The third quarter of 2011 was marked by a strong volume of home sales in Austin, outpacing 2010 by 32 percent in July, 33 percent in August and 31 percent in September. Median prices remained stable, ending the quarter with a median price of $189,000 in September, only two percent less than one year ago.

Pending sales, which are sales that will likely close within the following month, also enjoyed high volume during the third quarter of 2011. Compared to 2010, July saw an increase of 28 percent, whereas August and September both saw increases of 19 percent. A total of 14,862 homes were sold between January and September of 2011, which is six percent more than the same period in 2010.

“With the impact of the homebuyer tax credits fully behind us, it's encouraging to see three consecutive months of year-over-year growth in sales volume for Austin-area homes,” said Judith Bundschuh, Chairman of the Austin Board of REALTORS®. “In the midst of that growth, Austin home values have remained stable.”

For more information about the Austin real estate market and how it may affect you, contact your Central Texas REALTOR®.

Home prices in Austin remained stable during the second quarter of 2011. Compared to the previous year, the median price of Austin homes rose three percent in April and four percent in May, finishing with a median price of $205,000 by the end of June. In addition, June saw an increase of Austin home sales, nine percent more than June of 2010.

During the first half of the year, a total of 9,299 homes were sold in Austin, five percent fewer than the same period in 2010. However, pending sales, which indicate the number of sales likely to close in the next month, were higher in the second quarter when compared to 2010, with a 53 percent increase in May and a 31 percent increase in June.

Austin homes spent an average of 88 days on market (DOM) in April, 81 days in May and 75 days in June, marking the shortest DOM figures since the Fall of 2010. While these numbers indicate that Austin real estate spent more time on market than during the same period one year ago, they were the lowest DOM figures seen in Austin since September 2010.

"Looking at the results, it's encouraging to see that the demand for homes is strong and that Austin-area homes continue to hold their value," said Judith Bundschuh, Chairman of the Austin Board of REALTORS®. "The increase in pending sales…coupled with stable prices and stronger sales [in June], are encouraging signs that the market is returning to a pre-recession seasonal cycle."

For more information about the Austin real estate market and how it may affect you, contact your Central Texas REALTOR®.

The first quarter of 2011 was marked by stable home prices and a healthy inventory of homes in Austin's real estate market. Compared to 2010, the median price for Austin homes increased by six percent in January, two percent in February and two percent in March of 2011, landing at $185,260 at the close of the first quarter.

A total of 3,631 homes were sold during the first three months of 2011, three percent fewer homes than were sold during the same period the previous year. Austin's month's supply of inventory ranged from 5.4 to 6.2 months, whereas national figures ranged from 7.5 to 8.5 months. According to the Real Estate Center at Texas A&M University, 6.5 months of inventory indicates a balanced market.

Judith Bundschuh, Chairman of the Austin Board of REALTORS®, noted, "Like all of 2011 thus far, we must recognize that month-to-month comparisons are still being influenced by the impact of last year's homebuyer tax credits. Thus, fluctuations in sales volume and listings compared to last year are to be expected."

For more information about the Austin real estate market and how it may affect you, contact your Central Texas REALTOR®.

The Austin Board of REALTORS® recently released its Multiple Listing Service (MLS) report for December of 2010, concluding their analysis of the Austin housing market this past year. So how did Austin real estate perform in 2010?

Austin home sales posted year-over-year increases during the first half of 2010, with the biggest upsurges occurring in March, April and May (with increases of 27 percent, 31 percent and 24 percent respectively). John Horton, 2010 Chairman of the Austin Board of REALTORS®, explained that the substantial increase in sales during this period was likely due to the expiration of the homebuyer tax credits on April 30.

Horton noted that "we have the unique situation of the homebuyer tax credits that inspired many buyers to purchase homes sooner than usual. Thus, it's more meaningful to evaluate our market from a year-to-date perspective, instead of month-to-month, to gain a clear picture."

Overall, a total of 17,905 single-family homes were sold in Austin in 2010, a five percent decrease compared to 2009. Homes in Austin took an average of 77 days to sell, which is two percent less than the amount of time it took in 2009. The median price of Austin real estate remained stable, averaging at $193,520 for the year, a three percent increase from 2009.

The Austin market also remained healthy in regards to its housing inventory. The Real Estate Center at Texas A&M states that 6.5 months of inventory indicates a healthy market, with anything above 6.5 considered a "buyer's market" and anything below considered a "seller's market." Austin's month's supply of inventory ranged from 5.4 to 7.3 in 2010, while national housing inventory ranged from 6.9 to 11.9.

