Who wears the pants in making decisions about real estate? Coldwell Bander found that, in most cases, it’s a mutual decision – here’s a video showing a few of the specific responses…

Austin-area residential construction is up 11% over last year, and it looks like we’ll continue to see activity even though the federal tax credit for home buyer expired, based on an article by Shonda Novak in the Austin American-Statesman. Novak quotes Tommy Tucker of Residential Strategies, Inc., who says that “buyers are coming back to the market for reasons apart from the tax credit.” Area builders “have shown discipline by not creating an oversupply of housing,” so prices should remain stable. The Austin housing market’s health relative to other parts of the country reflects the strength of Austin’s job market. The article mentions, as an example, Samsung’s $3.6 billion expansion here.

A Brookings Institution analysis of 2000-2008 census data show interesting trends. [Link] See also Brookings: State of Metro America

Highlights:

• Suburbs are now more likely to be home to a poor, rapidly growing older population as younger, educated whites move to urban centers.
• A majority of all racial and ethnic groups in large metro areas live outside the city.
• Suburbs have the largest poor population in the U.S., and a majority of baby boomers age 55 to 64.
• “White flight” is turning into “bright flight” as aspiring young adults move to cities, seeking access to knowledge-based jobs, public transportation, and a new city ambiance.
• Recommendations: “affordable housing and social services for older people in the suburbs; better transit systems to link cities and suburbs; and a new federal Office of New Americans to serve the education and citizenship needs of the rapidly growing immigrant community.”

Single women are buying more real estate than single men.

Per Wall Street Journal’s MarketWatch,

Unmarried women accounted for 21% of home purchases in 2009, while unwed males were 10% of the buyers, according to a National Association of Realtors report in November. It’s a dramatic shift from 1981, the first year the numbers were tracked, when single women and men each accounted for 10% of home sales.

The article goes on to explain that this hasn’t quite sunk in with some industry professionals, who are having to learn to be “gender-friendly.” A case study is Sara Barger, a 26-year-old freelance video producer who “pursues buying homes as a way to safeguard her net worth.”

Earning roughly $90,000 a year, the American University graduate bought her third Washington property in three years in January when she closed on a four-bedroom $350,000 foreclosed townhouse in Columbia Heights. Barger rents out three of the bedrooms as well as her two condominiums to supplement her income and subsidize her monthly $5,866 mortgage, condo and tax expenses. After her rental income, she ends up owing about $625 a month, including utilities.

Could that be you?

From Lani Rosales at Agent Genius:

FHA Commissioner David Stevens spoke before the audience of Realtors and executives, calling the long term prospects for the real estate market “incredible,” according to NAR. Pointing to young households as a demographic that is growing larger than the baby boomer demographic, Stevens notes that their entry into the market will lead to “an incredible real estate market in the future.”

Lani asks “By ‘incredible,’ don’t you really mean ‘uncertain’?”

That had me laughing. I think we’d all like to see a merely-credible future for real estate right now!

Existing home sales were up 10.1% in October, 23.5% over the previous October, thanks to the now-extended first time buyers’ home credit. [Link]

It’s not clear the surge represents a bottoming out of the housing market, as the sales are still not happening organically–that is to say, without a government incentive. And now that the home buyers’ credit has been extended to April, we won’t know if we have an organic, non-subsidized bottom until after then.

Interest rates are down, and first-time home buyers may be able to get a tax credit (10 percent of the purchase price of their home or $8,000, whichever is less). Read the complete story here.

The interest rates are still hovering around 5%, lower than we’ve seen for years. Expectation is that rates will rise steadily as the economy improves, so we don’t know how long the low rates will last. Home prices are down – not nearly as much as in the rest of the country, but prices dropped 5-10% in many parts of Austin over the last two years. Rates, prices, the tax credit – now is the time to, as they say in the stock market, buy low.

Buying a home is still also one of the best ways to save on taxes. Mortgage interest, real estate taxes, and usually mortgage insurance are all tax-deductible.

The low interest rates and tax incentives are good for both buyers – by making the purchase transaction more attractive and affordable, and for sellers – by stimulating the market for home sales. The National Association of Realtors has proposed the Congress pass an extension of the tax credit. Each home sold adds $40,000 plus to the economy. Some say housing brought the economy down, but housing could also jump-start the economy, adding jobs, stimulating retail sales of furniture, appliances, and building materials.

Contact me for more information about benefits for buyers and sellers.

This week at Realty Roundup in Austin Mark Dotzour, Chief Economist and Research Director at Texas A & M University’s Real Estate Center, had some positive words about Austin real estate.

He feels that, because of Austin’s strong job growth, the low interest rates, and our modest appreciation, we will emerge from the global downturn in a good position for continued growth.

Dotzour said that, in general, when the inventory of homes on the market is at a 6.5 month level, the market is balanced. We are currently at a 6 month level, meaning our market is active and heading upward. We have gone through all the current hits that have sent markets declining across the country, and we are still strong. If the surprise ending, the credit default swaps, don’t swamp us, we’ll make it just fine and be in good shape for the typical spring buying season. This is what I am seeing in my practice as well. After the election, folks, after the election….