Austin property taxes on the rise?

The yearly property tax appraisal notices are hitting area mailboxes.  But you can get a jump on it by looking at your latest assessments (or your neighbors’ for that matter) at Travis Tax Appraisal Website.  Reports are that despite a slowing economy, the Austin property values have continued a steady climb, with some area values averaging substantial increases over 10% (See Statesman story here).

One special thing to note is whether or not you are already claiming the homestead exemption.  Missing out on this claim can cost you several hundred dollars a year in lost savings.  And with the price of rice going up 75% in just a few months, those dollars can come in handy.

Furthermore, if your tax appraisal is higher than you think the market value of your home was on January 1st of this year, then you should file a dispute to have your appraisal adjusted.  This also could result in a substantial savings.  Pay special attention to deadlines and forms.  If you need help, give me a call.

Is Austin in a declining market?

Not according to one of the biggest private mortgage insurers.  AIG United Guaranty recently updated their list of zip codes with declining markets (see list here). 

Regardless of a borrowers’ credit risk, AIG will not provide coverage for condo buyers in any zip codes on their declining market list. 

The good news is that Austin does not have any zip codes on their declining market list.  So if you are wondering about values of condos in the Austin area, according to AIG, they are not declining.

Texas markets on their list include Abilene, Brownsville, College Station, Killeen and Laredo.

Pent up real estate demand

In talking with my clients and friends over the last few months, I’ve noticed an interesting mix of feelings on the real estate market.  Some folks say that they are waiting to buy until the economy strengthens.  Others say that they want to buy but they don’t have access to good financing.  Others think that Austin is still a great buy, regardless of what the media says about the economy, the housing market, and the price of jade in China.

Recently the chief economist of the National Association of Realtors released a report that almost 80 percent of today’s prospective buyers have their house on the market.  Most of them can’t get serious about buying until someone buys their house first.  This pent-up domino effect is just waiting for the national psyche and underlying economy to kick in.  Factors driving this coming trigger include a continuing trend of favorable interest rates, housing price adjustments in many areas, government proposals and stimulus packages, and of course, local economic factors.

So that brings me to Austin.  As I was digesting the latest housing numbers, I came to realize that as a buyer and a seller, you should try to understand where the market in your micro-area and price range is heading.  Markets are always moving either up or down.  Savvy sellers know how to price their homes to stay ahead of the moving market.  Especially in times of buyer gridlock.

Austin-area March 2008 MLS Statistics

Hey guys!  The March statistics are out and they paint a picture of a relatively balanced market in Austin.  I like to look at the inventory report as an indicator of how many months of inventory are on the market (in other words, how long it would take to sell the current listings at the current pace of sales).  As you have heard, real estate is local, so even within the Austin market area, some sub-areas are selling better than others.  Here is the general report:

All
Price Range	# of Solds	Avg Sales Price	Avg DOM	Current Actives	Avg. # of Solds	Months of Inventory
< 100,000	1942	$75,008	58.12	485	161.83	3.00
100-149,999	6245	$128,263	46.78	1585	520.42	3.05
150-199,999	6188	$172,493	44.89	1954	515.67	3.79
200-299,999	5690	$243,664	52.31	2523	474.17	5.32
300-399,999	2591	$344,753	58.75	1503	215.92	6.96
400-499,999	1265	$443,071	71.32	955	105.42	9.06
500-749,999	1128	$599,735	81.43	1106	94.00	11.77
750-999,999	333	$857,044	98.44	459	27.75	16.54
> 1 Million	340	$1,709,650	112.70	558	28.33	19.69
Total	25722	$248,714	53.88	11128	2143.50	5.19

If you want specific numbers for your local area, just shoot me an email and I’ll get it to you.  The only areas with less than 3 months of inventory right now are: 1N, 10S, 11, N, NW, SWE, and SWW