Mortgage crisis and land value (Austin, Lakeway: days on market, sales, real estate)

[G Grasshopper]

I know Austin has been seeing some foreclosures due to the mortgage crisis. I am wondering if this has affected the price of homes, but even more, I am wondering if the price of land has seen declines. If one is looking to buy a piece of land a little out in the country, have the prices softened lately? What about in Hayes County?

[Falcorockme]

From what I have seen it has not affected Austin much. Houses are on the market longer in some places. Basically it depends on the area you're talking about but I haven't seen any major downturn in Austin home or land prices, and I have been researching and looking at stuff for a while now hoping that something will soften/ prices will drop so I can afford it. But again it seems to have just hit certain areas but not the whole of AUstin. Not sure about land in outlying areas.

[HappyTexan]

I've noticed some dips in Milam county. $40K is the biggest drop I've seen but this piece of land is still overvalued for where it's located. I hope land prices come down to a normal level by summer.

[achtungpv]

Historically, when real estate slumps land values are hit a bit harder than home values. Whether that happens here is not a give but that has been the trend on the west coast.

[austin-steve]

Originally Posted by G Grasshopper

I know Austin has been seeing some foreclosures due to the mortgage crisis. I am wondering if this has affected the price of homes, but even more, I am wondering if the price of land has seen declines. If one is looking to buy a piece of land a little out in the country, have the prices softened lately? What about in Hayes County?

Austin is a market of submarkets and pockets. In general, overall, what we're seeing is an increase in the number of homes that Expire or are Withdrawn from the MLS without selling. Of the homes that actually sell, median prices keep rising year over year and average price keep rising, though Feb was flat across Austin as a whole. SW Austin appreciated 8% in Feb compared to the year before. Lakeway was down 15%.

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.

Steve

[2austin]

Steve how is Eanes/Westlake doing? I ask because they had large value increases in last couple years; how are they trending?

[johnrex62]

I just got my new tax valuation from the Bastrop County appraisal district (I live near Webberville and Cedar Creek was also considered to be comparable for the sales data) and had an appraisal done for a refinance covering the same time period last month. Both appraisers indicated a very stable valuation for the property overall. The tax office allocated more of the value to land this year than they have prior years, but still left the overall value at approximately the same amount.

The refi appraiser stated that resale values of both improved and unimproved properies my my area are stable and expectations are that they will be only slightly impacted by mortgage conditions be experienced in the region.

[austifornian]

Are you looking for speculation or for recreation?

If you are just looking for a little piece of property off the beaten path to put up a little cabin or to go 4 wheeling on, this type of land is largely unaffected by the housing market (but is affected by other factors such as ag or minerals). If you are looking in areas that are essentially speculative corridors (i.e. the potential for growth that change the land usage from rural) you might see some softening in prices but more due to a slowdown or stoppage of potential growth into a rural area.

[In2Deep2]

I've just spent a considerable amount of time looking at homes in the Lakeway and surrounding area. I came across quite a few higher-end properties that have seen significant reductions in asking prices. Days on market are substantial as well.
Just my observations.

I2D

[OAC]

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