Austin Texas Real Estate Blog

Design Workshop Inc. has taken up permanent residence in a 2,500 square foot space at 801 Congress Avenue a couple of months ago. Seven employees from Denver moved into the space in May 2008, hoping to grow their numbers to over 20 in the next three to five years.

Design Workshop is, according to their home page, ‘an award winning, international landscape architecture, land planning, urban design, and tourism planning firm.’ Combining concerns of environment, economics, art, and community, Design Workshop offers urban planning and affordable housing strategies, feasibility and environmental impact studies, project facilitation between the public, the corporate sector, and the community, as well as a host of other diverse land planning and design services.

Rebecca Leonard, a graduate of Ball State University College of Architecture and Planning, will lead the office. Her focus will be on developing projects for the firm, not only in the state of Texas, but will serve clients nation wide and in the Caribbean as well.

Texas projects by Design Workshop have thus far included master planning and design for the second phase of the Domain project in North Austin, initial planning for Hardy Yards in Houston and Bellaire Sustainable Development in Hurst.

The Domain development is a mixed-used community in Northwest Austin, combining commercial and residential uses in one area. The second phase of the Domain project will cover 27 acres south of the original Domain and plans include a three storey Dillard’s, an 80,000 square foot Dick’s, and an eight screen cinema complex, as well as a 340 room Westin hotel. Construction begins this summer, 2008, with plans for opening in November of 2009.

The old saying “April showers bring May flowers” is very true when it comes to the real estate market. Buyers seems to go underground at the first hint of cold weather and emerge, like so many Punxsutawney Petes as the ground and air thaws and the weather is more friendly toward house hunting activities.

According to this article in the Realty Times, the housing market in the nation as a whole is beginning to shake off the winter doldrums, as well as the residue of a burst real estate bubble, and starting to show a positive trend once again.

Austin is right up there with the fastest-selling inventories – houses average 67 days on the market.

Prices are beginning to rise slowly, indicating a healthy seller’s market, but also a good buyer’s market as inventory is still somewhat high and buyers have their choice of properties at still reasonable prices.

In its continued penchant to buck against national trends, average sales prices of homes in the Austin area rose almost 2 percent in April, with prices up about 12.5 percent over 2007. Average price of a home in Austin stands at just under $267,000.

Another event that is having a huge effect on the real estate market trend is the drastic rise in gasoline prices. This has had the social effect of potential home buyers considering what a commute would mean to their pocketbooks as they look at the choices between rural and urban home locations. Many energy-conscious consumers are beginning to cast an eye toward home-owning possibilities in the downtown area. A number of luxury apartment and condominium projects are underway in downtown Austin, and prospective homeowners are eagerly awaiting completion of these projects as they look toward a more urban and energy-efficient lifestyle.

With apologies to Frank Zappa, it’s Austin and not Centerville that’s a great place to raise a family. House prices remain low, but jobs continue to grow, creating a quality spot to relocate and settle for the duration.

Austin is home to eight independent school districts, which include the Austin Independent School District in Travis County and the Round Rock Independent School District in Williamson County. There is no lack of educational opportunities in the area as Austin is home to a branch of the University of Texas which offers studies in Business, Communication, Education, Engineering, Fine Arts, Nursing, Natural Sciences, Architecture and Social Work among many others.

The climate in Central Texas is conducive to many outdoor activities and Austin offers much in the way of events and activities for the whole family. There are plenty of art galleries, some that offer child-friendly activities and many with low or free fees. There is a long list of out- and indoor markets – flea markets, farmers markets, garage sales, and such on the weekends.

The Austin Zoo posts a very low entry fee. With 60 different species and over 200 animals, the zoo is a great place to spend the afternoon. The Topsey Exotic Ranch offers a drive-through safari for wildlife viewing from the comfort of your car for a low entry fee. And, if you love wild flowers, the Lady Bird Johnson Wildflower Research Center is open Tuesdays through Sundays. The Research Center reflects the late first lady’s love of wildflowers and her campaign to create beauty along the highways of the nation.

Austin’s low crime rate, clean environment, and low cost of living is a definite draw when families start looking around for a prime relocation area.

