Are Austin Area Home Prices Expected to Fall in 2012?

As Realtors, we are always asked questions about “the market.” No matter where you are, people are interested in “the market.” The reality is that there are many ways to answer because real estate is a very localized business, and in a given market area, there can be many sub-markets. Even in one city such as Austin, there are hot and cold zones…or should I say less hot zones.

Recently, one of my title reps sent out this email to me and we wanted to share it with anyone who might be interested. When you are at your new years party and conversation turns to real estate, remember this article. We look forward to working with you in the future!

Mark Sprague is a noted and respected expert on the real estate, financial industry and the Austin market, in particular. He is also the Director of Information Capital for independence Title, and we are fortunate to have access to his expertise and opinions. He was just asked for his views on the local Resale numbers from Austin Board of Realtors.

The local real estate market turned from the bottom over a year and a half ago. But it was a slow turn, only lately has it begun to showing stronger levels of interest primarily in resale’s. Other portions of the local real estate market ( commercial on almost all channels) have also begun to show strength. Is it back to 05/06 numbers? No, but stronger showing than the last 3 years.

Is it time to buy? Absolutely! Those that have been shopping will tell you that below $500K the market is very tight in Travis County. The home (that’s priced correctly) you look at today, will not be there tomorrow.

Surrounding county markets ( particularly where production homebuilding was strong 04 through 06 continue to see resistance due to foreclosure values). On a larger scale, there has been over 2500 potential developed lots being negotiated or sold over the last 30 days. A strong indicator of the vitality and interest in this market.

What will 2012 bring? With unemployment continuing to drop locally as well as regionally, rental housing continuing to tighten, for sale residential as well as commercial markets tightening it should be a better year. I hope that history will show that 2011/12 mirror when the local market turned after the last major recession in 92/93.

What has held Austin back has been the national housing market.

Austin, San Antonio and Houston have made the turn regionally. D/FW continues to struggle so we are not ‘out of the woods’ yet.

Link to the Austin American Statesman article;