Value-for-money near McCallum HS?

[Cob1969]

First people get priced out and move because it is not affordable, then investors, hipsters, families, etc. stop moving in because it is not the it place to move any longer because there are better places and deals in other cities, there is less demand then prices start to go back to where they should be aka a market correction.

People who think this market is going to continue how it is are in for a rude awakening, this is about the 2nd or 3rd time I have seen this happen in Austin and I'm sure it won't be the last.

[Novacek]

Originally Posted by Cob1969

First people get priced out and move because it is not affordable,

Renters, I'm assuming? You're not going to see any large scale quick exodus of homeowners. For the most part, affordability affects new people moving here, not existing owners. Why should an existing owner move, they have their mortgage locked in. They have their job, they're sitting pretty.

Originally Posted by Cob1969

then investors, hipsters, families, etc. stop moving in because it is not the it place to move any longer because there are better places and deals in other cities,

How could there be better deals in other cities, you just said a bunch of people just left?

Originally Posted by Cob1969

there is less demand then prices start to go back to where they should be aka a market correction.

"Should be"? What is the natural price for Austin?

Why should the prices in Austin be the same as they were years ago, when so many more people are living here (again, you're not going to see a huge exodus of owners)?

Originally Posted by Cob1969

People who think this market is going to continue how it is are in for a rude awakening,

Very few people think that Austin is (or can) continue to increase at the same rate. Most are calling for a leveling-off.

Originally Posted by Cob1969

this is about the 2nd or 3rd time I have seen this happen in Austin and I'm sure it won't be the last.

No, you haven't seen this happen in Austin. Previous downturns coincided with macro-economic run ups and then downturns (and job losses in Austin). That's not the case right now.

Think about what you're saying. It's basically Yogi Bera over again. "No one will want to move here because everyone wants to move here". You think that prices will go instantly from so high no one can afford it (how high is that, Austin is still _way_ cheaper than many places), to crashing low, without hitting any intermediate levels of smaller, more sustainable growth.

[TR95]

Originally Posted by CptnRn

Austin does not have a real estate bubble. The rise in prices is purely a result of supply and demand. High demand and low supply that is not keeping up with the demand.

Hmmm...funny thoughts. No bubble yet anyway. There will be a price point when people decide it is too much to live in Austin and not move there or stay Where they are...or find the next best affordable place to live. So when Austin reaches Ca prices there will be no bubble then?

[brattpowered]

Would this not be a precursor to a bubble? The share of the market made up of investors buying 10+ properties at a clip has more than doubled just over the past year. Biggest increase in the country.

http://www.zerohedge.com/sites/defau...tyTrac%202.jpg

[Cob1969]

Originally Posted by brattpowered

Would this not be a precursor to a bubble? The share of the market made up of investors buying 10+ properties at a clip has more than doubled just over the past year. Biggest increase in the country.

http://www.zerohedge.com/sites/defau...tyTrac%202.jpg

Never let facts get in the way of someones opinion!!! I have seen what's going on in Austin happen 2 or 3 times before and it will happen again, the market will correct it self, it ALWAYS does, it amazes me how many people think in a market like this, that is skyrocketing, that it's not going to calm down somewhat.

I can't tell you how many investors and groups of investors are coming into the area, buying 20-30 homes in the area a month at 10%-15% over list price and then just renting them out. It inflates the buyin/selling market and inflates rents as well.

[10scoachrick]

Originally Posted by Cob1969

Never let facts get in the way of someones opinion!!! I have seen what's going on in Austin happen 2 or 3 times before and it will happen again, the market will correct it self, it ALWAYS does, it amazes me how many people think in a market like this, that is skyrocketing, that it's not going to calm down somewhat.

I can't tell you how many investors and groups of investors are coming into the area, buying 20-30 homes in the area a month at 10%-15% over list price and then just renting them out. It inflates the buyin/selling market and inflates rents as well.

That's interesting...I am aware of quite a few homes sales this year(either directly or through our agent) and I am not aware of a single home NOT being occupied by the new owner.

[capcat]

Originally Posted by 10scoachrick

That's interesting...I am aware of quite a few homes sales this year(either directly or through our agent) and I am not aware of a single home NOT being occupied by the new owner.

It may depend on the area. A lot of that is going on near us in Highland Park and neighborhoods close by. So much so that I'm relieved and surprised when someone who's going to live there is the purchaser. What we're seeing are modest sized homes being purchased, torn down and huge homes that don't fit the architectural style of the neighborhood going up in their place. Quite a few by the same builder/agency. They are immediately put on the market for huge amounts due to the square footage. Some aren't selling very quickly, some have yet to sell.

[sua2017]

I would buy in Allendale because I think prices are going to increase there or in hyde park the most. You are not looking for that big of a house you should be able to find what you are looking for in that price range. In 4 years there is no way your value is going to decrease in Austin, especially not in Central Austin.

[balor123]

What we're seeing are modest sized homes being purchased, torn down and huge homes that don't fit the architectural style of the neighborhood going up in their place. Quite a few by the same builder/agency.

I would presume you are referring to contemporary homes here? Typically, that's what people complain about. It's become a part of Austin's culture I think and they're everywhere now really. They sell quickly - very quickly- and there are none for sale in Allendale right now. There are, however, plenty of traditional tear downs that have been sitting for quite a while, even in this market. The craftsman aren't so terrible but there's a few that look like they belong in Round Rock or Cedar Park. They're just slobbered in stone. These are totally out of place here IMO, even as traditional homes. At least there's a good amount of contemporary homes already present in this area so the new ones fit in now. If you're going to spend that kind of money on a new home, then why buy one that looks like an old one? You can just buy an old one!