October Update - Austin Real Estate

Austin continues to see improvements in the housing market.  Sold listings are up nearly 40% in volume over last year.  Year to year comparisons on all months see gains over prior year.   With interest rates in the low 3% it is an incredible time to make that first purchase or make that move up.

Home Sales Continue to Show Increases in Austin Area

July 2012 Multiple Listing Service Data:

Units for Sale: (compared to July 2011)
New listings are up 9.67%.
Pendings are up 18.66%.
Solds increased by 24.35%

As for Average Prices:
The "New Listings" average list price is up 2.65% to $304,219.  In July 2011 the average list price was $296,359.

Sold average sales prices increased 7.58% to $276,822.  For July 2011 it was $257,322.

Did you know...that we had 10,720 active listings during the same week in 2011?  Today we have 8,941 active listings!  That is a 16.60% decrease from 2011.

Will Homes Near Balcones National Wildlife Refuges Raise in Home Value?

A new peer-reviewed national study, released by the U.S. Fish and Wildlife Service, shows that in urban areas across three regions of the country owning a home near a national wildlife refuge increases home value and helps support the surrounding community’s tax base.

According to the study, conducted by economic researchers at North Carolina State University, homes located within half a mile of a refuge and within eight miles of an urban center were found to have higher home values of roughly:

• Seven to nine percent in the Southeast;
• Four to five percent in the Northeast; and
• Three to six percent in the California/Nevada region

While this data doesn't specifically include the Midwest, Soutwest, Central Mountains & Northwest, because refuges in these areas tend to be located further from urban centers.  However, there are homes near the Balcones NWR that may benefit from this survey during the home selling process.

MLS Monthly Review - May 2012

Preliminary May 2012 Data:

Units for Sale: (compared to May 2011)
New listings are up 4.32%.
Pendings are up 18.85%.
Solds increased by 18.98%

As for Average Prices:

The "New Listings" average list price is up 1.14% to $330,674.  In May 2011 the average list price was $326,947.

Sold average sales prices increased 2.24% to $270,090.  For May 2011 it was $264,169.


Did you know...that we had 11,454 active listings during the same week in 2011?  Today there are 9,009 active listings!  That is a 21.35% decrease from 2011.


What does this mean?  Demand is slowing building.  For some areas of Austin, sellers are having the benefit multiple buyers submitted offers to buy their property.  This creates an auction effect, driving up the sales price of the home.  We are seeing this more and more in the Austin area.


Do you have a questions about listing your home for sale or how to purchase a property?  Please contact me.

Top Ways to Get Your Down Payment

The most common issue for a first time buyer usually seems to be…"How do I get the money needed for down payment on a home purchase":

1. Get A Gift – With FHA, the buyer can get a give from a relative for the down payment and closing costs. 
2. Down Payment Bridal Wedding Registry – Gives a couple an opportunity to received wedding “gifts” through a dedicated bank account to collect down payment funds for a new home
3. 401K Loan – You can borrow the money from yourself, in most cases this loan will not count against your qualifying debt to income rations and as a first time home buyer the most 401K programs will allow for this transaction,
4. Life Insurance – If you have whole life policy you can either borrow against it or cash it in.  
5. Secured Loan -  If you have an asset that is free and clear such as a vehicle you may be able to get a secured loan against the value of the asset.
6. DPA – Several government entities offer down payment assistance programs for first tie home buyers
7. Sale of Personal Property - With verification of value and bill of sale, the funds form the sale of personal property can be used for the down payment.
8. Human Resources – Some employers offer down payment assistance as a benefit to the employees.  These awards are eligible for down payment through FHA financing.
9. Tax Refund – A buyer can use this years tax refund to become a homeowner.  A copy of this years tax return and a copy of the refund check or bank statement showing the amount of the refund on the deposit is all that is required.
10. Second Job – Even though we may not be able to use this income to qualify the borrow if the borrower has not had the job for 2 years, the cash earned from the second nob can be used for the down payment.
11. Savings/Budgeting – Cutting back on extras along with anyone of the abve mentioned ideas will get you into a home faster.

