How Many Other People... (Austin, Cleveland: sales, real estate, foreclosure)

[Daisey31]

are trying to sell their house so they can move to Austin? We have been on the market here in SoCal for a month now, with very little traffic. I wonder when the slow down will trickle into Austin. With so many people moving in from other states, I would imagine it should hit soon. We have purchased a home in Highpointe, but will be unable to complete the sale until this house sells. I can't imagine I am the only one in this position....just curious. I am also wondering if I should be purchasing a home right now, even if this one sells in time. If we rent for 6 months, we may see enough of a drop there to make it worth our while. Any opinions??

Thanks!

Gina

[FromCalitoSteinerRanch]

Unemployment continues steep decline:
http://www.bizjournals.com/austin/st...l?surround=lfn

Home sales remain hot:
http://www.bizjournals.com/austin/st...l?surround=lfn

Austin a strong market for relocation:
http://www.bizjournals.com/austin/st...l?surround=lfn

Calif. staffing firm opens in Austin:
http://www.bizjournals.com/austin/st...l?surround=lfn

Should I keep going? Ya, one more.

Report: Austin tech sector will remain hot:
http://www.bizjournals.com/austin/st...l?surround=lfn

By the way, this is from just the last 3 days of local Austin Business News.

[Daisey31]

I have been reading it daily. My thought is that all we hear about is people moving in from out of state and buying houses. Sooner or later the slowdown elsewhere has to catch up. It may not be simultaneous, but sooner or later it has to make an impression. I know the economy is strong in Austin, I believe it will remain so. I am just wondering how long before the real estate takes a hit from the prevailing conditions country wide.

[FromCalitoSteinerRanch]

Originally Posted by Daisey31

I have been reading it daily. My thought is that all we hear about is people moving in from out of state and buying houses. Sooner or later the slowdown elsewhere has to catch up. It may not be simultaneous, but sooner or later it has to make an impression. I know the economy is strong in Austin, I believe it will remain so. I am just wondering how long before the real estate takes a hit from the prevailing conditions country wide.

It may make for a slowdown, but not much else. Even the bubble markets still had slight price increases, even in the face of longer times on the market. Some markets had decreases, but from levels that were really high, so there still could be enough equity out there for those seeking a better lifestyle in Austin. Just remember, Location, Location, Location, and Austin apparently has that going for it for the forseeable future.

What are the real estate agents thinking in this regard?

[FromCalitoSteinerRanch]

http://www.statesman.com/business/content/business/stories/realestate/05/19/19homesales.html (broken link)

A snippet

"For example, sales are up 26 percent through April in the $500,000 to $599,000 price range and 17 percent for houses priced between $800,000 to $899,999, according to the Austin Board of Realtors."

[austin-steve]

I wonder when the slow down will trickle into Austin.

That's not going to happen. We run counter-cycle to the areas that have been hot while we were flat from 2001 through 2005. Our slowdown is years away and we still have plenty of strong market ahead of us.

Your best bet is to make sure you've done everything possible to make sure your other home sells. There are Home Seller Checklists all over the internet for free, and from agents. Make sure you've not just glossed over but have strictly followed all the tips and suggestions for making your hame one of the best showing homes on the market. In a slow market you have to make your home stand out.

Also, when selling in a down market and buying in a rising market, unless you're handcuffed by financial necessity (need a certain amount of equity from the old home), it's ok to price your home aggressively. I won't go into all the math supporting that that notion, but in in a nutshell, your appreciation gains from the new home in the rising market can offset the discount you give to get you old home sold quicker.

This is compared to NOT buying in the rising market (thus foregoing the appreciation) while your old home sits unsold for 6 to 12 months in the flat market while you are renting in the new market. Or, put another way, if you wait a year to buy in the rising market, the higher price you pay may well more than wipe out the better price you got on the slower (but higher) sales price of former home.

Uhh, I hope that makes sense. I don't know how to explain it any better. Bottom line, your best financial outcome is probably achieved by pricing your S. Cal home to sell and get moving!!

[Daisey31]

Originally Posted by austin-steve

Uhh, I hope that makes sense. I don't know how to explain it any better. Bottom line, your best financial outcome is probably achieved by pricing your S. Cal home to sell and get moving!!

I absolutely agree. We foolishly had ours set too high for a week and adjusted it down $32,000. Our house is positioned perfectly, priced right and absolutely turnkey. There has just been absolutely NO traffic. It's not just me either. I KNOW if I can get someone in here, I can sell it. I am hopeful for the next coming few weeks. If we get even the slightest wave of buyers, it should sell. I am going to PM you the virtual tour to my home and I would welcome any input you might have.

Thanks!
Gina

[gigi927]

Originally Posted by Daisey31

I absolutely agree. We foolishly had ours set too high for a week and adjusted it down $32,000. Our house is positioned perfectly, priced right and absolutely turnkey. There has just been absolutely NO traffic. It's not just me either. I KNOW if I can get someone in here, I can sell it. I am hopeful for the next coming few weeks. If we get even the slightest wave of buyers, it should sell. I am going to PM you the virtual tour to my home and I would welcome any input you might have.

Thanks!
Gina

Gina, my parents are having the same difficulties in Phoenix. They aren't moving to Texas, but were changing locations within Phoenix metro, moving from a regular subdivision to an active adult community where they're having a house built. Their house has been on market for 6 months, very well priced, and very turnkey. They've only gotten 2 or 3 showings in 6 months. It has been incredible to watch and is happening throughout Phoenix. A year ago, their house would have sold for close to $350K, now it's getting crazy where other houses in the neighborhood are drastically cutting prices to ridiculous levels just to get people in the door, and even that's not working. If they're lucky, their house MIGHT sell down in the $230K range, but they can't swing the purchase of their new house at that price.

I really fear for Phoenix - I think another wave of investors is going to swoop back in at the rate things are going and then the cycle there is probably going to recur.

Anyway, I wish you well and hope you get some traffic soon. I know how discouraging it can be.

[Daisey31]

Originally Posted by gigi927

Anyway, I wish you well and hope you get some traffic soon. I know how discouraging it can be.

Thanks, Gigi. I have heard how badly Phoenix is doing. Vegas is even worse. There are some new developments there that were purchased primarily by speculators. When the market changed, so many of the houses went into foreclosure. Some neighborhoods have boarded up new houses.
I keep trying to tell myself that I live in SoCal. People will ALWAYS want to live here (God help them). I am also in an area that is great for OC people who have spent too much of their homes and are looking to cash out, or they want a bigger house. We are very fortunate in that we have a lot of options. My husbands job doesn't move until we do. My only sense of urgency is in losing $5000 in earnest money and a house we really love. We have lots of options there though now that Wilshire has opened a neighborhood in Highpointe. I just want to get on with it though, you know? We are ready to MOVE! LOL.

[twange]

We're in that position here in Cleveland, Ohio...a bad market to say the least. We've owned a duplex for 8yrs and probably won't make any $$$ on the sale (if?) of this place Granted, we've almost always had the 2nd unit rented so we've made a bit along the way. It will go on the market this week and we are priced very aggressively but there are a million of these things in my town and not too many are moving.

Worse case scenario, we rent the place out and hire a property management company to take care of it. But we would rather just sell it and get out of Dodge!