Austin Real Estate Blog

Recession Proof Austin

According to Forbes magazine, Austin is ranked #3 in recession proof cities; right behind San Antonio (#2) and Oklahoma City (#1). The reason for the high ranking is because of low unemployment and affordable housing costs. Unemployment in Austin, Texas is 3.6% percent down from 3.8% at this time last year and the median price of a home is still under $200,000 in most areas of Austin.

Recession Proof Austin is the Place to Buy

Austin was ranked by Entrepreneur magazine as one of the top places to buy a home. Reporter Danielle Babb based her decision on the fact that Austin and Round Rock have seen incredible job growth and stable home prices even though most of the country is in a downturn. She also cited that jobs are continuing to grow here, which is a strong factor for keeping prices stable and inventory low.

Other cities that were on the list were Mission Viejo, California, Palm Beach, Florida and Las Vegas, Nevada. Palm Beach and Las Vegas were citied because of their number of foreclosure homes in 2007 making their market on the low cost end moving back up.

Recession Proof isn’t Only Reason Austin’s Great

Austin is a great city to live in with everything that is has to offer: live music venues, top notch festivals, hike and bike trails galore, rock-climbing, lake living, great shopping and great food. Within the city limits itself, you have several parks and lakes such as; Lady Bird Lake (also known as Town Lake), Lake Austin, Barton Springs Pool, Barton Creek Greenbelt, and Zilker Park.

Many celebrities and world-class athletes have made Austin their home because of the laid-back and welcoming atmosphere of the residents and because of the plethora of outdoors and athletic activities that this community supports with fervor.

Austin Energy has committed $17 million of your tax dollars for an unnecessary upgrade to the city’s 290,000 electric meters. Wow, could this news be more timely with yesterday’s rant about the $20.6 million dollar budget deficit.

Sure, these meters supplied by Cellnet are nice, advanced pieces of technology that will supposedly improve the customer experience and “allow for better analysis of energy consumption”, but in a city with a projected $20.6 million budget deficit, it is not a good business decision to waste money like this!!

Accoding to The Stateman article, the cost will not be offset by a reduction in the contract workforce that currently reads the meters because those same contractors also read the water meters. From Cellnet’s website, the only cost savings associated with these meters are said to be efficiencies gained from eliminating meter readers. As far as this blogger can tell, there is no payback on the $17 million “investment”.

This is just another example of one the mayor’s “I wanna be governor someday” projects. It’s also interesting that the Vice President of Marketing and Sales of Cellnet, Gary High, was a classmate of  Mayor Wynn at Texas A&M in the early ’80s.  A&M is a big university - probably just a coincidence.

I’m not privy to all the details, but on the surface this smells. It’s unfair to the Austin tax payers and utility customers. The project should have been, at the very least deferred, until this city is in better financial condition. Why not replace meters as needed?

Let’s face it - this a project that was probably justified and funded under the “Green” umbrella even though I doubt there will be any green benefits. Austin Energy is a City of Austin department and should not be sheltered from the budget crisis because being green is the cause du jour. Don’t get me wrong being green is the right thing to do, but let’s not get duped by snake oil salesmen claiming benefits that don’t exist.

Wake up Austinites. This should not be happening in a city with the political awareness of Austin.

Does it surprise anyone that the 2008 Austin real estate appraisals have increased 12.5% on average? The City of Austin is predicting a budget deficit of $20.6 million for fiscal 2009, and city hall is scrambling to find money (probably yours) to fill the gap. The dramatic increase in appraisals is more than likely a mandate from high within city hall to get the most out of imminent property tax increases. The city receives about 1/3 of its revenue from property taxes and about another 1/3 from sales taxes, and with the economic downturn, city hall is predicting less revenue from sales taxes. Since the city probably won’t increase the sales tax rate, look out property taxes.

I don’t want to get off on a rant here, but… (lights dim)

Shouldn’t the City of Austin eliminate wasteful spending and squeeze the $20.6 million out of existing budgets, similar to what real world business would do when revenues are down? Is that absurd for me to question this? Yes, of course it is, where talking about bureaucrats here. Words yet to be uttered within the walls of Austin City Hall: attrition, early retirement, hiring freeze, travel restrictions, reduction in contracted services (probably the most expensive city contracts are the ones making the recommendations on how to close the budget gap), reduction in capital projects and expenditures, overtime restrictions, reduction in force, deferred maintenance, mandatory vacations, etc.

The fine citizens of Austin shouldn’t be burdened with more taxes. The City of Austin could run efficiently with fewer employees, fewer departments, less capital expenditures, fewer facilities, fewer consultants, fewer “I wanna be governor someday” projects, etc.

Avon restaurant and wine bar, Vin48, is looking to expand in Austin. The eclectic, euro-inspired bistro is looking for spaces in the downtown Austin and south Congress areas. Vin48 is one of my favorite places to dine and hang out while in the Vail Valley. I chatted with an owner on my last trip to Beaver Creek, and he seemed interested in opening a location in Texas since some of the ownership has roots in the Austin area. Who can blame them, Austin is great. He looked me up last week while in Austin and I showed him several potential locations. I hope that we can find the perfect property and make the second locale a reality.

Austin home search will never be the same with the launch of HomeToAustin.com 1.0 powered by Realzi. The updated site launching later this month will feature a custom front-end CMS specifically tailored to meet the needs of Realtors® and a custom RETS client that allow greater flexibility and search engine relevance for property pages. Say goodbye to custom IDX, RETS is the future. During beta testing on our sister site, HomeToVail.com, Vail Realtor® Daniel Estrada was “amazed” how well the site performed. ABOR has hit a home run by introducing RETS compatibility for the Austin home search market.

