Edition 1               October 2010

I study the Austin Real Estate market almost to a fault, and I believe you are somewhat interested in what I think is happening and what direction the market might move. It doesn’t matter if you are buying, selling, or just plain interested, you want to know what’s going on. So here goes……………..

Austin Area historical sales:

That doesn’t look so bad. This year looks on the whole to be slightly better than last year. The green line is 2010, Blue 2008, Red 2009. The problem we all have is that we continue to compare the market we’re in to 2005/2006. Well Dorothy this is now, and we’re in a different place.

What about the dollars:

Mid 2010 shows a return to nicer prices, but I doubt it will hold. Again, this is where we are so we have to adjust to that.

And where are we going?

We have extremely low interest rates. 4.5% and getting lower. We have a nice level of inventory, probably about 6 months of inventory and that’s the Goldilocks number. Not too much, not too little. Job growth for Austin looks healthy. About 18k to 26k per year. Population growth is nice. About 50,000 a year with 32,000 coming from people moving here. New construction starts at about 6500. In 2006 Austin started 14,000 new homes.

I told you this wouldn’t be a fascinating read. It’s boring at best.

So with all those numbers why aren’t we selling a ton of houses? Cause people think………………….

Prices are going lower

I can buy a foreclosure for next to nothing

The stock market is going to crash

Double dip inflation

Taxes are going up

I might lose my job

We can’t sell our house for what it’s worth

And the list goes on.

The real answer is we don’t know _________________ (fill in the blank) and we don’t. Well guess what, I don’t know either. I believe that if you are a buyer you best get busy and buy. Low prices and very low interest rates won’t last forever!

I do know how to sell your house for what it’s worth. I also know how to represent a buyer to get the best deal they can get. So call me or one of my agents if you need help with Real Estate.

Check out the website. www.BlackburnRE.com

John Blackburn

Broker, Blackburn Properties

512 431 8428