There are some many reason why now is the best time to purchase your first home.  Please contact me to find out more.

Open House - May 26th - Gracywoods

There are just a handful of properties that back up to Walnut Creek as their greenbelt.  This property, 12039 Lincolnshire Dr is one of them.  The owners have taken great care to prepare this property for sale and it a real gem in the area.

Greenbelt View from Main Level

It's a 4 bedroom 2.5 Bath, all rooms are on second floor.  The kitchen cabinets and counter top have be replaced.  All the bathroom counter tops & tile have been resurfaced.  The first floor is tile/wood laminate and stairs/second floor has carpet except in bathrooms.  Each bedroom is well proportion and have a walk in closet.

We will be holding the property as an open house on Saturday, May 26th from Noon to 4pm.    Will be raffling a Nook Smart Touch at the end of the day.

Preliminary MLS Data - April 2012

Preliminary April 2012 Data: 
Units for Sale: (compared to April 2011)

• New listings are up 1.86%.
• Pendings are up 27.40%.
• Solds increased by 5.76%

 As for Average Prices:

• The "New Listings" average list price is up 4.74% to $336,915.  In April 2011 the average list price was $321,670. 
• Sold average sales prices increased less than 1% to $270,952.  For April 2011 it was $270,571.  

Did you know...that we had 11,315 active listings during the same week in 2011?  Today there is 8,756 active listings!  That is a 22.62% decrease from 2011.

HGTV's Property Brothers - Coming to Austin with New Show!

Update:  I get a lot of calls from this post.  Please note it is dated May 2012.  This particular event wrapped last year.   Also, I am a local Austin Realtor and not affiliated with the show.  If you would like more current Real Estate News, please follow this link to my new blog

HGTV is currently filming the premier season of "Buying and Selling" and, are in search of great couples and families in Austin who would be interested in getting a FREE RENO and being on TV!

This new show, called "Buying and Selling", is the Property Brothers' new project, and is all about people in the Austin area who are trying to sell their home. Each 1 hr episode will feature a different home/family, and follow the house selling and buying process from start to finish.

The Property Brothers will advise the couple/family on the small reno's/changes needed to increase the value and appeal of the property (and pay for them!), their team of professional designers and renovators will DO the actual reno's, and then the Property Brothers will assist in the actual SELLING of the house.  Once the sale is made, and during the renovation process, the “Brothers” will help to find the best NEW home on the market for the featured family.

HGTV are looking for people that have a great story - we want to find couples / families that have a strong reason for moving: closer commute to work, need more space for growing family, to be near better schools, extra room for home office etc. As well, families MUST be moving within the Austin area, and wanting to do so before August 2012.

Ideal selling price is roughly $150,000 - $400,000, and sized anywhere from 1,400 – 2,300 sq ft.  We're looking for those homes that need just an extra bit of "lipstick make-over" before they can be listed, and that will show nicely for the big "REVEAL".

Contact me if you or someone you know wants to be a apart of the show.

RealtyTrac - Renter Alerts

While doing research on foreclosures in the area on RealtyTrac, I came across a useful tool for renters.  It allows you to put in an address to see if it is in foreclosure.  Which can be helpful for renters to know if their landlord is really making those mortgage payments.

I can't say if its 100% accurate but it is a tool for renters sidestep a possible eviction through no default of their own.

Bella Vista - Cedar Park

This is a new project that I am working on for my blog, I will be visiting the neighborhoods of Cedar Park on a regular basis.  The video will be a drive through of the neighborhood along with MLS (Multiple Listing Statistics.  Enjoy.

Preliminary MLS Data - March 2012

Units for Sale: (compared to March 2011)
New listings are down 7.90%.
Pendings are up 19.39%.
Solds increased by 16.46%

As for Average Prices:
The "New Listings" average list price is up 3.66% to $342,713.  In March 2011 the average list price was $330,627.

Sold average sales prices increased 6.14% to $258,863.  For March 2011 it was $243,878.

