Top 10 Tips: How To Write A Homebuyer’s Offer Letter To A Seller

Posted on May 1, 2013 by bryfair

Sometimes in a competitive market such as ours this can help.
Bryan
bryfair@kw.com
www.BryanSellsAustin.com

Homebuyers trying to stand out from a crowd of offers in today’s competitive market are often told to write a personal letter to accompany their offer. Buyers who are financing a home, or have a smaller down payment, often have trouble competing with all-cash buyers. Appealing to the seller as a person, as opposed to a contract, can sometimes give a buyer an emotional edge.

What isn’t often explained to buyers is how exactly to write that letter. The best ideas are often squandered by poor execution. Here is a quick guide to framing the home buyer letter and leveraging your best attributes by thinking from the seller’s point of view:

1) Flatter First
This is an emotional pitch. You’re attempting to tell the seller, “I’m such a good person that you should ignore the numbers.” They need to like you. Tell the seller how great their taste in color is, how much you’d love to have their lifestyle, and what an amazing neon bottle cap exhibit they have over the fireplace. Lay it on thick, but keep it sincere. You’re selling, but you don’t want them to feel like they’re being sold a used car.

2) Get To The Point
You may have 10 great ideas that you’d like to tell the seller. They will only remember two. The seller may have 10 other letters to read. If you mix in your best points with your lesser points, they may all just become a jumble.

Pick two or three reasons why you will be the best buyer for this home, and make them distinctly recognizable. The more streamlined you make your message, the more memorable it will be.

3) Paint A Picture
People remember what they’ve read at a far higher rate when they can see a picture of it in their head. “I really love this neighborhood because I’ve lived here and gone to school here,” doesn’t resonate.

On the other hand, “I spend half of my time walking the cobblestone streets around this block, dropping my daughter off at Gilman School and volunteering at Schnitzelfest every summer,” will trigger a visual memory for a seller. Think “I’d be so happy in the summer to be cooking Neapolitan pizza for friends and neighbors in your outdoor wood-fired oven”.

4) Don’t Remodel The House
Planning on adding a second story or changing the landscaping? Don’t mention it. You might be correct that the seller’s sewing room would make a great workout room for you, but this isn’t the time.

If you’re going to expand to create more bedrooms, you might be changing the seller’s favorite eyebrow windows in the roofline. They may have buried their dog under the tree you’re planning to pave over. he sellers may have awful taste, but homeowners are very protective of their homes.

5) Show Stability
Present yourself as a stable buyer who will have no problem closing the purchase. Whether that is a reference to your lack of contingencies, stellar employment record, or commitment to moving in as soon as the sellers are comfortable, ease the sellers’ fears of a shaky transaction.

6) Show Humility
At the same time, be humble and ask for the sellers’ blessing on your offer. “We would be so honored to live in your home,” goes much further than “We are confident that you will accept our generous offer.” The ball is in their court, and your letter should acknowledge that.

7) Don’t Whine
The emotion of your letter must be upbeat and high. It needs to make the seller feel good. Everyone wants to play with a winner.

The seller doesn’t care how many other homes you’ve lost out on. They don’t care that your rent just doubled. They don’t want to know about your wife’s sad condition that requires you to have a home like this. They just feel uncomfortable now. In fact, they’re already tossing your offer in the round file as they finish this paragraph.

8) Close With Clarity
Remember the five-point paragraphs and five-paragraph themes you had to write in school? While those formulas are too long and rigid for this letter, their closing advice should be noted. Your excitement, motivation, and ability should be reiterated at the end of your letter in a quick recap.

Remember that the sellers could be reading a few letters. Make sure that the closing of your letter reminds them of your best qualities and reinforces them.

9) Sign with Appreciation
The feeling your sellers will leave with can live or die on the signature line: “Sincerely”, “Cordially”, “Best Regards”, and “Yours Truly” do not apply. This is not a business correspondence of equals. Thank the sellers for spending their valuable evening reading the ode that you wrote about your unworthy self.

