Posts filed under ‘Austin’

Market Review & Housing Affordability

Wanted to give you some links that provide good information on the Austin real estate market, 2010 summary and what we’re seeing right now early into 2011.  These are some of the main data resources we use in tracking the market.

One thing that we watch with interest is what we call the Housing Affordability Index (HAI). Published by the National Association of Realtors (NAR), the HAI is the ability of the average family to afford the average home with only 20% down. It measures whether a typical family could qualify for a typical mortgage on a typical house. The index is up, meaning affordability is up mainly because of 2 of these 3 factors … pretty sure the typical family income is not up so it’s the seriously low mortgage rates and the downward effect of home prices creating the increased HAI. From 1990 – 2008, the index was around 115-140; it’s over 180 right now. When interest rates go up, the index will creep back down.

One of the best sources for Texas and Austin real estate stats is the Texas A&M Real Estate Center. Here is a link to the Austin data page: http://recenter.tamu.edu/data/hs/hs140.asp.

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The Austin Board of Realtors has an excellent report out, Implications & Expectations for Austin’s Market, that outlines the overall 2010 market results.

One of the main things we’re seeing in Austin is price softening but volume of sales creeping up. These are averages for Austin and your local neighborhood market may have different trends with many neighborhoods holding steady. Buyers will pick up this spring but so will the number of homes on the market.

Again, we’re always saying real estate is local and we are happy to run stats & strategy specific to your neighborhood.

 

The Nelson Project at Keller Williams Realty in Austin strives to provide valuable real estate information and news through this blog and our other online resources.  Find more about The Nelson Project and search for Austin homes at www.TheNelsonProject.com.  If you like this blog, you may want to visit our totally useful Austin neighborhood portal.  We think you may also like www.tacomap.info (tacos first, real estate second).  If you really like what you see, tell your friends to call us with their Austin real estate needs.
 
© Julie Nelson and The Nelson Project at Keller Williams Realty, 2009-2011. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Julie Nelson and The Nelson Project at Keller Williams Realty with appropriate and specific direction to the original content.
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February 12, 2011 at 5:15 pm Leave a comment

Another Possible Scam … Deed Retrieval Services

You all have heard of the letters that go out each year offering homeowners a homestead exemption for the low price of $25 or $30. You also know that no one ever has to pay for a Homestead exemption…. it is free.

Well now there is a new letter called ‘Deed Retrieval Services’ and it is from the State Record Retrieval Board which, by the way is NOT a state agency.  This one offers to provide the homeowner with their ‘…… Deed and complete Property Profile’ for the cost of $87.

The letter says they are not affiliated with any governmental agency nor your county. It is only a solicitation. All of that is correct, however, there is no reason to pay for these items, so please let your clients, friends and neighbors know about it before they send money to this entity.

November 19, 2010 at 1:06 pm 2 comments

Quick Study Austin Market

grass sky Small I just ran 15 quickie pending / sold analysis around Austin comparing sold the last 60 days and current pending and found some interesting and optimistic data.

If you say that 30 homes sold in area 4 in the past 60 days, that tells us that 15 homes are selling per month recently. Then you see that there are currently 20 area 4 homes pending … that means, in theory, that 20 homes will close in the next 30 days. That would be a slight increase in activity.

When we see the pace pick up like this, it indicates that we are moving inventory through the system, lowering the number of homes on the market. This is a good thing. If the market is saturated, it softens prices; when the market has fewer homes available, it increases demand … basic economics and something we watch closely.

Of the 15 snapshots I ran, 14 were up, 1 was even. Meaning, they all are showing that homes sold for the next 30 days will outpace the rate at which they sold the past 60 days.

5 of them have almost doubled: areas 1B, 1A, downtown condos, 78704 condos and area 5 (east).

The next healthiest: Anderson High School, 78704 homes, area 10N.

A little further down the list but showing stability: areas 4, 2, Hays and Pflugerville over $200k.

This is not an indication of prices creeping up (that is another study), but it indicates stability.

 

October 28, 2010 at 7:43 pm 2 comments

Flight Patterns in Austin

If you are moving to Austin and purchasing real estate, you may want to know about our typical flight paths. 

The old airport (Mueller) was located right in the middle of town at IH35 and 51st Street so there were a number of neighborhoods negatively impacted by approaching flights.   There is a popular coffee house called Flight Path near (surprise!) 51st & IH35 that serves a robust latte.

The new Austin-Bergstrom Intl Airport – AIBA – (well, not so new anymore) is in the southeastern quadrant of Austin near 183 & Hwy 71.

The dominant flight pattern is approaching the airport from the north.  I live 25 minutes away from the airport in northwest Austin (Northwest Hills) and they fly direct over my house (but not low) from west to east, then when they cross IH35 they turn south and head toward the airport in southeast Austin.  The neighborhood most directly impacted by the flight path is directly north of the airport along the 183 corridor.  Flight paths can vary depending on weather patterns and wind conditions but the approach from the north is typical.

My father was a career USAF pilot so I actually like seeing the planes over my northwest Austin home. If the USAF is flying via San Antonio, they’ll zip their fighter jets high over Austin from south to north.  I used to watch for this any time W was up at the ranch in Crawford.

