Austin Real Estate Market Update
Austin is heating up…literally and figuratively.
While we are now in June (May figures still being accounted for) you can see that Austin has increased from the 2011 year for its 5th straight quarter. The amount of listings is down, sales volume and sales prices have increased from previous year.
Everyone seems to be moving here and I can tell this because…
1. Those living here don’t want to leave, too many are moving here so, it is officially a seller’s market.Read more here!
2. I no longer meet people from Tx when I am out, they are all college graduates from Michigan, Wisconsin, Illinois and other cold states where people hate the brutal winters.
3. Traffic has gotten worse on MoPac and IH-35. (Attention large companies–let everyone work from home one day a week or change your hours from 10am-8pm please!)
4. Rental rates are ridiculously high, and hard to come by anything. You used to be able to find a central Austin 2br bungalow for about $1000-ha! Not anymore. And if you currently live and pay that now, consider yourself lucky. Dallas based real estate marketer forecast named Austin as one of the best markets to invest in rental property.
Is buying right for you? It just may be. Here’s what you need to get started:
- A good credit score. You will want to be 620 or higher, if you aren’t don’t be discouraged, often times there are small things you can do to bring up your credit score!
- MONEY DOWN! An FHA loan is 3.5% down, a conventional loan is often more, most people have a goal of 10%, depending on your rate and money down you can avoid mortgage insurance.
- If you served for the military or are considering buying in a rural area,you may be eligible for a VA loan or USDA loan which means 0%!
- First step is knowing your finances-what do you have saved up for a home? Closing costs? Insurance? Repairs? Know what you are willing to put toward a home, and what you need to save for later.
- Talk to a lender. You will need the following information for a lender to help you figure out what is realistic for your budget.
- Past Two Years Tax Returns
- Past two years W-2
- Last two month’s paystubs
- Last two month’s bank statements
- Credit Report-or a lender can pull this for you and help you increase score if need be
- Feel free to ask me who you can talk to before you get excited and start looking up dream homes online. (Often times people start browsing homes not even knowing what it costs to buy a home or what they can afford each month). Only to be let down when they find out that home is out of their monthly budget.
- Let the search begin! I am not going into further details, I do have a more extensive blog on the buying process, which you can check out here! But hopefully these tips can get you started!
Ashley’s Reason’s to Buy Now in Austin, TX (in 2012):
- You aren’t getting any younger!
- Austin Market is booming, already missing out as it is now a seller’s market
- Austin has always been a great rental market, should you decide to hold on to a property or get transferred for work
- Interest rates are slowly increasing
- Inventory is decreasing
- Sales prices are rising-making it more difficult to purchase in the future, especially with less options on the market
- For some, it can be about the same cost as renting, and in the future it will be less expensive than renting
- You will feel more like an adult
- Tax breaks!
- You will learn more “at home projects” and start watching HGTV on a regular basis
- Owning is sexy.
- The aforementioned point was a marketing tactic targeting your vanity, and if you aren’t a home owner it probably bothered you a little.
- I cannot think of any other points, so #11 and #12 and this point are just to make the list look longer.
Hope you found this information of use to help you in goal setting to become a home owner. Here are some of my past clients and now… happy home owners: