago to $298,133
Number of Sales YTD – down 17% compared to this time last year
Number of Active Listings – down 10.4% from December to 334
Months of Inventory – there is a fairly balanced 4.2 months of inventory

The River North (FM 2222) Market:
Average sold price – down 11.7% from a year ago to $466,107
Number of Sales YTD – down 9.7% compared to this time last year
Number of Active Listings – down 20% from December to 233 listings
Months of Inventory – there is 8 months of inventory; an oversupply

The Austin Westlake Market:
Average sold price – up 1.9% from a year ago to $717,389
Number of Sales YTD – up an impressive 53% compared to this time last year
Number of Active Listings – down 22% from December to 245 listings
Months of Inventory – there is 8.4 months of inventory; an oversupply

The Southwest Austin Real Estate Market:
Average sold price – down 1.7% from a year ago to $221,886
Number of Sales YTD – up 11.2% compared to this time last year
Number of Active Listings – up 10% from December to 544 listings
Months of Inventory – there is very healthy 3.5 months of inventory

Lake (South shore) Real Estate Market:
Average sold price – up 21.6% from a year ago to $457,164
Number of Sales YTD – up almost 1% compared to this time last year
Number of Active Listings – down 13.4% compared to December at 635 listings
Months of Inventory – oversupplied at 12.4 months of inventory

Lake (North Shore) Real Estate Market:
Average sold price – down 21% from last year to $195,203
Number of Sales YTD – steady compared to this time last year
Number of Active Listings – up 4.6% from December to 241 listings
Months of Inventory – there is 17.5 months of inventory; an oversupply

Tips for Kitchen Remodeling

March 21st, 2010

If you’re contemplating a kitchen remodel, you’re also weighing a considerable investment. But a significant portion of the upfront costs may be recovered by the value the project brings to your home. To make sure you maximize your return, consider these seven smart kitchen remodeling strategies.

1. Establish your priorities
Simple enough? Not so fast. The National Kitchen and Bath Association (NKBA) recommends spending a few months planning before beginning the work. That way, you can thoroughly evaluate your priorities and won’t be tempted to change your mind during construction. Contractors often have clauses in their contracts that specify additional costs for amendments to original plans. Planning points to consider include:

•Avoid traffic jams. A walkway through the kitchen should be at least 36 inches wide, according to the NKBA. Work aisles for one cook should be a minimum of 42 inches wide and at least 48 inches wide for households with multiple cooks.
•Consider children. Avoid sharp, square corners on countertops, and make sure microwave ovens are installed at the heights recommended by the NKBA—3 inches below the shoulder of the principle user but not more than 54 inches from the floor.
•Access to the outside. If you want to easily reach entertaining areas, such as a deck or a patio, factor a new exterior door into your plans.
Because planning a kitchen is complex, consider hiring a professional designer. A pro can help make style decisions and foresee potential problems, so you can avoid costly mistakes. In addition, a pro makes sure contractors and installers are sequenced properly so that workflow is cost-effective. Expect fees around $50 to $150 per hour, or 5% to 15% of the total cost of the project.

2. Keep the same footprint
No matter the size and scope of your planned kitchen, you can save major expense by not rearranging walls, and by locating any new plumbing fixtures near existing plumbing pipes. Not only will you save on demolition and reconstruction, you’ll greatly reduce the amount of dust and debris your project generates.

3. Match appliances to your skill level
A six-burner commercial-grade range and luxury-brand refrigerator might make eye-catching centerpieces, but be sure they fit your lifestyle. Most people tend to overspend in this area.

The high price is only worth the investment if you’re an exceptional cook. Otherwise, save thousands with trusted brands that receive high marks at consumer review websites, like epinions.com and resources such as Consumer Reports.

4. Create a well-designed lighting scheme
Some guidelines:

• Install task lighting, such as recessed or track lights, over sinks and food prep areas; assign at least two fixtures per task to eliminate shadows. Under-cabinet lights illuminate clean-up and are great for reading cookbooks. Pendant lights over counters bring the light source close to work surfaces.

• Ambient lighting includes flush-mounted ceiling fixtures, wall sconces, and track lights. Consider dimmer switches with ambient lighting to control intensity and mood.

