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Austin doesn’t know about this slowing market

By Justin Hunter

The U.S housing market has been experiencing record sales declines and unprecedented year-over-year price declines. Well, not every city in the U.S. is participating in the dull market.

In fact, the majority of Texas has been thriving with sales and price increases. For right now, Austin, Texas, has thrown itself into the spotlight, leading the way as a recognized real estate powerhouse.

The article, “Best September ever for Austin real estate” posted October 27, 2006 on Inman News, explains how Austin has the majority of U.S. home owners jealous because of their continuing appreciation rates.

“Austin, Texas, home sales set another record in September as single-family transactions rose 2.7 percent over their year-ago level, the Austin Board of Realtors reported.”

“According to the latest Multiple Listing Service report, 2,341 single-family homes were sold last month, up from 2,280 sales in September 2005. Last month was the ninth consecutive month of year-over-year sales gains, according to statistics.”

It is important to note, however, that although Austin and many other areas of Texas have been appreciating for several years, their real estate market did not thrive nearly as much as many other major U.S. cities during the booming period from 2001 to 2005, or what Californians like to refer to as “the good old days.”

But Austin deserves its moment in the sun. There median home prices are still way below the U.S. average of $225,000 despite being one of the only areas to still be experiencing price increases.

“The median price of single-family properties gained 3 percent from a year ago to a September record of $167,000, up from $162,000 in September 2005.”

Everything seems to be working in the favor of the Austin market. Construction and home builders have been getting a lot of work as inventory increases, while sellers have not been exactly biting their nails trying to generate a sale.

“The 8,203 active single-family listings in the MLS represent a 5 percent increase from September 2005, and were up from 8,137 in August. At an average of 58 days, the amount of time these listings sat on the market decreased by 15 percent, which is the shortest amount of time single-family listings have waited to sell since September 2001, when the average was 46 days.”

“‘If you want proof that Austin is a real estate hot zone, all you have to do is look out your window,’ said ABoR Chairman John Rosshirt. ‘The construction cranes that have become fixtures around the skyline underscore the city's desirability.’”

Buyers are also loving life in the area even though prices are increasing because the values of Austin homes are skyrocketing.

Certain areas have been thriving more than others. According to the MLS report, Austin’s 1N section’s “single-family home sales increased 47 percent to 69 percent and earned a median price of $240,000, an 18 percent increase from last year. Averaging 38 days on the market, these properties sat for 40 percent less time than they did in September 2005.”

There is no time table for how long Austin will experience such a great real estate market, so prospective buyers are urged to “Get em’ while they’re hot."

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