“Thank you so much for your time,” “Thank you for the opportunity,” “Your consideration is greatly appreciated,” or even “We are honored to have the opportunity,” will leave the seller understanding that you value their time and are grateful for it.

10) Spell Check. Grammar Check. Buddy Check. Do It Again.
As the recovering son of a former Catholic school English teacher, there is a dark secret I’d like to let you in on. We’re prejudiced. We look down on people who aren’t like us. There is a heinous belief ingrained in us from birth that says people who misspell and use incorrect grammar are lesser beings and not worthy of our respect.

Truthfully, though, there is an unbelievable amount of weight that some sellers will put on the preciseness of the letter. Right or wrong, the buyer’s personality will be judged from their attention to detail, ability to follow-through, and level of care in the letter. Buyer reliability is often gleaned from how well the rules of grammar are followed. If grammar isn’t your thing, find someone whose thing it is. You never know: the house you want to buy just might belong to my mother.

Write The Letter, Check It Twice, and Send It Off
There are many tactics being used by home buyers to stand out from the crowd. While not all sellers will read them, personalized letters are the most-accepted and popular form of unique buyer strategies available. Don’t rush the letter. Take the time to write it correctly. It just might be the most valuable single page of text you ever write.

www.BryanSellsAustin.com

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Austin part of Bloomberg list-Top Boomtowns

Posted on April 30, 2013 by bryfair

Although I am not a fan of the word “boomtown”, I am pleased to see Austin mentioned in the same breath as other cities that I enjoy visiting such as New Orleans, Portland Oregon, San Antonio, DC, etc. Also if you are in the market to buy a home, sell your home, or invest in Austin real estate, please contact me to discuss your real estate goals. Anyway, here is the artice courtesy Bloomberg.

Bryan Faircloth
bryfair@kw.com
www.BryanSellsAustin.com
Immigration, despite the tortured national debate emanating from Washington, has always been about people seeking better opportunities. Within U.S. borders, Americans are also in search of a better life, one they may find across state lines. Bloomberg Rankings sorted through U.S. Census data for metropolitan areas to rank those with the greatest population growth, then scored areas on growth in gross domestic product, adjusted for inflation. Combine the two scores and winnow the list to regions with more than 1 million residents, and you have American’s fastest-growing cities.

1. Austin-Round Rock, Texas
Michael Buckner/Getty Images2007 Population: 1,598,161
2011 Population: 1,783,519
Percent Change: 11.60
GDP Compound Annual Growth: 3.26%

Austinites proudly wear T-shirts that say “Keep Austin Weird” — something of a challenge as the city and surrounding areas grow in leaps and bounds. The Austin area, home of the South by Southwest festival and Dell Inc., has an unemployment rate of 5.4 percent, compared with 7.8 percent for the nation. Its population continued to rise in 2012, to 1.8 million, and the area is supposed to generate about 25,000 new jobs in 2013, according to Austin-based Angelou Economics. A high-tech job boost will come from Apple Inc., which is expanding its Austin campus with a new, 1 million-square-foot operations center that will be second in size only to its Cupertino (California) headquarters.

2. New Orleans-Metairie-Kenner, Louisiana
2007 Population: 1,030,363
2011 Population: 1,191,089
Percent Change: 15.60
GDP Compound Annual Growth: 2%

Reporter Geraldo Rivera sparked controversy recently by referring to everything outside New Orleans’s French Quarter as a “vast urban wasteland.” The area is growing as it rebuilds from Hurricanes Katrina and Rita. Tourism is booming, and the New Orleans area gained more residents than any other in the U.S. from 2007 to 2011. The population rose to 1.2 million in 2012, and there’s plenty of job growth in heavy construction and even the television and motion picture industry, according to New Orleans demographer Allison Plyer. The unemployment rate, at 5.9 percent, is below the national average. One worry: Governor Bobby Jindal’s tax plan could change the state’s motion picture investor tax credit, reducing a key incentive to film in Louisiana.

[Click here to check home loan rates in your area.]

