According to the Multiple Listing Service report by the Austin Board of REALTORS®, the volume of Austin-area home sales continues to surge, increasing 58 percent in November 2009 compared to November 2008.
“This is the largest increase in year-over-year homes sales the Austin market has seen in more than ten years,” explained Jay Gohil, chairman of the Austin Board of REALTORS®.
In November 2009, there were a total of 1,576 home sales, contributing $377,603,296 to the local economy. The median home price for Austin in November 2009 was $179,000, a two percent decrease from the same month the prior year.
“The combination of steady home prices with increasing demand is very encouraging for the Central Texas real estate market,” said Gohil.
In the face of increasing sales volume, the Austin real estate market is seeing a decrease in home inventory. The Real Estate Center at Texas A&M University cites 6.5 months of inventory as a balanced market, meaning demand for homes is evenly balanced with inventory of homes for sale. At approximately 5.4 months of inventory for November 2009, demand for homes in the Austin real estate market is slightly outpacing inventory.
November 2009 Statistics
•$377,603,296 – Total dollar volume of single-family properties sold, a 62 percent increase from November 2008.
•$179,000 – Median price for single-family homes, a two percent decrease from November 2008.
•1,576 – Single-family homes sold, a 58 percent increase from November 2008.
Info provided by the ABoR. For more information, contact me right away!
Monday, December 28, 2009
Thursday, December 10, 2009
How to Find the Right Home for Your Family
When beginning the process of finding a new home, it is often difficult to know where to begin. Before researching the market or analyzing housing options, homebuyers may want to start by prioritizing their family's needs, determining what are "must-haves" versus what are "nice-to-haves." Below are some factors you may want to consider when trying to find the right home for your family.
•Think Through Location: When you begin searching for the right home for your family, you may first want to determine what would be the best location. One of the best ways to find a home location that suits your family is to assess your needs and determine how much your family can compromise. For instance, do you have small children or pets that require a large backyard to play in? Or would you be equally happy taking your kids and dog to the local park? Do you need quiet surroundings, like a dead-end street, or do you prefer the hustle and bustle of metropolitan areas? These are the types of general assessments which may help you determine an ideal location for your family.
•Analyze Potential Neighborhoods: Though it may be easy to determine what type of environment your family wants to reside in, you will want to spend more time analyzing the details of the neighborhoods you are considering. As you try to determine which neighborhoods are best for your family, you may want to take into account such factors as the quality of nearby schools and the proximity to shopping or your workplace. After seeing what different neighborhoods have to offer, compare the pros and cons of each area you are considering to determine the best location for your family.
•'Visualize' Your Ideal Home: After you have a chance to look at a few homes and research various neighborhoods, try to visualize the best home for your family. Though you have probably already thought about how many bedrooms and bathrooms your family needs, consider keeping a list of desired amenities – both essential and those that you could live without – as you continue the home buying process. You may also want to consider what type of home construction your family needs, from a standard single-family home to a condominium or even a multi-family home. Upon viewing particular homes, you may realize that your family needs a certain amount of storage space or more overall square footage than you realized. Add and subtract from this list as you look at more homes, always keeping track of where your family can compromise.
•Keep An Open Mind: If you find a home that meets all of your family's needs but has a smaller than desired garage, you could still be faced with an opportunity that is too good to pass up. Furthermore, you might find the perfect home in a neighborhood you never thought to consider, or in a specific type of construction that was initially ruled out of your search. Quite simply, try not to limit your family's options too much and remain open-minded throughout the home buying process. You might even find a great home with special features you never thought your family could afford – like a pool, a spa or an extra fireplace.
When trying to find the best home for your family, try to stay organized and keep your priorities straight. As you look at different homes, try to consider how each property fits your family's needs. After finding some homes that meet your family's needs, you may then want to focus on each home's desirable extras to help narrow down your search. By making such lists and assessing your family's needs throughout the home buying process, you might be surprised how quickly you uncover the home of your dreams.
•Think Through Location: When you begin searching for the right home for your family, you may first want to determine what would be the best location. One of the best ways to find a home location that suits your family is to assess your needs and determine how much your family can compromise. For instance, do you have small children or pets that require a large backyard to play in? Or would you be equally happy taking your kids and dog to the local park? Do you need quiet surroundings, like a dead-end street, or do you prefer the hustle and bustle of metropolitan areas? These are the types of general assessments which may help you determine an ideal location for your family.
