Central Austin Realty Bits

With all the gyrations in world financial markets, investors have moved back to the relative safety of bonds.  What that means is that Austin, Texas mortgage rates have floated back to historic lows.  Pluck some bucks off the money tree and you'll discover 30 year fixed rates are comfortably below 4% for most borrowers, and 15 year terms can be below 3.5%.  The actual rate you get depends on your credit score, down payment and other factors.

Although few borrowers consider them, adjustable rate mortgages are an interesting alternative. They offer fixed interest rates for 5 or 7 year terms, and have caps in place to limit increases in the years after that.  They are most recommended for those who intend to live in their home for less than 10 years.  ARM's can be a good way to save thousands in interest in the years you actually plan to live in the home.  

Choosing a 5 year fixed/ARM at 2.75% can save $10,000 over 5 years on a $350,000 loan; over 7 years, the savings is $13,000 guaranteed.  For someone who anticipates moving after that, it's extra money for down payment on the next home or to help pay the closing costs associated with selling the home in the future. 

Jumbo borrowers can see an even bigger savings. Although the rates on jumbo ARM's are slightly higher, the savings on a $650,000 loan tops $24,000 in 5 years, $32,000 in 7 years. That's real cash towards property taxes or home improvements or college tuition.

If it's time to refinance or get preapproved for a home loan, contact me anytime to analyze your situation and see what's best for you.  I am the Realtor who makes home loans too!  I have over 20+ years experience lending and selling homes in Texas and offer turn key solutions to buy, sell or refinance.

Jeff Harris

Realtor|Broker|Mortgage Banker

direct:  512-917-8142

mr.jeffharris@yahoo.com

www.myTXhomeloan.com

www.myAustinhousehunt.com

"I'll help you find it, you make it home"

Occassionally I help folks find a home to rent in Austin. The rental market is very tight and few homes come available. Often, there is competition for Austin rental homes and landlords get multiple rental applications, especially for the more affordable and desirable homes in certain neighborhoods. In fact, every potential renter I have helped this year has had to compete with others for a property. Because of strong demand for Austin rental homes, rents have increased in the past 12 months too, making buying more attractive than I have seen in many years.

Of course, down payment prevents some from buying, but with FHA, you only need 3.5% down, and that can come from  a gift from a relative. One local bank has a 3% down payment program for certain professions and incomes that makes buying even easier for teachers and public service sector employees. Even the credit score requirement is fairly liberal. Closing costs can often be negotiated into the purchase price so that the seller pays them on the buyers behalf, resulting in very little cash needed to purchase a home. The stories floating around that 20% down payments are the norm is just not true. With 3 to 4% of the purchase price and reasonably good credit, home ownership is still very attainable in Austin, Texas.

Example: The  southwest Austin neighborhood Legend Oaks offers 3 and 4 bedroom homes for about $250,000. That home can potentially be purchased with just $7,500 move in cost. The monthly payment on a 30 year loan would be about $1,900 per month. Renting this same home could easily cost $2,200 per month and require landlord deposits of up to $3,000. With just a few thousand more dollars, renters can be owners and enjoy a lower monthly payment vs. renting. In fact, the extra cash needed up front can be recouped in a little over a year through monthly payment savings AND buyers enjoy tax advantages that further decrease the cost of ownership.

The next time you think about renting, consider buying instead. Contact me anytime to see if you can qualify to buy an Austin home. As a lender and Realtor, I am uniquely qualified to answer all your home and loan questions and can usually get you preapproved in 24 hours.

Search updated listings of all Austin homes for sale:

http://www.myaustinhousehunt.com/

Get notified when homes you want hit the market.

Apply for a mortgage on line at www.myTXhomeloan.com

Jeff Harris, Realtor|Lender|Broker

Direct: 512-917-8142

jeff@trueaustinhomes.com

Feel the influence of Spanish architecture and design in this one of a kind Austin Luxury Home for sale.  Room to spread out with 5 living areas including open kitchen/great room, formals, gameroom, media, office and separate studio for gym, office or quarters.  This Austin custom home is recently refreshed with gleaming hardwood floors, fresh paint, new carpet and more and lends itself to more casual living. Soaring ceilings, charming quarry tile floors, separate butler pantry, 2 covered outdoor living areas and 3 real wood burning fireplaces.  Abundant built ins and storage throughout.  Exceptional master with separate lounge room and 2 full baths.

Nestled on a deep wooded lot, one block from West Enfield Park and one block to the hike and bike trail that leads directly to Lady Bird Lake.  5 minutes from Downtown Austin and UT.  Other Austin luxury homes surround this delightful residence in this handy West Austin neighborhood.

Take a virtual tour and find more info here.