5. Focus on durability
People are putting more emphasis on functionality and durability in the kitchen. Solid-surface countertops [Granite, Quartz, Corian, Silestone] are a perfect example; they may cost more than laminate but they are going to look as good much better in 5-10 years.

If you’re not planning to stay in your house that long, products with substantial warranties can become a selling point. “Individual upgrades don’t necessarily give you a 100% return,” says Frank Gregoire, a real estate appraiser, “But they can give you an edge when it comes time to market your home for sale” especially if other competing homes have similar features.

6. Add storage, not space
To add storage without bumping out walls:

• Specify upper cabinets that reach the ceiling. They may cost a bit more, but you’ll gain valuable storage space. In addition, you won’t have to worry about dusting the tops.

• Hang it up. Install small shelving units on unused wall areas, and add narrow spice racks and shelves on the insides of cabinet doors. Use a ceiling-mounted pot rack to keep bulkier pots and pans from cluttering cabinets. Add hooks to the backs of closet doors for aprons, brooms, and mops.

7. Communicate effectively—and often
Having a good rapport with your project manager, contractor or construction team is essential for staying on budget. To keep the sweetness in your project:

•Drop by the project during work hours as often as possible. Your presence assures subcontractors and other workers of your commitment to getting good results.
•Establish a communication routine. Hang a message board on-site where you and the project manager can leave each other daily communiques. Give your email address and cell phone number to subs and team leaders.
•Set house rules. Be clear about smoking, boom box noise levels, which bathroom is available, and where workers should park their vehicles.

Homeowners spend more money on kitchen remodeling than any other home improvement project, according to the Home Improvement Research Institute, and with good reason. The kitchen is the hub of most homes, and a source of pride. With a little planning, you can ensure your kitchen gives you years of satisfaction.

Tags: Home remodeling, Homeowner Tips, Kitchen remodeling
Posted in Homeowner Tips | 3 Comments »

Tax Credits for Replacing Your Roof

February 24th, 2010

Replacing your roof with a qualifying energy-efficient metal or asphalt roof can cut your cooling bill and earn you a $1,500 tax credit.

The roof of your house protects against more than rain, sleet and hail. The sun’s rays beat down relentlessly, especially during summer. The intense heat can raise the temperature inside your home. Proper venting and insulation help keep the cool air in and the warm air out. So, too, do energy-efficient roofing materials, which take the brunt of the solar onslaught. For homeowners who improve the roofs of their primary residences Uncle Sam is giving a tax credit worth up to $1,500.

During 2009 and 2010, you can claim a credit for 30% of the cost of qualifying asphalt or metal roofing materials. The credit, which should be taken on IRS Form 5695 for the tax year in which the work is completed, can be split between 2009 and 2010 but can’t exceed $1,500 total for both years. You can’t claim more in credits than you owe in taxes.

Roof Types – Metal or asphalt shingle

To qualify for the tax credit, you must use either metal or asphalt roofing materials that are designed to reduce “heat gain”, which is the amount of heat transferred into a home, and meet the requirements of Energy Star, a Federal program that promotes energy-efficient products and practices. Metal roofs must have appropriate pigmented coatings and asphalt roofs must have appropriate cooling granules. Asphalt materials are the traditional shingles, and can be rated to last from 15 years to 30 years. Energy Star has a list of all of its approved roofing products, but only the metal and asphalt materials may qualify for the tax credit.

It’s a good idea to keep any manufacturers’ certification statements that attest to the tax credit-worthiness of the roofing materials you purchase. These can usually be found on product packaging or company websites. You don’t need to file these with your tax return, but the IRS could ask for them later. Consult a tax adviser.

Dean Kucharski, a 22-year veteran of the roofing business in Pontiac, Mich., estimates that for a typical 2,200-square-foot home, a mid-range asphalt roof will run about $7,000 to $12,000, including labor. The good news is that it will likely last 20 years or more. For a metal roof, expect to pay twice as much, though it can last for 50 years, he says. If you hire a contractor, get an itemized bill that breaks out the cost of materials since labor doesn’t count toward the tax credit. Materials should account for about half the bill on standard roofing jobs.

