How competitive is the Austin home market? (Houston, Round Rock: real estate market, renters)

[mrstribal]

Greetings from the PNW.

Background info: We're originally from the Houston area, moved to Seattle 5 years ago, and are now looking to move to the Austin area this coming August. My husband will likely be staying with his current company (Amazon-on the north side-for location purposes) when we move, and will have a decent salary, and I am a licensed professional photographer and will be re-launching my business upon arrival. We have 2 school aged kids. We will have roughly $75000 saved toward purchasing a home. We're looking around the $300-400K mark, 3000 sqft, 4-5 br, and a good sized yard (we have a dog.)

We are desperate to finally own a home. We have been renters for our entire marriage of 11 years. We have a 10 year old entering middle school, and a 7 year old entering the 2nd grade, so a good school (not just test scores, but the atmosphere of the school--parent volunteering is important to me) system is vital.

I've been reading various forums and blurbs that are talking about how competitive the market is for home purchasing around the Austin area. Here in Seattle, houses are snatched up within a day, as the supply is so very low. Is it that crazy in Austin? The husband is willing to drive 45 minutes or so to get to work, so we're looking more in the outskirt areas of the city, toward Leander, Round Rock, and as far as Elgin or Kyle. Can anyone tell me about the purchasing climate there around summer time? Looking at Zillow right now, there isn't much in terms of supply.

While we COULD put down most of that $75K down for a down payment, I'm looking into an 80/10/10 mortgage to keep some of that cash in the pocket. Will that drastically reduce our chances at having an offer accepted? How hard IS it to get approved for an 80/10/10 in the first place?

I've been dreaming about this move (and my dream home) for years, but the more I read, the more it looks like I may have to settle for the first house that accepts our offer....

Any insight/advice?

[austin-steve]

It's still a very strong seller's market. Less than 3 month's inventory (a balanced market is around 6 months). Your eventual Realtor should be able to council you on how to write an offer that wins. Many factors, including the agent themselves (reputation). If they can't, keep looking. It's pretty straight forward set of do's and don'ts though.

Zillow is an inaccurate real estate sewer. It only has 85% of Austin listings. Better to use AustinHomeSearch.com, Realtor.com or a Realtor IDX/VOW site such as Redfin which will have 99% of listings and also be accurate on the Status of each.

Steve

[Glenn Ross]

Yes, we are currently in a seller's market. Do not let that stress you out. However, some neighborhoods are "hotter" than others. Some sellers overprice their homes and don't attract multiple offers.

A Realtor experienced in handling multiple offers will help you craft a strategy that should help you find a home sooner rather than later. Generally speaking, the larger the down payment, the stronger the offer is perceived by the seller. There are also other ways to make a competitive offer that doesn't have to do with price.

I would be extremely leery of most Web sites that profess to show homes. The information they contain can be very inaccurate.

I'm not going to answer your question about the 80/10/10 mortgage. That question is best directed to a lender.

Let me sum it up this way. A professional Realtor is going to help you craft a strategy that will increase your likelihood of getting the home you desire. Place your trust in that person and be prepared to move quickly.

Good luck and welcome to Austin!

[hound 109]

The job is in the Domain (I believe). Near Duval and Mopac.

For 350-400K, you can look at a swath of homes from Cedar Park all the way to Pville. In a perfect world, you'd find your home just west of Mopac (& given your budget, north of 183) in a nice older neighborhood that feeds into McNeil HS or Anderson HS. Less than 5 min. from work in a good to great area that will definitely appreciate nicely.

If you want new or newer, you'll want to look further out....NW, N or NE into areas & neighborhoods that feed into Vista Ridge HS (or Rouse HS), Round Rock HS, Cedar Ridge HS, Pville HS or Hendrickson HS. If I were you I would print maps (from ISD websites) & become familiar with all of these HS geographic boundaries and their feeder patterns. They will be in AISD (Anderson), RRISD (McNeil, RR & Cedar Ridge), LISD (Vista Ridge and Rouse) & Pville ISD (Pville and Hendrickson). All of these areas will offer good to very good schools and would be a reasonable commute.

After you become intimately familiar with all of these High School geo areas and very familiar with the various feeder patterns.....THEN I'd consider contacting a realtor. But first get to know the areas of interest so you can effectively communicate what you want.