Search All Central Austin Luxury Homes for sale

Jeff Harris, Broker. Call me anytime at 512-917-8142

Austin, Texas home sales were up about 7% area wide in 2011 vs. 2010.  Some Austin neighborhoods saw even bigger sales increases.  Austin condos had a 1% sales increase. Many price segments and neighborhoods saw prices higher vs. 2010, while some remained flat.  The luxury market firmed again as higher priced homes in Central & West Austin, as well as Westlake, drew higher prices than the year before.   Inventory has changed quite a bit in the last 12 months.  The number of homes for sale continues to shrink as the number of homes for sale is 15% lower than a year ago. It would take about 4 months to sell all the homes currently on the market at the current pace city-wide--representing the lowest inventory-to-sales ratio in at least 3 years.   

Price segment matters.  The lowest priced properties (under 250k) have the lowest inventory vs. high sales rate, while the luxury segment has the highest number of homes for sale vs. sales rate, as is usually the case.  In general, Austin properties priced under $450,000 show the greatest demand relative to inventory, and thus upward pressure on prices in some areas.  I sold a couple of properties in 2011 for a higher price than they had last sold for about 2 years prior. 

Downtown Austin condo inventory is lower now too.  Active MLS listings downtown(which include some developer inventory), have declined by about 30%.  Developer inventory is dropping as almost all units under 500k have been sold and no new projects are coming on-line for at least the next 3 years (none are under construction). Resales will dominate this market in 2012 and 2013 at least, and already we are seeing signs that prices for units under $450,000 are firming in the most favored buildings, especially if they have good views.  The Austin luxury downtown condo  market has excess supply in my opinion...but sales continue to occur there, and prices are fairly steady.  There have been several multi-million dollar sales in the W, 555 Hilton and Austonian in the past few months.

In Austin and Texas, the Texas Forest Service says the severe drought has cost us millions of trees across the state.  Between 100 million and 500 million Texas trees have not survived record high temperatures and record low rainfall.  This is estimated to be 5-10% of the tree population in Texas.  How does this impact real estate?  Trees add value to your home.  A home nestled beneath a large tree canopy can sell for thousands more than one on a barren lot.  Trees help keep temperatures down, especially in urban areas and tree shaded buildings have lower energy usage.  

Keep your trees watered in these extreme climate times.  The recent rains have helped tremendously, but when it dries up again, be sure your trees are getting the moisture they need.  A simple lawn watering is not enough to get to tree roots.  Save your trees, it will help preserve and enhance the value of your Austin home.

Jeff Harris, Broker

jeff@trueaustinhomes.com

direct: 512-917-8142

 I have written before about the new W Residence condos in Downtown Austin.  Yesterday, The W hosted a select group of 80 Austin Realtors to tour the property and enjoy a reception by the resident pool.  I really like this property!  The finish out is impeccable and the views are spectacular.  10' ceilings, wide plank hardwood floors, Miele appliances, Bulthaup cabinetry, marble counters and baths.  The residents have their own pool separate from the hotel, and receive a 20% discount on food and drinks from the hotel restaurant, bars and the W Away Spa. Concierge services are at each resident's disposal as well.  

Service at W Austin residences is a priority as is making sure upscale living is enjoyed by all who purchase here.  The petite one bedroom is a great pied-a-terre and starts in the upper $300's.  HOA fees are 55 cents per square foot--lower than other luxury buildings but much higher than other new buildings that offer slightly less service and amenities.  

According to the sales director at W, 65% of the residences are under contract and/or sold.  That leaves 50 or 60 units still available in the 37 story building with prices up to a few million dollars. One of the upper level 3 bedrooms just went under contract for over $2 million.

W is a great addition to Downtown Austin living.  I think I prefer the W to the Four Seasons or Austonian because the design is edgier and the building has a more energetic vibe, although I know every person must decide for themselves what environment suits them best.

Contact me any time for an appointment to see the W or any other  Downtown Austin luxury condominium.

SEARCH Downtown Austin Condos For Sale

Jeff Harris, Broker

jeff@trueaustinhomes.com

512-917-8142

Having been through the marketing of Austin lots and home building sites a few times recently, it struck me how much information must be dispersed to potential buyers.  Most people have never built a home from scratch before and simply don't realize all the things that can add up to make a home site ready to build on, and how those things should be considered when comparing the prices of various lots and land.

In Austin, we have to think about slope and access quite often.  If a lot barrels straight down from the street, you might have to build on concrete pillars or pour the mother load of foundations.  This can add tens of thousands to building costs.  That cheap lot that careens to the bottom of the canyon is not so cheap when you consider what it costs to get a home built there. That more expensive flat lot may be cheaper in the long run.

