We are experiencing some encouraging news for the local housing heading into 2011:
Austin home prices have held study to slightly upward in value
Interest rates continue to be amazingly low
Austin remains on the “cool/hip most desirable places to live” lists
We are attracting new companies with higher paying jobs
The “mood” of the country is improving
New home builders froze to a stand still over the past 3 years, we are experiencing pent up housing demand and working through excess inventory.
The two major “cross winds” for expansion remain:
State budget train wreck, the deficit will likely hit Austin state employees
Jumbo home loan lending (greater than $417,000) remains tight (JUMBO LOANS ARE POSSIBLE to obtain)
If you have a job, downpayment and well established credit, you can buy a home!
I am witnessing some of my most conservative customers begin to shop for rental/investment homes. They are following the wise advise of Warren Buffett: Buy when there is fear in the market, sell when there is abundant greed.
I recall 1999-2000 in central Austin. There were bidding wars over nearly each house as it entered the market. THAT was a greedy frothy time, and buyers were showing it.
THIS year, 2011 is the time for the well thought out housing investor. These customers are following one more Warren Buffettism: “You only have to do a very few things right in your life so long as you don’t do too many things wrong.”
To my eyes 2011 is the year to make a wise investment in Austin real estate.
Happy New Year!
Jan
www.janhillmortgage.biz
512-431-5223
NMLS 232034
