Well this is a question that I am being asked constantly lately by both the local Austinites and those wanting to become one from out of state.
We are going into a Holiday season where the publicity seems to be intensifying surrounding the economy. You have heard that a driving force for these new concerns is oil and the subprime fall out. How does that affect Austin today?
I have been researching and talking amongst the industry mortgage professionals and other Real Estate colleagues since last time I wrote about this topic and they and I feel that nationally, the effect still has a ways to go. Locally appears to be a little different. A recent KXAN News article outlines that the state is seeing some foreclosure increases while Austin numbers seems to be defying those other markets with a 15% decrease. Still I warn about thinking we are immune. Unless current homeowners are proactive and diligent about refinancing or improving their credit in order to refinance out of loans meant just to get them in a house, rate increases will push many towards foreclosure and those numbers could increase next year. Also responsible spending including making cut backs can prepare those who are stretched thin. Also keep you eye on oil, fed rate, and inflation.
Market wise, we are seeing a slide in transactions, yet prices are still not decreasing. How you say? Well as I have stated before the noose has tightened and the lending side decreasing the amount of buyers which accounts for some of the slide, yet the economy is still doing well, which is a major factor in any housing market. Our unemployment rate is one of the lowest in the state at 3.3 unadjusted for October and 3.7 adjusted in September according to the Texas Workforce Commission. The national average is 4.7.
Oddly it seems that people who want to move here are held hostage by their weak market. I have more than a handful of clients in this very position.
With a strong job market, favorable Austin lifestyle, and affordable housing comparative to other markets nationally, our real estate market is still doing well so far despite a recent slowdown. Time will only tell how we are going to do longterm.
If you have any questions, would like more specific information, or would like Real Estate assistance, please feel free to contact me.
