Austin Texas Real Estate Blog

Very modern look, very modern technology!

Austin residents may soon get their first look at the ZeroHouse, a high-tech solution to the energy crisis that offers off-grid self-sufficiency for homeowners. Plans for the prototype include water conservation technology, a sizable composting unit, and two large solar energy panels; these features are intended to produce all the energy and water needed by residents within the house. Designed by Austin architects Scott Specht and Louise Harpman, the ZeroHouse requires no outside power or water supply and is designed to sit on four stainless-steel pillars; thus, it requires a minimal environmental footprint and is prefabricated for easy construction.

Specht and Harpman are seeking an investor to finance the building of the prototype, which is expected to cost between $300,000 and $350,000. The ZeroHouse will provide 650 square feet of interior living space and covered exterior decking that adds 250 more square feet outside; the architects are looking for someone to finance and live in the home, which they hope to construct in the Austin area. The prototype plans are optimized to provide the maximum amount of livable space for residents, and incorporates highly energy-efficient appliances and electronics in order to use the smallest amount of resources possible, making this home an environmentally sound choice for consumers.

The ZeroHouse is the latest addition to the class of net-zero houses, which boast that they are completely self-sustaining and have a net energy cost of zero, since they produce as much energy as they require. The ZeroHouse produces power through two sizable solar panels and collects and filters rainwater for household use; waste processing and disposal is accomplished by the automated composting system located under the house. This allows it to function off-grid, or without accessing the local electric company’s supply; in practice, these houses are generally hooked up to the local system and are compensated for the energy they supply to companies like AustinEnergy.

Austin is a leader in the green technology industrial market; this makes it a logical choice for Specht and Harpman’s project. City leaders have agreed to require that all new residential construction must be net-zero capable beginning in 2015; while this will not always be immediately possible due to differences in ground cover and lot placement, the goal is expected to spur even more green construction in Austin. The ZeroHouse is not for everyone; its high cost of construction and avant-garde styling may not suit all buyers. The lessons learned and the techniques used in its construction, however, are expected to carry over into traditional home building practices and reduce overall energy costs in Austin over the long run.

Developer Magazine has announced its 2009 Sustainable Community of the Year. Mueller is located in the vibrant city center of Austin, Texas, and reflects Austin’s commitment to green technology and environmental responsibility. The development makes use of the land formerly devoted to the Robert Mueller Municipal Airport, reimagining it as a mixed-use urban environment incorporating commercial and residential elements in one unique package. Built by Catellus Development Corporation and designed by ROMA Design Group, the project is expected to provide approximately 10,000 construction jobs to Austin residents.

As a participant in the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) for Neighborhood Development program, the development requires that all residential construction in Mueller qualify for Austin Energy’s three-star energy-efficiency rating. In addition, commercial buildings within the development must meet LEED certification standards; this ensures that they will provide healthy and energy-efficient environments. The Dell Children’s Medical Center of Central Texas is the first hospital ever to achieve LEED platinum certification and set the standard for new construction in Mueller. It is joined by the platinum-certified Ronald McDonald House and the silver-rated Dell Pediatric Research Institute; Mueller’s strict environmental standards ensure the highest level of green-friendly building possible.

Mueller already boasts over 200 three-star rated homes; the community is eventually slated to provide 4,600 residential units, of which one-fourth will be devoted to low and middle-income housing. Entry-level homes are designed to provide a point of access to the housing market for younger buyers, while a senior living community is expected to provide affordable housing for older residents. Ultimately it is planned that 10,000 residents will be served by the Mueller development. Green space and parks comprise twenty percent of the development and occupy 140 acres, providing families with safe places to relax and play together.

Mueller is the result of a partnership between Austin and Catellus Development and is centrally located to allow easy access to major employers within the metropolitan area. Situated just two miles from the University of Texas campus and three miles from downtown businesses, Mueller earns high marks for its pedestrian-friendly design and well-planned transportation routes. The development will eventually include over four million square feet of retail and employment opportunities, allowing many residents to live and work in the same area and eliminating lengthy commutes. Austin Energy’s on-site power plant is environmentally advanced and provides green energy for the development.

Mueller offers unique advantages to residents and businesses; as a result, it has gained local support and is considered one of the most innovative and green-friendly projects of its kind anywhere in the United States. Recreational, retail, employment, and residential areas coexist harmoniously and provide a cohesive and sustainable community in the heart of Austin.

Maybe you’ve been hearing about the new tax credit designed to give money back to buyers who help create jobs and turn the economy around by buying a new (to them) home.  Well, you’d have to be living under a rock not to have heard about it, but we digress. The first program was for first time buyers only. Now the program has been expanded and also includes move-up buyers who have owned their primary residence for 5 consecutive years. Unfortunately, there’s a ton more detail, but fortunately you can watch this video and get the gist!

