The January 2008 Market Trend Analysis Report produced by the Mortgage Guaranty Insurance Coporation (MGIC) Credit Policy department had this to say about Austin;

“Austin displayed solid economic performance. Helped by business relocations and expansions, office occupancy and rents rose. Improvement was also noted in the commercial and industrial real estate markets. With all employment sectors contributing, annual job growth increased 4%. This helped to keep the unemployment rate under 4%. Despite existing home sales falling 9%, the housing market remained strong. Home prices appreciated 10% for the year, well beyond the national rate. Austin is one of the few markets where foreclosure postings are down. There is currently a 4.7-month supply of units. The outlook is for continued solid growth.”

You can see the full report here MGIC Report January 2008

Major industries like telecommunications, high-tech, and of course – film and music have recently decided to make Austin home. And, with that the demand for Austin, Texas real estate has gone up.

Austin’s economic growth is expected to continue to be strong. The Technology Sector is here to stay in Austin. Dell, AMD, Freescale (formerly Motorola), and National Instruments call Austin home. IBM, Apple, and Intel have an extremely strong presence here. As these companies continue to grow, so will Austin. Austin also fosters creative the creative minds and spirit that will bring the innovations of tomorrow.

While it is true that no one can predict the future, many markets in the U.S. have seen unrealistic ups and downs in their real estate sales figures in recent years – causing talk of the “real estate bubble” and fear that it will soon burst. However, if you investigate the trend in Austin Texas real estate, you will see that we have been remarkably consistent in terms of home sales.

Austin’s Economic News

IRA provides nontraditional way to invest in real estate

On January 27, 2006, the Austin American-Statesman quoted veteran economist Angelos Angelou as saying that the Austin economy would experience, ” steady, moderate job growth and continued strengthening in the real estate, retail and service sectors,” in 2006. When the numbers are all in, chances are that the economic growth will exceed expectations. This will be largely due to the resurgence in the Austin real estate market. Many people are taking advantage of the beginning of this upswing to start investing in Austin.

RealEstateZing.com reports that “Real Estate in Austin has been on a fast pace. According to the Real Estate experts in Austin, the real estate and property market in Austin is undergoing a steady transition from being a sellers’ market to buyers’ market. Even real estate agents can provide testimony to this fact as high-end properties like condominiums, apartments; downtown penthouses and lofts are very much in demand. The reason why home builders are very keen to invest in real estate in Austin is perhaps that Austin is gaining all the amenities and infrastructural intensification like new expressways and toll roads. Thus, we find that people prefer downtown areas, as there has been a cut in the traffic time. Real Estate in Austin owes its boom to the fact that though Austin persists to develop at a speedy velocity, it still has preserved its roots and basics. Even the Real Estate in downtown Austin are witnessing real estate developments with planned condominiums coming up and also opening up options for opting houses for rent. New home builders on the other hand are focusing on the outlining areas where growth continues”.

Whether you are trying to diversify your portfolio with some real estate, or you are looking to supplement your retirement income, Austin real estate is a proven choice. There are exceptional values to be found in Austin which can realize a significant return on your investment. Whether you want a single family home for a rental property, an executive home for corporate rentals, 1-4 family cash-flow properties, a builder model leaseback property or get into the pre-construction market by becoming a partner with a builder and building a new home to resale at a higher price, our experience will find you some of the best opportunities in Austin with a minimal amount of risk.

Not only are we personally invested in Austin real estate, but we have helped our investors make money in Austin real estate, and that is why they come back to us to acquire property after property. We will earn your trust by presenting investment opportunities that make sense for you.

We specialize in helping people buy homes or investment property in the central Austin area. Our goal is help you through the buying process and make it as stress-free as possible. Our style is to give you the information you need to make an educated decision and let you make that decision, no pressure.

Call us today to tell us your needs and objectives. We won’t pressure you into listing your house. That’s your decision to make. We know you have questions and we will do our best to answer them. We are here to give you the most informed, up-to-date advice we can in helping you make your decision.

