Just before the holidays got into full swing, I ran into a client who happens to work for one of the major national builders here in town. He told me, "John we have zero starts right now. We are not starting any new inventory homes city wide that normally would be available when the Spring rush starts to pick up." Interesting I thought, because most buyers do not plan, nor want to wait 5-6 months it takes to build a new home (depending on size and builder). I mean how many of you planned all year to have your holiday shopping done weeks in advance, only to find yourself stressing out a week before to find last minute ideas?
Then the Austin Business Journal reported last week that '08 starts were 34% down from '07, and offers an outlook on the number of lots truly underdevelopment. This is where you, Mr/Ms Seller, come into play. If other area builders pull back on inventory starts, just like my client's company, resale listings should see more attention being paid to their homes. Without the option of buying a new home that is almost complete, buyers should begin turning to resale homes as an option available now.
Too many times a buyer's lease is almost up and they don't want to pay high fees for a month to month option to stay. Buyers relocating to our area may not want to move twice, while stuffing their family into a small apartment while their new home is being constructed. Many buyers just don't have the vision either to select all the options that go into building a home, but know what they like when they see it.
The article also notes Austin job creation, while slower than recent years, was still better than most parts of the country that had net losses of jobs in 2008. However the best was saved for last:
"Despite the national recession, Austin clearly has one of the strongest local economic engines of any place in the United States," Sprague said. "The strength in job growth means that the housing downturn has been less severe in Austin than in most other parts of the country, and its endurance means that Austin likely will be one of the first housing markets to turn around."
Full article http://austin.bizjournals.com/austin/stories/2008/12/29/daily30.html?ana=e_du_pap
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