•Analyze Potential Neighborhoods: Though it may be easy to determine what type of environment your family wants to reside in, you will want to spend more time analyzing the details of the neighborhoods you are considering. As you try to determine which neighborhoods are best for your family, you may want to take into account such factors as the quality of nearby schools and the proximity to shopping or your workplace. After seeing what different neighborhoods have to offer, compare the pros and cons of each area you are considering to determine the best location for your family.
•'Visualize' Your Ideal Home: After you have a chance to look at a few homes and research various neighborhoods, try to visualize the best home for your family. Though you have probably already thought about how many bedrooms and bathrooms your family needs, consider keeping a list of desired amenities – both essential and those that you could live without – as you continue the home buying process. You may also want to consider what type of home construction your family needs, from a standard single-family home to a condominium or even a multi-family home. Upon viewing particular homes, you may realize that your family needs a certain amount of storage space or more overall square footage than you realized. Add and subtract from this list as you look at more homes, always keeping track of where your family can compromise.
•Keep An Open Mind: If you find a home that meets all of your family's needs but has a smaller than desired garage, you could still be faced with an opportunity that is too good to pass up. Furthermore, you might find the perfect home in a neighborhood you never thought to consider, or in a specific type of construction that was initially ruled out of your search. Quite simply, try not to limit your family's options too much and remain open-minded throughout the home buying process. You might even find a great home with special features you never thought your family could afford – like a pool, a spa or an extra fireplace.
When trying to find the best home for your family, try to stay organized and keep your priorities straight. As you look at different homes, try to consider how each property fits your family's needs. After finding some homes that meet your family's needs, you may then want to focus on each home's desirable extras to help narrow down your search. By making such lists and assessing your family's needs throughout the home buying process, you might be surprised how quickly you uncover the home of your dreams.
Wednesday, December 2, 2009
>> Market Update
INFO THAT HITS US WHERE WE LIVE The economic reports before Thanksgiving were packed with housing market data and, guess what, they were all extremely positive! Monday saw Existing Home Sales UP 10.1% to an annual rate of 6.10 million, the highest since February 2007. Sales are now UP 20% in the past two months and UP 36% from their January lows. Even better, the supply of existing homes was down to just 7 months, with inventories down to 3.57 million, the lowest level in almost three years. This puts existing homes very close to the 6-month supply level of a healthy housing market. The Case-Shiller 20-City Composite Home Price Index rose 0.3% in September. The index also showed its second consecutive quarterly increase, UP 3.1% for Q3, returning to August 2003 levels.
Wednesday, New single-family Home Sales were UP 6.2% in October to an annual rate of 430,000 units. New Home Sales are now UP 30.7% over their January low. The unsold supply of new homes dropped to 6.7 months as of October, with inventories at 239,000, 58.2% down from their mid-2006 peak and at their lowest level since mid-1971. The median price was down only 0.5% from a year ago and average price down just 4.7%.
Freddie Mac reported mortgage rates down for the fourth straight week, reaching historic lows well below 5%, with an average 0.7 point, for prime borrowers with 20% down payments. Freddie Mac's chief economist said, "Interest rates for 30-year fixed-rate loans are currently 0.8 percentage points below this year's peak set in mid-June, which shaves roughly $100 off the monthly payments on a $200,000 mortgage."
>> Review of Last Week
TWO KINDS OF BLACK FRIDAY... Leading up to Thanksgiving, we had lots to be grateful for, with market gains and encouraging economic reports. Retailers' Black Friday exceeded expectations, but unfortunate financial news from Dubai turned Wall Street's Friday a depressing black, with the Dow losing 154 points on the day. The Dubai government announced there would be a six-month "standstill" on debt repayments for Dubai World, its holding company. This sent world markets reeling with fears of multi-billion dollar defaults. But Dubai is part of the super-wealthy United Arab Emirates (U.A.E.), which should provide deep support. In addition, Dubai's debt is mostly held by U.K. and European banks, with little U.S. involvement. The situation bears watching, although our recovery remains clearly on track.
On Tuesday, for example, Q3 GDP growth was revised down to a still substantial 2.8% annual rate. The key item in the report was the look at Q3 corporate profits, which grew at a very strong 50% annual rate, the third consecutive quarterly increase. Wednesday, initial jobless claims dropped to 466,000, sending the four-week moving average down to 496,500, below the level a year ago. Continuing claims are now down to 5.423 million. The Richmond Fed Manufacturing index showed expansion of activity for the seventh straight month.
Consumer Confidence went up to 49.5 for November, beating consensus estimates. This tied in nicely with Wednesday's reports showing personal incomes are rising, consumer spending is up and the savings rate is 4.4% vs. 1.7% just two years ago. Even non-mortgage consumer debt is down 5% from its mid-2008 peak.