3. Raleigh-Cary, North Carolina
gbein83/Flickr2007 Population: 1,047,629
2011 Population: 1,163,515
Percent Change: 11.06
GDP Compound Annual Growth: 1.49%

Southern accents are disappearing fast in the Raleigh-Cary metro area, says Robin Dodsworth, a linguistics professor at North Carolina State University. The culprit: the famous Research Triangle Park, which attracts techies — some 40,000 of them now — from all over the world. While many locals lament the demise of the Southern drawl, the economy here is growing, though unemployment stands at 7.5 percent. The population reached about 1.2 million in 2012, as big companies such as International Business Machines Corp. (IBM), Cisco Systems Inc. and Lockheed Martin Corp. employed not just locals but also transplants from around the globe.

4. San Antonio, Texas
2007 Population: 1,990,675
2011 Population: 2,194,927
Percent Change: 10.26
GDP Compound Annual Growth: 1.47%

Think of San Antonio, and images of Spanish missions, the River Walk and the Alamo come to mind. Here, as in most of Texas, the key driver of growth is oil and gas drilling, particularly from the Eagle Ford Shale formation. A strong military presence, which includes Randolph Air Force Base, also supports the economy. As of March, about 2.2 million people were living in the area, and unemployment was 6.1 percent. “This is not a little city anymore,” says Steve Murdock, a professor of sociology at Rice University. “We are the seventh-largest city in the U.S.”

5. Houston-Sugar Land-Baytown, Texas
Thinkstock2007 Population: 5,628,101
2011 Population: 6,086,538
Percent Change: 8.15
GDP Compound Annual Growth: 1.55%

Like San Antonio, Houston has benefited from the oil and gas boom. Mining companies such as BHP Billiton Ltd. and El Paso Mine Machinery Corp. are big employers. So is NASA’s Johnson Space Center. Alec Friedhoff, a senior research analyst at the Brookings Institution, says that while the recession here wasn’t as severe as in other parts of the nation, the economy is bouncing back just as strongly as some of the worst-hit areas. More than 6.1 million people live here, and unemployment stands at 6.3 percent.

6. Washington, D.C. Metro Area
2007 Population: 5,306,565
2011 Population: 5,703,948
Percent Change: 7.49
GDP Compound Annual Growth: 1.46%

People in the Washington area, which includes neighboring towns in Virginia and Maryland, were buffered from the recession partly because of the federal government, which employs more than 140,000 people. Another draw to the region: the defense and civilian contracting sectors with big employers such as Raytheon Co., General Dynamics Corp. and Northrop Grumman Corp. For younger job seekers, the tech industry, which is growing faster here than in any other metropolitan area, is a big lure, according to Praxis Strategy Group. All this is leading to steady growth. In 2012 the population was 5.8 million. At 5.5 percent, unemployment is below the national average.

7. Oklahoma City, Oklahoma
Paul L McCord Jr/Flickr2007 Population: 1,192,989
2011 Population: 1,278,053
Percent Change: 7.13
GDP Compound Annual Growth: 1.44%

Oklahoma shielded itself from the recession with its own stimulus package, says Cynthia Reid of the Oklahoma City Chamber of Commerce. It put more than $1 billion to work funding its own infrastructure projects over a five-year period. That included renovating every school, improving sidewalks and trails and building a new convention center and expo center. Such improvements have attracted more people to the city, which in 2012 had a population of 1.3 million and an unemployment rate of 4.9 percent. There are plenty of jobs available from natural gas companies such as Devon Energy Corp., Continental Resources Inc. and Chesapeake Energy Corp.

8. Nashville-Davidson-Murfreesboro-Franklin, Tennessee
2007 Population: 1,521,437
2011 Population: 1,617,142
Percent Change: 6.29
GDP Compound Annual Growth: 1.37%

Nashvillians are thrilled about the billboards across the country that scream out, “Nashville.” It doesn’t matter that the billboards are ads for the ABC television show, says Mary Beth Ikard of the Nashville Metropolitan Planning Organization. The publicity will do the area good. Nashville is known for its music industry — country, pop, gospel and rock — which has pumped billions of dollars into the local economy. Nissan Motor Co.’s headquarters are here. The health-care industry is also a big employer, as are publishers including Thomas Nelson Inc., a major Bible printer. Unemployment is relatively low at 6.4 percent. In 2012 the population was 1.7 million people.

