Any further slowdown appears to be the result of the tightening of mortgage lending guidelines. Obtaining a loan has become much more difficult, especially for a first-time buyer.
However, for those who are doing well financially there is more on the market and less competition for homes. Those same buyers also may have more bargaining power than previously. According to Housing Predictor, Austin remains the tenth highest buyer's market in the U.S. for 2008.
As it concerns Austin, it is important to ignore the national media's dire predictions for real estate. According to the 12/29/07 Austin American Statesman,
"Analysts cautioned, . . ., that the housing market differs dramatically in various parts of the country, and that all real estate is local.
'In Central Texas, for instance, the market is not as gloomy as it is in other regions of the country, in part because developers have avoided an oversupply of new homes.
'Also, the new home market is a relatively small part of the overall housing outlook. Existing home sales account for four-fifths of the market. And in Central Texas, those prices are continuing to rise, despite a slowdown in sales."
According to Moody'sEconomy.com, Austin is the #1 city of 381 cities rated for the economic vitality index. Apparently Austin has what it takes for economic vitality, and word is spreading. Austin's population still is increasing by about 1000 people each week, and government still is scrambling to keep up with infrastructure. Building continues at a rapid pace.
The area's economic predictions are favorable for years to come. Interest rates remain low, and sellers are willing to negotiate. A savvy buyer will see that this is all good news. Today we enjoy a window of opportunity for investors and home buyers alike.
The Austin real estate market is definitely slower, and it appears sound.
Location Characteristics: The Austin area is the best part of Texas, an oasis in Central Texas where all points of the state meet. With Lake Austin, Lake Travis, Barton Creek, and Barton Springs and as the gateway to the Texas Hill Country, it's a paradise for outdoor activities of all kinds.
Austin is Texas' center of government and home to The University of Texas at Austin and numerous other colleges and universities either in town or nearby. Public schools are good as are numerous area private schools. Austin has strong arts and cultural communities as well as a rich heritage and appreciation for its history. Austin also is blessed to have the Lady Bird Johnson Wildflower Center, now part of UT.
Austin's economy is healthy and expanding exponentially. Opportunities abound for work in cutting edge industries, and the entreneurial atmosphere is heady. Many people come to Austin "for a job" and then decide to make this their permanent home. Everyone loves living in Austin if they're lucky enough to be here.
Austin provides an eclectic lifestyle, a laid back atmosphere, and a sense of fun. It's the Music Capital of the World and home to several large music and film festivals. it has a large movie industry. It's the home of Willie Nelson. It's a place in which you can hear world class live music any night of the week. Downtown is healthy and rapidly growing a more 24-hour population.
The winters are temperate, springs and falls magnificent, and summers long and hot. It rarely ever snows.
