Austin Market Slowing? (home builders, prices, housing market)

[denadavis]

I would say that the flow of California Investors has definitely slowed down. Investors are my business.

My question is what portion of the total single family home sales were sold to investors?

I would imagine that the bulk of single family homes sold to investors are homes under 175K. When you go above that price point the numbers just dont work out as well.

So what portion of single family home sales under 175K were sold to investors?

CA investor slow down shouldnt impact home supply and demand in the other price points. But under 175K-- between the tightening money supply and investor slow down-- there could be a leveling off of prices.

As far as CA owner occupants moving to Austin-- I dont think there is any reversal in that trend.

[southwest1230]

I didn't think Californians were slowing per relocatees. I did read somewhere that, because they were having trouble selling their california houses, that they were slowing, but I think they are just waiting till they have a deal on the old house now before they jump ship. It's not just Californians either. Nevadans cant afford housing anymore either,
and Austin is starting to look good to those vegas folks that cant buy anything out there anymore......

[Torontonian]

Originally Posted by LinusK

Prices in Austin didn't rise as much as they did in other parts of the nation, and they won't fall as hard, either. Inventories are going up, but they're still much lower than in they are in other parts of the country. Prices in Austin are still affordable, at least outside of the central parts of the city.

So, yeah... I'd expect a modest decline, but nothing dramatic.

Good deals are already there to be found around Austin. Couldn't pass the opportunity, just bought a house for 10% less than the previous owner paid to a builder in December 06 (that's right, just 10 months ago). I feel sorry for the guy as he had to come up with the big chunk of his own money for the closing.

Sorry guys for the bad news, but we are still in the "denial" phase. Guess what comes next?

stages.6.jpg (image)

[Trainwreck20]

wow, where was that? They are still selling above last year's price in my neighborhood by around 3 or 4%, although it will probably turn around eventually....

[Torontonian]

Cedar Park, Twin Creeks area

[AustinGuy]

Originally Posted by Torontonian

Good deals are already there to be found around Austin. Couldn't pass the opportunity, just bought a house for 10% less than the previous owner paid to a builder in December 06 (that's right, just 10 months ago). I feel sorry for the guy as he had to come up with the big chunk of his own money for the closing.

Buying and selling a house in less than a years time (let alone two years) is a foolish endeavor and an almost guaranteed way to lose money when you do it in Texas.

[Trainwreck20]

just bought a house for 10% less than the previous owner paid to a builder in December 06

Are you moving there? Or do you already live here? Or is it an investment? I may have mistakenly assumed you were in Toronto .

[Torontonian]

I moved to Austin at the end of last year and was renting the house since then to get a better idea of the area. Wasn't planning to buy anything before this whole real-estate bubble unfold but as I mentioned I couldn't resist to pass the opportunity. I would like to be optimistic about the real-estate market as I'm a homeowner now too but sorry, I've seen the real picture of what is going on while doing my own research and house hunting.

PS. By the way, did I mention that one doesn't need a realtor to buy/sell a house unless to hear that "this is a good time to buy" ;-) ?

[Trainwreck20]

I am kind of hoping for the housing prices to go down...means my taxes go down, too, and I have no intention of selling for a few decades. Of course, it probably will mean they raise the tax rates.....

[llkltk]

Originally Posted by Torontonian

Good deals are already there to be found around Austin. Couldn't pass the opportunity, just bought a house for 10% less than the previous owner paid to a builder in December 06 (that's right, just 10 months ago). I feel sorry for the guy as he had to come up with the big chunk of his own money for the closing.

Sorry guys for the bad news, but we are still in the "denial" phase. Guess what comes next?

stages.6.jpg (image)

That's because the "previous owner" didn't build any equity in the home. If you sell only 10 months from purchase of course you are going to lose money on new construction. That has nothing to do with the market, it has to do with equity. If he would have stayed 5 years, he would have seen a ROI. So, I wouldn't see yourself as getting such a great deal.