Warren Buffett, one of the wealthiest men in the world, still lives in the home he bought in 1958 for the purchase price of $31,500 in Omaha. Not everyone can be as lucky as Warren Buffett, but we can learn a lesson from him. He owns his home that no doubt has increased in value significantly in monetary terms, but it obviously also has a great deal of intrinsic value as well. That intrinsic value may not equate to a sale prices differentiation, but it appreciates in time just the same. There are different scales of profitability when it comes to home ownership. Emotions are never supposed to play a role in selecting your real estate investment, but it is your home, so remember that when you venture out and look for that place you want call home.
According to the September 2014 Multiple Listing Service (MLS) report released October 21, 2014 by the Austin Board of REALTORS® (ABoR), Austin-area single-family home prices set a record for the month of September. Concurrently, the Austin-area single-family home sales rebounded from the previous two months of home sales declines, increasing 10% from September of last year.
The report further indicates that Austin-area homes continue to sell quickly with the average number of days single-family homes spent on the market at 44 days. This figure has remained consistent for two years and showed little change in the past four years. This along with continued gains in single-family home listings are having a positive effect on pending sales,
The report indicates that the volume of townhouses and condos purchased in Austin in September 2014 is down 4% from September 2013. However, in the same time period, the median price for condos was $205,500 indicating a 1% price increase in the same time period. These properties spent an average of 41 days on the market, two days fewer than last year and three days fewer than homes on the market. Leases in the Austin area are up 8% in September 2014 compared to last year.
The bottom line, people are still moving here in record numbers. This is the time to buy, sell or lease. Call me and let’s talk about this dynamic market. It is so incredibly dynamic. Inventory moves fast. I have to delete items out of carts on my MLS all the time because they are not there long. I have a lot of calls on properties that are already gone. Sometimes by the time they are marketed, they are already gone. This is definitely a seller’s market, but you have to buy to sell!
In Scotland, homeowners paint their door red when it is paid off. Well, my door is not quite red yet. Until then, leasing is a great option in the Austin area to determine where you want to live. The whole dynamic atmosphere makes it hard to know if you would really like living in a place until you actually live there. I love the Clarksville area myself, but it is not for everyone. It’s fun finding great spaces for people to lease then help them find that perfect morsel after living there for a while. That being said, there is hope on seeing some light on the horizon on lending and some loosening of more mortgage loans for those of us without pristine credit.
Mortgage lenders could get a lot more willing to extend loans to borrowers with less-than-pristine credit if Fannie Mae and Freddie Mac give them more clarity on what circumstances will trigger demands that mortgage originators buy back loans that go bad, according to the Wall Street Journal reports this week. If their federal regulator goes along, Fannie and Freddie may also roll out new programs allowing them to guarantee some mortgages with down payments of as little as 3 percent. Fannie and Freddie, which require mortgage insurance for most loans with down payments of smaller than 20 percent, will currently buy mortgages in which borrowers have made down payments as small as 5 percent, according to the WSJ Reports.
If you are considering making a move, contact me, and I can help you find some places to call home!
According to Austin Board of REALTORS Multiple Listing Services report (10/23/2014), the number of listings were down in September 2014 (3,472) from 3,589 in August which was down from 3,732 in July in the Austin area alone and not including the suburbs and bedroom communities. At the same time that the inventory is down, according to the September 2014 Multiple Listing Service (MLS), Austin-area single-family home prices set a record for the month of September.
Median price for Austin-area single-family homes increased eight percent year-over-year to $240,000 and average price rose seven percent year-over-year to $308,514 in September 2014. These are the highest figures recorded for both median and average price for the month of September. The average days on the market is 44 and has remained consistent.
I have read and heard the report that claims Austin area real estate is overvalued, then I look at the reality of the situation. According to the City of Austin, Bureau of Vital Statistics, there are 110 people moving to Austin every day. In my opinion, logically, I realize that no one is building any are more land here in Austin, so what you will continue to see is increasing values in the structures available, with particular increases projected from the core out, or inside out. I predict that investors will be handsomely rewarded. There is a giant medical school coming to town. There are more and more venues coming to this town every day. The place is a buzz all in the same old Austin I remember with little reminders of yesteryear Austin, like Donn’s Depot.
Leasing is also up 8% this September versus September last year in the Austin area. Leasing is big business, and the prices are quite expensive in the central areas of Austin. Regardless of whether you buy or lease, I recommend that you contact a professional (me of course) to help you make informed choices. The choices are overwhelming, but there are affordable places to live, and even in Central Austin. Having a confident and competent professional is essential to make sure that you find what you are looking for, and location is key.
I get asked a lot if there are any places central for purchase for $150,000 range and also in the $200,000 range. The answer is yes! They may not be big or the newest, but they are there. The East Side of Austin has made some great changes and is the newest arts district. It is chic and a great investment. Also, there are a few small condos in the Clarksville and Tarrytown area in the $200,000 range. For a chick downtown condo, $400,000 is the opening mark that I have seen, but you can span your search just a little out into the campus areas and get something in the $200’s. Call, text or email me!