Once you’re ready to select a roof type, either talk to an area building supply company that specializes in roofing materials, or to a competent roofing contractor. Finding a good roofer entails the same steps as finding any qualified contractor: ask neighbors for recommendations, collect at least three bids, check references, and get everything in writing. Of course I will be happy to recommend some reliable roofing contractors for you.

More savings too - on cooling bills

You’ll get the most bang for your roof-renovation buck if you live in a hot climate like ours. You can expect to save between 7% and 15% on your cooling costs with energy-efficient roofing materials. If you pay $300 a month to cool your home, figure you’ll cut your monthly bill by up to $45, which is over $500 per year.

Ironically, with roofs there is such a thing as being too energy efficient. In winter months, roofing materials with very high heat-deflecting qualities can increase heating bills. However, you’re more than likely to make up the difference on your air-conditioning costs. That’s especially true here in Austin, where you run your air conditioner much of the year.

Disclaimer: This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

Tags: Energy saving tips, Home projects, Homeowner Tips, Tax savings tips
Posted in Homeowners Tax Saving Tips | 13 Comments »

Austin Area Real Estate Market Report – December 2009 YTD

February 7th, 2010

The overall Austin market

- Compared to the end of year 2008, the number of single-family homes sold in the Austin area dropped by 6%. Compared to 2008, the average sales price for single family homes is down 2% to $242,690. The median price, however, is at $188,480 which is 1% less when compared to this time last year.
- The total number of single-family listings in the Austin MLS is 5% less than this time last year at 9335 units. This is still an oversuppy, and looking at it from a supply and demand standpoint prices are being kept in check – which is a positive for buyers and move up sellers.
- If you average the number of sales for the last 12 months and divide that figure into the number of current active listings, the result is the number of Months of Inventory (MOI). In a balanced market, the MOI is between 3.5 and 4.5 months. Currently, the MOI in the Austin market has remained steady at 6 months which favors buyers. The average days on the market for single-family homes to sell has continued unchanged at 79 days.

The Austin area’s population increased by 44,000 people last year, and Austin finished the year with less than ½ of 1% negative economic growth. This topped all 20 major metro areas in the U.S., which is a reflection of Austin’s overall strength. Most forecasts look for the Austin area to bounce back during 2010 and 2011, returning to positive job growth during March of 2010. The combination of a talented workforce, excellent area schools, strong business climate and high quality of life will continue to serve the Austin area well into the future.

The recently extended tax credits for homebuyers will increase our market activity into the Spring, and current activity bears this out. This is indeed a special time; with prices still suppressed, a good selection of homes and interest rates hovering near record lows at 5%, this market is a wonderful opportunity for buyers .

The Georgetown Real Estate Market:
Average sold price – up 1.3% from a year ago to $226,753
Number of Sales YTD – down 11% compared to this time last year
Number of Active Listings – down 5% from last December to 626 listings
Months of Inventory – there is 7.2 months of inventory; an oversupply

The Round Rock Real Estate Market:
Average sold price – down from a year ago to $208,107
Number of Sales YTD – down 11.5% compared to this time last year
Number of Active Listings – down 17.5% from a year ago to 819 listings
Months of Inventory - steady at 4.4 months; a slight oversupply

The Pflugerville Real Estate Market:
Average sold price – up slightly from a year ago to $156,000
Number of Sales YTD – down 7% compared to this time last year
Number of Active Listings – steady from last December to 381 listings
Months of Inventory – there is 4.5 months; a slight oversupply

The Cedar Park & Leander Real Estate Market:
Average sold price – steady from a year ago to $208,917
Number of Sales YTD – down 7.6% compared to this time last year
Number of Active Listings – down 8.3% from a year ago to 739 listings
Months of Inventory – decreasing to 4.7 months; a slight oversupply

The North & Northwest Market:
Average sold price – down 5.6% from a year ago to $291,296
Number of Sales YTD – up 2.6% compared to this time last year
Number of Active Listings – down 3% from last month to 373; up 1.9% from a year ago
Months of Inventory – a fairly balanced 3.7 months of inventory

The River North (FM 2222) Market:
Average sold price – down 9% from a year ago to $483,258
Number of Sales YTD – down 9.7% compared to this time last year
Number of Active Listings – down 4.1% from last December to 300 listings
Months of Inventory – there is 8 months; an oversupply

