From the Austin Real Estate Blog: in December, for the fourth month in a row, Austin real estate sales were up over the previous year. The average and median sales price were up 6 percent, and the number of active listings is down 5% from this time last year. With 1373 sales, December was still weaker than October (1783 sales) and November (1542 sales). The market’s strength is probably attributable to the Federal housing tax credit, which will expire. According to the Real Estate Blog, “For buyers the trade off is that later there might be less buyers to
compete with in the market later but interest rates might be higher.
For sellers there is no real trade off. Waiting a few months for higher
interest rates and less buyers is probably far from ideal.”

More collateral damage from the housing bust: workers are less apt to relocate for employment because they can’t afford to sell their homes in a down market — so they stay put. [Link]

The ability to relocate for employment, which helped the U.S. economy recover quickly after previous deep recessions, is the latest victim of the housing bust. About 12.5 percent of Americans moved in the year ended March 2009, the second-lowest on record, estimates Brookings Institution demographer William Frey, after a 60-year record low of 11.9 percent the previous year. Out-of-state moves, usually associated with job changes, have been at a record-low 1.6 percent for two years, he said.

Austin’s housing market hasn’t been hit as hard as other areas, but it’s harder for workers with homes in other states to sell their homes and relocate here, so there can be an impact on relocation business.

The Austin Board of Realtors and the Home Builders Association of Greater Austin held a housing and economic forecast event Wednesday at the AT&T Executive Education and Conference Cetner at UT. Eldon Rude of MetroStudy said that economic and housing fundamentals are the strongest among the more than 40 housing markets across the country, and that “when the U.S. economy improves, Austin will be one of the first markets that shows stronger growth in its housing market.” Housing starts are down but stable, with an increase possible this year. Read more at Statesman.com.

A Move.com survey suggests that “17.7 percent of Americans want to take the plunge and finally become first-time home buyers.” That’s actually a big percentage, more than half the adults who don’t own a home, according to Baltimore Sun’s Real Estate Wonk. 15.7 percent consider buying an investment property a priority.

One driver for homebuyer optimism is the extension of the Home Buyer Tax Credit.

Wondering about the inventory of homes in Austin? At the moment it’s down 9% – you can see statistics about local inventory and prices here.

As you might have guessed, those “reality shows” about real estate on channels like HGTV are not particularly real. Given that, is there something you can learn from them? Read more in the Chicago Tribune.

” ‘House Hunters’ is house candy,” [Chicago Realtor Eric] Rojas said. “It’s not realistic.
It’s directed. You don’t learn anything about buying. You learn about
real estate values. You learn about how houses look.”

Despite all that, agents who’ve done it say they still watch the show,
and they’d go back on it again. After all, it’s great marketing
exposure, particularly because programs are repeated.

“It’s totally fake, but does anybody think reality TV is real? It’s all
canned, but it’s fun to watch,” said real estate agent Karl Vogel, who
also was featured in a recent episode helping a Boston native find a
home in Chicago. “Who can say they don’t like to be on television,
except you look fat?”

Three extensions of the tax credit for first-time home buyers have been proposed in the Senate. The hope is that a liberal extension of the amount as well as the length of time in effect will permanently raise the housing market to a sustainable level of activity before it is phased out or time runs out. Hopefully we’ll have something soon, as the current credit ends Nov. 30, the Monday after Thanksgiving. [Link]

Increase in housing starts are up for the month, but down 45% from a year ago.

Not in Austin, but nationally, there is still a glut of homes on the market, many of which are foreclosures or distressed properties. The low interest rates and the $8,000 tax credit have had a major impact on the reductions in that glut, but it’s not over yet. As interest rates rise, more people will be excluded from the market. Some experts feel that the rates will be forced lower to sustain the housing recovery. Some hope for a $15,000 tax credit for all buyers to significantly alter the damage done by the falling market. We in Austin will reap the benefits as our housing market ramps up this summer.

From the Coldwell Banker channel on Youtube:

Market activity is picking up – with interest rates still below 5%, with teh $8,000 first time home buyer tax credit, and with the decline in the number of homes available – our local market appears to be in balance. That’s a very good thing – that means buyers can buy and sellers can sell without the anxiety and pressure that comes with a one-sided market. Area-wide, homes are selling within a six month time frame. In actuality, homes priced belwo $200,000 are beginning to see multiple offers again. See today’s Statesman article about the Austin home market, or call me for specific information on your home.

An article in the Austin American-Statesman talks about the increasing demand for “hybrid” homes (the term hybrid relating to an analogy with fuel-efficient automobiles). In a slow housing market, energy features can add value,especially in Austin, where

custom homebuilders like Ray Tonjes are adding energy-saving features like thicker insulation, sealed attics and ductwork, and dual-speed air conditioner compressors to meet customer demand for more energy-efficient houses. Some companies do nothing but green-built homes. And the city has the nation’s pioneering green building certification and education program, as well as an aggressive incentive program for energy-efficient appliances.

The article goes on to say that “a household can reduce energy expenditures by 50 percent just by using equipment such as more efficient heaters, air conditioners, water heaters, appliances and electronics and by using compact fluorescent lighting,” and mentions a BASF Corp. concept home that’s 80 percent more efficient. This is especially compelling given the potential for energy costs to increase in coming years.

How important is energy efficiency to you, as a home buyer? Or if you’re a seller, what energy features might you add to make your home more attractive in today’s market?