Austin Texas Homes

Austin home sales continue their upward trend.  The number of homes sold has increased steadily each month since the beginning of the year.  We are still below the numbers sold in 2008, but, like the rest of the nation, the Austin real estate market seems to be on the rebound.

The Austin market has been sluggish.  However, home prices have held fairly steady.  Compared to June of 2008, the median sales price of $199,000 remains the median price in June 2009.  Competitively priced homes are still selling in less than 90 days, with many selling within 30 days of entering the market.

Now is an excellent time for buyers to enter the market:

* Interest rates are great

Currently, the interest rate is 5.22%, which is decreased from the interest rates I reported in my June 5th blog.  Interest rates rose to a high of  6% in June before they began to go back down.  How long will the lower interest rates last?  It seems no one really knows for sure.  Just be aware that interest rates can rise at any time and quickly, as they did in the month of June.

* Home values remain strong

Austin home values have remained farily stable throughout the national real estate crisis.

* Home inventory remains high

Currently, the Austin area has a large supply of homes on the market, giving buyers a wide selection of homes to chose from in their particular price range.  In addition, a large supply of homes keeps Austin home prices competitive and gives the buyer a slight edge when negotiating an offer.

* First-Time Buyers Tax Credit

Anyone who has not owned a home in the past three years is elibigle for a Federal $8,000 Tax Credit.  The time to take advantage of the tax credit is quickly running out.  The purchased Austin property must close escrow on or before November 30.  If you wait too long or the escrow does not close before the deadline, you will lose the tax credit.  The tax credit is free money.  If you remain in the home for over three years, you do not have to repay it.  If you do not need the entire amount of the tax credit, the remainder will be issued

* Austin First-Time Buyers Down Payment Assistance

The City of Austin offers first-time home buyers a zero interest loan up to $10,000 when you live in the home for 10 years.  There is also a program which will assist first-time buyers with an interest-free loan up to $40,000 when you live in the home for 30 years.

Shay Hargus, your Austin real estate specialist