As expected, the FED held the Federal Funds rate unchanged at 5.25% for the third time in a row. The FED's seemingly lack of tough discussions on inflation has spurred confidence in the bond market that the FED will continue to leave rates untouched for some time to come. While inflation is the most heavily weighted measure of economic stability, there is growing confidence that past rate hikes will continue to add pressure to the latest inflationary numbers and hopes that inflation will fall to a more comfortable target of 2-3% over the coming months.
What does this mean for mortgage interest rates?
If investors feel that the FED will leave rates unchanged and inflation can be held in check, then mortgage backed bonds will continue to be attractive. Thus, mortgage interest rates in the near term will remain level if not see a small drop. Housing sales will remain strong while some areas in the country will continue to see a decline in housing prices. Lower rates and cheaper housing is a good recipe for continued strength in the housing market.
How does this apply to Austin?
Housing prices in Austin have not seen the recent declines that the rest of the country is experiencing. Our market continues to see a rise in sales and thus in prices. However, lower interest rates will continue to impact sales regardless of the rising prices. If interest rates decline over the next few weeks there will be an increasing opportunity for buyers to pull the trigger. Nonetheless, there appears to be no end in sight for the booming housing market for Austin.
10.26.2006
10.24.2006
Austin Housing - Hot, Hot, Hot
The Austin housing market is still sizzling! According to the Austin Board of Realtors (ABOR), the housing slump affecting the rest of the country is not having an impact on Austin.
In September home sales reached 2,300 for the month. This is a 3% increase from the previous year and a new record for the month of September.
Active single-family listings reached 8,203 which are 5% higher from 2005. There was inversely a drop in the average time that it takes a house to sell. In September, the average time a house was on the market was 58 days; this is a 15% drop from previous months. This is the shortest amount of time single-family listings have waited to sell since September 2001, when the average was 46 days, according to ABOR.
Remarkably, the housing market in Austin and in much of Texas has not had its proverbial "bubble" popped. Regardless of the seemingly negative news regarding the housing market, Austin's has remained robust. With the increase in employment and continuing strength in the commercial sector, this trend is likely to continue into 2007.
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In September home sales reached 2,300 for the month. This is a 3% increase from the previous year and a new record for the month of September.
Active single-family listings reached 8,203 which are 5% higher from 2005. There was inversely a drop in the average time that it takes a house to sell. In September, the average time a house was on the market was 58 days; this is a 15% drop from previous months. This is the shortest amount of time single-family listings have waited to sell since September 2001, when the average was 46 days, according to ABOR.
Remarkably, the housing market in Austin and in much of Texas has not had its proverbial "bubble" popped. Regardless of the seemingly negative news regarding the housing market, Austin's has remained robust. With the increase in employment and continuing strength in the commercial sector, this trend is likely to continue into 2007.
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10.23.2006
Austin Employment Information
In an artcile released Friday, October 20th, the Austin Business Journal reports that the Austin/Round Rock area unemployment rate has dipped to 3.8%. That is down from the August unemployment rate of 4.2%. In September of 2005, the unemployment rate was 4.3%. In looking at total jobs created, Austin gained 3,800 non-agricultural jobs in September. From September 2005 through September 2006, a total of 18,500 non-agricultural jobs have been created. This is an increase of 2.7% in 12 months.
This is great news for the Austin/ Round Rock economy, and more particular, the housing market. As I have said before, housing directly correlates with jobs. The more people that are working, the more housing that is needed by those workers. If this trend continues, we can look forward to a healthy local economy and a continuing strong housing market.
This is great news for the Austin/ Round Rock economy, and more particular, the housing market. As I have said before, housing directly correlates with jobs. The more people that are working, the more housing that is needed by those workers. If this trend continues, we can look forward to a healthy local economy and a continuing strong housing market.
10.17.2006
Austin Housing Update
It appears that the Austin housing market is strong compared to the rest of the Country!
This is mainly due to the fact that Austin is a relatively young metropolis and large companies are continuing to see Austin as a great city to invest in. A sure sign that points to a continuing housing boom is seen in the commercial real estate market, where rents continue to rise, and the office space once left empty from High Tech companies is being filled by other large and mid sized companies. Where there are companies investing in office space, there are new jobs, which relates to a need for housing. If this continues, we should see prices that continue to rise modestly and a housing market that will likely remain strong.
This is mainly due to the fact that Austin is a relatively young metropolis and large companies are continuing to see Austin as a great city to invest in. A sure sign that points to a continuing housing boom is seen in the commercial real estate market, where rents continue to rise, and the office space once left empty from High Tech companies is being filled by other large and mid sized companies. Where there are companies investing in office space, there are new jobs, which relates to a need for housing. If this continues, we should see prices that continue to rise modestly and a housing market that will likely remain strong.
10.11.2006
Young Austin Real Estate Professionals
YAREP
I am pleased to announce that efforts are underway for the formation of an Austin Real Estate group called Young Austin Real Estate Professionals. The purpose of the group is to gather real estate professionals and industry insiders on a regular basis to share ideas and enjoy social events. We feel that it is very important that professionals get together to discuss their business, share ideas, and help each other succeed.
YAREP is being formed by Michael Brandt, Cody Daniel, John Segrest, and Leslie Brvenik. We will be announcing our first social event in the coming weeks and will also start a dedicated website for the group. Be on the lookout for further details.
Sincerely,
Michael Brandt
I am pleased to announce that efforts are underway for the formation of an Austin Real Estate group called Young Austin Real Estate Professionals. The purpose of the group is to gather real estate professionals and industry insiders on a regular basis to share ideas and enjoy social events. We feel that it is very important that professionals get together to discuss their business, share ideas, and help each other succeed.
YAREP is being formed by Michael Brandt, Cody Daniel, John Segrest, and Leslie Brvenik. We will be announcing our first social event in the coming weeks and will also start a dedicated website for the group. Be on the lookout for further details.
Sincerely,
Michael Brandt
Welcome!
Welcome to my new blog. Over the coming days and months I intend to fill my blog with information relevant to the Austin Housing market and the mortgage industry. Keep your eyes posted and always feel free to provide your own topics of interest.
Sincerely,
Michael Brandt
Sincerely,
Michael Brandt
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