What does this mean?  We are seeing a steady number of buyers coming to the market, but listings are not coming on the market at the same pace as last year.  The homes that are ready to sell and price right are selling quick.

February 2012 - MLS Update

Austin continues to see an promising trend on home sales.

Units for Sale: (compared to February 2011)

New listings are up 9.15%.

Pendings are up 28.61%.

Solds increased by 11.98%

As for Average Prices:

The "New Listings" average list price is up 5.84% to $326,993.  In February 2011 the average list price was $308,936. 

Sold average sales prices increased 4.26% to $251,134.  For February 2011 it was $240,864.  

Real Estate: Week Review - Austin MLS

Units for Sale:
For March 4, 2012 - March 10, 2012 (compared to the same week in 2011)

New listings are down this week 1.35%.
Pendings are up this week 18.79%
Solds are up 39.53%

Average Prices  
For March 4, 2012 - March 10, 2012 (compared to the same week in 2011) 

Sold average sales prices increased 15.41% to $270,637.  In 2011 it was $234,508 for the same week.

FREE Foreclosure Prevention Phone-A-Thon

The Texas Department of Housing & Community Affairs is hosting a Free Foreclosure Prevention Phone-A-Thon on Tuesday, March 13, 2012

Target Audience: Delinquent and at-risk Borrowers

What: Homeowners have an opportunity to ask questions and obtain information about steps to start or continue the process to avoid foreclosure

When: 8:00 am - 8:00 pm CST, Tuesday, March 13, 2012

How: Call toll free: 1-866-989-6931

Host: Fannie Mae's "Know Your Options"

Team: http://www.knowyouroptions.com/

While this event will be broadcast live only in Dallas on NBC 5, calls will be accepted from anywhere in Texas.

Please help spread the word to those in your community who may be facing foreclosure!

Texas Foreclosure Activity Down in 2011

Foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 89,675 Texas properties in 2011, down 25 percent from a year ago and 10 percent below the level reported in 2009, according to the latest RealtyTrac® U.S. Foreclosure Market Report.

The state posted the 25th highest foreclosure rate in the nation, with one in every 108 Texas housing units receiving a foreclosure filing in 2011.

Foreclosure filings were reported on 8,586 Texas properties in December, a 15 percent decrease from November and down 23 percent from December 2010. One in every 1,133 Texas housing units received a foreclosure filing in December, the 25th highest state foreclosure rate in the nation.

What are Easement Restrictions? How to Ensure Clear Title on a Property

When buying a home you’re bound to encounter some things that you don’t know anything about. They are things that outside of the home buying process you won’t ever run into. And since the average homebuyer only goes through this process a few times in his or her lifetime, it’s understandable that these things would be unfamiliar. A couple of items that seem to be perplexing are title insurance and the property survey, specifically how easements are represented.

When purchasing a home with a mortgage you need to get title insurance and a survey. This is required for all financed home purchases. An attorney or title company typically orders property surveys. Though the buyer has to pay for this service they usually don’t need to be directly involved in the process.

What is Title Insurance?

Title insurance is just another line item expense when purchasing your house, paid for one time at closing. Essentially, it is protection for you and your mortgage company that the person selling you the house has full and clear title to the property and was able to legally pass it to you. The title insurance company investigates the ownership of the property and then insures their work. If the seller didn’t rightfully own the home, and someone else does, the mortgage company and the homebuyer are financially protected. Fortunately, issues of title defects are relatively rare, meaning that title insurance isn’t too expensive and really not something to worry about.

What is a Property Survey?

A property survey is a carefully measured drawing that shows the land that is for sale and all structures on the property. It shows how large all the structures are and how far they are from each other and the borders of the property. Most importantly, it shows setbacks and easement lines.

Wait, what? It seems like the property lines and structures should be most important, but they are not. The setbacks and easement restrictions are actually the most critical elements of the survey because those are usually where the biggest problems are found.

What is a Setback?

A setback is the required distance between the house you wish to buy and other property features. For example, a city or county ordinance (or even a homeowners association) may require that homes be set back 20 feet from the road. So even though you own your front yard, you cannot extend your house any closer than 20 feet from the road.