Nonetheless, the Dubai surprise left the Dow off 0.1% for the week, at 10309.92; the S&P 500 was up just 0.11 points, to 1091.49; while the Nasdaq slipped 0.4%, to 2138.44.
Prices held higher in the bond market, as investors anticipate the fall-out from Dubai and its state supported debt issues. The FNMA 30-year 4.5% bond we watch ended up 72bp from the previous week's close, finishing at $102.50. Mortgage rates, as noted above, fell last week to historically low levels!
>> This Week’s Forecast
FOCUS ON JOBS... The week opens with insight into the continually improving manufacturing sector, while Pending Home Sales figures hold our interest on Tuesday. But the real focus for the week will be on Friday's November jobs report. Analysts will be looking for further signs of recovery in this lagging economic indicator. The consensus expects the unemployment rate to plateau, which is an improvement over rates on the rise.
>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
Economic Calendar for the Week of November 30 – December 4
Date Time (ET) Release For Consensus Prior Impact
M
Nov 30 09:45 Chicago PMI Index Nov 53.0 54.2 HIGH
Tu
Dec 1 10:00 ISM Index Nov 54.8 55.7 HIGH
Tu
Dec 1 10:00 Pending Home Sales Oct –0.5% 6.1% Moderate
W
Dec 2 10:30 Crude Inventories 11/27 NA 1.02M Moderate
Th
Dec 3 08:30 Initial Unemployment Claims 11/28 483K 466K Moderate
Th
Dec 3 08:30 Continuing Unemployment Claims 11/21 5.517M 5.423M Moderate
Th
Dec 3 08:30 Productivity–Rev. Q3 8.5% 9.5% Moderate
Th
Dec 3 08:30 Employment Cost Index Q4 NA 0.4% HIGH
Th
Dec 3 10:00 ISM Services Index Nov 51.5 50.6 Moderate
F
Dec 4 08:30 Average Workweek Nov 33.1 33.0 HIGH
F
Dec 4 08:30 Hourly Earnings Nov 0.2% 0.3% HIGH
F
Dec 4 08:30 Nonfarm Payrolls Nov –114K –190K HIGH
F
Dec 4 08:30 Unemployment Rate Nov 10.2% 10.2% HIGH
>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months. The Fed continues to affirm it will keep rates down until the recovery looks more solid, but inflation is always a concern. Overall consumer prices in the last six months are up at an annual rate of 2.7%, but economists don't expect any rate changes in the near future. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
Current Fed Funds Rate: 0%–0.25%
After FOMC meeting on: Consensus
Dec 15 0%–0.25%
Jan 27 0%–0.25%
Mar 16 0%–0.25%
Probability of change from current policy:
After FOMC meeting on: Consensus
Dec 15 1%
Jan 27 1%
Mar 16 3%
More details on this can be found by contacting Brian Patschke with Prime Lending at bpatschke@primelending.com
INFO THAT HITS US WHERE WE LIVE The economic reports before Thanksgiving were packed with housing market data and, guess what, they were all extremely positive! Monday saw Existing Home Sales UP 10.1% to an annual rate of 6.10 million, the highest since February 2007. Sales are now UP 20% in the past two months and UP 36% from their January lows. Even better, the supply of existing homes was down to just 7 months, with inventories down to 3.57 million, the lowest level in almost three years. This puts existing homes very close to the 6-month supply level of a healthy housing market. The Case-Shiller 20-City Composite Home Price Index rose 0.3% in September. The index also showed its second consecutive quarterly increase, UP 3.1% for Q3, returning to August 2003 levels.
Wednesday, New single-family Home Sales were UP 6.2% in October to an annual rate of 430,000 units. New Home Sales are now UP 30.7% over their January low. The unsold supply of new homes dropped to 6.7 months as of October, with inventories at 239,000, 58.2% down from their mid-2006 peak and at their lowest level since mid-1971. The median price was down only 0.5% from a year ago and average price down just 4.7%.
Freddie Mac reported mortgage rates down for the fourth straight week, reaching historic lows well below 5%, with an average 0.7 point, for prime borrowers with 20% down payments. Freddie Mac's chief economist said, "Interest rates for 30-year fixed-rate loans are currently 0.8 percentage points below this year's peak set in mid-June, which shaves roughly $100 off the monthly payments on a $200,000 mortgage."