TIP #1: Price Your Property Appropriately For Current Market Conditions

If you need to sell your house, then it is critical the your property is priced appropriately. Of course your goal should be to maximize the sales price of your house. However, there are dangers in both overpricing and underpricing your home. Setting an asking price too high with the hopes of receiving an offer may have the adverse affect. Qualified buyers may not even view your house because it would be out of the normal range for other similar homes. Overpricing your property may cause your home to sit on the market longer than normal. Conversely, underpricing your home may be detrimental as well. At the very least, it may cause some buyers to wonder if there is something wrong with your house or a problem that is hidden from view. At the most, it means you may sell your house for far less than you could have received in the same time period. By working closely with you, Pride of Austin Realtor® will help you make the correct pricing decision for your home.

TIP #2: Prepare Your Home To Sell Quickly

Be sure to make any necessary repairs and give your home a good cleaning. Leaky faucets and squeaky hinges don’t cost much to fix, but they make a big impact on how potential buyers see your home. Failure to use a little “elbow grease” and not making minor repairs will lower the value of your home and even turn away some buyers.

TIP #3: Be Ready To Show Your Home

Be flexible with property showings. It may be inconvenient, but by making your home available to more buyers, you increase its chances of being sold quickly. Make the house accessible. That means it should always be ready to show. Many buyers won’t bother viewing a house that takes 24 hours to get into.

Make sure your home is inviting by keeping it clean and well-lit. Air out rooms that may smell like pets, smoke or cooking odors, and place a few scented candles around your home. To increase curb appeal, maintain a healthy lawn and add a splash of color to your front porch. Keep pets away. They detract from your home’s appeal, so arrange for them to stay with a neighbor while your house is being shown. If that’s not possible, put them outside or confine them to one room, and let your REALTOR® know where to find them.

TIP #4: Use All Methods To Market/Advertise Your Home

There are so many ways to market and advertise your property that you may overlook some obvious options for your situation. Pride of Austin employs a wide variety of marketing techniques to market your home in addition to the traditional methods you may be used to seeing. At Pride of Austin Realtor®, we are committed to selling your property; we are readily available for every phone call from a perspective buyer. It is important for you to know that we are full-time Realtor® since most contacts are made by qualified and motivated buyers during business hours.

TIP #5: Pre-screen Potential Buyers

Unfortunately, not everyone who asks to view your home is a realistic potential buyer. Frequently, people who do not come through a Realtor® are not really in the market to buy a home, many are more interested in browsing through the available houses than they are in actually buying. Others are not prepared to make a purchase because they have not sold their home yet, are not financially prepared, or may not have made the decision as to whether they really want to buy a home at this time. By working with a Pride of Austin Realtor® we can often save you from wasting your time with unqualified buyers.

TIP #6: Understand Your Contract Rights & Responsibilities

It is extremely important that you understand the details of your real estate contract. Real estate contracts can often be very complex and confusing, and you should know that they are legally binding documents. It is important that you know what you are responsible for before signing the contract. Not being familiar with your contract could cost you hundreds, or even thousands of dollars on repairs and/or inspections.

Forms You Will Need Know About To Sell Your Home Home In Addition To A Listing Agreement

• Property Disclosure Form. This form requires you to reveal all known defects to your property.

• Purchasers Access to Premises Agreement. This agreement sets conditions for permitting the buyer to enter your home for activities such as measuring for draperies before you move.

• Sales Contract. The agreement between you and the buyer on terms and conditions of sale. Again, check with your state real estate department to see if there is a required form.

• Sales Contract Contingency Clauses. In addition to the contract, you may need to add one or more attachments to the contract to address special contingencies—such as the buyer’s need to sell a home before purchasing yours.

• Pre-and Post-Occupancy Agreements (Temporary Lease Agreements). Unless you’re planning on moving out and the buyer moving in on the day of closing, you’ll need an agreement on the terms and costs of occupancy once the sale closes or in the event that the buyer takes possession before closing.

