The home buyer tax credit is likely going to be extended to higher income individuals as well as existing home owners through April 30, 2010. The extension which should be finalized this week, will extend the existing $8,000 tax credit for first time buyers until the end of April and will increase the income limits to $125,000 as an individual or $225,000 as a couple.
Additionally, a credit of up to $6,500 will be extended to repeat home buyers who have owned their current home 5 years or more.
The Senate is scheduled to vote on the final bill this week and it is expected to be passed in the House soon after. We will update our page with more details as they become available.
The Statesman ran an article profiling recent buyers who utilized the first time homebuyer tax credit. The credit is available to US citizens purchasing a primary residence who have not owned a home within the last three years. To qualify buyers must meet certain income requirements and must close on the purchase by December 1, 2009. Contact Lindsay for more details.
Good news for home sales: the Statesman reported that for the first time in the past year, the volume of home sales have returned to 2008 levels. I still think we have a way to go to be out of the woods completely with all sectors of the housing market in Austin, but the large number of multiple offers we’ve seen in low inventory pockets such as South Austin, Circle C and Round Rock are great signs that the market is regaining strength. Look for the areas with lowest inventory and high affordability to come back first, followed by areas with higher inventory and/or higher prices.
Downtown Austin will see the arrival of another condo tower this September. Spring will begin moving residents into the building in late August or September. The 42 story tower is located at 3rd and Bowie and has one of the best locations downtown. The project is located next door to Whole Foods and is within walking distance of dozens of shops, restaurants and nightlife spots. The hike and bike trail along Shoal Creek is also just a few steps from the property, which leads to Lady Bird Lake 3 blocks to the south.
The 220 unit project has about 55% of the units under hard money earnest contracts. Asking prices are averaging in the $500/SF range and include marble baths, stainless appliances, hardwoods in the living spaces and carpet in the bedrooms with an option to upgrade to wood at an additional cost.
While the project is in a great location and has a nice finish package, it will be interesting to see what final sales prices look like. Spring is priced significantly higher than other recent projects downtown. Also, many of the current buyers went under contract prior to the financial crisis, so there’s no telling how many of the current contracts will actuall push through to closing. If you’ve toured Spring, let us know your thoughts by commenting below!
Ask any Realtor or lender, and they’ll most likely complain about the new regulations surrounding appraisals. Ask any appraiser, and they’ll likely complain as well. This NY Times article does a great job of explaining how legislation whose goal was to eliminate collusion between appraisers, lenders and brokers, has instead significantly complicated the appraisal process by bringing management companies into the mix, while in turn charging consumers more for what is often an appraiser who is less qualified or experienced than what they would have had in the past.
I’m all for appraisals being performed at arm’s length from lenders, but it seems the addition of management companies has been a lose – lose situation for consumers, brokers and lenders. I believe there should be some sort of qualification process for a pool of appraisers, certifying that they are knowledgeable of a particular market and product type. Under the new rules, consumers are paying about 40% more for an appraisal which is often sourced out to an appraiser with little experience or knowledge of the submarket in which the property is located.
It’s been known for some time that the W Hotel and Residences’ construction lender was in financial trouble. What was uncertain was how it would impact the project. The ABJ recently reported that the W is now actively a replacement lender for the $170MM that bankrupt Corus bank will be unable to fund. Stratus was in a development agreement with Magic Johnson’s “Canyon Johnson Urban Fund” to develop the $300MM hotel and condos which was to include numerous restaurants, such as a new concept by local chef Tyson Cole of Uchi, as well as the new ampitheatre venue for Austin City Limits which has been housed in the Communications building at UT for the past 40 years.
Office units will be delivered as shell space, but all residential units and live/work units will be fully finished out with a number of upgrade options buyers may select. From first appearance, it’s a great location and has huge potential, but pricing appears to be in the $300 – $320/SF range which we believe is unreasonable for a project of this nature. While the price point is relatively low, I don’t know that they will be able to sell 500SF units for nearly $200,000. Stay tuned to find out or email Blake at btaylor@taylorrealestateaustin.com for more details.
Our market analysis this month shows inventory continues to decrease across the board in Central Austin, and prices appear to have stabilized, and even increased in some submarkets in Austin. Low interest rates and the $8,000 First Time Home Buyer Tax Credit have combined with a general perception that home prices have bottomed out in Austin overall. Most transactions we are seeing are first time buyers and “move up’s”. While many move up’s have a difficult time accepting that their house may be worth less than at the peak of the market in 2007, most are excited to make up that discount and then some on the purchase of a more expensive home, all while trading down to a lower interest rate. A perfect example was a client that recently sold their existing home and purchased a new one which cost 14% more, but after locking a lower interest rate their monthly PITI only increased by $20.