Heading into 2011, Austin appears to be on the road to economic recovery. Last month, attendees of the 2011 Housing Forecast co-hosted by the Austin Board of REALTORS® and the Home Builders Association of Greater Austin gained some insight into the future of Austin's housing market and economy.

Eldon Rude, Director of the Austin Market for Metrostudy and one of the speakers at the housing forecast, predicted that slowed home construction, as well as increasing apartment occupancy and rental rates would help Austin's housing market, noting that "with increasing rent, renters will have to decide whether to keep paying rent or buy a home." Rude believes that home pricing pressure, job growth and consumer confidence will help put Austin's economy back on track in 2011 and into 2012.

To learn more about real estate predictions for the coming year, watch our 2011 Market Forecast video. This video features a summary of the topics discussed at the 2011 Housing Forecast, including future trends and challenges facing the Austin real estate industry.

Statistics from the December 2010 MLS report can be found in our Austin Real Estate Report section. Be sure to check in each month as we evaluate Austin's housing market throughout 2011.

If you've ever read the Austin Real Estate Report on AustinHomeSearch.com, you've probably seen terms such as "year-to-date" and "inventory of homes." To help you decipher the real estate jargon and better understand the statistics shared from the Austin Board of REALTORS®' monthly Multiple Listing Service (MLS) reports, we've provided a glossary of terms commonly seen in real estate market reports.

Single-family homes - Though MLS reports track a wide variety of property statistics, including those regarding condominiums, townhouses and commercial properties, the general health of the Austin area real estate market is typically judged by the statistics regarding single-family homes. As the name implies, a single-family home belongs to one family and is a free-standing property with its own lot. These properties are what commonly come to mind when one thinks of a residential neighborhood property.

Median price - The median price listed on a monthly MLS report indicates the middle price point of homes sold in the past month. In other words, if home sale prices were listed from lowest to highest value, median price would be the number that falls in the middle of that list. The median price is usually referred to instead of average price, as the average price can easily be skewed by "outliers," such as a small number of very highly priced homes.

Active home sales - This term refers to property listings currently for sale on the market. Properties that are undergoing contract negotiations are not included in this figure.

Days on market (DOM) - This figure is indicates the time a property spent on the market---measured from the moment the property was listed to the point when the seller began contract negotiations.

Year-over-year - This measurement compares the market conditions from the month of the report to the same month the year prior. These statistics give readers a small snap-shot of where the real estate market stands in comparison to last year.

Year-to-date (YTD) - YTD measurements include overall market activity from the beginning of the year (January 1) to the date of the report's publication. Comparing year-to-date numbers for the current year and previous year illustrates how the overall activity seen this year compares to what we saw during the same time period last year.

It's important to use both year-over-year and year-to-date statistics to understand how this year's market compares to last. Year-over-year comparisons are useful in determining how the market is doing during expectantly high or low selling seasons, and big increases or decreases in the percent difference may indicate the influence of abnormal, outside factors and conditions.

Year-to-date figures are often a more meaningful measurement when comparing one year to another. For example, the same MLS report that shows home sales are down 15 percent year-over-year may also show that home sales are up seven percent year-to-date, indicating that the market is actually out-performing the previous year thus far.

Pending Home Sales - This term refers to listings that have sales contracts in the works. As most pending sales are likely to close in the next month, a spike in year-over-year pending home sales suggests we may see an increase in year-over-year sales the next month, although this is never a guarantee.

Month's Supply of Inventory (MSI) - MSI is a calculation of the time it would take to sell the current amount of active listings on the market, based on the average amount of sales made in the past 12 months. The resulting number of the calculation is considered a "leading" indicator of sales activity and market health.

According to the Real Estate Center at Texas A&M, it would take about 6.5 months to sell the average amount of active listings in a balanced market. Anything above 6.5 MSI is considered to be a "buyer's market," while anything below is often considered a "seller's market."

These are just a handful of terms to help you understand what each MLS report conveys about the Austin real estate market. Be sure to speak with your Central Texas REALTOR® to clarify what these statistics mean and how they may affect your transactions, whether you are looking to buy or sell an Austin home. To stay abreast of the most recent market statistics in Central Texas, visit our Austin Real Estate Report section here at AustinHomeSearch.com.

With 2011 just around the corner, many Texans are wondering how the Lone Star State and its capital city will fare economically in the coming year. According to recent predictions from some of Texas' top economists, 2011 looks to be a promising year.

In a recent interview with Smart Business Dallas, Dana Johnson, senior vice president and chief economist at Comerica Bank, predicted that Texas will continue performing above average when compared to the rest of the nation.