Also consider access.  Is it an easy curb cut or is there a need to blast through a 10 foot stone embankment to get a driveway in?  And what about retaining walls?  Will the adjacent hillside end up in your living room unless you spend thousands to brace it with a wall?   And then there are utilities.  Is sewer and water available at the street?  Or do you have to build a septic system or drill a well?  Is the area environmentally restricted?  Is it over an aquifer or in a critical watershed or near a creek?

Check with city zoning rules and environmental regulations before going forward.  I find many Austin lot buyers think the regulations that exist within Austin are far more stringent than they really are.  They hear water quality mentioned and they run fast in the other direction.  Much of Austin is environmentally "sensitive" but can be built on anyway with reasonable restrictions.  Impervious cover limits are another thing to watch for when comparing sites.

All these things should be considered when deciding whether to purchase Austin lots or land to build a new home. Consult a builder to determine how these unseen costs can add to the bottom line. When shopping for Austin lots, understand all the costs that go into construction at each individual site so you can make a true comparison when faced with many seemingly similar home sites.  This will help you know what to pay and what you are really going to spend to build that dream home you have always wanted.

Thinking of building?  Contact me for a list of Austin home sites for sale.

Jeff Harris, Broker  512-917-8142 direct

jeff@trueaustinhomes.com      www.trueaustinhomes.com

In a 3-2 vote, Travis County commissioners did the right thing today and retained the historic property tax exemption for 2011.  Judge Biscoe and Commissioners Gomez and Huber gave a thumbs up to historic preservation tax incentives. City of Austin and AISD are still mulling over whether to change their policies. Let's hope our elected officials continue to see the value of preserving our past. 

This vote was a victory for the history and heritage of our town.  Commissioners expressed an interest in identifying more properties east of I-35 for historic designation...a great idea!  Meanwhile residents of buiildings like the Brown Building are happy that they retain part of their low property tax rate.

UPDATE:  Austin Independent School District also voted to put in place the historic exemption for 2011 along with the City of Austin.  

Historic Brown Building Lofts for sale:   http://trueaustinhomes.com/listings.asp

Jeff Harris, Broker

jeff@trueaustinhomes.com

Tomorrow, June 28, Travis County commissioners will decide whether to continue to offer property tax exemptions to historic properties.  Right now, there is a proposal that will gut the exemption and offer a mere $350 annual property tax reduction for historic properties.  This miniscule exemption will further work to discourage property owners from maintaining and restoring historic structures in Austin and Travis County. Already AISD has eliminated this and the city of Austin is still trying to decide what to do.

There is value in preserving historic structures.  One of the things that especially makes Downtown Austin so attractive is that so far, it hasnt't been wholly dismantled and replaced with boring anywhere USA structures.  The fabric and history of our city still lives in historic buildings all over town.  We need to maintain incentives for developers and homeowners to preserve the past with tax exemptions.  That preservation leads to desirable environments that people want to live and work in.  That desirability drives property prices higher, ultimately increasing the tax base and bringing more cash to government.  It is short sighted to kill this program for short term budget concerns.

Please tell Travis County commissioners you support historic tax exemptions.

Contact County commissioners:

sam.biscoe@co.travis.tx.us

ron.davis@co.travis.tx.us

Karen.Huber@co.travis.tx.us 

Sarah.Eckhardt@co.travis.tx.us 

commissioner.gomez@co.travis.tx.us   

 Preserve history in Travis County!

Jeff Harris, Broker

jeff@trueaustinhomes.com

512-917-8142

Not just for Austin luxury homes, but to see what's happening overall in the market, I pull my Austin MLS "hotsheet" quite often and review price changes, pending contracts, sales etc.  A few luxury sales at full price caught my eye so here is the year to date Austin luxury home sales update.  

*Sales are up over 20% vs 2010 for all single family homes priced over $650,000 in the Austin area.

*Sales have doubled for homes priced over $2 MM--21 so far this year.

*Sales of homes price $1 MM to $2 MM are up 30%.

*Homes priced under $2 MM sell in an average of 115 days.

*Homes priced over $2 MM sell in an average of 190 days.

*The number of luxury home sales has increased in the last 30 days

*The inventory of available luxury homes for sale has decreased in the last 30 days.

When you look at all sales across the entire Austin area MLS, they are down slightly from last year. Inventory is down slightly too.  But while the overall market is a mixed bag,  the Austin luxury home market has strengthened in terms of sales volume and a drop in inventory.

One other thing I noticed is that as the year has progressed, the average size home at each price level has decreased for luxury homes. That means for instance that the average $1.5 MM home is now slightly smaller than a year ago by 2-3%.  Put another way, you will now pay slightly more for slightly less house than in 2010.

Contact me to buy or sell an Austin luxury home.

Search Central Austin Luxury Homes

Search Westlake Area Luxury Homes

Jeff Harris, Broker

jeff@trueaustinhomes.com