Summary of Tax Credit Details:
The homebuyer tax credit expansion measure includes these provisions:
• Extends the $8,000 first time Homebuyers Tax Credit and creates a new $6,500 tax credit for homeowners buying a new home by July 1, 2010.
• Homebuyers with contracts as of April 30 qualify for the credit so long as they close the transaction within 60 days.
• The full credit is available to homebuyers with incomes of up to $125,000 for a single return or $225,000 for a joint return.
• Not available for homes costing over $800,000.
• Homebuyers who already own a home are only eligible if the home they are leaving has been used as a principal residence for five consecutive years in the last eight.
• Provides authority to the IRS to provide greater oversight while processing the return and requires that the taxpayer claiming the credit be 18 or older.
• Members of the military, military intelligence and foreign service who are on qualified extended official duty are not subject to the recapture fee and individuals who have been deployed overseas for 90 days or more in 2008 or 2009 can claim the credit through April 30, 2011.

If you want more information you can contact us or check out the Federal Housing Tax Credit website.

When 2009 opened, Barack Obama was inaugurated, and he very quickly passed the Economic stimulus bill. This stimulus package included an 8000 dollar tax credit for new home buyers. This is a fantastic incentive, however it is a down the road repayment, and the department of Housing and Urban Development (HUD) believes they can do one better. They have chosen to tweak the plans and adjust it so that the Federal Housing Authority’s approved lender list can provide buyers with the tax credit up front, for use at the close of the house, when the money is most needed.

Several states have already implemented this program on one level or another. Some are allowing for a tax cushion but it will still permit first time home buyers to purchase a home, using less of their own money at closing. This will free up the costs for closing to be used to furnish the home with needed appliances and furniture. This aspect of the economic stimulus will actually stimulate the economy, and with the active help of HUD it will do so faster than it was originally written to.

HUD has long been known to facilitate productive assistance to home buyers and mortgage assistance to anyone who qualifies. With that in mind there is no doubt that across the country and right here in Austin, new home buyers will be able to facilitate the best possible use of their 8 thousand dollar new home credit very soon.

It used to be that a house delivered pre-built to a lot wasn’t something most people considered. When they bought, there was generally a house already there. If there wasn’t, they erected one on-site, trucking in pieces rather than a structure. But times have changed, and modular housing has gone from rare to trendy to logical.

A modular home is delivered to the site approximately 90 percent assembled, saving the owner a considerable amount of time, money and frustration. Built to the same standards as a regular family home, it now garners the same respect. Awards are given for the best ones on the market – 2008’s winner was Genesis Homes‘ Bunbury, the company’s newest urban in-fill.

The beauty of the Bunbury is the combination of flexibility and aesthetics. The home is designed to fit into the typical urban lot, making it perfect for urban fill projects. It can be built with a variety of exteriors and in a variety of styles to match the environment, and a garage can easily be added into the home. Similarly, the Homestead, built by Building Systems Network, is well designed and built to last. It appeals to the buyer with its impressive use of modern construction methods and forward-thinking amenities.

Modular housing used to be a rare occurrence, but today may be a wise choice. With well-built, beautiful homes that can squeeze into even the most restricted areas, it can be the perfect solution to a difficult problem. If you’re not sure which way to go, consider a house already built and waiting for an address.

It used to be that developers of large tract community homes preferred it if they could build a new house in relative secret – keeping the prospective home owner at bay until the new home was complete. In today’s information rich atmosphere, however, this has become increasingly difficult as consumers are more informed and more anxious to have a say in the construction process.

At Town & Country Homes, Brian Murphy, vice president of operations, says they “are encouraging open communication between” buyers and the construction team, which fosters a great feeling of control for the buyer and results in greater customer satisfaction. Home buyers pretty much know what they want and Town & Country Homes provides an interactive experience, from choosing options on their Web site to supervised visits to the construction site so they can see first hand how the building is progressing.

Town & Country is located in the Chicago area and has seen great success building larger homes in the $250,000 to $400,000 range. They also have built townhouses that are selling in the low $160,000 to the upper $170,000 range. The development company is involved in just about every aspect of a building project from market research and land planning to marketing, sales and construction.

It’s not just the home buyers who become involved in the development planning, but the community as a whole can have a say in what sorts of amenities and homes are constructed and how much development is allowed. Town & Country plans to concentrate on smaller, more intimate communities of 200 or so homes rather than the 1,000 unit large tract communities of the past, and are particularly looking to redevelop in the older suburbs and explore urban reclamation.

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.

Housing Starts Down in Austin

November 9th, 2007 8:55 AM

In the last two weeks, I’ve seen a slowdown in the amount of traffic visiting my listings and the listings of my officemates. It is getting to be holiday season so part of the slowdown is to be expected seasonal decline in activity. When the buyer pool and activity declines you can imagine what most seller’s do. Price reductions are more common, seller concessions are often offered, and best of all buyer’s can get a good deal on the home of their choice. This is not to say right now you can make a 30% off offer on a home and expect the seller to thank you for your efforts, but with less competition, as a buyer, you’ve got a better chance of being the only person offering on the home and of having a reasonable seller.