The Austin Westlake Market:
Average sold price – up 1% from a year ago to $734,643
Number of Sales YTD – up 1.4% compared to this time last year
Number of Active Listings – up 16.2% from a year ago to 316 listings
Months of Inventory – there is 7 months; an oversupply

The Southwest Austin Real Estate Market:
Average sold price – down 2.5% from a year ago to $226,205
Number of Sales YTD – down 1.3% compared to this time last year
Number of Active Listings – down 10% from last December to 495 listings
Months of Inventory – there is a very healthy 3 months of inventory

Lake (South shore/Lakeway area) Real Estate Market:
Average sold price – down 5.8% from a year ago to $350,000
Number of Sales YTD – down 3.6% compared to this time last year
Number of Active Listings – slightly less than last month with 734 listings
Months of Inventory – oversupplied and holding at 11.3 months

Lake (North Shore) Real Estate Market
Average sold price – down 6% from last year to $252,724
Number of Sales YTD – down 11.5% compared to this time last year
Number of Active Listings – steady from last month at 230 listings
Months of Inventory – there is 15.1 months; an oversupply

This report provided by
Mary “B” Battaglia

Coldwell Banker United, Realtors
maryb@maryb.com

♥
“Your Most Dependable Link to Austin Area Real Estate”

♥

Proposed FHA Mortgage Changes

January 28th, 2010

There are changes on the horizon for FHA loans that are designed to improve the quality of their loans. I have included below the changes that are directly affecting the loans and closing costs; there are also additional changes in the areas of increased oversight of lenders and appraisers.

The mortgage insurance premium (MIP) will be increased to build up capital reserves.
-The first step will be to initially raise the up-front MIP by one-half of a percent to 2.25% and at the same time request legislative authority to increase the maximum annual MIP that the FHA can charge.
-If the authority to increase the maximum annual MIP amount is granted, the second step will be to shift some of the increased premium increase from the up-front MIP to the annual MIP. This shifting of a portion of the premium will have the effect of spreading the increase more evenly between the up-front and annual costs.
-Borrowers will experience increased purchase costs of several hundred dollars as well as a slight increase in the monthly payments.
-The initial up-front increase will go into effect in the Spring which, for a time, will raise the buyer’s closing costs on a $200,000 loan by $1000.
The 3.5% FHA down payment will increase to 5% and even10% or more for some borrowers – depending on their FICO credit scores.
-New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
-This allows the FHA to better balance its risk and continue to provide attractive down payments for those borrowers who have better credit histories.
-The proposed changes in FHA loan down payments will be posted in the Federal Register in February 2010 and, after a notice and comment period, are expected to go into effect in the early Summer.
The FHA plans to reduce the amount of Buyer’s closing costs that Seller’s are allowed to pay (on the Buyer’s behalf) from 6% of the sales price to 3% of the sales price.
-The current 6% ceiling has caused some Seller’s to raise the sales price in order to compensate for these increased costs. In turn, increasing the sales price created additional pressure on the appraised value, which ultimately exposed the FHA to excess risk and eroded buyer’s equity. These new rules will bring FHA loans in line with seller concessions currently allowed for conventional loans.
-This change will be posted in the Federal Register during February 2010, and after a notice and comment period, will be expected to go into effect in the early Summer.

FHA loans will still be attractive to borrowers with fairly good credit scores, even though their out of pocket expenses will be increasing. Should mortgage rates increase in the future, the FHA loans will continue to be assumable at their existing interest rate but the new borrower will have to qualify and be approved as they would with a new loan.

All things considered today, the opportunistic buyer who can be ready to purchase should do so before these changes go into effect between April and June. To add even more urgency, the tax credits for home buyers are also set to expire during this same time period. Contact me if you’d like to visit!

