Sep

21

July 2009 Real Estate Musings

Posted by dbrodsky under For Buyers, For Realty Professionals, For Sellers, General Information

After 13 straight days of 100+ degree weather in Austin, I have a renewed appreciation for air conditioning. “Oh, but it’s dry heat, David.” It’s all the same to me when you can boil an egg in your car.
On the upside, it’s also getting warmer in the Austin real estate market. In several areas, sales have picked up and prices have also stabilized. We are even seeing some inventory absorption as units for sale are down by almost 9% year-on-year through the middle of July.
And, as an added bonus, I have converted my monthly newsletter to what I hope you will find to be a more readable and useful format. Let me know what you think. I value your feedback!

Sincerely,
David Brodsky
Your Personal CFO

When To Counter An Offer:
In the current buyers market, it is not uncommon to receive an offer for a property that is substantially below the asking price, despite the fact that the property is priced appropriately based on recent ‘sold’ comps. Rather than getting mad or feeling dejected, this is when you should allow your agent to earn his/her fee.
In my experience, is critical to counter, regardless of how low the initial offer was. By countering the offer, you convey just how firm your current list price is and send a message to the prospective buyer that you want to sell the property…just not at the price they have offered. A serious buyer will now have an understanding of what it will take to continue negotiating and a less than serious buyer will likely walk and exit the process.
Remember, a ‘low ball’ offer could be the first step towards getting your house under contract at or near full price. This is where your agent should demonstrate the art of the deal.

First Time Home Buyer Assistance

While the current first time home buyer tax credit (which expires on December 1, 2009) can be an excellent incentive to facilitate a new home purchase, there are several things to consider when making the decision to purchase a home. Perhaps the most important is the agent you select to help educate, guide, negotiate and navigate you through this important process.
As I consult with many first time purchasers, I am regularly impressed with the significant questions these buyers have and am thankful for the opportunity to assist in this important, exciting and sometimes scary process.
If you are contemplating the purchase of a new home or know somebody else who is about to embark on this process, I would welcome the opportunity to consult with them.
For a complimentary guide on buying your first home, please click on the link below to order your own copy. This publication will guide you through everything from the decision to buy to the closing of the deal and subsequently protecting your investment.
Stay tuned as well for my free upcoming first time home buyer seminar in August. More details to follow….
FREE FIRST TIME BUYER GUIDE

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Apr

29

Real Estate Musings From Your Personal CFO- April 8, 2009

Posted by dbrodsky under For Buyers, For Realty Professionals, For Sellers, General Information

Real Estate Musings From Your Personal CFO                                                                                                                                                                      

Volume  10        

April 8, 2009

                                                                                                                                                                                                                                                                                                                                                                                                                             


 The Shift Is On:

Aaah……the beauty of America and Capitalism and how consumer behavior changes in economic cycles. When the economy is robust, consumers Over Spend and Under Save.   In a recession, consumers adjust and  Under Spend and Over Save.   When the economy is robust, consumers Over Borrow and Over Pay.  

And with the current recession, herein lies the opportunity within the real estate market……….   As the pendulum representing consumer behavior swings back in an effort to realign our economy, consumers will seek to Under Borrow and Under Pay.  Many local real estate markets currently reflect this buyers opportunity.   However, the economy runs in cycles and as housing  inventory adjusts, many of the opportunities to buy at lower prices will be taken advantage of and yet another shift will begin.


 Real Estate Market Drivers: (Inventory, Interest Rates and   Affordability)

The attached slides provide a snapshot of the drivers of the national  real estate market.   These graphs clearly reveal the opportunity in real estate  that has been  emerging. It is unlikely you will see these graphs on the national news!

Inventory: Fewer homes went on the market in January, resulting in a 6% decline in months’ supply of homes.   The overall inventory of homes fell to the lowest level in two years due to significant declines in homebuilding activity and moratorium on foreclosures in several states.

Interest Rates:   Interest rates continue to fluctuate between approximately 4.7% and 5.25% for 30 year conventional money.   These rates are historically low and driven by the current rate of inflation which is approximately zero!   Keep in mind, as money supply increases as a result of government stimulus, the threat of inflation also increases and the pressure on interest rates is upward. For those with the capacity to borrow, money has never been cheaper.

