Austin Housing Market OK, Will Improve This Year

Austin Housing Market OK, Will Improve This Year
The spiraling home market has neared stabilization and could see a slight rebound in Austin this year, according to local real estate experts during a 2010 housing forecast Wednesday.

Speakers during the Austin Board of Realtors and the Home Builders Association of Greater Austin event pointed to the relatively better job market as one sign improvement is on the way.

The Texas Workforce Commission reported the area lost about 4,300 jobs in the 12 months ending November 2009, which is better when compared with cities like Houston and Dallas, which lost 88,900 and 50,700 jobs respectively.

The program was presented and moderated by Eldon Rude, who directed a residential real estate market study comparing Austin with 30 other U.S. metros. He said Austin builders cut new home production by about 19 percent last year, breaking ground on 6,490 new homes.

“Starts have stabilized in recent quarters, builders have closed more homes than they have started for the last three years. This strategy has resulted in far fewer inventory issues in the Austin new home market compared to the more challenged markets across the U.S.,” said Rude.

The study anticipates new home starts maintaining 2009 levels, primarily due to slow job growth through at least the first half of 2010.

Though home pricing and buying has improved, experts said the true test will come when interests rates begin to climb and the stimulus-fueled tax credits run out.

Source: Austin Business Journal : Thursday, January 14, 2010, 9:58am CST