Mary “B” Battaglia

Tags: FHA closing costs, FHA down payment, FHA loan changes, FHA MIP, FHA mortgage changes
Posted in Austin Mortgage Information | 21 Comments »

Austin Area Real Estate Market Report – November 2009 YTD

January 28th, 2010

The overall Austin Real Estate market

- Compared to last November, there were 7% fewer single-family homes sold in the Austin area. The average sales price for single family homes is down 3% compared to this time last year to $241,422. The median price, however, is at $188,000 which is 1% less when compared to this time last year.
- The total number of single-family listings in the Austin MLS is 5% less than this time last year at 9449 units. Still, prices are being pushed down – which is a positive for buyers.
- If you average the number of sales for the last 12 months and divide that figure into the number of current active listings, the result is the number of Months of Inventory (MOI). In a balanced market, the MOI is between 3.5 and 4.5 months. Currently, the MOI in the Austin market has decreased to 6 months which favors buyers. The average days on the market for single-family homes to sell has dropped 15% to 78 days.
- The recently extended tax credits for Renters and Homeowners will increase our market activity the next 4 months. For either type of Buyer, the purchase contract has to be agreed to by April 30th, and many are saying that these tax credits will not be extended. This is indeed a special time; with prices still suppressed, a good selection of homes and interest rates hovering near record lows at 5%, this market is a wonderful opportunity for sellers and buyers alike.

The Austin metro area continues to be named to Top 5 lists and recognized for its schools and healthy economic climate. To be sure Austin has felt the effects of our nation’s economy which reached historic lows in 2009. That said, the Austin area ranks among a select few areas nationally and we are fortunate to be in such a popular area; our improving national economy should make 2010 a year to look forward to.

The Georgetown Real Estate Market:

Average sold price – up 1.3% from a year ago to $226,195
Number of Sales YTD – down 11.7% compared to this time last year
Number of Active Listings – down 5% from last November to 601 listings
Months of Inventory – there is 7.3 months of inventory; an oversupply

The Round Rock Real Estate Market:

Average sold price – down from a year ago to $207,862
Number of Sales YTD – down 11.8% compared to this time last year
Number of Active Listings – down 19% from a year ago to 813 listings
Months of Inventory – there is 4.6 months of inventory; an slight oversupply

The Pflugerville Real Estate Market:

Average sold price – steady from a year ago to $164,212
Number of Sales YTD – down 7% compared to this time last year
Number of Active Listings – down 16% from last November to 381 listings
Months of Inventory – there is 4.5 months of inventory; a slight oversupply

The Cedar Park & Leander Real Estate Market:

Average sold price – steady from a year ago to $208,062
Number of Sales YTD – down 7.4% compared to this time last year
Number of Active Listings – down 8.8% from a year ago to 747 listings
Months of Inventory – decreasing to 4.6 months; a slight oversupply

The North & Northwest Austin Real Estate Market:

Average sold price – down 5.8% from a year ago to $291,712
Number of Sales YTD – up 2% compared to this time last year
Number of Active Listings – down slightly from last month to 382; up 2.7% from a year ago
Months of Inventory – there is a fairly balanced 3.9 months of inventory

The River North (FM 2222) Market:

Average sold price – down 7% from a year ago to $486,335
Number of Sales YTD – down 10.3% compared to this time last year
Number of Active Listings – down 4.1% from last November to 306 listings
Months of Inventory – there is 8 months of inventory; an oversupply

The Austin Westlake Market:

Average sold price – up 1% from a year ago to $734,460
Number of Sales YTD – up 1.3% compared to this time last year
Number of Active Listings – up 17.5% from a year ago to 326 listings
Months of Inventory – there is 7.1 months of inventory; an oversupply

The Southwest Austin Real Estate Market:

Average sold price – down 3.4% from a year ago to $225,413
Number of Sales YTD – down 1.5% compared to this time last year
Number of Active Listings – down 10% from last November to 418 listings
Months of Inventory – there is very healthy 3 months of inventory

The Lake (South shore) Real Estate Market:

Average sold price – down 9.3% from a year ago to $427,736
Number of Sales YTD – down 6% compared to this time last year
Number of Active Listings – slightly less than last month with 749 listings
Months of Inventory – still oversupplied but decreasing to 11.3 months of inventory

The Lake (North Shore) Real Estate Market:

Average sold price – down 11% from last year to $242,390
Number of Sales YTD – down 13.7% compared to this time last year
Number of Active Listings – steady from last month at 233 listings
Months of Inventory – there is 15.1 months of inventory; an oversupply