Although Austin, Texas still has high levels of bank foreclosed properties, including those under JP Morgan foreclosure listings, home builders are optimistic that the city's residential construction market will improve in 2011. Builders reveal that Central Texas is one of the areas showing gradual improvement in terms of construction activities.
Although residential property builders still need to compete with low-priced Austin foreclosures for sale, new home construction activities have started to pick up in areas like Falconhead West where over 250 residences have been constructed or are currently in construction. Falconhead is one of the top-selling subdivisions in Central Texas.
The high number of home foreclosures in Texas still poses a problem, but the low rates of property taxes in the state and record low interest rates of mortgages are conspiring to encourage new home building activities in the region, according to industry analysts. They added that the state's gradual population and job growth is also contributing to builders' optimism for 2011.
Local builders are hopeful that the market improvement will continue. Although the climb is a bit slow, industry members welcome the pick up in activities, particularly when the 2009-2010 periods are mostly characterized by lack of construction activities and high levels of foreclosures, like properties under JP Morgan foreclosure listings.
As the last quarter of 2010 comes along, bank foreclosure properties listings continue to weigh down Austin's housing market. New housing starts and applications for construction permits have also declined in most parts of the state, but industry analysts report that there has been a marked increase in potential buyers looking in at model houses during the month of October.
Housing construction analysts stated though, that any improvement will remain slow, primarily because of low confidence among consumers and tight lending rules. These factors, along with the slow economy, will create a challenging industry for builders, analysts have added.
They also stated that the industry should take heart from the fact that applications for building permits have risen in nine subdivisions in the city for the year-long period ended September 30, 2010 compared with the same 12-month period of a year ago. Builders and market analysts are hopeful that this signifies that new homes will be competing with bank foreclosures, including JP Morgan foreclosure listings, in 2011.