BUT... if it was me, I'd go with my first comment and try (really, really try....) to find a home (with a realtor's help) just west of Mopac and just north of 183 in your price range that feeds to Anderson HS or McNeil HS. VERY good schools and GREAT location. (but older homes)

[mesmer]

If you want 3000 sq ft, you will almost certainly be north of 45 because the older neighborhoods either weren't built with houses that large or the areas where the larger houses exist are 500-600k+. There are occasionally exceptions to this, but that's the general rule. Avery Ranch/Brushy Creek/Cat Hollow are popular neighborhoods with large houses in your price range but there's nothing wrong with going further into round rock or leander. Please don't, under any circumstances move to Kyle or Buda if you plan to work north of downtown. It's bad for you and for everyone else who drives.

Prices have shot up, but you'll have a better chance at a house once selling season starts later this spring and everything goes on the market at once. Please keep in mind that schools start in mid-AUGUST here, not in September.

[Austin97]

Originally Posted by mrstribal

Greetings from the PNW.

Background info: We're originally from the Houston area, moved to Seattle 5 years ago, and are now looking to move to the Austin area this coming August. My husband will likely be staying with his current company (Amazon-on the north side-for location purposes) when we move, and will have a decent salary, and I am a licensed professional photographer and will be re-launching my business upon arrival. We have 2 school aged kids. We will have roughly $75000 saved toward purchasing a home. We're looking around the $300-400K mark, 3000 sqft, 4-5 br, and a good sized yard (we have a dog.)

We are desperate to finally own a home. We have been renters for our entire marriage of 11 years. We have a 10 year old entering middle school, and a 7 year old entering the 2nd grade, so a good school (not just test scores, but the atmosphere of the school--parent volunteering is important to me) system is vital.

I've been reading various forums and blurbs that are talking about how competitive the market is for home purchasing around the Austin area. Here in Seattle, houses are snatched up within a day, as the supply is so very low. Is it that crazy in Austin? The husband is willing to drive 45 minutes or so to get to work, so we're looking more in the outskirt areas of the city, toward Leander, Round Rock, and as far as Elgin or Kyle. Can anyone tell me about the purchasing climate there around summer time? Looking at Zillow right now, there isn't much in terms of supply.

While we COULD put down most of that $75K down for a down payment, I'm looking into an 80/10/10 mortgage to keep some of that cash in the pocket. Will that drastically reduce our chances at having an offer accepted? How hard IS it to get approved for an 80/10/10 in the first place?

I've been dreaming about this move (and my dream home) for years, but the more I read, the more it looks like I may have to settle for the first house that accepts our offer....

Any insight/advice?

No need to freak out we are not nearly that competitive. It is a sellers market but not totally jacked up crazy. Lots of houses will meet your criteria in the area that you are looking.

[ATX Wahine]

The shorter the commute, the more harmonious your home life will be. An older home closer in to your husband's employer will bring you greater rewards over the long haul. You'll get great advice from experienced people here. Good luck!

[JT-3]

Congrats and be sure to post back after the move. A suggestion, don't quickly rule out an area because of poor schools - there will likely be private school options.

If this is longterm keep his commute time minimal. Live near work.

[spchtx]

I think the biggest problem is the low inventory, but our realtor has told us that will probably change in the next few weeks.

Having just done a lot of new house hunting lately, you will not find a new 3000 sq ft w/land for $400,000 in the suburbs of North Austin. 2300 sq ft homes are selling in the mid to high $300. (We were looking for 2300-2500 sq ft) Not many of the new homes have any significant land either. I don't think we found a single home that was in $300-$350 price range we were looking for, so we had to increase our price range. (Maybe KB Homes, but we were told to steer clear of KB)

It seems like older homes on MLS are running around high-$200-low-$300 for 2300-2400 sq ft homes, but the ones I have looked at are 1/8-1/2 acre lots. I don't know what they are actually selling for in the end. We were not in the market for a house as big as you are looking for, so I couldn't say exactly where those homes are falling. I just know what was available in the smaller houses we were looking at, and those homes are in your price range.

[Return2Paradise]

I can't comment on the real estate market, but if you're not already intimately familiar with Austin, I would definitely recommend renting for a while before buying. It would really suck to buy a home only to find out that you don't like the area, or don't like Austin in general.