National Home Prices Rise For 6th Consecutive Month
January 26, 2010
The latest Case-Shiller index housing valuations were released today, and home prices for the 20-city index rose for the 6th straight month for November. The index value was up 0.2% for November, to a value of 145.49. Demand has increased dramatically, largely in part to tax incentives for first-time home-buyers and the new amendments to the tax credit for prior owners.
The baseline of the index is a value of 100 for all cities according to their respective prices in January, 2000. The highest point measured on the index was 189.93 for Q2 2006.
Austin and the Case-Shiller Index
Demand in Austin has risen over the last few months. There has been a dramatic increase in Austin homes sales in the first-time homebuyer valuations, while homes in the upper price ranges have lagged behind, until recently. Homes in several affluent neighborhoods, such as Zilker in South Austin, have had recent sales of some of their higher-end homes.
We at Team Ensor have been very busy with homebuyers in Austin over the last few months, and we expect it to continue throughout the spring as the countdown continues toward the housing tax credit expiration.
Source: Yahoo Finance
Beige Book Data Shows Signs of Economic Improvement
December 2, 2009
Today the Federal Reserve Bank released the latest Beige Book data, and it showed signs of economic improvement in 8 of the 12 Fed Bank areas, led in part by residential housing. While we don’t have a Fed Bank located in Austin that reports on our local economy, we can extract some overall market data from the report, and also keep a close eye on the Dallas report since it’s our closest Fed Bank.
The summary of the report shows that home prices have continued to decline in the eastern Fed districts, but in Dallas housing prices were seen as firmed and stabilized. Looking at this data in conjunction with the recent ABOR housing stats that came out for this quarter (showing almost a 40% surge in residential sales volume), and it is evident that the national and Austin real estate markets are well on the road to recovery.
Only four Fed Banks revealed data that did not show signs of improvement in their areas: Philadelphia, Cleveland, Richmond and Atlanta.
What is the Beige Book?
For those who aren’t familiar with the term, the Beige Book is a compilation of data from the nation’s 12 Federal districts. Data is obtained by each area’s top economists, business leaders and market experts. It is seen as an overall report on the nation’s economic picture, and Beige Books are prepared 8 times per year.
Austin Home Sales Increased 38 Percent in October
November 19, 2009
According to the Austin Board of Realtors (ABOR), the number of home sales in Austin shot up 38% this October when compared to last October.
Austin Homes Sold
In October 2009, there were 1,823 homes sold, which represents a 38 percent increase from the 1,322 homes sold in October 2008. They stated that the median price of Austin homes sold in October 2009 was $182,000, which represents a five percent decrease from October 2008. ABOR did not release the amount of these homes that were distressed sales, as this particular study only evaluated the total volume of sales. However, they did mention that total dollar volume was $434,975,092 for single family homes — a 35% increase from 2008.
The report states that at the start of 2008, the number of home sales in Austin was down considerably when compared to 2008. That volume gap began to tighten in July when year-to-year volumes equalized, showing signs of improvement in the overall Austin housing market.
Austin Real Estate – October 2009 Statistics
•$434,975,092 – Total dollar volume of single-family homes sold, a 35 percent increase from one year ago.
•$182,000 – Median price for single-family homes, a five percent decrease from October 2008.
•1,823 – Single-family homes sold, up 38 percent from the same time last year.
HUD vs REO vs Short Sales in Austin: Which is best for a first-time homebuyer?
September 29, 2009
In the current housing market, there are considerably more HUD and REO homes on the market than ever before. As a result, we’ve been placing offers and selling more of these types of homes to both first-time homebuyers and investors. Someone recently asked Team Ensor about HUDs, REOs and short sales, and which one I thought made more sense for someone looking to buy their first home in Austin.
For those readers who aren’t familiar with the difference between the three, allow me to explain.
HUD homes are synonymous with Foreclosures. They are owned by a government agency (called HUD) and they sell them through a blind auction process. You submit your highest and best bid for what you are willing to pay for the house. On a set date pre-assigned by HUD, they will open the electronic bids and see who submitted the highest bid.