Austin’s Econmic Outlook for 2008 - Healthy

December 13th, 2007 7:44 PM

With all the news about doom and gloom in the mortgage industry and a large portion of the country seeing slow sales, declining prices, and layoffs, it’s good to know that here in Austin we have a bright future ahead. A lot of people who are not familiar with the Texas economy and, in particular, not familiar with the cyclical growth of Austin/Central Texas, still seem to think that we’ll have a downturn in 2008. I disagree. The rational growth and limited investor speculation, along with a strong prosepct for job growth certainly make me feel better about this market than 2001-2004. Not that the early 2000’s were that bad, but they certainly weren’t great real estate wise.

The snipet below is from one of my favorite Austin Information sources, The Neal Spelce Letter (www.AustinLetter.com).

As 2007 draws to a close, the Austin-Round Rock metro area is in an enviable position, and when you examine the counties adjacent to the metro – especially those that make up the highly desirable and attractive Hill Country to the west – it looks even healthier economically.

A vibrant economy starts with jobs. When people are working, almost everything else falls into place. Sure, outside economic forces – such as tightened credit policies – have an impact. But, even then, tight credit may prove to be somewhat of a good thing if it keeps workers from getting deeper into debt.

The key point is that this part of Texas is a job mecca. For all practical purposes, anyone who wants a job has a job or can get a job. The five-county Austin-Round Rock metro area in October registered a miniscule 3.3% unemployment. And Travis County (Austin) with the largest population concentration had 3.2% unemployment.

The other four counties are also doing very well. Williamson County (Round Rock, Georgetown, Taylor) recorded 3.4% unemployment, Hays County (San Marcos) also came in at 3.4%, Bastrop County (Bastrop) tallied 3.5% and Caldwell County (Lockhart, Luling) notched 3.7% unemployment. All very, very solid.

And the job picture is even better in the adjacent Hill Country counties. While those counties are not officially included in the five-county Austin area, the population growth is surging west and many of their residents come into the Austin metro for shopping, health needs, entertainment and, yes, jobs. The Hill Country is very much a part of our trade area.

Consider Burnet County (Marble Falls) that abuts Travis County to the west. Its unemployment is an amazing 3.2%. Blanco County (Johnson City, Blanco) touches both Hays and Travis Counties and carries a 3.4% unemployment. And Gillespie County (Fredericksburg, Stonewall), adjacent to Blanco County’s western border, leads all the Hill Country and Central Texas with a 2.9% unemployment.

There is no other major metro in Texas with a better job picture than Austin-Round Rock and its neighbors. This isn’t to demean the others because the other biggies are all doing better than the very good 3.9% Texas state average. But it does reinforce how well Austin is doing.

Austin Market Update

November 27th, 2007 11:22 AM
Recently released from the Austin Board the update below is telling data about the Austin residential market slump that has gripped us for the last 3 months. The credit crunch, holidays, uncertain interest rates, and questionable consumer confidence have all played a role in slowing sales. While the 15% decrease may seem like a big hit, it’s important to remember that 2005 and 2006 were stellar years for real estate in Austin. We saw fast sales, steady increases in values, and a generally national trend bucking economy here in Austin. An interesting thing to note in the press release below is that while sales have slowed, median price has continued to rise. As an Austin homeowner, you can’t complain about that.

November 18th, 2007 9:40 PM

It’s pleasing to see that in these times of uncertain economic futures, that Austin is still vibrant and drawing people to it with its strong economy, job market, positive lifestyle and affordable cost of living. As a transplant myself, having lived in Connecticut for most of my life, I know what it’s like to live in a so-so place and then move to a place like Austin. Not to put down Connecticut, because it has its postives, but it’s nothing like Austin if you are under retirement age or less than affluent.

Austin sports some of the best weather, most affordable living, and most to do for those who have an interest in the outdoors, want to retire with a mind for making the most of their nest eggs, or have the desire for southern living in a progressive and diverse town.

I’m not much one for statistics, but below are some great details about Texas’ and Austin’s recent population growth! The snipet is from one of my favorite Austin Information sources, The Neal Spelce Letter (www.AustinLetter.com). If you don’t have a subscription, and you are interested in keeping abreast of the Austin events, I suggest you get a copy!

