Home Sales on the Rise – CNN.com

For the second month in a row leading into September, existing home sales are on the rise and there is hope from many that this will lead the way to a housing recovery.

“Sales of previously owned homes rose 10% to a seasonally adjusted annual rate of 4.53 million units last month, the National Association of Realtors reported Monday. That was up from a 4.12 million rate in August,” according to CNN.com.

This report was a shock to many economists who had predicted a slight recovery in the upcoming months after home sales sank 27% in July.  While this is great news, some housing economists are predicting that the stop on foreclosures in October will impact these statistics over the next few months. 

“A housing recovery is taking place but will be choppy at times depending on the duration and impact of a foreclosure moratorium,” Lawrence Yun, NAR chief economist.”

Keep updated with the latest housing news by viewing this blog post or going to ATXHomesSales.

140 Characters to Success

The Statesman recently featured an Austin couple that submitted an offer and consequently, owned a home without ever taking a single step into it!  It all started with one  Tweet.  After looking for over a year and losing several homes due to multiple offers, the Bowmans had nearly given up.  Then one day, Chad Bowman received a message (less than 140 characters) that would change everything. 

More and more agents are utilizing outlets such as Facebook, Twitter, WordPress and Linkedin to push business into the hands of consumers.  Buyers are finding a variety options more quickly and with greater efficiency than ever before. 

There has been a transformation in the use and overall effectiveness of social media over the past 2 years.  Originally starting out as a way blast your friends and family with a personal agenda, it has now become the face of businesses around the world.  The Oldham Group strongly advocates the use of social media for promoting market updates, pocket listings, events, and other pertinent information.  

“Keep In The Know” by going to our website at www.oldhamrealestate.com to follow us on Twitter @ATXHomesForSale or join our Facebook group:  http://groups.to/oldhamrealestate/.

It’s Good to be in TEXAS – An Analysis of Income & Housing Costs

The Real Estate Center at Texas A&M University recently studied the Texas economy and housing market as it compares to the rest of the nation.  They discovered some very important findings; further explained, the Texas housing market fared better than any other state and the Texas economy is expected to show greater signs of improvement in the upcoming months than the rest of the nation.

“Texas’ lower-than-national-average housing cost is one reason for the state’s higher-than-national-average growth rate,” says Ali Anari, Ph.D., a Center research economist and one of the study’s authors.  “When Texans are able to spend more on non-housing goods and services, the state’s economy is strengthened and more people attracted.”

“These results illustrate one of the key reasons the Texas economy outperforms the United States in terms of job growth almost every year,” says Center Chief Economist Mark Dotzour, Ph.D. “The fact that Texans pay less of their income for housing means they have more to spend on other things that add to the overall quality of life. Texas offers a lower cost of living than many places in the United States.

In essence, lower housing costs allows employers to satisfy wage rates that attract workers therefore allowing them to compete in the global economy. Go Texas!!

It's Good to be in TEXAS – An Analysis of Income & Housing Costs

The Real Estate Center at Texas A&M University recently studied the Texas economy and housing market as it compares to the rest of the nation.  They discovered some very important findings; further explained, the Texas housing market fared better than any other state and the Texas economy is expected to show greater signs of improvement in the upcoming months than the rest of the nation.

“Texas’ lower-than-national-average housing cost is one reason for the state’s higher-than-national-average growth rate,” says Ali Anari, Ph.D., a Center research economist and one of the study’s authors.  “When Texans are able to spend more on non-housing goods and services, the state’s economy is strengthened and more people attracted.”

“These results illustrate one of the key reasons the Texas economy outperforms the United States in terms of job growth almost every year,” says Center Chief Economist Mark Dotzour, Ph.D. “The fact that Texans pay less of their income for housing means they have more to spend on other things that add to the overall quality of life. Texas offers a lower cost of living than many places in the United States.

In essence, lower housing costs allows employers to satisfy wage rates that attract workers therefore allowing them to compete in the global economy. Go Texas!!

Rollingwood City Council Bans Short Term Leases

It recently came out in the news that the Rollingwood City Council put a ban on any leases with a term of less than 30 days to the surprise of many residents.  Although, short-term rental options have become more common in Central Texas, in particular with local Austin events such as Austin City Limits, there was little discussion about the matter.

It was immediately ruled that “short-term rentals’ “attendant traffic, parking, noise, litter, and influx of non-residents” are incompatible with residents’ expectations of a residential atmosphere.”  The city council is supposed to serve in the best interests of its constituents, but more than a few are feeling “short-changed” with the lack of communication and discussion on the subject.

