Bill Morris

Austin/Central Texas Market Performance

The National Association of Realtors® reported recently that sales of existing home sales were down in July, following the expiration of the latest round of homebuyer tax incentives. I commented then (No incentives, slower sales? No kidding!) that Austin and Central Texas matched the national trend, and that noone should be surprised. I also noted (Impressive sales performance for premium properties!) that lower priced properties, predictably, were affected most by the tax credits. That NAR report and my posts focused on single family homes. I decided now to broaden that discussion to include all residential properties, from mobile homes to condos and townhouses. Here is a look at the past twelve months in the Austin metropolitan area on that basis:

New and Resale Aug 2009 - Aug 2010

You can see that monthly sales, in total, have continued to rise slightly. Virtually all of the increase, recently and over the past year, was accounted for by resales. New home sales have been basically flat. How about the contribution of foreclosed homes?

Private vs. Bank-owned Foreclosures% Foreclosures
(Click images to enlarge.)

Among resales, foreclosures accounted for virtually all of the growth in the past year, but the percentage remains low compared to many other major metro areas. Finally, NAR reported this week that the Pending Home Sales Index improved somewhat in July, and the South (the reporting region that includes Texas) participated in that improvement. The month-to-month (June 2010 - July 2010) in the South was outpaced by the West, but the annual decline in the PHSI was smallest in the South.

Pending Home Sales Index July 2009 - July 2010

All in all, although the effects of the recession are recognizable even in Central Texas, we continue to weather this financial storm better than many. We are a few weeks away from having final data for August 2010, but based on my personal experience and anecdotal evidence from colleagues I believe we will see that new contracting activity remains relatively healthy -- still below our market's performance compared to 12 and 24 months ago but growing slightly. As I have commented elsewhere, prospective home buyers have an incredible opportunity right now -- increased listing inventory (including a few more short sales and foreclosures than in the past), record-low mortgage rates, and stable or slightly increasing demand that should push prices up over the next six to twelve months. Those who choose to sit out this part of the market cycle are likely to look back in two years and say, "I should have moved then."

Bill F. Morris, ABR, CRS, CDPE, e-PRO, MBA
RE/MAX Capital City
Call or Text:       512-785-3345
Toll-Free:           1-800-692-8784, x 162

Your personal referrals are the best measure of my success!

Comment balloon 0 commentsBill Morris • September 03 2010 09:14PM
Austin/Central Texas Market Performance
The National Association of Realtors® reported recently that sales of existing home sales were down in July, following the expiration of the latest round of homebuyer tax incentives. I commented then ( No incentives, slower sales? No kidding! ) that… more
Investing in Austin real estate
The title of this post comes from an article in Yahoo! Real Estate from last week: Vulture investors are back and making a bundle The term brings back memories of just a couple of years ago. The article points out that the game has… more
Do home improvements pay?
Remodeling and home improvement are perennial discussion topics in this business, and rightly so. Several cable TV programs have made them even more common in recent years, but not all "improvements" are created… more
One reason Texas was cushioned..
I have written for many months about how Texas has suffered much less in this recession than other parts of the United States. Some it that was due to the fact that we had a significant correction in home prices when the dot… more
Market slow-down after tax credits.. yes, even in Austin
From RISMedia today: Pending Home Sales Ease in Post-Tax Credit Market Forgive a quick editorial comment: Doesn't the word "ease" sound like improvement in a situation that needed to improve? … more
Variations in Austin-area Market Health
Yesterday I wrote about the Austin/Central Texas markets for new homes and for existing homes: New Home Sales -- U. S. and Austin/Central Texas Austin/Central Texas Market Status -- Existing Homes .. more
Austin and Texas -- strong employment picture
The U. S. Bureau of Labor Statistics released five-year private sector employment statistics this morning ( Texas cities hold top four job-growth spots ), and I was pleased to see that the Austin metro area ranked third -- gaining… more
Resale market conditions in Austin and Central Texas
Several days ago, the National Association of Realtors® reported the latest data about residential resales: Existing-Home Sales Slow in June 2010 but Remain Above Year-Ago Levels Typically, the Austin/Central… more
U. S. and Austin -- trends in new home sales
From Associated Press today (as published by the Austin American-Statesman): New home sales up, but sales remain slow As noted in the article, one month does not make a trend, but a 24% increase in new… more
Austin Home Sales and Inventory
Today's Austin American-Statesman included an article about the state of our local real estate market: Home sales slow, listings surge The focus of the headline is on single family homes, and the growth of… more