9. Portland-Beaverton Oregon, Vancouver Washington
p medved via Flickr2007 Population: 2,175,113
2011 Population: 2,262,605
Percent Change: 4.02
GDP Compound Annual Growth: 5.23%

Portland, known as the “City of Roses” for its many rose gardens, has had the fastest economic growth in the country. It is, however, dealing with a few thorns. The city has invested $1 billion in its transit service to accommodate its growth, with a new “light rail” train service to better connect neighborhoods. Census data, though, show that only a little more than 1 in 10 new workers used the transit system during the past decade. Meanwhile, traffic congestion has increased more than four times the national average.

The population is rising — there were 2.3 million people in 2012 — yet unemployment is 8.3 percent. The television show “Portlandia” dubbed the city “the place where young people go to retire.” A study by Portland State University noted that many college-educated students are drawn by the low cost of living, which allows them to bypass jobs at big companies such as Intel Corp. and Nike Inc. Instead, they try to start their own companies and make a little money through part-time work. Brookings Institution’s Friedhoff says another reason for the unemployment rate is that in the thick of the recession, many people moved to Portland for its lower cost of living. As companies cut hiring, people weren’t able to find jobs.

10. Charlotte-Gastonia-Concord, North Carolina
2007 Population: 1,651,568
2011 Population: 1,795,472
Percent Change: 8.71
GDP Compound Annual Growth: 0.14%

The big draw to Charlotte has long been the banking industry, which explains the steady rise in the region’s population (2.3 million in 2012). The influx of people has led the Charlotte Douglas International Airport, the largest hub to US Airways, to become the sixth-busiest airport in the nation, according to Bob Morgan, president of the Charlotte Chamber of Commerce. Friedhoff says the financial crisis and layoffs in the banking center explain another trend — high unemployment. Morgan says things could be improving, however, because the area is getting a boost from international companies increasingly doing business here. Among them is German company Siemens AG, which is building turbines in the area.

11. Dallas-Fort Worth-Arlington, Texas
2007 Population: 6,145,037
2011 Population: 6,526,548
Percent Change: 6.21
GDP Compound Annual Growth: 0.84%

The oil and gas industry employs people in the Dallas area, though not to the extent as in cities like Houston, says Friedhoff. The result is an area that’s diverse in employment opportunities, from finance to technology companies. The unemployment rate, at 6.3 percent, is less than the national average. The relatively low cost of living in Dallas, combined with the economic opportunities, has been a draw for many people, according to Lloyd Potter, the state’s demographer. In 2012 the area had a population of 6.7 million.

12. San Jose-Sunnyvale-Santa Clara, California
2007 Population: 1,803,643
2011 Population: 1,865,450
Percent Change: 3.43
GDP Compound Annual Growth: 4.37%

Here in “tech land” the population continues to rise, hitting 1.9 million in 2012. Unemployment, at 7.6 percent, is close to the national average. During the housing crisis the entire state was hit hard, as home prices fell 34 percent. During the recovery, the San Jose/Sunnyvale area has come back strong. The key to its progress, says Friedhoff, is that unlike in other areas, Silicon Valley’s success does not rely on consumer-driven growth locally. Instead, the tech products made in Silicon Valley find markets all around the world.

Methodology
Bloomberg Rankings analyzed population and real (inflation-adjusted) data on gross domestic product for 360 metropolitan statistical areas (MSAs). MSAs were ranked on the increase in population and real GDP compound annual growth rate and given a point score from 1 to 100. The two ranks were added together and divided by 720, the highest possible total, to create the final score. The list was then winnowed to areas with at least 1 million residents as of 2011 that showed an increase in both population and real GDP from 2007 to 2011. Census population estimates for the ranking are as of July 1, 2007, and July 1, 2011.

Data Sources: U.S. Census and the U. S Bureau of Economic Analysis.

