Austin’s inventory of unsold homes decreased by about 20% over the last year, according to real estate analysts ZipRealty Inc. This is in contrast to several other housing markets, which are still seeing increases due to foreclosure and voluntary surrender of homes by financially insolvent owners. Austin joins cities like San Diego, Los [...]
Inventory down, foreclosures down
Austin’s inventory of unsold homes decreased by about 20% over the last year, according to real estate analysts ZipRealty Inc. This is in contrast to several other housing markets, which are still seeing increases due to foreclosure and voluntary surrender of homes by financially insolvent owners. Austin joins cities like San Diego, Los Angeles, Las Vegas and Phoenix in reduction of outstanding home inventories over the last year. This shift may indicate the end of the buyer’s market that has been prevalent throughout the United States; while some urban areas will be slower to recover from the housing market downturn, the reduced inventory of homes will help drive up home values and increase the likelihood that homes already on the market will sell more quickly.
This news comes on the heels of RealtyTrac’s announcement that foreclosure filings are continuing to decrease. November 2009 marked the fourth straight month of lessened foreclosure activity throughout the United States; recent federal initiatives including the Home Affordable Modification Program and other Fannie Mae programs are credited with a large portion of the decrease in foreclosures and defaults. Much improvement is still needed, since it’s estimated that one out of every 417 homes is currently in some phase of default or foreclosure, presenting an overwhelming burden on the housing market during a crucial stage of its recovery. Nevada, Florida, and California have the dubious honor of holding down the top three spots in foreclosure proceedings compared with number of homes.
The reduction in unsold homes in Austin is expected to drive home prices higher and result in increased competition for available homes. The buyer’s market in Austin may be coming to an end, making this the best possible time to investigating home buying options before the prices return to their pre-slump values. Bargains are still available, but it’s necessary to act quickly before the home of your dreams is off the market for good.
Finished before it was even started, the Magnolia condo project was forced into foreclosure in July 2008.
The Magnolia was to have been a five-story condominium building close to the downtown area, consisting of 139 units priced at between $220,000 and $600,000. Amenities were to include private balconies or courtyards, an outdoor pool on the second [...]
Finished before it was even started, the Magnolia condo project was forced into foreclosure in July 2008.
The Magnolia was to have been a five-story condominium building close to the downtown area, consisting of 139 units priced at between $220,000 and $600,000. Amenities were to include private balconies or courtyards, an outdoor pool on the second floor, a fitness center, rooftop gardens, retail space, and granite counter tops among others. The project was estimated to cost $40 million and would have covered three acres on the corner of South Lamar and West Gibson Street.
A series of events, combine with bad luck and difficult topology, have scuppered plans for these luxury condos.
In February of 2007, the lender who was to finance the construction, Fremont Investment & Loan from Los Angeles, reneged on its loan promise. It seems the Federal Deposit Insurance Corporation (FDIC) refused to allow the lender to fund any new projects, as regulators tighten the purse strings on a nationwide scale.
Then, in October of 2007, the development company, Avena Development LLC, attempted to sell the project, and it was reported they had a buyer. The deal fell through in June of 2008 and foreclosure proceedings loomed. The undisclosed buyer backed out of the project purchase when they failed to find a partner to commit to the project.
The site is in a prime location, close to downtown and in a corner lot. There are projects with tree preservation and topography that were threatening to raise construction costs. Still, experts are cautioning against panic, saying this incident is isolated and “is related more to the specifics of the project and to the overall slowdown in residential sales and does not necessarily indicate the beginning of a trend in foreclosures.”