• Lead-Based Paint Disclosure. If your home was built before 1978, you must provide the disclosure to all sellers.

 
TIP #7: Prepare For The Costs Associated With Selling Your Home

Sellers are typically responsible for having the home inspected and paying the closing fees, as well as taking care of any repairs deemed necessary by the inspector. Typically, you can expect prorated costs for your share of annual expenses, such as property taxes, home owner association fees, Attorney, closing agent and other professional fees. By working with a Pride of Austin Realtor® you will be made aware of and prepared for these costs as they occur.

TIP #8: Calculate Your Estimated Proceeds

Check Your Mortgage Payoff. Call your lender to check the payoff for your current home mortgage.

Deduct your mortgage payoff from your home’s fair market value.

Deduct your costs to sell from the remainder to get an estimate of the proceeds you will be paid at closing.

Will your closing proceeds cover your costs to buy a new home? If not, do you have cash or other funding to make up the difference?

TIP #9: Make Financial Preparations To Buy Your New Home

If the reason that you are selling is that you want to move to a new home, do a little pre-planning about the home you want to move into.

Get Pre-Approved for a Home Loan. Often sellers sign a contract to sell their house before they knew if they were qualified to buy another. Either their financial circumstances had changed since their last purchase, and they could no longer qualify for a loan, or they weren’t able to sell at a price that allowed them to buy the type of replacement house they wanted. They ended up renting or buying something that was far from ideal.

Before you decide to sell the house, get pre-approved by a lender you trust and research the housing market in the area where you wish to live so that you have a good idea how much it will take to buy a replacement.

TIP #10: Preparing To Move

Get your paperwork in order. The buyer will want warranties and manuals for appliances included with the house and you won’t want to search for them while you’re busy moving.

Give your forwarding address to the post office, bank and your friends and family. And consider holding a yard sale so you don’t end up paying to move things you really no longer want or need.

A Buyer’s representative works solely for you and has no legal responsibility to the seller. When working with a Buyer Representative, you have the advantage of personal representation, independent counseling, loyalty, confidentiality and trust. It is our philosophy at Pride Of Austin Realtor® to ensure that you have complete understanding of the options available to you. We provide you total access to the entire market place as you shop for the property that most fits your wants, needs and lifestyle. This includes not only properties listed with our office, but the properties that best meet your needs that are offered through other real estate companies, as well as unlisted properties. We will disclose all known facts about the property that are likely to affect your decision.

TIP #1: Get Pre-Qualified For Financing Early In The Process

Early on, before you really start to look for a new home in earnest, it is important that you know how much you can comfortably afford for a home. What you can afford depends on your income, credit rating, current monthly expenses, down payment and the interest rate.

Getting pre-qualified for financing will help determine your price range and also help avoid disappointment after falling in love with a particular home and later being turned down for a mortgage loan. When you are trying to buy a house in a competitive market, your offer to purchase should contain as few conditions as possible. An offer that is conditional on obtaining financing is often a deal killer. The seller may accept a competing offer for less money rather than take the risk that you will not be able to raise mortgage money. A pre-approval letter from your lender tells the seller you are ready and able to commit.

It will also save you the extra stress of having to find a lender within a few days of having your conditional offer to buy a home accepted. In these times of fluctuating interest rates you can certainly benefit by locking in a lower rate. This could save you thousands of dollars if the rate increases while you are in the process of buying.

TIP #2: Find Out In Advance What Documents Your Lender Will Need

Being prepared to obtain a mortgage loan will save you time. Common documents include W-2 forms, bank statements and information on all outstanding balances (like credit cards and student loans). Your REALTOR® can provide you with a more in-depth list.

TIP #3: Research Neighborhoods Before You Look At Homes

If you have children, schools are important, and if you are relocating to a new area, you will want to take the local job market into consideration. Your Pride Of Austin Realtor® can tell you about area schools, property taxes and community amenities that you might not be aware of.

TIP #4: Decide Which Features You Must Have In Your New Home

No home is perfect, and by deciding out what matters most to you ahead of time, you will have a much easier time narrowing down your choices.