"In short, the past success of the Texas economy positions it for more success as a national and global expansion continues to emerge in 2011," said Johnson. "The favorable growth trends in the state will continue to attract businesses and households looking to relocate. Texas' relatively mild housing woes will help sustain its growth advantage, too."

Today, the median price of a Texas home is about 15 percent lower than the rest of the nation. Johnson noted that foreclosure rates in Texas are also lower than the national average, which he believes "should limit further downward pressure on Texas home prices."

For Austin specifically, the economic future is encouraging, as well. In early December, four economists presented their predictions for 2011 at the Austin Chamber of Commerce's annual economic forecast luncheon. The panel consisted of Thomas Gilligan from the University of Texas, James LeSage from Texas State University, Bobby Jenkins (filling in for Thomas Saving) from Texas A&M University and Stephen Gardner of Baylor University. Below are the key points from the event:

• Three of the four economists predicted that Gross Domestic Product (GDP) growth would increase between 2.7 and 3 percent, while the fourth economist estimated an increase closer to 5.4 percent.


• All four economists expected the prime interest rate to be between 3.25 and 4 percent by the end of 2011.


• The panel unanimously predicted that the 30-year fixed mortgage rate would be between 4.8 and 5.5 percent by December 2011.


• Regarding job growth in Austin, three of the four economists projected a 2.6 percent increase in jobs, while the fourth economist suggested a 6 percent increase.


• In terms of job growth statewide, three economists predicted a 2 percent increase, while another proposed a 4 percent increase.

Eager to hear more economic forecasts about 2011? Join the Austin Board of REALTORS® (ABoR) and the Home Builders Association (HBA) of Greater Austin at the 2011 Housing Forecast on January 13. Event attendees will hear from real estate industry experts who will offer their expectations regarding both the local and national economy, as well as market trends for the coming year.

For more information about this event and to purchase your tickets, visit ABoR's 2011 Housing Forecast event page.

There's no better time than the holiday season to remind ourselves of why we should be grateful. For Austinites, gratitude is easy to come by, as there are hundreds of reasons to love the Texas state capital. Below, we've narrowed down our list and chosen five reasons we're lucky to live in Austin, Texas.

Originality
This summer, Kiplinger ranked Austin No. 1 as the "Best City for the Next Decade." It's "best of" list sought to emphasize cities which "specialize in out-of-the-box thinking," having traits that encourage innovation in business, culture and technology. Kiplinger described Austin as "the country's best crucible for small business."

Economic Stability
Texas has fared much better than most states during these tough economic times. Newsweek noted that the "Texaplex"—Austin, Dallas, San Antonio and Houston—is "the No 1. destination for job-seeking Americans." In addition, The Austin American-Statesman recently reported that the job market in the Austin area has remained strong throughout the past year, having added more than 18,000 jobs since November 2009. Austin also has a lower unemployment rate when compared to many other cities in and out of Texas.

Real Estate Strength
Historically, Austin's housing market has maintained its value quite well. For example, the average home purchased in December 2002 and sold six years later in December 2008 appreciated 20 percent. With some Austin mortgage payments requiring less than $800 a month, Austin was also voted No. 1 for affordable housing by U.S. News in 2010, and was named the second healthiest real estate market by Hanley Wood Market Intelligence in 2009.

Excellent Education
Austin is home to the University of Texas and seven other public and private universities, as well as 29 public school districts, 17 charter schools and 69 private schools. In September 2010, The American Institute for Economic Research placed Austin at No. 2 for best mid-sized college town in the country. The article highlighted a wide array of statistical data pertaining to Austin, including high degree attainment, student diversity and varied commuting options, as well as Austin's "ample arts, strong creative class and beating entrepreneurial heart."

Never-ending Fun
Last but not least, it's hard not to mention how much fun you can have in Austin! Portfolio.com named Austin the No. 1 best city for young adults, citing the annual South by Southwest festival and its high population of 18–34 year olds (about 28 percent of the total population) as examples. However, the young–at–heart can find pleasure in Texas state capitol as well. TopRetirements.com ranked Austin as the 5th best place to retire, out–ranking 95 other cities.

Austin regularly receives praise from research groups and publications across the country, whether it be for our diverse music scene, our booming small business trade or our quirky culture and vibe. For more reasons to be thankful that we live in Austin, Texas, check out our Austin/Central Texas News section here at AustinHomeSearch.com.

We wish you and your family a happy, healthy and safe holiday season!

You may have heard about—or even been affected by—the recent foreclosure freeze and be wondering exactly what led to this situation and what it means for home buyers and sellers. If so, the following information may help share shed some light on the issue.