No matter where you go in urban and suburban Texas, it’s hard to get away from this growth (though we’ll mention some pockets of slow-and-no-growth in just a minute). If this trend from 2000 to 2006 continues, Texas is likely to add another 3.6 to 4.0 million people by 2010 – boosting its total population to more than 25 million, according to highly-regarded Steve Murdoch, who has made a career out of studying Texas population trends.

Austin’s population growth this century has been truly phenomenal. As an example, Dallas is the nation’s ninth largest city. Yet Austin added 18,600 people from 2005 to 2006 while Dallas added fewer – nearly 17,000. And Dallas was the eighth fastest-growing city in the nation.

Austin was the 6th fastest-growing city in the nation from 2005 to 2006 – by actual count, not by percentage (that favors smaller cities). This population explosion is happening all around us – in contrast to the rest of the nation. Texas had five of the ten cities with the largest numerical increases from 2005-2006. No other state had more than one.

In percentage terms, the nation’s fastest-growing place from 2000-2006 was in the Austin metro area – Hutto, in Williamson County, which grew by 666%! Also in the Austin metro, Kyle, in Hays County, was in 5th place, growing 289%.

Another one bites the dust!

November 13th, 2007 9:05 AM

Condos, Condos, Everywhere. The snippet below from the Austin Business Journal is another sign of the over development of downtown Austin. With thousands of condo units already developed or in progress, this won’t be the last development to abort or change use.

Several developments that we have worked with personally are seeing extremely slow going right now. As a buyer, now might be the time to get out there and see what kind of deal can be struck. The sellers are waiting and willing. If you’d like excellent representation give us a call. We’ll negotiate a great deal for you.

Austin Metro Prices!

November 4th, 2007 11:17 PM

I must admit that since becoming a realtor and working in Austin, I’ve been jealous of the folks that moved on the California and Florida markets in 2002 and made a killing. That said, I’m sure glad that I’m not one of the last condos going to be going up in Miami or one of the developers who just broke ground last year in California. Banking on a crazy year over year appreciation, while exhilirating if all goes well, is more of a gamble than I like to take. In retrospect I’m excited to own in the Austin metro area where we experience moderate year over year sustainable growth.

The excerpt below from The Neal Spelce Austin Letter(www.AustinLetter.com) gives guidance that Austin metro area home values continue climbing steadily – in direct contrast to many other US cities, where home values are nose-diving and predicted to continue that freefall.

For the past seven years, Standard & Poor’s S&P/Case-Shiller Home Price Indices have tracked home prices in 20 US cities. Austin is not included in the Index, but it is informative to see what is happening elsewhere. Prices were down 4.4% in the past year in those 20 cities – the steepest decline since the Index began. Check out these year-over-year declines:

Tampa, down 10.1% … Detroit, down 9.3% … San Diego, down 8.3% … Phoenix, down 8% … Miami, down 7.8% … Las Vegas, down 7.6% …Washington, DC, down 7.2% … Los Angeles, down 5.7% … San Francisco, down 4.2% … Cleveland, down 4.1% … Minneapolis, down 4%…, New York City, down 3.8% … Boston, down 3.6% … Chicago, down 1.3% and Denver, down 0.4%. The home prices in the remaining 20 city list – Dallas, Atlanta, Portland, Charlotte and Seattle – were all up.

A separate report indicates this freefall will continue in California. Goldman Sachs, using a formula that involves historical home prices and income growth, figures homes are overvalued statewide in California by between 35% and 40%. This is astounding. What does this amount to in dollars? Goldman pointed out the median sales price of a California home in August was $589,000 – but that it should be around $375,000.

This California collapse has at least two effects in the Austin area: 1) Californians, taking money from the sale of their homes, will not have as much moolah as they have had in the past to buy homes in Central Texas, and 2) when Thanksgiving rolls around in three weeks, you can add to your “thankful” list that you live/work/play/invest in Austin.

Can’t beat a great local economy, a wonderful place to live, and predictable appreciation and valuation of one of your largest investments!

Happy belated Halloween! Can you believe that it’s already time to start preparing for Thanksgiving? Gobble Gobble