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Toughest Austin Golf Courses

Posted on April 30, 2013 by bryfair

The article by the Austin Business Journal lists the toughest ranked private and public golf courses in the area. Of these 10 courses 8 of them are in or linked to residential developments so you can live there as well. The top 5 private are Austin CC (Davenport Ranch), The Hills of Lakeway, Horseshoe Bay/Summit Rock (new Nicklaus design), Flintrock Falls of Lakeway and the University of Texas Golf Club (Steiner Ranch). The 5 public are Teravista in Round Rock, ShadowGlen, Wolfdancer (Lost Pines Resort), Lago Vista and Forest Creek, also in Round Rock. If you are looking to buy a home or sell your home in these neighborhoods, please contact me and I look forward to assisting in your real estate goals!

Here is the Austin Business Journal link:
http://www.bizjournals.com/austin/news/2013/04/26/austins-toughest-golf-courses.html?s=image_gallery

Bryan Faircloth
www.BryanSellsAustin.com
bryfair@kw.com

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Strength in Austin Economy-New home starts up sharply!

Posted on April 24, 2013 by bryfair

Hello friends and clients,
There is now a 2.2 month supply of new homes which although is down from 2.4 months this time last year, there is inventory available for opportunistic buyers. Currently, there are about 4,000 homes in inventory with 313 furnished model homes, 1,378 finished vacant homes and 2,296 homes under construction. The homes under construction represent a 52 percent increase from a year ago. More on this is listed below from this piece that was in this week’s Austin Business Journal. Enjoy and please contact me if you are in the market to buy a home, sell your home, or invest in real estate.

New home starts jumped 27 percent in a year’s time in Austin, according to Metrostudy.

In the first quarter of 2013, there were 1,952 new home starts, an increase of 413 homes. Closings also jumped about 30 percent between the first quarter of 2012 and the first quarter of 2013. In all, there were 1,995 final sales of new homes during the first quarter.

Currently, there are about 4,000 homes in inventory with 313 furnished model homes, 1,378 finished vacant homes and 2,296 homes under construction. The homes under construction represent a 52 percent increase from a year ago.

There are 2.2 months of supply of new finished homes, down from a 2.4 months supply a year ago.

“The growth of homebuilding activity for the remainder of the year will be governed by the volume and timeliness of new lots delivered to the market,” said Madison Inselmann, regional director of Metrostudy in Austin.

Bryan Faircloth
bryfair@kw.com
www.BryanSellsAustin.com

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March 2013 Austin Area Market Statistics

Posted on April 18, 2013 by bryfair

Hello Friends and Clients,

March has seen another decrease in available inventory which is now down to 2 1/2 months and average days on the market which is down to 64 days.

If you have received your tax appraisals for this coming year and have questions or would like information about recent sales data that may assist in protesting, please feel free to contact me and I will be happy to forward any information about comparable sales in your neighborhood. Again, thank you for your business and your referrals!

Bryan Faircloth
Keller Williams Realty
www.BryanSellsAustin.com
bryfair@kw.com

Austin Board of REALTORS® releases real estate statistics for March 2013

AUSTIN, Texas – April 18, 2013 – According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR), the volume of Austin-area home sales continues to rise as March became the 22nd straight month of sales volume increases—the most home sales in March since 2007.

According to the report, 2,166 single-family homes were sold in the Austin area in March 2013, which is 16 percent more than March 2012. On average, homes spent 64 days on the market, which is a decrease of 20 days from one year prior.

Cathy Coneway, 2013 Chairman of the Austin Board of REALTORS­®, explained, “Austin-area homes are spending almost a third less time on the market compared to March 2012, while the volume of home sales outpaced last year significantly. It’s no longer uncommon for sellers to receive multiple offers on a home within days of listing.”

In March 2013, the median price for Austin-area homes increased to $220,000, which is 10 percent more than the same month in 2012. Additionally, the market featured 2.6 months of inventory in March 2013, which is 1.8 months less than March 2012.

The total dollar volume of single-family properties sold was $616,354,794, or 28 percent higher than the same month last year. The market also featured two percent fewer new listings, 28 percent fewer active listings and 18 percent more pending sales in March 2013 compared to the prior year.

