Texasrealtors.com released housing data which was reported in the latest addition of RECON from Texas A&M University's Real Estate Center. The data shows inetersting numbers regarding the ever chaging demographics of home owners in Texas. Here's how they shake out.
Last year, first-time homebuyers, with a median age of 33, accounted for 35 percent of existing homes purchased statewide, according to the National Association of Realtors' (NAR) 2006 Profile of Home Buyers and Sellers, Texas Report.
The median income for first-timers was $62,700, about 7 percent higher than the national average. All first-time homebuyers financed their purchases compared to 98 percent of repeat buyers. Almost half of all buyers believe their home purchases are better investments than stocks.
Most homebuyers were married couples (68 percent), with single females purchasing a whopping 20 percent compared to single males (5 percent). Detached single-family homes accounted for 86 percent of homes sold. The typical buyer planned to live in the home an average of eight years. Most buyers bought their homes about 18 miles from their previous residences.
About 87 percent of buyers searched for their homes with the help of real estate professionals, with 79 percent purchasing through real estate agents. Of those purchasing through an agent, 79 percent reported they were “very satisfied” with the honesty and integrity of their agents.
The seller’s median age was 46 years with an average household income of $89,500. Married home sellers accounted for 73 percent of sales, and 49 percent had no children younger than 18 living at home. Eighty-six percent used agents or brokers to sell their homes, with 67 percent very satisfied with the selling process. Average days on market was six weeks, with more than half of sellers receiving their asking prices.
1.29.2007
1.23.2007
Austin Home Sales Up Unemployment Down
The numbers are out for 2006 and they read very well. There was a 10 percent increase in full-year sales volume over 2005. According to the MLS, a total of 26,958 homes were sold last year. Meanwhile the median home price rose six percent to $174,500. That same median price rose to $177,500 in the month of December 2006. Also, single-family property sales contributed $6.3 billion to the local economy in 2006, this was a 20 percent increase over 2005. In addition, there was a drop in the average time it took a home to sell in 2006. Homes sat on the market on average 63 days during the year. This represents the lowest time span over the past four years. The data also points out that sales were particularly strong in areas that border Hays & Williamson counties. Experts claim that these strong numbers once again show that Austin's competitive costs as well as high quality of living are the keys to our sustained growth pattern. Look for 2007 to keep pace with 2006 while the national market continues to slow.
As far as unemployment, Texas' unemployment rate is down almost 1 percent from 2005. The current unemployment rate is the lowest in 5 years and matches the U.S. seasonally adjusted unemployment rate of 4.5 percent. Texas added 15,600 new jobs in December of 2006. That accounts for 213,200 new jobs for all of 2006 with a growth rate of 2.2 percent.
Texas employers have added new jobs for 27 consecutive months, according to the state.
This information is evidence of why the housing market for Texas has remained steady compared to the recent declines nationally. If employers continue to display confidence by adding jobs, then look for the 2007 housing market to remain strong and continue a steady growth pattern.
As far as unemployment, Texas' unemployment rate is down almost 1 percent from 2005. The current unemployment rate is the lowest in 5 years and matches the U.S. seasonally adjusted unemployment rate of 4.5 percent. Texas added 15,600 new jobs in December of 2006. That accounts for 213,200 new jobs for all of 2006 with a growth rate of 2.2 percent.
Texas employers have added new jobs for 27 consecutive months, according to the state.
This information is evidence of why the housing market for Texas has remained steady compared to the recent declines nationally. If employers continue to display confidence by adding jobs, then look for the 2007 housing market to remain strong and continue a steady growth pattern.
1.12.2007
Real Estate Market Forecast for 2007
It's that time of year again...time to start looking forward to high expectations and continued growth in the real estate business for 2007. More importantly, the Central Texas real estate market. While the rest of nations economy slowed down in 2006, Texas as a whole continued a moderate, but strong rate of growth. This was due in large part to the declining unemployment rate and improved growth of the commercial real estate markets throughout Texas.
Commercial construction helped to increase employment and also provided income to business in and around Texas. The rate of commercial construction does not appear to be slowing for 2007. In fact, current projections show that more commercial construction is slated for 2007. The main focus will be a rise in construction costs over the next year. If costs continue to rise in line with the rest of the nation, then there is a likelihood construction will slow. Until then, it's "full steam ahead".
Jobs played an important role, as usual, in the overall real estate market for 2006. Because there were more Texans working, there were more Texans buying homes. For 2007 the job market will look to remain strong and continue driving the economy as a whole. If costs can remain low for businesses, and if profits can remain healthy, then the job market will continue its' modest pace and thus the housing market will remain fluid and robust.
Finally, 2006 saw a pause in interest rate hikes by The Federal Reserve Board. This was great news for mortgage interests rates. Mortgage rates fluctuated quite a bit in 2006, but they never proved to be an issue for new home buyers. For 2007, look for interest to stabelize even more. The consensus right now is that the Federal Reserve will not make any moves for the first quarter of 2007. The Fed is closely watching inflation and right now it appears that the nations unemployment rate in 2007 will tick slightly higher as the economy as a whole cools. Barring any unexpected rises in prices due to energy costs or other variables, the rate of inflation should gradually lower to The Fed's comfort level of between 1 and 2%.