Other setbacks indicate how closely you can build to your property boundaries or to your neighbors’ homes. If you live in an area with natural features like streams or lakes, certain special setbacks may also dictate how close you can build to these structures.

What is an Easement?

Easements refer to property with common usage rights. For example, you may own the land that a sidewalk is on, but anyone can walk on this part of your property.

Why Setbacks and Easement Restrictions Matter

What happens if the survey reveals that part of the house (the actual structure) up for sale sits within a setback or an easement? It’s a problem! In some instances it means that part of the house will need to be torn down before it can lawfully be sold. Otherwise title cannot be passed to a new owner because someone is attempting to sell property that was not built legally.

Surprisingly, this situation is not so uncommon. It may not affect the main domicile on a property, but garden sheds or pool equipment are occasionally located in an area where they don’t have a legal right to be. In these cases your lawyer has some work to do. Hopefully, you’ll discover that the structures are grandfathered because they were erected before certain setbacks were enacted. But definitely investigate these matters fully, as doing future improvements on the property may necessitate that they be corrected in the process.

Spend Some Time With Your Property Survey

For some, the survey process is one of those “check the box” items during home buying. Most get it done and move on. But it’s important to look over everything carefully and ask questions. Surveyors are happy to discuss the survey with you, and errors on surveys can occur. Spending 15 minutes looking this over will save you the headache of having it redone down the road when you want to build or make a change on your property.

Have We Found the Bottom to the Housing Market?

Home sales across the board, comparing 3Q2010 and 3Q2011, have increase, activity increased 1.7%, latest patterns offers signs of a finding a bottom to the housing bust.

Next year, the market will continue to work through the shadow inventory of foreclosures. Banks will not flood the market with foreclosures, that would further weakening the housing market, but we will continue to see a steady stream. In Texas is below 30% foreclosure and we fair better than other states in foreclosure because we did not see the appreciation in home values other states achieved in their market.

What does this mean in the Austin market? For buyers there are still deals to be found. However in the Austin market, we have 100% saturation in apartment rentals, and rents all over Austin are increasing we will see more and more qualified buyers move off the fence. Sellers are still holding tight. We are experiencing a low number of listings but ever increasing sales. The best homes that are price competitively are going fast.

Austin No. 3 for Most Jobs Gained Since Recession

According to the Austin Business Journal, Austin is among 13 of the nation’s 100 biggest labor markets to have regained all of the jobs that were lost during the recession.

The Capital City is ranked the third most prosperous metro during that five-year span adding 37,900 private-sector jobs, according to the Business Journals’ On Numbers, which used preliminary data from the U.S. Bureau of Labor Statistics  data to compare 2011 private-sector employment levels against officials figures for 2006, the last full year before the recession’s onset.

For the Austin market, year-to-date from 2010 to 2011, is stronger. Closed home sales are up 5.2 percent, Pending sales are up 8.6 percent, and inventory of homes available is down 12.6 percent, which means fewer homes and more buyers.

With employment numbers like this and a lack of listings currently on the market, buyer are have to engage in multiple offer situations.

December MLS Statistics - Austin Area Homes Sales Outpace Prior Year for 7 Straight Months

According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS®, single-family home sales in December 2011 outpaced the same month of the prior year for the seventh straight month, and year-end figures show momentum in Austin real estate heading into 2012.

In December 2011, a total of 1,581 single-family homes were sold in Austin, which is 11 percent more than December 2010. During the same time period, the median price for Austin homes was $187,940, which is one percent less than the same month of the prior year.

In December 2011, the inventory of Austin-area homes decreased to 4.1 months, which is 1.4 months less than December 2010 and the lowest figure reported since the organization began tracking the statistic in January 2009.

2011 Year-End Totals

19,220 – Single-family homes sold, seven percent more than 2010.

$193,000 – Median price for single-family homes, unchanged from 2010.

84 – Average number of days that single-family homes spent on the market, seven days more than 2010.