Earlier this month, Bank of America froze home foreclosure sales in all 50 states after reports indicated that employees of the lenders may have mishandled foreclosure documents. Other major lends such as JPMorgan Chase and GMAC Mortgage followed suit, though they limited the freeze to 23 states, not including Texas. The freeze was a response to allow these lenders time to review the foreclosure process and determine whether recent foreclosures were in accordance with state laws.

Suspicions are aimed at an illegal practice known as "robo-signing," which refers to signing an affidavit without adequately reviewing the document. The practice is called "robo-signing" because the documents are signed quickly, almost automatically, as if a computer performed the task. Without fully understanding the affidavit being signed, lenders risk placing foreclosures on homes without having the legal right to do so.

In Texas, a demand letter was sent to 30 mortgage banking and servicing institutions by the Texas Attorney General, requesting that they "suspend all foreclosures, all sales of properties previously foreclosed upon, and all evictions of persons residing in previously foreclosed upon properties." The letter's definitions of possible infringement includes "signing documents without reading them," and "filing documents with records attached that did not correctly reflect loan payments, charges and advances."

John Horton, Chairman of the Austin Board of REALTORS®, recently spoke to KVUE news in regards to this matter. For sellers with non-distressed assets, Horton noted that the situation may help them compete with foreclosures, as buyers may be less inclined to purchase properties affected by the foreclosure freeze. Horton also mentioned that the freeze shouldn't have a drastic effect on the Austin area, as only about five percent of the Austin market consists of foreclosed properties. However, Horton noted: "...for sellers, if they can wait to put their home on the market in the Spring, they probably should."

Recently, Bank of America and other banking institutions have begun lifting the freeze in many states. In states where the freeze has been lifted, court cases have been proceeding to determine the validity of foreclosures on a case-by-case basis. In states such as Texas, where judges don't sign off on foreclosures, the freeze is scheduled to continue for an undisclosed period of time.

For more information and updates on this issue, talk to your REALTOR® or visit the National Association of REALTORS® website at www.realtor.org

The first quarter of 2010 put forth a solid performance from the Austin real estate market. While home sales increased modestly during January and February, year-over-year Austin home sales increased a remarkable 27 percent in March, bringing the total amount of homes sold in the first quarter to 3,749 - a 12 percent increase over the first quarter of 2009. The median price of Austin homes remained relatively unchanged from one year ago, ending the quarter at $180,000.

Pending sales, which indicate the number of homes expected to sell in the next couple of months, remained elevated during the first quarter, increasing 7 percent in January, 24 percent in February and 31 percent in March 2010. These increases bode well for the Austin real estate market.

In the face of increasing sales volume, the Austin real estate market maintains a healthy inventory of homes. The Real Estate Center at Texas A&M University cites 6.5 months of inventory as a balanced market, meaning demand for homes is evenly balanced with inventory of homes for sale. At the end of the first quarter, Austin held a 6.4 month supply of homes.

For more information on the Austin real estate market and how it may affect your buying or selling situation, contact your Central Texas REALTOR®.

Did you know the U.S. population is becoming increasingly older and diverse? What's more, our nation's population is expected to increase by 100 million people in the next 30 years!

A report released by the National Association of Home Builders in January 2010 indicates that homebuilding trends are shifting to meet the new demands of present and future homebuyers. Specifically, homes built in 2010 will likely be smaller and lower-priced models that offer more energy-efficient features.

The following items are reported as most likely to be found in new homes in 2010:

• Walk-in closet in master bedroom
• Laundry room
• Insulated front door
• Great room
• Low-emittance (Low-E) windows
• Linen closet
• Programmable thermostat
• Energy-efficient appliances and lighting
• Separate shower and tub in master bathroom
• Nine-foot ceilings on first floor

These features will likely replace those that are less essential or more costly, such as outdoor kitchens, two-story foyers and multiple shower heads in master bathrooms. Homes that are easier to maintain are in, and energy inefficiency is becoming a trend of the past. For more information regarding homebuilding trends and homebuyer preferences visit www.nahb.org.

What began as a year with double-digit decreases in year-over-year home sales concluded with 2009 year-end totals falling only six percent short of the year prior. This comeback was made possible by the surge in home sales seen in the fourth quarter of 2009—a 38 percent increase in October and a 58 percent increase in November—possibly attributed to the original deadline for the first-time homebuyer tax credit.

Local economic conditions, housing trends and extended homeowner incentives lead most experts believe that the Austin housing market reached its bottom in 2009 and is now on the path of stabilization and recovery, though significant gains are not expected until the later part of 2010.