>> Review of Last Week
TWO KINDS OF BLACK FRIDAY... Leading up to Thanksgiving, we had lots to be grateful for, with market gains and encouraging economic reports. Retailers' Black Friday exceeded expectations, but unfortunate financial news from Dubai turned Wall Street's Friday a depressing black, with the Dow losing 154 points on the day. The Dubai government announced there would be a six-month "standstill" on debt repayments for Dubai World, its holding company. This sent world markets reeling with fears of multi-billion dollar defaults. But Dubai is part of the super-wealthy United Arab Emirates (U.A.E.), which should provide deep support. In addition, Dubai's debt is mostly held by U.K. and European banks, with little U.S. involvement. The situation bears watching, although our recovery remains clearly on track.
On Tuesday, for example, Q3 GDP growth was revised down to a still substantial 2.8% annual rate. The key item in the report was the look at Q3 corporate profits, which grew at a very strong 50% annual rate, the third consecutive quarterly increase. Wednesday, initial jobless claims dropped to 466,000, sending the four-week moving average down to 496,500, below the level a year ago. Continuing claims are now down to 5.423 million. The Richmond Fed Manufacturing index showed expansion of activity for the seventh straight month.
Consumer Confidence went up to 49.5 for November, beating consensus estimates. This tied in nicely with Wednesday's reports showing personal incomes are rising, consumer spending is up and the savings rate is 4.4% vs. 1.7% just two years ago. Even non-mortgage consumer debt is down 5% from its mid-2008 peak.
Nonetheless, the Dubai surprise left the Dow off 0.1% for the week, at 10309.92; the S&P 500 was up just 0.11 points, to 1091.49; while the Nasdaq slipped 0.4%, to 2138.44.
Prices held higher in the bond market, as investors anticipate the fall-out from Dubai and its state supported debt issues. The FNMA 30-year 4.5% bond we watch ended up 72bp from the previous week's close, finishing at $102.50. Mortgage rates, as noted above, fell last week to historically low levels!
>> This Week’s Forecast
FOCUS ON JOBS... The week opens with insight into the continually improving manufacturing sector, while Pending Home Sales figures hold our interest on Tuesday. But the real focus for the week will be on Friday's November jobs report. Analysts will be looking for further signs of recovery in this lagging economic indicator. The consensus expects the unemployment rate to plateau, which is an improvement over rates on the rise.
>> The Week’s Economic Indicator Calendar
Weaker than expected economic data tends to send bond prices up and interest rates down, while positive data points to lower bond prices and rising loan rates.
Economic Calendar for the Week of November 30 – December 4
Date Time (ET) Release For Consensus Prior Impact
M
Nov 30 09:45 Chicago PMI Index Nov 53.0 54.2 HIGH
Tu
Dec 1 10:00 ISM Index Nov 54.8 55.7 HIGH
Tu
Dec 1 10:00 Pending Home Sales Oct –0.5% 6.1% Moderate
W
Dec 2 10:30 Crude Inventories 11/27 NA 1.02M Moderate
Th
Dec 3 08:30 Initial Unemployment Claims 11/28 483K 466K Moderate
Th
Dec 3 08:30 Continuing Unemployment Claims 11/21 5.517M 5.423M Moderate
Th
Dec 3 08:30 Productivity–Rev. Q3 8.5% 9.5% Moderate
Th
Dec 3 08:30 Employment Cost Index Q4 NA 0.4% HIGH
Th
Dec 3 10:00 ISM Services Index Nov 51.5 50.6 Moderate
F
Dec 4 08:30 Average Workweek Nov 33.1 33.0 HIGH
F
Dec 4 08:30 Hourly Earnings Nov 0.2% 0.3% HIGH
F
Dec 4 08:30 Nonfarm Payrolls Nov –114K –190K HIGH
F
Dec 4 08:30 Unemployment Rate Nov 10.2% 10.2% HIGH
>> Federal Reserve Watch
Forecasting Federal Reserve policy changes in coming months. The Fed continues to affirm it will keep rates down until the recovery looks more solid, but inflation is always a concern. Overall consumer prices in the last six months are up at an annual rate of 2.7%, but economists don't expect any rate changes in the near future. Note: In the lower chart, a 1% probability of change is a 99% certainty the rate will stay the same.
Current Fed Funds Rate: 0%–0.25%
After FOMC meeting on: Consensus
Dec 15 0%–0.25%
Jan 27 0%–0.25%
Mar 16 0%–0.25%
Probability of change from current policy:
After FOMC meeting on: Consensus
Dec 15 1%
Jan 27 1%
Mar 16 3%
More details on this can be found by contacting Brian Patschke with Prime Lending at bpatschke@primelending.com
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