“Austin’s housing inventory continues to be one of the lowest in Texas,” Coneway adds. “Buyers should prepare to act fast on a home they want and to possibly offer over list price as 97.4 percent of homes are selling to list price.”

March 2013 Statistics

2,166 – Single-family homes sold, 16 percent more than March 2012.
$220,000 – Median price for single-family homes, 10 percent more than March 2012.
64 – Average number of days single-family homes spent on the market, 20 days fewer than March 2012.
3,283 – New single-family home listings on the market, two percent fewer than March 2012.
5,218 – Active single-family home listings on the market, 28 percent fewer than March 2012.
2,754 – Pending sales for single-family homes, 18 percent more than March 2012.
2.6 – Months of inventory* of single-family homes, 1.8 months less than March 2012.
$616,354,794 – Total dollar volume of single-family properties sold, 28 percent more than March 2012.
The following sections describe trends in other sectors of the Austin real estate market.

Townhouses & Condominiums
The volume of townhouses and condominiums (condos) purchased in the Austin area in March 2013 was 275, which is 27 percent more than March 2012. In the same time period, the median price for condos was $181,750, which is three percent less than the same month of the prior year. When compared to March 2012, these properties spent one percent less time on the market, or an average of 87 days.

Leasing
In March 2013, a total of 1,205 properties were leased in Austin, which is nine percent more than March 2012. The median price for Austin-area leases was $1,380, which is six percent more than the same month of the prior year.

The Austin Board of REALTORS® (ABoR) is a non-profit, voluntary organization dedicated to educating and supporting Central Texas REALTORS®. ABoR proudly serves nearly 9,000 members, promotes private property rights, and provides accurate, comprehensive property listing information for the Greater Austin area.

Home sales statistics are released by ABoR on a monthly basis. For more information, please contact the ABoR Marketing Department at marketing@abor.com or 512-454-7636. Visit AustinHomeSearch.com, a public resource on Austin real estate, for the latest news on the local housing market.

* The inventory of homes for a market is measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.

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Millennials: Not destined to be lifelong renters!

Posted on April 15, 2013 by bryfair

Demographic info recently posted about the Millennials generation.
- 65% indicate that their intention to buy has significantly increased in the last 12 months.
- 52% will buy to build equity, 12% are just tired of apartment living.
- Top 5 design features their first home must have are ample storage (84%), TV/movie/sports watching (76%), a well designed entry (73%), ample outdoor living/back for entertaining (63%) and the ability to conduct business from home (36%).

It a great time to buy/invest in real estate. Please see me about reaching your real estate goals!

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Central Texas home starts jump 27% in first quarter

Posted on April 10, 2013 by bryfair

From the Austin American-Statesman.

Central Texas home starts rose nearly 27 percent in the first quarter, as the region’s job growth, low mortgage interest rates and rising apartment rents continued to fuel housing demand.

Builders started construction on 1,952 houses in the first three months of the year, compared with 1,539 in the same period last year, according to Metrostudy, which tracks the numbers. The first quarter jump pushed the annual home starts rate to 8,385 homes for the 12 months that ended in March — up 32 percent from the annual total for the 12 months that ended in March 2012.

“Adding jobs, annually, for nearly three straight years emboldens consumer confidence in the local economy and this is driving the robust demand for housing in the Austin market,” said Madison Inselmann, regional director of Metrostudy’s Austin market.

The Austin area added 32,200 jobs in the 12 months that ended in February, a 4 percent annual growth rate. Since reaching its employment bottom in 2010, the Austin area has added more than 90,000 jobs, Metrostudy said in a news release Friday.

Although the local housing market has been in recovery mode for more than a year, “I think that it’s finally hitting its stride,” said Ryan Jackson, vice president of sales and marketing for Streetman Homes, an Austin-based homebuilder.

“Things are really just exploding for us,” Jackson said. “We sold more homes in the first quarter than we’ve sold in any previous quarter in our 20-year-history.” The company sold 77 homes in its five communities in Travis and Williamson counties in the first quarter, up 126 percent from the 34 houses it sold in the same quarter last year.

