Could Austin Soon Face A Housing Shortage?

By
Real Estate Agent with Coldwell Banker United Realtors® ~ 512.750.6899

houseIt's an interesting market in Austin.  I read many articles about our local market and one newsletter I like to make time for is written by Joe Thweatt with Land Mortgage. Contact Joe at 512-583-1008 or jthweatt@landmtg.com.


Joe talks about the possibility of a housing shortage in Austin.  Is he kidding?  His newsletter peaked my interest.  Joe talks about the money stream for Austin homebuilders slowing to a trickle.  The construction of new homes has been curtailed rather dramatically.  Many home builders have lost spec homes to foreclosures or are "short-selling" them for less than it costs to build them.  

Meanwhile, the existing home sales are selling.  The Austin Board of Realtors reported last week that existing home sales increased dramatically in October of 2009 - up 38% over October 2008. 500 more existing homes sold this year over last.  Of course, last year we realize October sales were down so we had to improve to get back to a healthier market, which has transpired.  

The total number of existing homes currently for sale is down 10% from last year.  Even more importantly is the number of pending sales is up 47%, just waiting for closing day!

 
There are two major reasons for this increase in pending sales:


1. Buyers wanting to take advantage of the first time home buyer tax credit.  Now that the tax credit has been extended to April and it's been expanded to include more current and prospective homeowners.
2. The natural growth of the Austin area.  There are more people moving to metro Austin every day and they need a place to live.  


Joe could be onto something.  The last few months of the year and the first couple of months in the next year are traditionally slow months for home sales.  Tracking fourth quarter of 2009 and the first quarter of 2010 will give us an indication of which way the wind is blowing.  If increased sales continue during a normally slow time and bank credit is still tight for the builders,  the local real estate market could find itself moving to a housing shortage.

 

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Tags:
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Rainmaker
1,312,485
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

Interesting stats...would you say that the action remains in the level entry opportunities?    Has this decrease in inventory/uptick in sales translated into the luxury segment?

Nov 24, 2009 02:36 AM #1
Rainmaker
723,229
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Dorie,

Feel free to send the overload on down to San Antonio. Most of our expansion is toward the north so if they are willing to add a little to the commute time, some could opt to work in Austin and live in our area. Some of our builders are out of business and there has been some consolidation of builders. But we still have new construction, and a pre-owned homes are available too.

Nov 24, 2009 02:49 AM #2
Rainmaker
545,096
Toula Rosebrock
Diane Turton, Realtors, Forked River, NJ - Lacey Township, NJ
Broker/Sales Associate, Realtor, Lacey Township,

ToulaRosebrock.com

Hi Dorie:

That's is great news for Austin!

Do I dare to say that it may turn into a seller's market...

Nov 24, 2009 02:57 AM #3
Rainmaker
3,815,012
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Hi,

There is no question the majority of action is in the entry level opportunities but is now definitely finding its way to the middle and upper end homes.

Nov 24, 2009 03:04 AM #4
Rainmaker
3,815,012
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Hi Wayne,

There is no question your expansion is to the north of you. I-35 is one busy highway!! One I like to stay off.

Nov 24, 2009 03:06 AM #5
Rainmaker
3,815,012
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Hi Toula,

It's always about inventory. If the inventory continues to fall and buyers continue to buy it looks price will be governed by supply and demand. 

Nov 24, 2009 03:08 AM #6
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Rainmaker
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Dorie Dillard CRS GRI ABR

Serving Buyers & Sellers in NW Austin Real Estate
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