Overall, the signs point to a moderate but sustainable growth in the Central Texas real estate makret. We are in a unique position in that Texas is not feeling the "pinch" economically that the rest of the nation has and will continue to experience in 2007. Better yet, we benefit greatly from that "pinch". The national economic outlook effects interest rates and thus gives Texas homebuyers a premium when it comes to purchasing a new home. We can continue to afford homes as long as our economy continues to produce new jobs and interest rates remain low. Once again, 2007 should provide Texans a continued opportunity for home affordabilty.
Stay Strong & Best of Luck in 2007 !
Commercial construction helped to increase employment and also provided income to business in and around Texas. The rate of commercial construction does not appear to be slowing for 2007. In fact, current projections show that more commercial construction is slated for 2007. The main focus will be a rise in construction costs over the next year. If costs continue to rise in line with the rest of the nation, then there is a likelihood construction will slow. Until then, it's "full steam ahead".
Jobs played an important role, as usual, in the overall real estate market for 2006. Because there were more Texans working, there were more Texans buying homes. For 2007 the job market will look to remain strong and continue driving the economy as a whole. If costs can remain low for businesses, and if profits can remain healthy, then the job market will continue its' modest pace and thus the housing market will remain fluid and robust.
Finally, 2006 saw a pause in interest rate hikes by The Federal Reserve Board. This was great news for mortgage interests rates. Mortgage rates fluctuated quite a bit in 2006, but they never proved to be an issue for new home buyers. For 2007, look for interest to stabelize even more. The consensus right now is that the Federal Reserve will not make any moves for the first quarter of 2007. The Fed is closely watching inflation and right now it appears that the nations unemployment rate in 2007 will tick slightly higher as the economy as a whole cools. Barring any unexpected rises in prices due to energy costs or other variables, the rate of inflation should gradually lower to The Fed's comfort level of between 1 and 2%.
Overall, the signs point to a moderate but sustainable growth in the Central Texas real estate makret. We are in a unique position in that Texas is not feeling the "pinch" economically that the rest of the nation has and will continue to experience in 2007. Better yet, we benefit greatly from that "pinch". The national economic outlook effects interest rates and thus gives Texas homebuyers a premium when it comes to purchasing a new home. We can continue to afford homes as long as our economy continues to produce new jobs and interest rates remain low. Once again, 2007 should provide Texans a continued opportunity for home affordabilty.
Stay Strong & Best of Luck in 2007 !
1.05.2007
Austin Invests in its Local Businesses!
Article by: Neil Takemot posted Dec. 28th on Cool Town Studios Website
A local institution on Congress Avenue in Austin, Texas, Las Manitas, a Mexican restaurant and crowd favorites, must say goodbye after 25 years. It's lease was up, and the building owner already signed a new one with Marriott. However, Austin's city government isn't your typical city government, and its leaders proposed to do something about it.
They're proposing the Congress Avenue Retail Retention and Enhancement Fund to invest in the kinds of businesses they feel reflect the local culture and character of Austin. This is no obligatory facade improvement or forgivable loan program totaling a few hundred thousand, the equivalent of a needle in a haystack. Based on development fees, three pending projects alone on Congress, including the hotel complex, could generate $1 million or more in fees.
In other words, the City of Austin is proposing to significantly invest in its local businesses, something completely supported by residents, but rarely executed. That's the wow factor. Can you think of any City contributing such amounts to preserve and attract indie businesses? Hopefully the answer is yes, and please do tell.
As far as Las Manitas, which inspired the Fund, the program's leaders are looking at helping the owners open its doors down the same street in a historic building. The restauranteurs own the building, but the City is looking to assist with the hundreds of thousands required to renovate it.
A local institution on Congress Avenue in Austin, Texas, Las Manitas, a Mexican restaurant and crowd favorites, must say goodbye after 25 years. It's lease was up, and the building owner already signed a new one with Marriott. However, Austin's city government isn't your typical city government, and its leaders proposed to do something about it.
They're proposing the Congress Avenue Retail Retention and Enhancement Fund to invest in the kinds of businesses they feel reflect the local culture and character of Austin. This is no obligatory facade improvement or forgivable loan program totaling a few hundred thousand, the equivalent of a needle in a haystack. Based on development fees, three pending projects alone on Congress, including the hotel complex, could generate $1 million or more in fees.
In other words, the City of Austin is proposing to significantly invest in its local businesses, something completely supported by residents, but rarely executed. That's the wow factor. Can you think of any City contributing such amounts to preserve and attract indie businesses? Hopefully the answer is yes, and please do tell.
As far as Las Manitas, which inspired the Fund, the program's leaders are looking at helping the owners open its doors down the same street in a historic building. The restauranteurs own the building, but the City is looking to assist with the hundreds of thousands required to renovate it.
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