Affordability: Housing affordability, as measured by the percentage of a median family’s income required to make mortgage payments on a median priced home, is at record levels due to declining home prices and low mortgage rates.   As a result, the purchasing power of a typical family rose considerably.   According to NAR’s (National Association of Realtors) housing affordability index, a median income family earning around $60K could afford a home costing $283K in January with a 20% down payment.


 Macroeconomic Picture:        

In many areas around the country, home values are priced under market value. Mortgage rates remain at historical lows and housing affordability is greatly improved. Considering these factors, it is likely that demand is building among buyers who are able and willing but waiting on the sidelines. Many smart buyers are taking action and continuing to find deals  .

You have heard, and will continue to hear me say, the ‘smart money’ is evaluating the current market opportunity and taking advantage of good investing principles. Time in the market versus timing the market is the strategy that has built wealth for many in real estate.   Those looking for the absolute bottom with a short term perspective often look back at the opportunity they once missed.  


 

 First Time Home Buyer    Opportunity Of A Lifetime (Through November 30th):The government acted boldly in February to stimulate the economy and help stabilize the housing market. Among the measures taken was a tax credit of up to $8,000 for   qualified first-time buyers in 2009. Unlike the previous version, the new credit does not have to be repaid as long as you own the home for three years.  This tax credit, combined with increased FHA loan limits and historically low interest rates presents the opportunity of a lifetime for first time home buyers!

 

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Jul

14

Real Estate Musings From Your Personal CFO

Posted by dbrodsky under Austin, For Buyers, For Realty Professionals, For Sellers, Regional News

Real Estate Musings From Your Personal CFO                                                                                                                                                                      

Volume      5        

July 7, 2008

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AUSTIN BY THE NUMBERS: (Data courtesy of Alamo Title)

Austin Residential Units Sold  Through May ’08 :

Monthly Residential Closed Units Year to Date

Austin Month in Review (June ’08 vs. June ’07):Units For Sale:

New  Listings were up  23.22%.Pendings were down 53.42%.

Solds  were down 18.27%.

Average Prices:

The “New Listings”  Average  List  Price  was down 2.79% to 316,032.    In June 2007, the average list price was $325,115

The Sold  Average  Sales  Price increased 4.71% to $266,175.   For June 2007 it was  $254,211

Austin Week in Review (June 29 – July 5, 2008) As Compared To Same Week in 2007:

Units For Sale:

New  Listings  were down 14.83%    

Pendings  were down 75.36%

Solds were up 33.93%

Active Listings were up 38.36% (12,711  vs. 9,187 during the same week in 2007)

Average Prices:

The Sold Average Sales  Price increased 14.40% to $337,823.   In 2007 it was $295,312 for the same week.  


 WHY IS AUSTIN DIFFERENT FROM THE REST OF THE COUNTRY:

  • Home prices in Austin are generally stable and many homes continue to appreciate
  • Austin is one of the most affordable markets in the country
  • Supply of (builder)  inventory homes is more limited  
  • Strong local economy; Austin is ranked 4th for cities with the hottest job markets (Austin Business Journal)
  • People want to live in Austin; location…location….location


THE SONG REMAINS THE SAME:  

……not just for you Led Zeppelin fans.   Real estate markets remain local and Austin is an area of opportunity despite national forecasts of gloom and doom. For qualified buyers, now is an excellent time to take advantage of interest rates and purchase your first, next or investment property. Remember, even if prices soften a bit, the continued threat of inflation will likely drive up interest rates later this year and the strategy of waiting will not pay off. For realistic and motivated sellers, now is still a good time to sell.   Given the increase in inventory available, however, your property needs to be in excellent condition and priced competitively, in-line with market sold comps specific to your local area.


 If your home is currently listed with another realtor, this is not intended as a direct solicitation.   Equal Opportunity Housing    


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Jul

14

Welcome to David Brodsky’s Blog!

Posted by dbrodsky under For Buyers, For Realty Professionals, For Sellers, General Information

Welcome to David Brodsky’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Austin.

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