While investigating this Stimulus package, I found out that the Senate added to make interest payments on most auto loans and sales tax on cars deductible!  This new legislation will mark the first time since 1986 that car buyers will be able to write off their auto loan interest.  Funny, I got my first car in 1986.

Though, I would recommend to my clients to purchase the house first then go for the new car, not the other way around.  

I received an email from Keller Williams International which included this information and helpful links:

New stimulus package proposes tax credit for home buyers

Last week, the Senate verbally approved the Fix Housing First Act, an important amendment to their version of the Economic Stimulus Bill. The piece of legislation and the Stimulus Bill are still awaiting Senate and House negotiations, but could provide all home buyers of primary residences over the next year with a tax credit of $15,000 or 10 percent of the cost of the home, whichever is less. The credit will not need to be repaid unless the home is sold within two years of purchase. This Senate's version of the tax credit, if implemented, will replace, or "sunset" the current $7,500 credit.

As leaders in the real estate industry, it is important to recognize the relevance of this amendment which could set the housing market on a course toward recovery.

If you are not familiar with this Act, please click here for more information.

• Click here to download a step-by-step guide for contacting your Senator or Representative via phone or email.
• Click here for a composed note to send to you Senator or Representative.

Should the legislation become a law, it will act as a major incentive for home buyers and, coupled with several years of pricing corrections could boost the number of home sales around the country. Until then, get free information on the current $7,500 tax credit for first-time home buyers.

JP along with myself are Steiner Ranch Residents.  Here is an insightful analysis of the real estate market statistics for December that he sent me in an email.

For folks interested in the Steiner Ranch/surrounding area real estate market (which I stay intimately familiar with), I'll be sending out a monthly email containing the data and a short commentary by me.

Attached is December's data...

IMPORTANT:  ALL REAL ESTATE IS LOCAL!  It's quite possible and is the case, for Austin's market to be a lot better than the national market.  It's also quite possible for Steiner's market to be a lot stronger than Round Rock's, which is the case.  So be careful when you read stories or hear about "the real estate market."

Important fields are:  Average-SP/SqFt , Average-DOM , Average-SqFt.

Average-SqFt.(Average Square Feet of house)  This is important because the average house sold in Dec. 08 vs. Dec. 07 was larger by an average of 363 feet.  Larger houses, Ceteris Paribus, equate to lower average price per square feet.  It's not indicative of the market, it just is what it is.  Each additional square foot you tack on a house is costing less money to build.

Average-DOM (Average Days On Market)  This is important because it illustrates how long the average house took to sell.  Dec 08 Average-DOM is only 3 days longer than Dec 07.  This is an indicator of a flat to slightly down market.  Combined with more houses on the market than previous year, equates to a buyer's market.

Average-SP/SqFt (Average Sell Price per Square Foot).  This is  a very important indicator that shows the truest single gauge of appreciation/depreciation.  But, you need to factor in the Average-SqFt, and adjust accordingly.  Dec 08 Average-SP/SqFt was down $15 per, or 11%.  This seems bad, as if the Steiner houses have fallen on average of 11%.  In my opinion, this isn't the true picture.  If you factor in the 363 foot average increase in house size, this explains some portion of the 11% decline. 

Overall, the Steiner market is currently facing headwinds that haven't existed for some time:  More inventory, discounted pricing from builders, tougher lending standards, job losses, California investors pulling out of Steiner to enter the California market which is down 50% in some areas.  I foresee all of these headwinds subsiding and the Steiner market improving in the next year or two.

Within 2 years, the builder's should have built out Steiner, resulting in little to no new inventory to compete with.  The Austin job market should be stronger.  The lending standards should be easier.  California investors will have stopped leaving, and may even return. 

You would not want to sell a house in Steiner in the short term if you didn't have to.  I strongly feel that waiting 1-2 years would produce a higher sell price.

Sincerely,

John Paul Krueger

President - Tax Tiger Austin

One of the residents in the Agave NineSixtyNine neighborhood submitted an essay in the Dreyer's Ice Cream "Coolest" Neighborhood in the U.S. contest this year.  There were over 20,000 entries and Agave was the Grand Prize Winner. 

To celebrate, Dreyer's Ice Cream hosted an Ice Cream Block Party for the residents.  There was enough ice cream for a thousand people!   All of the ice cream flavors were there.  Next time you're at the grocery store, check out Chocolate Peanut Butter Cup.  It's soft & creamy and full of yummy candy.

 Vicinia Development, the builder of the new Agave & Villa homes, sponsored a movie in the park from Alamo Drafthouse.

It was a great time to meet the new neighbors and make new friends.  The sunset was gorgeous and the weather was perfect during the block party.

The kiddos couldn't believe their ears when they heard that they could have as much ice cream as they wanted.   Their favorite was mint chocolate chip.

So, what makes this Austin, TX neighborhood the "Coolest" Neighborhood in the U.S.?  Is it because the Agave houses are designed by local Architects?  Is it because it's less than 6 miles away from Downtown Austin and less than 15 minutes from the Airport or The Domain?  Is it because of the spectacular city and hill country views?  Is it because of the modern, "Green" homes that are being built here by Vicinia Development?  Is it because of the friendly residents?  Well, all of the above, of course! 

Laura McKinney is a real estate agent with Keller Williams Realty.  She specializes in first-time home buyers in the Greater Austin Area.  Call 512 569 4681 to learn more about the Agave NineSixtyNine Neighborhood or visit her website www.theklmteam.com

Recently, I was working on some market statistics.  Specifically, sales price ratios, which are calculated by dividing the original sales price by the final sales price of a home.  In other words, how much money did sellers actually get for their house vs. how much they originally asked for.

I found some interesting results:

Overall in Austin in Jan - March 2008 the Sales Price Ratio was 92% with 71 ADOM (actual day on the market).  In April - June 2008 the ratio was 94.3% with 61 ADOM.

In the RN area, which is mostly Steiner Ranch, Riverplace and Grandview Neighborhoods, Jan - March 2008 yielded a 90.7% Sales Price Ratio with 112 ADOM and in the second quarter a 92% Sales Price Ratio with 85 ADOM.

Now you might be thinking, "Prices of homes are dropping!"  This is not the case.  These results show that sellers are originally overpricing their houses above the current market value by 10%.  It also shows that the closer home sellers price their homes to the current market value, the faster homes sell.  Which, in turn, will save sellers money in carrying costs.

It is important that Sellers understand the Pricing Triangle and that it is the current market that sets the price of a home, not the Real Estate Agent. 

For more information visit my website www.theklmteam.com 

Disclaimer: Steiner Ranch Blog does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied. Blog posts on the Steiner Ranch Blog represent the opinions and ideas of the author(s). Steiner Ranch Blog does not express the views of Steiner Ranch or those of the broker.

Copyright 2008 © Laura McKinney All rights reserved. August 23, 2008. "List Price vs. Sales Price in and near Steiner Ranch/Riverplace"

This Taylor Woodrow home is on large corner lot that backs to a greenbelt.  It is within walking distance to exemplary Leander ISD schools and neighborhood parks.  Too many upgrades to list.  Enjoy the UT Golf Course Fireworks show from the covered balcony.

If you have any questions about real estate in the Austin/Steiner Ranch area, please give me a call anytime at (512) 569-4681 or email nwhomeliving@msn.com.  If you are relocating to Austin, check out my website for area information.  You can search for Austin Homes for Sale at http://www.theklmteam.com.  I look forward to hearing from you soon!