Austin Real Estate Market Remains Stable Despite Expiration of Tax Credits

According to the Multiple Listing Service (MLS) report by the Austin Board of REALTORS®, demand for real estate in Austin has remained stable despite the expiration of federal homebuyer tax credits at the end of April.

The volume of Austin area home sales in June 2010 was 1,987, down four percent from the same month in 2009. The median price of real estate in Austin increased four percent from June 2009 to $208,750 for June 2010.

“I think this report shows there is life for Austin real estate after tax credits,” said John Horton, Chairman of the Austin Board of REALTORS®. “Sales volume was down only four percent compared to June 2009, which was last summer’s peak month. In addition, the average time it takes to sell a home in Austin decreased for the sixth month in a row. Both of these factors point to long-term stability for our market.”

HOUSTON, AUSTIN - 'GREAT' PLACES TO BE YOUNG

HOUSTON (Houston Business Journal, Yahoo! Real Estate) – Both the Bayou City and the Capital City have made it onto Kiplinger.com’s Top Ten Great Cities for Young Adults.

The study based its list on youth-friendly factors such as cost of living, rental costs, culture, nightlife, time spent in traffic and the percentage of people younger than 35.

Houston’s average annual wage is $41,074. The median monthly rent is $775 compared with the national average of $819.

Houston was chosen primarily because of its diversity, with more than one million of Houston’s inhabitants born outside of the United States, along with its proximity to the Gulf Coast.

Austin, meanwhile, had an average annual wage of $41,380 (as of 2007). Median monthly rent is $864.

The city was touted for its cultural scene, "vibrant" nightlife and eclectic neighborhoods. It also has the fourth-lowest jobless rate among cities with populations of one million or more, according to Kiplinger.com.

AUSTIN TOPS FOR START-UPS

AUSTIN (Austin Business Journal) – Austin has a longstanding reputation as being one of the greenest U.S. cities, and now it has another honor worth boasting about.

Entrepreneur.com has named the Capital City the best in the country when it comes to supporting start-up companies.

In identifying 50 cities that best promote entrepreneurial pursuits, the publication touted Austin’s innovative spirit, commerce and emerging technology culture.

Austin is home to many successful start-up companies, and in the past year Facebook Inc., LegalZoom Inc. and Host Gator LLC have announced offices in Austin.

This year alone has seen 31 relocations and expansions in the technology-related space, representing nearly 3,000 new jobs, according to the Austin Economic Growth and Redevelopment Services Office.

AUSTIN REALTORS REPORT 'STABLE' HOUSING MARKET

AUSTIN (Austin Board of Realtors) – Demand for existing homes in the Austin area has remained stable despite the expiration of federal homebuyer tax credits, according to the latest report from the Austin Board of Realtors.

The volume of Austin area home sales in June 2010 was 1,987, down 4 percent from the same month in 2009, the board reported, using the most recent MLS data. The median price of real estate in Austin increased 4 percent from June 2009 to $208,750 for June 2010.

Despite a decrease in the volume of homes sold in June 2010, the total dollar volume of real estate sold increased 6 percent compared with June 2009, primarily from increased demand for properties in higher price ranges.

In June 2010, homes remained on the market an average of 70 days, a 14 percent decrease from the same month in 2009. In the same period, pending sales decreased 23 percent to 1,610, new listings increased 2 percent to 3,287, and active listings increased by 16 percent to 11,749.

Austin Market Statistics

According to the Multiple Listing Service (MLS) report by the Austin Board of REALTORS®, the volume of Austin area home sales in April 2010 was 2,043, up 31 percent from the same month in 2009. In the same period, pending sales increased 47 percent to 2,813. The median price of real estate in the Austin area remained unchanged in the same time period at $190,700.

“The considerable increase in sales and pending sales indicates increased activity among buyers trying to beat the April 30 tax credit deadline,” said John Horton, Chairman of the Austin Board of REALTORS®. “Although the tax credit has expired, we are entering a growing economic, real estate and seasonal cycle which we hope will continue to provide momentum to carry our market upward.”

Sales of condos and townhouses remained strong in April 2010, increasing 63 percent to 213 sales as compared to April 2009. Also during the same period, pending sales for condos and townhouses increased 70 percent to 338.

Mr. Horton continued, “The significant increase seen in the condo and townhouse market can most likely be attributed to the first-time homebuyer tax credit. The median price for condos and townhouses is approximately $30,000 less than the median price for a single-family home; and therefore, these properties can be a more affordable alternative for first-time buyers.”

In April 2010, the days on the market for single-family homes decreased 13 percent to 69 days as compared to April 2009. Additionally, the month’s supply of inventory in April was approximately 6.5 months, which represents a balanced market.

Horton concluded, “People buy homes because they want to be homeowners. The tax credits have made it more attractive for some buyers to purchase now, but there are a lot of buyers who have been waiting to purchase until they were confident in the economy. Now that we are seeing recovery in the economy and real estate market, in combination with historically low interest rates, those potential buyers who have been on the fence are now taking the leap and entering the housing market.”

April 2010 Statistics

• $485,772,282 – Total dollar volume of single-family properties sold, a 33 percent increase from April 2009.


• $190,700 – Median price for single-family homes, unchanged from April 2009.


• 2,043 – Single-family homes sold, a 31 percent increase from April 2009.


• 10,749 – Active single-family home listings on the market, a nine percent increase from April 2009.


• 2,813 – Pending sales for single-family homes, up 47 percent from April 2009.

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