TIP #5: Get The House Inspected

Make your offer contingent on a home inspection. An inspection will tell you about the condition of the home, and can help you avoid buying a home that needs major repairs. The first really hot day you spend in your new house is way too late to find out that the air conditioner does not work.

If the seller will not help bear the costs, and you want to go ahead with the purchase, make sure you can afford the necessary repairs on top of your mortgage.

Be sure the seller has taken care of all the agreed-upon the repairs before you move in. Your Pride Of Austin Realtor® can monitor these activities, so you can concentrate on moving into your new home.

TIP #6: Make Sure You Understand All Paperwork Before Signing It

It may sound obvious, but you can get yourself into a lot of trouble if you agree to something you did not intend. Your Pride Of Austin Realtor® will able to explain the necessary paperwork to you if you have any questions.

TIP #7: Prepare For The Costs Associated With Buying Your Home

You may already have a down payment, but be aware that there is also other expenses you may have to pay at closing. Closing costs can add up to between two and six percent of your loan, so ask your lender to give you a Good Faith Estimate of the loan-related fees you will have to pay. Your Pride Of Austin Realtor® will help you understand the closing cost you may incur and also compile a list of other expenses you will need to be aware of before you reach the closing table.

TIP #9: Understand Your Homeowners Insurance

Make sure you understand your Homeowners Insurance Policy. Some policies exclude damage caused by certain disasters, such as floods. If you live in an area where these disasters occur frequently, you may need supplemental coverage. Be familiar with terms like “liability,” “replacement cost” and “actual cash value.” The last thing you want in the wake of a tragedy is to find that you misunderstood your policy.

TIP #10: Try To Coordinate The Date You Take Possession Of Your New Home And Your Moving Date

If possible, avoid a situation where you have got to camp out with relatives or find a short-term rental because you must vacate your old house or apartment before you can move into your new home. Moving once is enough.

Austin’s robust economy (as compared to the rest of the nation) is in large part due to a healthy State. US News and World Report recently named Texas as one of the best places to start a business. Allied Van Lines has proclaimed Texas as the number one state for residential relocations for the last 4 years running. Of course people are moving to Texas – we have a lot to SMILE about.

Austin is expected to grow by 38,000 residents within the year due mostly to national relocating services, natural population increases and international relocating services. In the previous 12 months ending November 2008 Austin created over 13,000 new jobs according to the Texas Workforce Commission. More jobs, more residents, more spending, healthier economy – SMILE!

Austin ranks 10th in the nation for job creation! And let’s not forget Houston, Dallas and San Antonio. Texas has 4 of the top 10 cities in the Nation for job creation. SMILE!

We have not had the manic swing of the pendulum in housing values in Austin. Although our sales are down it is believed by many that Austin will be on the leading edge of the housing rebound! Even with declining sales we reveled in a 2% gain in the median house value as compared to a national average of a decline of 13.2%. SMILE!

When we take in all of the suburbs and surrounding towns Austin only has a 5 month supply of homes compared to a national average of 12 months. There is even a lower supply of homes if we consider just new homes. Builders aren’t inclined to throw up spec homes on every acre of land they find.

Of course, the City of Austin planning department is not helping the construction industry either. They have made it almost impossible to build a home by the implementation of their Mc Mansion Mess and the fact that it takes 3 to 4 months to get a permit through the City because they change the rules every hour on the hour. Well that plus many of our building inspectors have to be dragged out of bowling alleys and BBQ joints to do their job of inspecting. But God love them; they have a job even if it is at the expense of tax payers! You got to SMILE on that one.

And we should give our Legislatures a big SMILE. Every now and then they get something right. As an example; they held home equity loans on a homestead to 80% of the value of the property. That is a major contributing factor as to why we don’t have more homeowners upside down in their homes! Go Lege!