If you’re a seller, you can make this market work for you. First you must realize that if you are moving within the Austin area, you’ll get less for your home, but you’ll pay less for your new home. Oftentimes seller’s and buyers see the market only from the position that they are in at any given time. It’s important to look at the market from all positions that you will be in as you calculate your bottom line and prepare to start negotiating to both buy and sell your home.

Below is a great summary of what the Austin market looks like and will look like in th enear future.

One of the reasons the Austin housing market is better than most other metros is the vibrant job market. But because new home construction is slowing, the number of construction jobs is diminishing. It’s a dichotomy that will impact the remainder of this year.

Large homebuilders, especially those with corporate offices elsewhere, are feeling the pinch of sliding sales in other states and are re-trenching here as well. It’s part of the corporate cut-your-losses-system-wide philosophy. Builders are reducing starts of single-family homes, townhomes and condominiums. How much has homebuilding dropped? Consider:

According to Eldon Rude, director of Metrostudy’s Austin Division, builders continued to reduce starts in the 3rd quarter. Metrostudy recorded 3,700 starts during the 3rd quarter of 2007. This is down 27% (1,361 units) from the 3rd quarter 2006. The annual starts rate was 14,436. This is down 23% (4,235 units) from the 3rd quarter 2006.

New home prices range from around $100,000 to the multi-millions. Are all price points impacted the same? Those that are, are not necessarily for the same reasons. The tighter mortgage loan policies are having an impact on the low end. Rude said: “a sharp reduction in starts priced below $200,000, especially in starts priced under $150,000, indicates where tighter credit policies have had the most impact.”

But this is not all. Within the Austin metro “move-up market,” (homes priced between $250,000 and $500,000) demand has also slowed and builders have reduced production in recent quarters. Rude observed that “buyers in this price range have become increasingly cautious about making purchase decisions.”

What does the future hold? “The Austin area will experience less demand for new homes in upcoming quarters,” Rude predicts. Rude’s reasons: “A sharp decline in relocation buyers, a competitive resale market and more hesitant home buyers are factors leading to the slowdown – as are decisions by corporate offices by the region’s largest builders.” He says “these decisions play a role in land acquisition, pace of starts, marketing and staffing.”

The good news? Rude echoes what we have reported previously: “Austin experienced only moderate appreciation in new home pricing in recent years, and this will, to a large extent, insulate the area from large price reductions that will plague the new home and resale markets in other parts of the country.”

October 30th, 2007 10:54 AM

As a Realtor in Austin’s ever changing market, I often get questions about the bubble. Sometimes, I even get the uninitiated investor’s summary of a plan that involves waiting for the bubble to break and then swooping in and offering seller’s pennies on the dollar for their real estate. I RUN, not walk away from these investors.

As far as I can tell, there is no bubble in the Austin/Central Texas real estate market. We tend to see regular, steady appreciation in our market. We have a reasonable amount of inventory, property taxes high enough to keep rampant speculators at bay, and a strong economy and work force that is supporting our growth. That said, the Austin Texas real estate market does fluctuate from a buyer’s market to a seller’s market to a balanced market. Like most markets a broad generalization such as “Austin is a buyer’s market” is usually wrong. The market can be segmented various ways and those segments are whatreally shoudl be commented on. As an example, ACTRIS (the Austin Central Texas Realty Information System – our MLS), shows over 15 months of inventory for homes over $1MM and only 4 months of inventry for homes up to $100k. Clearly both market segments are different for the buyers and sellers playing in those markets.

The excerpt below from The Neal Spelce Austin Letter (www.AustinLetter.com) supports the idea that we’re not facing a dwnturn in the market.

The Austin metro was different. New home prices have steadily increased over the past three years, not skyrocketed.Mark Sprague, the Austin area partner for Residential Strategies Inc. (RSI), points out the median home price in the 3rd Qtr 2005 was $181,108, in the 3rd Qtr 2006 was $197,103 and in the 3rd Qtr 2007, it was $208, 583. “The area median new home price is up 5.8% for the past 12 months,” he noted. Bottom line: there is no bubble to burst in the Austin area.

Another factor to consider is the number of vacant, developable, lots. Currently, Sprague estimates there are 26,058 lots and at the current absorption rate, this represents a 22.3 month supply. RSI, a market research and consulting firm, considers a 24-month supply to represent equilibrium. As Sprague put it: “The fact of the matter is that, although the housing market has slowed over the past year, Austin doesn’t have the problematic excesses of lot and housing inventories that are prevalent in most other major markets of the United States.”