A recent release by the National Association of Realtors (NAR) prophesized of a flattening of the real estate market in the United States over the next year. Citing housing inventory shortages, and rising interest rates, the researchers pointed out that basically, people are not going to buy because buying will be harder than it has been in years past--less inventory means not as many houses to meet the "dream house" concept, and rising interest rates will make it so that fewer people can actually afford the monthly payments, which will be larger due to the increase in interest. Yet not even two weeks later, in the Austin Board of Realtors (ABOR) web page I read that the Austin market is likely to continue is meteoric rise in 2016. Is this even possible? Are the laws of physics somehow suspendied in Austin? We do have a lack of inventory, as shown by the fact that we are still in a selller's market. We still see bidding wars, and disappointed bidders walking away from full price or better offers when the seller took another offer above sales price or with better terms, such as a cash deal. Sure, this has slowed a bit with the coming of the Winter Soltice, but all signs point to the fact that perhaps ABOR is right. In Austin, many of the buyers coming to buy homes here are from other parts of Texas, or even other parts of the United States, such as California, Colorado or New York. These buyers come armed with cash out from their overinflated sales on their primary homes from such states and are able to out bid local Austin residents. This could be the explantion for the fact that most local Austinites, I have seen estimates of some 70% to 80%, are unable to buy, and are stuck in the rental market blues. This is a sad state of affairs for the local residents, in my opinion. While we are being bought out by people from other states with higher home prices, we are being forced into a condition of permanent rental markets for the local, long time residents of Austin. I see it all the time. My colleages see it all the time. The best buyers are not necessarily from Austin, but may be from California or some other state. Or even another country, since about 8%-12% of the home purchses in Austin are sold to foriegn citizens. So does that mean that Austin is immune from the flat lining of the real estate market prdicted for the rest of the country? Unfortunately, it may well be the case. As more and more people push into our community from higher priced areas, either because of lower taxes, or quality of living, or to escape the rat race, our prices are likely to continue to climb. Perhahps not at the same rate, but it does seem that the prices in Austin will continue to go up. Unfortuantely, that means even fewer local residents will be able to buy a home in their own community. "Keep Austin Weird" may need to be altered slightly. Maybe we should be saying "Keep Austin,.....Austin." That is all for this week. See you again next week. Have a great Thanksgiving feast. Think about all those who are less fortuante, and give thanks for what you do have. Your real estate professional and friend, Frank
Author:Yolanda Boyarin Phone: 512-806-6005 Dated: November 21st 2015 Views: 655 About Yolanda: Let someone who knows the beauty of Central Texas show you all the reasons you would want to buy in ...
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