I am often asked how the market is doing for me, and for the area I live/work in. Housing and real estate seem to dominate a lot of our media and justifiably so. It affects us all. On any given day you can find an article or catch a new clip that tells a different story. Some of the news we hear is national news and some is local – most of the times it is one BUT spun as the other… My neighborhood could be dealing with different issues than yours. Our city could be faced with different issues than a friend of ours. Some of the news is using statistics to tell a gloom and doom story because that sells papers. So, what is really going on in the Austin area real estate market (also known as the 5 counties of Travis – Williamson – Hays – Caldwell and Bastrop)?

Last year in Austin, Texas, our median home price rose from $175,000 to $191,250. That is a 9.2% increase. That's a good year compared to the 40 year historical average in America of below 6%.

Our current inventory is 5.93 months. 5 months to 6 months is a neutral market. Any more than 7 or 8 is when we are in a Buyers' market. This means that housing prices will continue to rise above the inflation rate.

We anticipate that 2008 will be a very stable year in the Austin area. Our builder inventory is coming down and some of the large builders are pulling back on the reins in attempts to limit their exposure in tougher markets.

In the next year 5 years, our economy is expected to grow by 32%. We are expected to have a 15% increase in our population in the next 5 years, and that will live where?

Interest rates are again at an all time low. Making homes more affordable for families. The entire ‘’sub prime’’ loan which was the top story last Spring and Summer of 2007 represents roughly 4% of the entire loans originated – 4 %! That means that over 95% of the loans are NOT sub prime.

"I am seeing a ton of listings in my neighborhood, is that a problem? Something going on?...” A common question which I believe the answer has to do with the known part of our brain – The Reticular Activator. The Reticular Activator can be best explained by buying a color & type of car which we believe to be unique until we see it everywhere all over town. I believe that with the political season and amount of real estate headlines, it is hard not to see the listings because we all fear ‘something’ happening to us.

Texas was a top job – creating state from May 2006 to May 2007 *Bureau of Labor Statistics

Houston & Dallas were the top 2 of the best 10 cities netting new jobs from May 2006 to May 2007 * Bureau of Labor Statistics

In a nutshell, our market is healthy with good affordability, good job growth and stable inventory levels. We think the future of Austin Real Estate and its value is a strong investment. It is a good time to sell. There are also some really good deals out there. As an investment goes, real estate is a tremendous wealth builder.

If you want any data or statistics to review, your welcome to call me.