Mortgage crisis and land value (Austin, Spring: for sale, rent, refinancing)

[koalabebe]

It all depends on the price range and location of the home. There are a lot of overpriced homes on the market now as well. Too much inventory and not enough buyers, except in certain areas.


Do you have any information about Northwest area (especially in Steiner Ranch and River Place)? When I visited Austin one month ago, I notice there were a lot of construction going on in Steiner Ranch. I know that the area is growing and building its 3rd ES. However, the house prices are quite high (500K for > 3500 Sq. Ft). Any insight on this? I am thinking about buying one which is not brand new (just a couple of years old) with bigger sq. ft. But I am kind of worried about the home value in Steiner Ranch. Thanks!!!

[G Grasshopper]

Austifornian, we are looking to build a home on some property. Ideally, would love a wildlife exemption. I have been keeping track of property around Wimberley; it just seems like more and more is available. I am wondering if it is just slow to sell right now, or if people are unloading property they had anticipated building on, but can't afford to keep right now. I haven't noticed many having price reductions, however. Maybe that will come after they sit on the market a while longer.

[achtungpv]

Originally Posted by G Grasshopper

I haven't noticed many having price reductions, however.

I believe that phase of the real estate cycle is called "Denial"...or is that the grief cycle? Same difference? :-)

[TexasHorseLady]

Many Lakeway listing are in the area of $200/sq ft and higher. Outrageous pricing given the current state of the market

Lakeway doesn't really qualify as "a piece of land a little out in the country," though.

Grasshopper, how many acres are you considering? Wildlife valuations do have a lower limit in acreage - it varies slightly from county to county. Also, have you considered looking at land that has its 1.d.1 ag and converting to wildlife valuation?

How long have you been looking? If only a few months, more land comes on the market during the spring because, well, it has better curb appeal, being greener and all! I've noticed a slight softening, but nothing major as of yet.

[HappyTexan]

I'd rather look at land in the winter as you can really see how it's situated..slopes, gullies. In the spring, it looks nice and pretty and green but the grass is higher and you really can't see the "dirt".

[Trainwreck20]

The problem with the type of land you are looking at, is that a lot of it is already under wild life or ag exemption. As such, it costs almost nothing in taxes to hold onto it - as opposed to a house. Also, a good portion of the land is probably free and clear, so the sellers aren't making payments on it. Unless they really need the money, they will just hold onto the land until the cycle trends back up....

[TexasHorseLady]

I'd rather look at land in the winter as you can really see how it's situated..slopes, gullies. In the spring, it looks nice and pretty and green but the grass is higher and you really can't see the "dirt".

Yes, but I was talking about why more land comes on the market in the spring, thus describing it from the seller's point of view.

We bought our place in July at the end of of 4 year drought. Had grass on it in places, but what really impressed us (we'd looked at a LOT of land) was that the creek that runs across it still had water in it high as a cow's knees. That was almost enough right there!

If you want to see the "dirt", and I can absolutely see why you'd want to, get some Ziploc sandwich baggies and a big spoon and walk the land (I promise, you'll see the gullies and feel the slopes ). Get a wee bit of dirt from a variety of places and, heck, have it analyzed if you're seriously interested in the place. The procedure will, at the very least, assure that you get a look at the soil in a variety of places. (Our place is half Austin chalk and half Houston black.)

Or just run some through your fingers. There's usually places with little enough grass where you can do that.

[G Grasshopper]

TexasHorseLady, we are pretty flexible on the amount of land. I have been looking (mostly on the internet) for the past year. We aren't quite ready to buy yet, so I have just been taking in the 'lay of the land'. We've been looking around Wimberley, but I'm starting to have second thoughts. I have read a few postings about how Wimberley is starting to resent new residents, especially those who are building houses, as it is making their little village too big. I am concerned that new people will be excluded from community life, and that is not great for new retirees. So perhaps there are better places for us. We are looking for a peaceful, nature orriented life with community involvment, good music, and new friends.

[achtungpv]

On Friday I got a certified letter from my mortgage lender telling me if I paid off my mortgage in full by the end of April they would pay off 5% of the principle for me.

If the mortgage industry is having to pay YOU to stay afloat, we aren't even close to the bottom yet.

[austin-steve]

Originally Posted by achtungpv

On Friday I got a certified letter from my mortgage lender telling me if I paid off my mortgage in full by the end of April they would pay off 5% of the principle for me.

If the mortgage industry is having to pay YOU to stay afloat, we aren't even close to the bottom yet.

That's really interesting. I'd like to hear more. Can you call them to inquire and report back what they say is the reason for such an offer? They're basically inviting you to refinance. Which mortgage company?

Steve