 

The Nelson Project at Keller Williams Realty in Austin strives to provide valuable real estate information and news through this blog and our other online resources.  Find more about The Nelson Project and search for Austin homes at www.TheNelsonProject.com.  If you like this blog, you may want to visit our totally useful Austin neighborhood portal.  We think you may also like www.tacomap.info (tacos first, real estate second).  If you really like what you see, tell your friends to call us with all their Austin real estate needs.

© Julie Nelson and The Nelson Project at Keller Williams Reatly, 2008-2010. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Julie Nelson and The Nelson Project at Keller Williams Realty with appropriate and specific direction to the original content.

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September 3, 2010 at 2:30 pm Leave a comment

Tell Me About Austin Property Taxes

Property taxes in Austin are generally about 2.2% of appraised value.  The rate is the more or less the same throughout Austin but there is some variance for school district, hospital district, some areas have  MUD or PUD (utility district) tax but those would generally be outlying areas.  We do not have a state income tax in Texas but make up for it in property taxes. 

You do get a homestead exemption on your primary residence which reduces the school tax valuation by something like $15k.  When you purchase a home you file for the homestead exemption the first January that you own the home (a good Realtor will remind you of this).

2009 rates look like this:

County City School District Community College Hosp Dist Total
0.4215% 0.4209% 1.202% 0.0946% 0.0674% 2.206%

 

More info:  http://www.austin-chamber.org/DoBusiness/TaxesAndIncentives/TxProperty.html

Appraisal district:  http://www.traviscad.org/

 

© Julie Nelson and The Nelson Project at Keller Williams Reatly, 2008-2010. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Julie Nelson and The Nelson Project at Keller Williams Realty with appropriate and specific direction to the original content.

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September 3, 2010 at 2:07 pm Leave a comment

Mega Agent Camp in Austin 2010 – Dining For Life

Hey Keller Williams agents visiting Austin September 14-16 for Mega Camp … looking for dining options?  It just so happens that Aids Services of Austin (ASA) is having their annual Dining for Life Sept 13 and 14.  Participating restaurants will donate a significant portion of their proceeds to ASA.  Their generosity and your appetite will benefit thousands of men, women and families throughout Austin.  Tell them  you are with KW and that The Nelson Project. sent you.dining

ABOUT DINING FOR LIFE: http://www.asaustin.org/site/PageServer?pagename=dfl_about

PARTICIPATING RESTAURANTS: http://www.asaustin.org/site/PageServer?pagename=dfl_restaurants … if you zoom in on the map for a close-in downtown view, you can easily identify participating restaurants close in.

© Julie Nelson and The Nelson Project at Keller Williams Reatly, 2008-2010. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Julie Nelson and The Nelson Project at Keller Williams Realty with appropriate and specific direction to the original content.

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August 31, 2010 at 4:34 pm Leave a comment

Real estate expectations for the next decade

http://www.nytimes.com/2010/08/23/business/economy/23decline.html?_r=1&scp=1&sq=housing%20investment&st=cse no direction Small

A friend sent me this NY Times article link and asked for my commentary as it relates to the Austin real estate market. Love to.

An interesting article, for sure. There is so much caution in the market right now and Austin is not immune. Austin has been somewhat immune and definitely lucky with much more economic stability for the past 4 years than the country as a whole and that continues today (how many articles a month do we see that say Austin #1 at something, top-10 something, best business environment, best economy, best for 30-somethings, best tacos, best best best, top this, top that etc).

I filter everything I read on the economy and housing market with 2 filters … the FL/AZ/Vegas filter and the Austin filter. So much of the housing crisis and the economic quagmire is because FL and AZ and Vegas et al were out of control and consumers were ignoring what they learned in Econ 101 (moderate growth is healthy, aggressive gain can only sustain for so long) and wanted in on the opportunity and, of course, the lenders loaning to anyone with a pulse but that is a separate commentary.

I still think you can put a kid through college with buying real estate in Austin; I have no idea what that looks like in FL. An example would be buying a $130k home in Austin right now that can break even per month with an $1100 rent … keep that for 15 years (pay it down aggressively) and sell it for $180k? That is actually about a 3% appreciation if you calculate on the full value of the home but when you calculate on the down payment (which really was your investment), your appreciation is closer to 7%. (Basic real estate math: calculate on your cash-in & return on that investment, not on the market value of the asset.)

The article mentions the Shiller & Case annual survey and it says folks in Boston, SF, Orange Cty & Milwaukee think the market will go up about 10% a year this next decade. Are they on crack? Austin, a very healthy market, appreciated on average about 4-5% per year during the boom; this was an exceptionally healthy and stable appreciation. Come on folks, wake up. Perhaps the article needs to address the psychology of folks in Milwaukee having grand expectations.

 

The Nelson Project at Keller Williams Realty in Austin strives to bring you valuable real estate information and news through this blog and our other online resources.  Find more about The Nelson Project and search for Austin homes at www.TheNelsonProject.com.  if you like this blog, you may want to visit our totally useful Austin neighborhood portal.  If you really like what you see, tell your friends to call us with all their Austin real estate needs.

 

© Julie Nelson and The Nelson Project at Keller Williams Reatly, 2008-2010. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Julie Nelson and The Nelson Project at Keller Williams Realty with appropriate and specific direction to the original content.

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August 24, 2010 at 8:12 am Leave a comment

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