The summer season, however, is the busiest time of year for Austin real estate, and so the tell tale sign of a recovery will be to watch what happens later this year. We are anticipating a busier than usual fall and winter season as the $8,000 Tax Credit deadline approaches December 1st. It’s possible the government may extend that deadline, but if they opt to extend it likely occur at the last minute.
And so that brings us to the market segments. As usual, lower prices directly correlate with lower inventory. If there is any question whether the Home Buyer Tax Credit is working, look no further than South Austin (10N and 10S), between Ben White and Slaughter. There, the median home price hovers around $177,000 and the inventory is an extraordinarily low 2.3 months. Buyers looking in this area practically have to submit an offer the day a home comes on the market. But buyer’s confidence that prices AND interest rates are “as low as they’ll go” are showing effects across all strata of Austin’s housing market. Westlake and Old West Austin (Tarrytown, Clarksville, Brykerwoods), the most expensive pockets of Austin, continue to have the most inventory with over 9.5 months available, however this is a significant decrease from last winter. Tarrytown, for example, sold more million dollar homes in May than in January, February and March combined. Great discount buying opportunities still reside in the luxury home market for well qualified buyers over $500,000.
Circle C continues to be a strong performer due to its relative affordability and proximity to downtown and major employers such as AMD. Sales have sharply increased in Steiner, although transactions in the Jumbo Mortgage realm (loans greater than $417,000) continue to have difficulty passing underwriting, and we have seen many homes undergo a multiple offer bidding war, only to fall out of escrow because the buyer could not get the loan approved. Days on Market continue to
Mueller and Allandale are both on fire. The numbers for Windsor Park and Mueller don’t tell the whole story. Builders such as David Weekly are rapidly selling homes with little to no incentives, so much so that recently they only have had 1 or 2 homes available at any given time. Compared to last winter when a buyer could have their choice of 15 -20 move-in ready homes, there is a drastic difference. Allandale has very little available and good listings are seeing multiple offers within days coming on market.
The condo sector continues to remain healthy overall, although the downtown market will likely see price declines in projects under construction as those buildings are opened for residents and the additional units are absorbed through 2010 and 2011. The Shore recently established, however, that a large contingent of buyers remains for downtown condos when there is a perception of a great value. By lowering prices and offering builder closeout specials, the Shore successfully sold over 50 units in less than 2 months.
Overall, I still believe the worst is past us, and local job growth will be the determining factor in whether home prices remain level or begin to appreciate over the next 24 months.
The Sage has also announced they will auction their 23 remaining units. 10 of those units will not have a reserve price and will sell regardless of the high bid price. JP King will call the auction August 22nd at the Hyatt on Lady Bird Lake.
The Sage is a townhome community built by local firm Avera Development. They are located just north of Mary Street on South Lamar and are near downtown, Zilker Park, restaurants along Barton Springs and the Alamo Draft House. The units are 2 and 3 story townhomes with 2 car attached garages. Units are finished with hardwood flooring in the living and dining areas, carpet in the bedrooms, ceramic tile baths, granite countertops and stainless steel appliances with gas cooking and heating.
I like the location of the property. The proximity to downtown, eateries and parks is excellent. The community, however is on a busy section of Lamar and backs to a commercial shopping center. Overally, it’s a great property in a great location, and I believe the units are a good value below $175/SF. Contact us for more information on specific floor plans or to schedule a tour of the property prior to the auction.
Stunning greenbelt frontage townhouse walking distance to Zilker Park in an intimate gated community. 12' ceilings downstairs with a wall of windows overlooking the greenbelt. 3 huge covered porches with room for entertaining and outdoor dining. Two fireplaces, stainless steel appliances, travertine flooring and baths. Two car garage, community pool […]
Let Lady Bird Lake be your backyard! DT, on the shores of Lady Bird Lake, this 1 bed + study unit features American walnut flooring, slab granite counters & stainless appliances with a ceramic cooktop. Residents enjoy roof top pool, grilling station, state of the art fitness room & 24-hour concierge.Date: Oct 15, 2009Number of Photos in Album: 18View […]
Beautiful 2 bed 1.5 bath condominium on the Barton Creek Greenbelt. Corner unit with panoramic canyon views and ample natural light. 2 story living room ceiling, open kitchen, fireplace, wet bar and only 1 adjacent neighbor. Marble bathroom countertops, walk-in closet. 1 car garage.Date: Aug 25, 2009Number of Photos in Album: 35View Album