For a review of the Austin real estate market’s performance in the fourth quarter of 2009 and indicators as to what activity we might expect in the coming months, don’t miss the latest edition of AustinHomeSearch Live. For further information on market conditions, contact your Central Texas REALTOR®.

Fact or fiction? Find out which statements are complete myths when it comes to Austin’s real estate market.

1. Home prices have decreased dramatically. Wrong! Data from the Austin Board of Realtors® shows that median price levels have remained stable while gradually increasing—for example, a median price of $175,500 seen at the start of this year (January 2009) had become $185,250 by the end of the third quarter (September 2009). In addition, median prices seen throughout 2009 have fluctuated only slightly compared to 2008 while remaining above those seen in 2007.

2. It’s the wrong time to buy real estate. False! Thanks to its job market, stable home prices and affordability, Austin has the second healthiest housing market in the nation. There are plenty of homes available, and those ready to buy can take advantage of homebuyer tax credits, housing grants, low interest rates and renewable energy incentives.

3. It’s the right time for everybody to buy real estate. Nope! Whether it’s a good time to buy depends not only on the local housing market, but on the goals and unique situation of each person. Someone who is neither emotionally nor financially ready to handle homeownership should not enter into a real estate transaction—even when the market presents good opportunities. Talk to your REALTOR® to make the decision that’s right for you.

4. It’s a terrible time to sell. Wrong again! Austin real estate is sold every day to first-time and seasoned homebuyers looking to take advantage of amazing homeownership opportunities and incentives. In addition, sellers who work with a REALTOR® can usually sell their homes more quickly…in any market.

5. More homes are being sold by owners, making REALTORS® obsolete. No way! In the Austin area area, the percentage of people who planned to use a REALTOR® rose to 82 percent in 2008. According to the National Association of REALTORS® (NAR) the majority of For-Sale-By-Owner (FSBO) sellers are located in rural areas and small towns where the seller knows the buyer. It’s important to recognize that the value of REALTORS® goes beyond their access to the Multiple Listing Service (MLS)—it lies in the many other resources and services they bring to the table.

Central Texas real estate is different. Get the facts from your REALTOR® today or Find a REALTOR® on AustinHomeSearch.com.

Thinking of buying or selling real estate in Austin, Texas? That’s fantastic!

As history has proven, Texas survives. That’s why we are ranked as the top state for business and jobs in the current economy, the second largest cyber state and fourth best tax free haven.

And located in the heart of the Lone Star State, Austin has been recognized among the top 10 best cities to live.

So what does this mean for Austin’s housing market?

Undeniably, effects of the national economic crisis have trickled into nearly every city in the nation. However, because of its location, diverse economy, and business opportunities Austin has been named the city best poised for recession recovery by Forbes, with its economy projected to grow by $5 billion by 2010.

Though Austin has taken its lumps by way of decreased sales volume along with everyone else, “the bloom is back in Austin’s yellow rose” according to Boyce Thompson of Builder, which ranked Austin the second healthiest housing market for 2009 based on its location, pricing and population trends, number of building permits and local job growth.

Austin real estate has proven a strong investment. Those who purchased a home at Austin’s median price six years ago would find that it has increased in value by 20 percent. The city continues to “hold the line” on home value because Central Texas real estate prices have not experienced periods of rapid inflation or deflation.

AustinHomeSearch.com is one of the most trusted and comprehensive online resources available to find a REALTOR®, browse properties and learn more about Austin real estate. Why not begin your Austin home search today?

Whether you’ve just moved to Austin or have lived here your entire life, there’s always something new to learn about the capital of Texas, a city constantly buzzing with music, business, technology, outdoor adventure and family fun.

U.S. News & World Report ranks Austin as the third best place to live, based on its economy, affordability and fun things to do—and that comes as no surprise to native Austinites or the thousands of people who find jobs, buy real estate and first experience the social scene in Austin every year.

Officially recognized as the "Live Music Capital of the World" since 1991, Austin is stage to a wide variety of popular and up-and-coming artists. Well-known music festivals including Austin City Limits and SXSW (South by Southwest) attract music lovers from around the world, and live music can be heard in Austin every day of the week.

Relocating to Austin? Good choice. Austin has been named the best city for a "fresh start" and the region best poised for recession recovery. In addition, Austin maintains its status as a fit city, boasting low levels of chronic health conditions and offering a wide variety of outdoor and indoor fitness activities.

With so many entertainment, business and real estate opportunities in Austin, it can be hard to know where to begin. AustinHomeSearch.com is your source for community and Austin real estate information. Visit the "Find a Property" and "Find a REALTOR®" sections to begin your Austin real estate search today!