REO homes are bank-owned properties. A home or condo becomes REO when the owner has stopped paying mortgage payments and the lender decides to take possession of the house. This slightly differs from a short sale.
A short sale is a “pre-REO” where the homeowner is missing payments and contacts the bank for help. The bank asks the owner to complete a Hardship Packet that outlines the owner(s) financial situation. If the bank agrees to help, they will place the house for sale at a price “short” of what the bank is actually owed. During the short sale period, the owner will be allowed to continue to occupy the house while the sale is attempted. This is better in the eyes of the bank than letting a house sit vacant and be a possible victim of vandalism or theft and ultimately cost the bank even more money.
So, which one is better for a first-time homebuyer?
The answer: it depends. I know, I know…what an obvious answer. But it really does depend on the buyer, their time frames to take possession of the home and their patience levels. With a HUD home, you can expect to close in a “normal” closing time period: usually between 30-45 days if you need financing. You also get instant gratification of knowing if your offer was accepted once the bid process is completed. With REO properties, it usually takes a while longer. But, it depends on the bank who owns the property. Some banks have a very efficient REO department and can make decisions and contact the buyers quickly. Some banks…not so much. With short sales, however, the time frames are completely up in the air. I have heard about a bank that held a buyers’ offer hostage for almost 6 months and still has yet to provide an official accept/reject response.
Also keep in mind that almost every distressed sale — whether it’s a HUD, REO or short sale — is going to require some degree of work to bring it back to life. Don’t expect to walk into a foreclosure that is move-in ready. It is very common with these types of homes to find the appliances conveniently “missing” along with most doorknobs and light fixtures, etc. Expect anything not bolted down or anything that can be quickly sold to be gone. If you’re a first time buyer and this sounds intimidating, perhaps a distressed sale isn’t something you should be considering.
My advice for first time homebuyers looking to get a distressed sale and close quickly is to go for a HUD home first, followed by an REO second. Leave the short sales for investors, unless you’re in no hurry whatsoever to take possession any time soon. But if you’re looking to also capitalize on the $8000 Tax Credit for first time homebuyers, you should now be looking at HUD homes only if you want a distressed sale, or even better a regular resale home from a motivated buyer.
$8000 Tax Credit for First Time Home Buyers is Expiring Soon
September 26, 2009
There is only about three more weekends worth of house hunting left for first time buyers to get their hands on up to $8000 of tax credit incentives for real estate purchases. Reason being, that with the increase in underwriting regulations, lenders are now requiring up to 45 days to close from acceptance of a contract.
Yes, there’s a chance that the $8000 Tax Credit will be extended beyond the Dec 1, 2009 deadline, but why take the chance of missing out? If you’re on the fence or are considering a home purchase for the first time, take a few minutes to look through Austin homes and condos for sale using our Search page. If you see something you like, send us an email or complete the Contact Us form.
A few quick rules about the $8000 Tax Credit:
- Up to $8000 or 10% of your home purchase, whichever is lower.
- First Time Home Buyer is defined for the purposes of the tax credit as those who have not owned a home in the past 3 years.
- Income restrictions apply.
- You must keep the home for at least 3 years. If not, you have to pay back the Tax Credit amount received.
- Foreclosures, HUD and REO Homes do qualify for the tax credit. If you’re looking for a fixer-upper AND are a first time home buyer, this is a wonderful opportunity for you.
For additional details, please contact us and we’ll talk about your options.
Search Tools Added for Austin Real Estate
September 24, 2009
Welcome to TeamEnsor.com!
September 20, 2009
Hello everyone!
We at Team Ensor are laying the framework for what will soon offer up-to-the-minute content and information relating to Austin real estate. We’re expanding our team of the finest Austin real estate agents, industry professionals and business minds to provide our clients with exceptional service. Stay tuned in!
Our search tools are up and running on the Search page, so feel free to get started searching for Austin real estate and Austin Foreclosures right away!