“These numbers now are in line with what we were doing in 2005 and 2006,” the peak of the market when builders were putting 15,000 to 16,000 homes a year on the ground, Jackson said.

Central Texas’ job and population growth, low interest rates on home loans and escalating rents continue to drive strong housing demand, said Fred Wyborski, division president for Lennar Corp. in Austin.

Lennar is opening six new home communities this year in the Austin area, with the first being Hutto Highlands in Hutto and Woodlands Park in Kyle.

Lennar, which builds homes in the $140,000 to $500,000 and up range in the Austin area, said its sales here were up nearly 50 percent in the first quarter of this year compared to the year-ago quarter.

At Falcon Pointe in Pflugerville, developer Newland Homes logged its best first-quarter sales numbers since the project began—47 since Jan. 1. There were 109 sales in all of 2012 there, the company said.

Homes at Falcon Pointe range from the upper $100,000s to more than $300,000. The average price is about $257,000, $20,000 higher than last year’s average.

At Streetman, prices also are up, rising 7 percent in the first quarter compared with the year-ago quarter, Jackson said.

A shortage of lots that are ready to build homes on, coupled with very lean inventories of new and resale homes on the market, are contributing to the price increases, builders say.

And rising prices are further fueling housing demand, builders and experts say, prompting prospective buyers to act before they tick even higher, and making some people more confident that a home purchase is once again a good investment.

“The bottom is long gone,” Jackson said. “We’re on this trajectory up.”

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Austin #1 in Economic Health

Posted on April 9, 2013 by bryfair

From the Austin Business Journal:

Austin holds onto first place in economic health index

Austin held on to No. 1 in March’s version of the Business Journals’ On Numbers Economic Index.

Staff Austin Business Journal
Austin maintained its No. 1 spot in the Business Journals’ latest analysis measuring the economic health of major metropolitan areas.

In March, the Capital City again ranked in first place in the Business Journals’ On Numbers Economic Index, which is calculated by an 18-part formula. The formula assesses private-sector job growth, unemployment, earnings, housing-price appreciation, and construction and retail activity for all 102 metropolitan areas with populations of more than 500,000.

Austin held the position for the second straight month — and the third time in four months.

Second place is held by Provo, Utah, which moves up from sixth place a month ago. Rounding out the top five are Houston, Oklahoma City and Dallas-Fort Worth.

Austin has been consistently strong since the index debuted in August 2012, occupying first place three times and second place the other five months. Its current record of economic growth is unparalleled:

• The number of private-sector jobs in the Austin area has increased by 9.7 percent during the past five years. No other market has expanded more rapidly than 7.5 percent.

• Austin is the only market with growth rates of better than 3 percent in four key categories: private-sector jobs over the past year and the past five years, and personal earnings during the past year and past five years.

• Home values have risen in just 10 of the 102 major markets since 2008. Austin qualifies for that elite group with an appreciation rate of 4.7 percent.

Last place currently belongs to Bridgeport-Stamford, Conn.

Related links:
Austin, Jobs, Economic Snapshot

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Cut 4 years off your mortgage

Posted on April 8, 2013 by bryfair

Hello,

The following is a published article from a former mortgage executive about paying down your mortgage. Hope this info is useful!

Bryan

We are now officially in the peak spring home buying-season. I was asked the other day for advice on what should be at the top of the list for homeowners after they move into their new home.

That was an easy question to answer. My No. 1 piece of advice for recent homebuyers is to switch from the traditional monthly mortgage payments to either weekly or bi-weekly payments.
Why? Because it’s the least painful, simplest way I know to shave approximately four years off the life of a traditional 30-year fixed rate mortgage. Here’s what you need to do.

First, contact your mortgage lender to set up automatic withdrawals from your bank account for your mortgage payments. While you could theoretically achieve the same result by mailing in your payments, the vast majority of people won’t have the discipline to stick to this alternate payment schedule if it’s not set up as an automatic withdrawal.