This spring will usher in new leadership with the City of Austin. Out goes Metrosexual Mayor and with any luck his sidekick Rooster will be ousted as well. And maybe, just maybe the voters in Austin will vote in experienced, even-tempered, visionary leaders.

Seriously, we have a lot to SMILE about!

Regards,

David

Austin’s status as a leader in national education cannot be overemphasized. With schools’ proximity to the TEA, and with senators’ grandchildren attending schools in Austin, educators are expected to provide unparalleled services in Austin area schools. However, it’s worth finding out whether the schools in your area match up to the group’s standards. Start your research by following the links below.

Austin Area School Districts

• Austin ISD

• Eanes ISD

• Lake Travis ISD

• Leander ISD

• Round Rock ISD

• Austin Private Schools

• Austin Waldorf School

• Austin on GreatSchools.net

Accolades for Texas Schools
After the 1996 National Education Summit, an independent organization was created to help American states to improve their education systems. It’s called Achieve, Inc., and its report on Texas schools is a litany of praise for the Lone Star State’s commitment to reform in the education sector.
“While the critical refrain heard from some about Texas is that only tests drive the education system, Achieve found a notable and unusual degree of alignment among standards, tests, curriculum, instruction, and teacher preparation and professional development.”
Texas Education Agency

Residents of Austin are known as “Austinites,” and include a mix of university professors, students, politicians, lobbyists, musicians, state employees, high-tech workers, blue-collar workers, and white-collar workers. The city is home to enough large sites of major technology corporations to have earned it the nickname “Silicon Hills.” Austin’s official slogan promotes the city as “The Live Music Capital of the World”, a reference to its status as home to many musicians and music venues.[1] In recent years, many Austinites have also adopted the unofficial slogan “Keep Austin Weird”; this refers partly to the eclectic and progressive lifestyle of many Austin residents, but is also the slogan for a campaign to preserve smaller local businesses and resist excessive commercialization.

Austin Texas is situated on the Colorado River and has 3 lakes created by dams within its city limits: Town Lake, Lake Austin, & Lake Travis. The eastern section of Austin is relatively flat, but the western section & suburbs consist of rolling hills at the beginning of Texas Hill Country. The hills to the west are mostly limestone rock.

A great point of interest in Austin is Mount Bonnell – about 780 feet above sea level and a great place to stop and overlook Lake Austin, which is approximately 200 feet below its summit. Nearby Cat Mountain also offers some fantastic views from the neighborhood streets that wind up & down its face.

• Ranked 2nd Top 10 Places Where Ideas Happen – Visa USA
• Ranked 2nd Top 10 Cities For Moviemakers – MovieMaker
• Ranked 2nd Best Large City For Relocating Families Worldwide – REC & Primacy Relocation
• Ranked 1st Most Entrepreneurial City in America – Visa USA
• Ranked 1st Top 50 Entrepreneurial Cities in America – Entrepreneur Magazine
• Ranked 1st For Best Big City To Live – MSN House & Home
• 2,000,000 New Residents Projected For Central Texas Within The Next 10 Years – Sept 2006, Texas A&M University Real Estate Dept
• Ranked 4th For The Top 20 Next Boomtowns In America – Business 2.0 Magazine
• Ranked 1st In The U.S For Best Cities To Relocate Families To – Expansion Management Magazine
• Rated 3rd In The Top 150 Metro Areas For Best Places For Business And Careers – Forbes Magazine
• 3rd Fasted Growing City In The Nation Over The Next 25 Years – Brookings Institute, Jan. ’05

Austin’s climate is characterized by its hot summers & mild winters – basically a humid subtropical climate, receiving 33.6 inches of rain per year, which mostly falls in the spring. Summer is typically hot and humid, with average temperatures above 90 degrees, and temperatures above 100 degrees not uncommon. The highest temperature recorded was in the year 2000 at Camp Mabry – 112 Fahrenheit! Winter offers a nice break in the heat with an average high of 62 degrees in December, 60 degrees in January, and 65 degrees in February. Austin averages 88 days in which the temperature falls below 45 degrees Fahrenheit.