Austin housing bubble (Fresno: sale, apartment complex, buy)

[va_residents]

Buyers can borrow 5 year ARM that the rate is much lower than 30 year fixed rate. They can always do zero cost refinance later when the rate is lower.

[ashbeeigh]

Originally Posted by va_residents

Buyers can borrow 5 year ARM that the rate is much lower than 30 year fixed rate. They can always do zero cost refinance later when the rate is lower.

Because that didn’t cause the Great Recession about 15 years ago.

[atxcio]

Originally Posted by va_residents

Buyers can borrow 5 year ARM that the rate is much lower than 30 year fixed rate. They can always do zero cost refinance later when the rate is lower.

First property I bought in Austin was a 5/1 ARM. In 1996. It was the only way I could qualify for the payment on such an "expensive" 180K house back then And yes I did end up refinancing before the 5 years was up.

[Trainwreck20]

Originally Posted by atxcio

First property I bought in Austin was a 5/1 ARM. In 1996. It was the only way I could qualify for the payment on such an "expensive" 180K house back then And yes I did end up refinancing before the 5 years was up.

Damn, that was expensive! My first house in the late 90s (98?) was $99k.

[ScoPro]

And I’ll post again my brother’s first house that he bought for $6,500 in 1959…. Just to reiterate how crazy Austin’s real estate market has been….

https://www.trulia.com/p/tx/austin/1...57--1002197980

[blameyourself]

Originally Posted by ScoPro

And I’ll post again my brother’s first house that he bought for $6,500 in 1959…. Just to reiterate how crazy Austin’s real estate market has been….

https://www.trulia.com/p/tx/austin/1...57--1002197980

Yeah sure. Nothing like going back 63 years to make a point, because that's realistic

I bet we could look at every municipality in the country and have some fun quoting prices from 1959

[Need4Camaro]

I think it makes a fair point. $6.9k in 1959 and almost $700k today or an apreciation of about $116k every decade … although the appreciation rate is probably a lot less linear than that and probably a more sharp curve over the last two decades.

Although admittedly there would be no way I would buy that for $700k @ only 900 sqft.. no offense to the brother of course.

[blameyourself]

Originally Posted by Need4Camaro

I think it makes a fair point. $6.9k in 1959 and almost $700k today or an apreciation of about $116k every decade … although the appreciation rate is probably a lot less linear than that and probably a more sharp curve over the last two decades.

Although admittedly there would be no way I would buy that for $700k @ only 900 sqft.. no offense to the brother of course.

Fair point compared to what? That's right in line with the median national home values in the 1950s. I don't think it makes any point at all other than real estate across the nation has appreciated substantially since then. That's not isolated to Austin at all. And of course we both know how much things have appreciated in other metroplexes, in particular in California. Austin tends to rank around 20th in regards to metroplexes in the nation on most charts I've seen.

[Igor Blevin]

Originally Posted by ashbeeigh

Because that didn’t cause the Great Recession about 15 years ago.

Yep. I will take, " 'People who never learn their lesson and repeat their mistakes' for $1,000, Alex".

[Need4Camaro]

Originally Posted by blameyourself

Fair point compared to what? That's right in line with the median national home values in the 1950s. I don't think it makes any point at all other than real estate across the nation has appreciated substantially since then. That's not isolated to Austin at all. And of course we both know how much things have appreciated in other metroplexes, in particular in California. Austin tends to rank around 20th in regards to metroplexes in the nation on most charts I've seen.

True, it's not isolated to AUS nor does it touch the coastal metros, but I'd say that appreciation is still much greater than average in comparison to locations at lets say CLT, ATL, BNA, ORD, TPA ... meaning AUS (for a city its size) has a substantial rate of appreciation.. If averaged out in the time span speaking of 63 years, it would average out to an appreciate rate of aprox 7.6% per year.. ..although as I stated before the appreciation rate likely sky rocketed within the last 2 - 3 decades so within the shorter time span the rate is probably much higher.