30,668 – New single-family home listings on the market, 12 percent less than 2010.

8,609 – Active single-family home listings on the market, 15 percent less than 2010.

21,002 – Pending sales for single-family homes, seven percent more than 2010.

$4,931,910,843 – Total dollar volume of single-family properties sold, nine percent more than 2010.

What are the Costs Involved in Selling My Home?

It's often said that it takes money to make money, and that's certainly true when you're selling your home. If you're thinking about selling your home, you may be asking yourself, What are the costs involved in selling my home, and how can I lower them? The first step to lowering the costs involved in selling your home is being aware of what they are, so be prepared for the following costs when shopping for settlement services.

How Can I Lower Real Estate Agent Costs When Selling My Home?
The first thing to decide when selling your home is whether or not you will sell your own home or use a professional real estate broker to act as your proxy, show your home to buyers, and assist you in closing the deal. If you decide to use a real estate broker, he or she will be paid a sales commission based on a percentage of the selling price of your home. The real estate agent's sales commission is one of the largest costs when selling your home, and, in a down economy, the real estate agent's sales commission is usually paid by the seller. Therefore, one of the most important things you can do to lower the costs involved in selling your home is to negotiate with the real estate agent for a lower sales commission.

Typically, the average commission for a real estate agent is six percent of the final home sale value. This amount can vary, however, from a low of approximately four percent to as high as eight percent. When you do the calculations, you realize this can amount to a significant amount of money deducted from the gross sale amount. For instance, using the above range of 4 to 8 percent, the sales commission on a $300,000 home could be anywhere between $12,000 and $24,000. Most real estate agents like to negotiate their sales percentage by agreement before starting any selling work. The agent's payment for selling your home happens when the home sale is paid for, so be prepared for that cost at that time.

How Can I Lower the Transfer Costs Involved in Selling My Home?
The actual transaction of selling your home will require the services of several licensed experts. Escrow services, title insurance, appraisals and attorney's fees all generate costs when selling your home. When these costs are added together, these technical expenses can cost between $5,000 and $10,000 a sale, and most of them are required in order to close a sale under many states' real estate laws. One of the best ways you can lower the costs of selling your home is to be proactive by making calls, getting referrals, and negotiating fees.

In a seller's market, the buyer would pay these costs, but when economic times are hard, you should be prepared to take on some if not all of these costs involved in selling your home in order to convince a buyer to commit and close the deal.

How Can I Lower My Transfer Taxes?
Whenever large sums of value are exchanged, the government and financial services sectors find ways to attach costs. Some of the costs involved in selling your home may be taxes on the sale in the form of transfer taxes or sales taxes imposed by federal, state, or local jurisdictions. If a transfer tax applies, the recipient of the funds, the seller, frequently ends up paying the cost. Collection can happen at the time of the sale, when title documents are transferred, or it could happen after the fact with a tax bill sent to the seller. The amount due will be a percentage that is based on the total sale cost of the house. You can lower the costs involved in selling your home by taking steps to avoid capital gains tax after selling your home.

How Can I Lower My Property Taxes?
There is little you can do to lower the cost of property taxes, but usually property taxes are the responsibility of the new buyer. Sometimes sellers will assume this cost, however, to sweeten the deal for a buyer. If the sale happens in the middle of a property tax cycle, both the seller and the buyer can be charged. Most jurisdictions collect property taxes in two payments. The first payment may happen while the seller owns the house and the second may occur right after the buyer takes over. To make sure these taxes are paid, sellers or a financing bank can require the buyer to put these monies forward to ensure taxes are paid in the first year of ownership.

Other Potential Costs Involved in Selling a Home
Loan Origination Fees. These are sometimes called a "point" or "points." Loan origination fees cover the lender's administrative costs in processing the loan. The fee, which is usually expressed as a percentage of the loan, will vary among lenders. Typically, the buyer pays the loan origination fees, unless otherwise negotiated.

Appraisal Fee. This charge pays for an appraisal report made by an appraiser.

