Value of Austin Homes Remains Stable

Value of Austin homes remains stable: Real estate market grows due to first-time buyers and young people in their early 20s

Despite home price depreciation around the rest of the country, Austin housing is holding its value. According to an Austin Board of Realtors study, the median price of single family homes is at $200,000, a 4 percent increase from last June. "Our homes are affordable in comparison. Less than $200,000 is amazing," said Socar Chatmon-Thomas, chairman of the board. "In most parts of the nation you can't buy anything as a first home for less than $350,000."Sales of single-family homes are coinciding more with national figures, as they have decreased by 20 percent since last June."

Austin is a vital and dynamic environment because of business growth," said Beverly Kerr, vice president of research at the Austin Chamber of Commerce. "We're a lot less expensive in terms of taxes and regulation than other tech industry centers and we're a great place for quality of life."

Forbes magazine ranked Austin as America's third-most "recession-proof city" in April. At 3.7 percent, Austin's unemployment levels are nearly 2 percent below the national average."Growth in Austin is really driven by the job market," said Chay Walker, senior agent manager at Austin's Uptown Realty.

However, Walker said, Austin's 6 percent unemployment rates in 2001 and 2002 prevented the city's housing market from growing at 45 percent, the highest appreciation rate seen in some parts of the country, Walker said."Austin's real estate market stayed flat," Walker said. "When the rest of the country started having problems, our markets were just coming around." Austin builders responded to the crisis by scaling back production of new homes, Chatmon-Thomas said. Austin housing appreciation continues to hold steady at around 5 percent.Chatmon-Thomas said some of Austin's real estate growth stems from an influx of Asian-American and Hispanic first-time home buyers and younger buyers. "A lot more young people are buying homes in their early 20s," Chatmon-Thomas said. "I think it's that younger people realize the value of a home and realize that 'If I purchase this home now, I can use it as an investment property when I get married or change lifestyles or whatever.'"

By Mohini Madgavkar
The Daily Texas

Top 25 Markets Shake-Up

Top 25 Markets Shake-Up

The once top-rated housing market Yakima, Washington is beginning to run out of gas, and falls from the number #1 forecast position in Housing Predictor's Top 25 markets for 2008.

After years of strong sales and appreciation, the Yakima market is slowing and is forecast to slide over the rest of the year. A ripple effect of tighter mortgage lending standards and increasing inventory is beginning to impact the marketplace.

Biloxi, Mississippi all but destroyed by Hurricane Katrina, is in the number one position. A government sponsored program is helping the area rebuild what was once the second largest casino business in the country to Las Vegas.

The Top 25 with the highest forecast appreciation have the greatest probability of reaching their forecast of the more than 250 local housing markets Housing Predictor forecasts.

Conservative North Dakota with one of the strongest statewide economies nationally, and the lowest subprime mortgage activity in the country, placed three cities on the list. Four states each placed three communities on the list.

Interestingly, the top markets for 2008 are scattered throughout all parts of the U.S. from the west to the east and into the southern states. No particular region of the country was more dominate than another as more and smaller communities based on population made the Top 25, which have less appreciation forecast than earlier in the year.

Rank Real Estate Market 2008 Forecast

1. Biloxi, MS 4.9%
2. Salem, OR 4.7%
3. Bismarck, ND 4.6%
4. Spokane, WA 4.4%
5. Yakima, WA 4.1%
6. Austin, TX 4.0%
7. Grand Junction, CO 4.0%
8. Fargo, ND 4.0%
9. Mobile, AL 3.9%
10. Idaho Falls, ID 3.8%
11. New York, NY 3.8%
12. Glen Falls,NY 3.8%
13. Salt Lake City, UT 3.8%
14. Grand Forks,ND 3.8%
15. Pascagoula, MS 3.8%
16. Hattiesburg, MS 3.7%
17. Albuquerque, NM 3.5%
18. Kellogg, ID 3.5%
19. Boise, ID 3.5%
20. Provo, UT 3.1%
21. Ogden, UT 2.7%
22. Edmond, OK 2.6%
23. Oklahoma City, OK 2.5%
24. Amarillo, TX 2.4%
25. Lubbock, TX 2.3%