Austin Ranked #5 on New Forbes List

Today, Forbes ranked Austin #5 in a list of cities where home prices are likely to rise. To calculate their rankings, Forbes.com analyzed statistics such as Moody’s job growth (4.7% for Austin), the National Association of Home Builders record of housing starts (down 28.2% in 2008 for Austin) and their own projections for the increase in number of families moving to particular cities (5% for Austin).  Although Austin is still doing relatively well compared to the rest of the nation, they noted that large builder’s bearish attitudes about the whole economy has caused them to slow down on new home starts everywhere, including Austin. Additionally, Forbes.com specifically cited Austin as one of the rare cities that have “largely avoided the real estate crash” pointing out homes price increases of 4.1% for Austin since last year. They concluded that Austin home prices would likely continue to rise due to the reduction in new home starts while job growth increases and people continue to move to Austin.  

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What will $1M get you in Austin?

Austin, Texas is known for its real estate affordability as compared to other idyllic places to live. While one million dollars in a city in California just might get you a fixer-upper, in this Texas town that’s far from the case. For example, check out this newly listed home in one of Austin’s most sought after communities, Spanish Oaks. For $1M on the nose you could live at 11919 La Barzola Bend:

We highlight this home not only because it’s our newest listing, but also because we think it’s one of the finest homes at this price point we’ve seen. And we’ve seen a lot of homes. Besides the great location in Bee Cave with easy access to Highway 71, 290, Southwest Parkway, and FM 2244 (Bee Cave Road) and across the street from the new Hill Country Galleria, 11919 La Barzola sits on a hill behind the 24/7 guard gated entrance in Spanish Oaks. The attention to detail is what sets the home apart as you can see from the photos on the 11919 La Barzola Bend virtual tour website. 

If you are interested in this home or other Austin homes for sale, or if you just want to learn more about Austin real estate, please contact Michael Reilly at 512.600.1800. Or start your Austin home search using the great search tools at AustinHomeListings.com. 

Bad Idea to Overprice a Home

Overpricing a Home Can Lead to Lower Results
by Kathleen Lynn, THE (HACKENSACK, N.J.) RECORD, Sunday, November 18, 2007

HACKENSACK, N.J. — Real estate agents often warn sellers about the danger of overpricing a house. Now, they have evidence to show skeptical clients: research by Jeffrey Otteau, a New Jersey appraiser.

He found that in a market where prices are declining, sellers who “test the market” with a high price usually end up with a lower price than those who price realistically.

“Houses that are priced right are selling,” Otteau said. “Overpricing extends days on the market and guarantees that you will sell your home for less in a declining market.”

Otteau, of Otteau Valuation Group Inc., studied about 4,500 home sales that took place in the first half of 2007, largely in northern and central New Jersey. Most of the houses were priced between $500,000 and $750,000.

He looked at houses that sold in less than a month and found that they had a median asking price of $599,900 and sold for almost full price; the median was $599,000. When he looked at houses that lingered on the market for more than a month, however, he found that they were priced higher — at a median of $634,900 — but sold for less than the lower-priced homes, a median of $585,000. The median is the point at which half the sale prices are above and half are below.

Otteau said that pricing a house below the competition stirs up interest and reassures buyers that they won’t kick themselves later for overpaying if home prices drift lower in 2008.

Assessing assessments

In yet another interesting article in the Austin American Statesman, reporter Marty Toohey dug into the process by which Travis County assesses homes for taxation purposes. With 37 agents tasked with assessing the more than 379,000 properties in the county (which works out to about 41 houses per day if they each work Monday-Friday and take off two weeks vacation per year), it’s no wonder the Appraisal District might not give each home’s valuation the laser focus owners desire. That workload challenge, compounded with a lack of usable data (there is currently no disclosure requirement for sale prices in residential real estate transactions in Texas) is made worse by a shortage of adequate analytical tools. In fact, the article described the tactics available to agents as:

•Driving around looking at “for sale” signs to get asking prices.
•Asking people who just bought property what they paid, in a mail-out that gets few responses.
•Examining building permits (although many homeowners who are renovating don’t obtain permits).
•Relying on owners to rat on neighboring properties when they protest their own valuations.

It’s really no wonder that home valuations cause such irritation in home owners. In Travis County this spring, property owners filed 50,000 appeals on their appraisals (and the subsequent tax bill).

So, if you always thought the county used elaborate computer modeling to calculate your tax bill, you now know that you have the same tools available. In fact, you have it easier in that you don’t have to leave your house to find out asking prices on homes in your neighborhood (or any other, for that matter.) Just visit our home search feature on our Web site, www.AustinHomeListings.com. Our industry-leading tools allow you to search by interactive map, Austin MLS Area, address or zip, school district, or Austin subdivisions. We’re also set up to send you email alerts when new listings match your home search criteria.

So, if you live in Spanish Oaks, are interested in Lake Pointe or want to learn more about Tarrytown, our site can help you get the information you need. Or, if you’d just like to talk about your options, give us a call at 512.300.0928. We may not be able to help you with your tax assessment, but we can certainly help you find the Austin home of your dreams.