To read more about the story, visit statesman.com.

Rollingwood is a charming neighborhood just west of Zilker Park and 3 miles from downtown with about 1,400 residents.

Mortgage Rates Fall to Record Low – 9/30

Yes, this is NEW news!  Over the past year, we have seen interest rates really drop, but as of last Thursday, we’ve seen the absolute lowest on record!  According to Freddie Mac’s weekly rate report, ”a 30-year fixed-rate mortgage fell to 4.32 percent in the week ending Sept. 30, down from 4.37 percent last week.”

““Confidence in the state of the economy fell among consumers and businesses, which led to a decline in long-term bond yields and brought many mortgage rates to record lows this week,” said Freddie Mac chief economist Frank Nothaft.”

In short, downward pressure on pricing coupled by low interest rates have created a more affordable market for the average consumer than ever before.  You can read more about this article by visiting the Austin Business Journal online. 

Apartment Vacancy Falling, but not the Rent

Since 2006, there have been over 30 plans announced to develop housing that averaged over 20 stories tall.  These plans included: 

• 5th at Congress Tower
• Congress Condominiums
• 360 tower
• 101 Metlife
• The Austonian
• Spring Tower
• 904 West
• Barton Place
• Aquaterra

Let’s not forget:  Jefferson Commons, The Block, The Texan and the myriad of other apartment complexes that have sprouted up in West Campus.

 Since that time, there was a dramatic shift in the availability of condos and apartments driving rents downward over time.  Times have changed: some of the projects went bankrupt, some stopped construction, and the ones that were completed have tenants!      

For the full story, click here:  http://austin.bizjournals.com/austin/stories/2010/08/23/daily46.html.

SW Austin Growing, and Quickly

How about some good news as we head into Labor Day weekend?!  If you haven’t had a chance to look over Community Impact’s latest article about the residential and business development in Southwest Austin, I’ll give you some of the bullet points and the link to read more.   

• Development of SW Austin (mainly zip codes 78748 and 78749) started back in the 40s and 50s with a couple of subdivisions considered the framework for what we see today. 
• Additional projects in the 70s and the most recent new home construction over the past 4 years has added to the ever-popular and quickly growing area. 
• Small businesses have established themselves too and therefore increased the employment rate dramatically compared to other Austin areas.

To read the article, click here:  http://impactnews.com/southwest-austin/144-news/9462-southwest-austin-residential-business-growth-fastest-in-metro-area.

Pet Owners. Read This about our Cuddly Friends.

How cute, right??  Well, at our team meeting today, we had an agent from State Farm come in and present the latest material on Home Owners Insurance.  Of course we’ve all heard the basics, but interestingly enough:

• Since 2003, the cost of dog bite claims has risen nearly 30%.
• More than 4.7 million people in the U.S. are bitten by dogs annually.  Approximately, 900,000 will require medical care.
• The average dog bite claim in 2009 was $24,840.

As proud pet owners, we love our dogs like they were our family (myself included) but make sure you’re covered…just in case!

The End is Near

After years of building, building, building… the end of the McMansion era is here. 

With unemployment rates looming and growing concerns about another economic recession, consumers are cutting back.  Recent studies by Trulia indicate there is less demand for oversized estates over 3,200 square feet and “about one-third [of people] said their ideal size was under 2,000 square feet.” 

As reported by the Austin Business Journal, the Austin City Council also just approved to expand “the so-called McMansion ordinance which bans super-sized homes in certain parts of Austin.”

So what does that mean for Austin?  Isn’t it deemed one of the most recession proof cities in the nation?

Yes, but consider the fact that Austinites are leading the charge is going green and more of an effort is being placed on energy efficient homes.  According to Joe Cline, “the best builders in Austin have found a way to combine the elements of style along with the environmental concerns that so many people have been trumpeting.”   

“I think this holds a lot of truth, at least from what I have been seeing and having requests for,” says Ryan Todd, Vice President at T.A. Todd Construction.

To summarize, whether you’re planning to buy, sell or invest consider the following and call us at (512) 531-2904 so we can guide you through the effects of these trends on your investment.   

For more information, reference these articles:  http://www.cnbc.com/id/38757287, http://austin.bizjournals.com/austin/stories/2010/08/02/daily56.html and http://www.goarticles.com/cgi-bin/showa.cgi?C=2535606.