Conclusion

Many of the costs involved in selling your home can be negotiated and can either be the responsibility of the buyer or the seller. Educate yourself independently on the costs of selling your home so you know objectively what a definite seller's cost is and what is negotiable.
In addition to the information provided here, the U.S. Department of Housing and Urban Development offers articles and sample calculations to help you estimate the costs involved in selling your home.

2012 Forecast - Austin Area Continues to Stabilize

Data released by Clear Capital Monday shows year-over-year, national home prices were down 2.1 percent in 2011. The company says movement in home prices began to stabilize somewhat during the latter half of the year and REO sales as a percentage of total home sales began to decline, which helped to moderate depreciation for the year overall.

Clear Capital expects 2012 to play out much like the last half of 2011, with only a very subtle price change at the national level. A minimal decline in the beginning of the year is expected to turn into a meager gain by year’s end, the company explained.

For the Austin market, year-to-date from 2010 to 2011, is stronger. Closed home sales are up 5.2 percent, Pending sales are up 8.6 percent, and inventory of homes available is down 12.6 percent, which means fewer homes and more buyers.

These numbers are possible indicators that the real estate market here in Austin is improving. With the low inventory of homes currently on the market, compare it to the number of new jobs being created, apartment rentals at capacity, then the market should continue to see improvements for next year.

What Does it Mean to Buy and Bail?

“Buying and bailing” refers to the act of buying a second property and allowing a first home to fall into foreclosure. Homeowners who purchase second properties in this scenario are typically “upside down” on their primary residence, meaning they owe more on their first home than it is worth in the current market. It's likely that they had an adjustable rate mortgage and their monthly mortgage payment grew to a payment they could no longer afford. For some, an easy solution appears to be buying a second property at a depressed price with a fixed rate mortgage in order to lower their monthly mortgage payments. At the same time, they let their first home fall into foreclosure hence the term buying and bailing.

You may wonder why a lender would loan someone money for a second property when they are already having difficulty making the mortgage payments on their first home. Typically, the buying and bailing homeowners will state in their loan applications that they intend to rent out the first property, but it should be noted that lying on a loan application constitutes fraud. Fannie Mae and Freddy Mac have instituted rules to curb the practice, but it continues. In addition to fraud, homeowners could get themselves into deep water when dealing with foreclosure and second properties.

Things to Consider About Foreclosure and Second Properties

There are two different scenarios that can occur with foreclosures and second properties. The first is the buy and bail situation explained above where the homeowner buys a second property and allows the home that has been his primary residence to go into foreclosure. The second is where a homeowner has a second property, perhaps a vacation home, and allows that second property to go into foreclosure.
When a home goes into foreclosure it will be auctioned off usually for a much lower amount than what is actually owed on the property. The difference between the amount owed and the amount received at auction is called a deficiency balance.

How the settlement of the deficiency balance will be handled varies greatly depending on where you live and your state's laws regarding foreclosure and the enforcement of deficiency balances. In about two-thirds of U.S. states, deficiency balances are treated like all other unsecured debts, and lenders may pursue a borrower after foreclosure by seeking a deficiency judgment. This allows a lien on the second property for the amount still owed on a previous mortgage. In states such as California and Arizona there are restrictions on lenders, and they may not have that option if the original home was a primary residence.

If you have a vacation home that goes into foreclosure, and end up owing a deficiency balance after foreclosure on that second property, the lender may file a lawsuit against you to collect the debt. This could result in garnishment of your wages, levies on your bank accounts, and/or liens placed on your property, including your primary residence, depending on your state's laws relating to the enforcement of judgments.

After foreclosure, the lender, otherwise known as the judgment creditor, may be able to force the sale of your primary residence to obtain the money needed to pay off its judgment depending on the state in which you live. Judgment creditors are more likely to pursue a forced sale of your property if you have a lot of equity in your home. Therefore, if you have a substantial amount of equity in your primary residence, you may want to think long and hard before allowing a foreclosure on your second property. A consultation with an attorney specializing in real estate law is advisable before deciding to let a foreclosure on a second property to occur.