The 2008 Travis County appraisals are now available online. It’s time to check your home’s value and file protests. Travis County deadline for filing a tax appraisal protest is May 31 or 30 days after the Travis County appraisal district mailed you a notice of appraised value, whichever is later.

Downtown Austin Living: A Dream?

Downtown Austin addresses have been a hot debate topic in the last few years, especially since a flock of cranes alighted upon the skyline. People have been asking about these new mega-residences: will they or won’t they work out? The Austin Business Journal, a reputable local trade publication, recently reported a study by Texas economist Ray Perryman that hints at a healthy demand for downtown Austin living. He says that even though the nation-wide housing crisis is still a reality, the Austin housing market remains stable and the downtown Austin housing market will only strengthen.

Downtown Austin: The Numbers

Downtown Austin currently has 6,000 residents, and there is a combination of about 4,000 residential units either under construction or planned to be, which indicates that downtown Austin’s population will approximately double in the the next two years. Austin’s housing market accomodates more than 40,000 new residents each year, and with rising energy costs and increasing traffic troubles, a sizable amount of that market will flock to live in downtown Austin.

Skepticism towards downtown Austin living arises with the pricetag; most of these new downtown Austin units cost $500,000 and above. Perryman insists that a market of young professionals in growing fields will support such costs. He says that if even less than one percent of the current greater Austin population moved downtown, then all unfilled existing and planned downtown Austin residencess would be occupied.

Downtown Austin Resurgence Supported by Mayor Will Wynn

“We are seeing a remarkable resurgence in downtown Austin,” says Mayor Will Wynn. Wynn has always supported the expansion of downtown Austin, and developing the downtown housing market. In his view, a good mix of condominium developments (such as the 360 building and the Austonian) and rental buildings (most successfully AMLI and the Monarch) are a healthy combination for the downtown Austin housing market, but also cites lower income housing developments such as the revamp of the Green Water Treatment Plant as a representation of the other side of the downtown Austin living spectrum, affordable housing.

A smart move would be to jump on the downtown Austin housing opportunites before they dry up and demand that another flock of cranes land on the downtown Austin scene. But those opportunities that get snatched by the downtowners will leave spaces open for those uninterested in downtown Austin living. Either way, the Austin real estate market is a great place to home search.

Central Texas Homes Are the Best Buy in 2008

Central Texas homes are the best residential real estate investment in 2008, according to a recent projection by real estate expert and investor Danielle Babb. Killeen resides at the top of the industry’s lists due to its lowest average home price and best quality in any market in the country. Round Rock and Austin’s job growth rates and stable housing prices–despite the national downturn–make these Central Texas cities particularly appealing to real estate investors. The area’s continued job growth is a major contributor to its low inventory and stable prices, factors that sustain a good housing market.

Home Market Always a Good Investment

Nationwide, an excessively high inventory has damaged home prices, especially for resale homes over the last ten months. Yet home-buying remains an excellent investment. Owning a home is only slightly more costly than renting, but the tax benefits of owning far outweigh those of renting. No matter what the housing market outlook, buying a home is always a good economic choice.

Housing Market Statistics

Some key statistics to look for when you examine a housing market:

-Job growth. Is the area’s job growth stable? Has it fluctuated over the last few years? Is it projected to remain strong or falter?
-Income/inflation ratio. Has the area’s average income kept in step with inflation?
-Crime rate. An area’s crime rate is an obvious concern for everyone looking to buy a home, but especially for new families. Families should also check on the area’s school districts.

-Foreclosures. What is the rate of foreclosures in your prospective home buying area?

Austin, Round Rock, and Killeen all test positively against these common real estate questions. Since they’re at top of the real estate industry’s lists, good homes could quickly go to real estate investors. For a good home and a good investment, check out some of the best buys on the Central Texas housing market today!

Austin Real Estate: Slump or Surge?

It’s sweeps time again, and if you pay attention to national and local network news lately, you have surely been inundated with shocking lead stories about the current “real estate crisis”.

The “crisis” began as an issue with defaults on sub-prime mortgage which accounted for a very small percentage of overall mortgages. The issue has now impacting mainstream mortgage brokers and home builders. Stock prices are falling and corporate executive are knee-jerk cost cutting to improve earnings ratios. This has slowed new home construction and tightened mortgage requirements.

Don’t Let the Austin Real Estate Slump Talk Dissuade You

In reality, interest rates are still very attractive and the Austin real estate inventory is high. Prices are falling as sellers are becoming anxious with all the negative press, even though most sellers are still making considerable profit. These market conditions make Austin a buyer’s market - ideal conditions for aspiring home buyers to find an Austin home.

On June 20, the Lost Creek Municipal Utility District rejected the City of Austin Strategic Partnership Agreement (SPA) that is part of Austin’s Municipal Annexation Plan of the Lost Creek Neighborhood. Lost Creek is a 789 acre development within the Eanes ISD located in western Austin consisting of 1,156 single family homes and 85 existing multi family units.

The Lost Creek MUD rejected the Austin SPA because it does not provide “reasonable and equitable benefits” for Lost Creek residents by exclusion of provisions for Lost Creek residents to form a limited district to maintain parks and enforce current deed restrictions.

Search for homes in Lost Creek Austin or contact Mike Malinowski for more information.