Where's the real estate market at in Austin? (short sale, foreclosures)

[lbaron]

What is the real estate market really like in Austin? I've heard it has held up pretty well, but most properties listed are "price reduced.". It seems like prices are dropping still. What are your thoughts?

[Tim_Barton]

Perfect time to come out and by all of them empty houses.
That way when they go up, you can flip them quicker then a cheese burger on a electric grill!!

Oh, I will take mine well-done.

Thanks,

[austin-steve]

It's a slow, sluggish market with the exception of some hot flashes of activity where multiple offers still happen. In October, 60% of the listings that departed the MLS did so as Expired/Withdrawn, so that's a lot of failed sales efforts. On the other hand, it's not the type of market where buyers walze in and command the negotiations, precisely because of those 60% of sellers who refuse to cry uncle.

Prices are rising overall, but that's a deceptive stat because the average/median rise in value is a result of a lot more activity in the higher ranges ($400K+), which are at present selling to reasonably good discounts off the 2007 prices. The typical home value in Austin has stayed flat (plus or minus) for the past year.

I think we're at bottom in Austin. It's just a question of whether it will be an extended bottom or a temporary lull. The first shoe was the elections. Next, I think we have to wait and see if job growth continues in Austin and what the economy does nationally. Many of our potential buyers are stuck in upside down homes elsewhere in the country.

Steve

[eichlerfan]

Originally Posted by austin-steve

Many of our potential buyers are stuck in upside down homes elsewhere in the country.

Steve

Or sold thier homes at a greatly reduced rate and now are trying to recover enough to buy in Austin.

[Movoto]

We recently launched our brokerage in Austin, and it hasn't been that active yet. But overall Texas IS one of the better markets due to the fact that the job market is more stable - a lot of people are actually relocating from CA to TX, which isn't what you'd have expected even 5 years ago. Also, college towns tend to do better and bounce back faster - so keep that in mind.

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[ROY DUBOSE]

to add to a-steve's comments, it's hard to say if those leaving the market were lenders forcing foreclosures or sellers realizing most of the buyers claimed the tax credits in the spring

not scientific but i'd guess 60% of new listings are lender owned or short sale candidates with the lenders unwilling to list at prices that will move the inventory

[snyderkv]

I like to use this guys blog. Updated every couple months. A new one will come next week but last months was titled "The Austin real estate market falls off a cliff for July"

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I wouldn't be surprised if prices were going to drop another 10-20%. My justification for this is that not only is it a buyers market in Austin but when I went to purchase my condo this month, two units were competing with eachother by lowering their prices to get my vote. Like the opposite of a bidding war that happend during the tax credit sales spike or the boom. Interesting times. That to me doesn't sound like a stable market.

[ROY DUBOSE]

Originally Posted by snyderkv

I like to use this guys blog. Updated every couple months. A new one will come next week but last months was titled "The Austin real estate market falls off a cliff for July"

I wouldn't be surprised if prices were going to drop another 10-20%. My justification for this is that not only is it a buyers market in Austin but when I went to purchase my condo this month, two units were competing with eachother by lowering their prices to get my vote. Like the opposite of a bidding war that happend during the tax credit sales spike or the boom. Interesting times. That to me doesn't sound like a stable market.

don't believe it's a seller's market but would disagree about that significant a price drop -- condos don't represent the market as a whole and, not knowing the seller's situations or what percentage of the available buyer pool is in the condo arena, it does seem you were in a favorable situation

congratulations

[graygray]

60% of new listings are lender owned or short sale candidates

really? I did see some aggressive deductions on listing price these days, and some of the homes were not very long on the market, around 1 month only.

When I saw it, I always ask why they want to sell their homes at this particular time, considering winter is always the slowest.

Originally Posted by ROY DUBOSE

to add to a-steve's comments, it's hard to say if those leaving the market were lenders forcing foreclosures or sellers realizing most of the buyers claimed the tax credits in the spring

not scientific but i'd guess 60% of new listings are lender owned or short sale candidates with the lenders unwilling to list at prices that will move the inventory

[austin-steve]

60% of new listings are lender owned or short sale candidates

That's completely false. Not even close to being accurate.

Steve