Archive for October, 2007

The Austin Area Seems Unaffected By Housing Slowdown

October 3rd, 2007 Comments off

HouseIf you watch the news at all you know that the housing market is beginning to suffer around most of the country. The areas that seem hardest hit are those that are on the west and east coasts. Here is Central Texas we have yet to see a real slowdown in the market as new houses continue to go up all over the place.

Our neighborhood in Round Rock is in the close-out stage and I believe that there are less then 10 houses available for sale. These house have at the bare minimum had their foundations poured which a couple are already finished with grass in the front yard. It will nice when these final houses are sold and we do not have any more construction in our neighborhood.

But even as they finish our neighborhood there are model homes being built if a brand new neighborhood that is being built just to the north of us. This neighborhood is set to be priced even higher then ours.

The reason I think things are still going strong in the Austin/Round rock area is that they never really got out of control. In talking with the real estate agent that helped us get our house she said that the prices only increased about 4% a year for the last several years in our area. This is a far cry from how prices increased in California over the last 7 years.

In California the house that I paid $177,000 for in 2001 went up to $440,000 last year. It is now down to $360K. We walked way with a healthy profit from the house when we sold it in 2003 which was nice. I wish we would have been able to hold out until last year but we were hit by the dot com bust and had to sell. We learned our lesson about the economy back then which was one of the reasons we call to Central Texas.

Here we were able to get a really nice house for a reasonable price. If the economy goes bad again we will be able to hold up much better this time around and will be able to keep our house. Unfortunately even though a lot of people were affected by the dot com bust they did not learn and are setting themselves up to hurt by the next bust - the housing bubble. If the economy takes a turn for the worst and people start losing their jobs again all these people with these expensive mortgages are going to lose their houses.

I think if things do start to go bad that Central Texas will not be affected as bad as the majority of the rest of the country - that’s one of the things that makes this such a great place to live.

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