Austin Housing Market Gaining!
It’s important to remember that what happens in Austin and in Texas is not necessarily the experience in other parts of the nation. As a real estate investor I’d rather make a lower profit margin and get in and out of a property as opposed to buying a home for 10 cents on the dollar in say Miami and then have to wait 10 years to sell the property.
Austin has maintained stability in the housing market just as most of Texas has. Here are some solid facts to consider about the Austin Housing Market. In November of 2009 there was a 63% increase in the number of homes sold over November of 2008 even though the number of active listings rose by 8% over the year before.
According to the Austin Board of Realtors (ABOR) the average number of active days on the market for all homes sold in November was 76 days. That is a drop in the average number of days on the market from the previous year. ABOR reported that in November of 2009 the median sales price of all properties sold fell by less than 2% to $179,000. The average sales price rose by 2% to $239,596. This is a strong indication that the $8,000 first time homebuyer credit kicked in and worked wonders for the inventory in the entry level price points.
The Real Estate Center at Texas A&M University considers a balanced market to be when there is 6.5 months of inventory in available homes on the market. Balanced inventory means that the demand for homes is balanced with the supply of available home. However, as per the statistics for November 2009 there is an available inventory of only 5.4 months. The demand for homes is slightly outpacing the supply for homes.
Should this trend hold in 2010 we just might see a strong sellers market at the end of 2010 or early 2011.
Nearby markets like San Antonio and the market in, around and between Austin and San Antonio are all holding and showing signs of gaining. Investing in real estate in Central Texas is proving to be a safer investment than many other areas in the United States. Let us show you how to build wealth with real estate.
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