What property type to buy? (Austin: lofts, condos, houses)

[jacksonian]

My wife and I plan on moving to Austin next summer, and we would like to live in a condo/loft. I know the market will have changed at least some by next summer and that we should choose a home based on what we really want in the end, but I'd like to know what property types are fairing the best/worst in Austin. Are single houses doing better than condos, etc?

We don't know what area(s) we would like to live in just yet, but we will be making a trip in October for a 3-day weekend to do some looking around. I have friends that live in east Austin so I have been looking at condos/lofts in that area. We would like to live downtown, although I don't think we will end up there because it is more than likely too expensive. Wherever we end up, we want to be within walking/biking distance to our everyday needs and other amenities such as cafes, restaurants, shopping.

Thanks

[ROnelson]

A back yard is hard to beat in the resale market. East Austin has some great buys for condos. I think we should see a bottom of the condo market very soon.

[jacksonian]

Originally Posted by ROnelson

A back yard is hard to beat in the resale market. East Austin has some great buys for condos. I think we should see a bottom of the condo market very soon.

I have a backyard currently and it is nice to have, but to be honest, I would rather have a courtyard that is maintained by someone other than me.

[atxcio]

The real deals are in the downtown condos built prior to the current boom. No one seems to want them, but the location is great. You can find several for less than $150K.

Close-in East Austin, IMO, is overpriced. The current values seem to be accounting for full gentrification, which hasn't happened yet. It's just too much $$$ for the quality of the neighborhood, schools, and amenities.

My general rules for condos in Austin: 1) Buy where there is no SF housing to compete with (ie, downtown), or 2) Buy where the SF housing is prohibitively expensive (ie, central neighborhoods like Tarrytown, Travis Heights, SoCo). 3) Buy an older condo for a better value. 4) Never buy a condo in a SF area where homes are reasonably priced -- that's a sure resale loss. Condo's won't compete well against SF housing.

[lbny34]

Originally Posted by atxcio

Buy where there is no SF housing to compete with (ie, downtown.

What does "SF" mean?

[AustinAaron]

SF = square foot

[dick1973]

Single Family

[lbny34]

Originally Posted by dick1973

Single Family

Thanks!

[atxcio]

Yes, I meant single family (sorry about that). In Austin (and all Texas cities) the vast majority of people live in, and want to buy, single family housing. So condo demand can be fickle.

[jacksonian]

Originally Posted by atxcio

Yes, I meant single family (sorry about that). In Austin (and all Texas cities) the vast majority of people live in, and want to buy, single family housing. So condo demand can be fickle.

Currently, yes - I would agree that the majority of people currently do live in single family homes, but since the 2005-06 peak of the housing construction boom in the United States, the growth rates of central cities have begun to gain ground on surrounding suburban areas. Urban population is increasing at a rate of roughly 1% every 20 years now, while suburban population is decreasing at a rate of roughly 1% every 20 years. Now with the recession, the housing construction industry has taken an even bigger hit, which will only further hurt the suburban population growth numbers. Since cities tend to have a much higher percentage of diverse residential properties, the demand for condos will increase as will all properties in the city. I'm just hoping I can get there before the demand is so high that I can't afford it.