This week the Trump University team is holding free real estate seminars in the Austin, TX area.  To keep our members updated on the changing market conditions across the country and in the local market we put together the following market update:

Austin, TX
May 19, 2009 - May 20, 2009
Learn More and Register Here »

According to some, Austin’s real estate market has worsened over the past two or three months. Inventory has risen, prices have fallen, foreclosures increased. But buyers are still out there, there are signs that they’re waiting for deals, and prices area-wide may be nearing the lowest point we can expect. This week’s news shows that:

• Real estate prices may be at or near their bottom, with May seeing a 14% price drop from Q1 2008 to a median price of $169K
• Foreclosure rates continue to rise, meaning more opportunities to buy property cheaply from banks
• While sales and prices in Austin have fallen, there’s evidence that showings and buyer interest has risen - it’s the perfect time for shrewd investors to find area homes

With banks starting to sell off foreclosed real estate at a fast clip, now’s the time to negotiate directly to find great deals on homes. Read on to find out details...

Nationwide
Q1 2009 saw the average cost of a home dropping by 14%, the largest decrease on record over the same quarter a year before. Much of the drop can be accounted for by banks and lending institutions selling off foreclosed properties in order to recover part of their investment, and areas with lower foreclosure rates have been somewhat insulated from the price decreases, and overall, the price decreases are slowing, even with increased foreclosure sales. Some real estate experts believe that the price decrease may actually signal a stabilizing market, as banks become more confident in their ability to absorb losses on foreclosed properties. 

Foreclosures rose again in April, hitting a record for the second consecutive month, with a whopping 1/374 of all homes being foreclosed upon.

Austin
The Austin area has seen the second largest inventory increase in the country over the month of April - the number of houses on the market rose by 4.9%, behind only Boston’s 6.3%. Concerns linger that increased inventory will depress prices, but it’s also possible that the increased inventory may result from normal seasonal fluctuations. The Altos 10-City Composite Price Index recorded a 2.2% uptick through April, with Austin being one of the few markets accounted for by the index where prices didn’t go up, so it’s not too late for investors there to make the most of the current economy.

While home sales declined by 22% in the Austin area in March from the year before, anecdotal evidence has an increase in buyer interest. An $8,000 tax credit for first-time home buyers and low mortgage interest rates might be responsible for more showings, and one real estate agent has said that the average Austin buyer today is more discerning and well-informed than in the past. Real estate agents believe that the Austin market is beginning to recover [registration may be required].

Related Training:
Real Estate Investing
Real Estate Coaching
Foreclosure Deal Source