Next, ask your lender to establish a payment every two weeks. Take your monthly mortgage payment and divide it by two to come up with your payment amount. For example, if your mortgage payment is $1,000 a month, your payment should be $500 every two weeks. You could also establish weekly payments instead, which would be $250 a week instead of a $1,000 monthly payment.

This simple change in your payment schedule will cut approximately four years off of a traditional 30-year fixed rate mortgage. Check with your mortgage lender for an exact calculation of the reduction in years based on your individual circumstances.

Sounds painless and too good to be true, doesn’t it? Here’s how it works. If you make payments every two weeks, you’re making 26 payments a year. Since each payment is half of your normal monthly payment, take the 26 payments and divide by two to arrive at the monthly payments you are making each year. Twenty-six divided by two results in 13 monthly payments that you’ve made each year instead of the 12 monthly payments that you would normally make under a traditional payment schedule. The same mathematical result occurs if you establish a weekly payment schedule at one-fourth the amount of your normal monthly mortgage payment.

So, you end up paying an extra monthly payment on your mortgage each year, which has an impact on the compounding effect of the interest on your mortgage. Most homeowners would be hard-pressed to come up with an additional mortgage payment at the end of each year, so this is a great way to accomplish some forced savings in a manner that most people don’t even feel.

And this is not just for new homebuyers. Many existing homeowners are asking themselves, “Should I refinance?” If you decide to refinance your mortgage to today’s low interest rates, make sure to consider this option when you set up your new mortgage.

Finally, consider this scenario: You might have a child in college during those last four years of your mortgage. The absence of your mortgage payments might be the solution to paying tuition for those four years of college.

Tom Reddin, former president of LendingTree, writes for the Charlotte Observer about mortgages and home ownership. A version of this column previously appeared on his blog, MortgageRates.us. He runs Red Dog Ventures, a venture capital and advisory firm for early-stage digital companies.

©2013 The Charlotte Observer (Charlotte, N.C.)
Distributed by MCT Information Services [2]

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February 2013 Austin Area Housing Market Statistics

Posted on March 20, 2013 by bryfair

Hello friends and clients,

We have now seen our median price increase by 7 percent over February 2012 and our sales volume increase by 26 percent. Please let me know how I can assist if you are in the market to sell your home, buy a home or invest in real estate. Thank you once again for your business and your referrals!

Area Market Statistics

Austin-area home sales up 26 percent in February, median price up seven percent
Austin Board of REALTORS® releases real estate statistics for February 2013

AUSTIN, Texas – March 20, 2013 – The Austin real estate market continued to gain steam in February, according to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR). As cited in the report, the volume of home sales in Austin outpaced last year significantly and the price for Austin-area homes continued to rise.

According to the report, 1,626 single-family homes were sold in the Austin area in February 2013, which is 26 percent more than February 2012, and the total dollar volume of single-family properties sold was $430,324,152, or 32 percent higher than the same month last year.

Cathy Coneway, 2013 Chairman of the Austin Board of REALTORS®, explained, “Strong demand for Austin homes continues, but the number of listings on the market remains consistent. This has led to steady increases in price while keeping housing inventory at record lows.”

In February 2013, the median price for Austin-area homes increased to $208,500, which is seven percent more than the same month in 2012. Additionally, the market featured 2.6 months of inventory in February 2013, which is 1.6 months less than February 2012.

The market also featured one percent more new listings, 25 percent fewer active listings and 15 percent more pending sales in February 2013 compared to the prior year. On average, homes spent 71 days on the market, which is a decrease of 15 days from one year prior.

February 2013 Statistics

1,626 – Single-family homes sold, 26 percent more than February 2012.

$208,500 – Median price for single-family homes, seven percent more than February 2012.

71 – Average number of days single-family homes spent on the market, 15 days fewer than February 2012.

2,574 – New single-family home listings on the market, one percent more than February 2012.

5,121 – Active single-family home listings on the market, 25 percent fewer than February 2012.

2,223 – Pending sales for single-family homes, 15 percent more than February 2012.

2.6 – Months of inventory* of single-family homes, 1.6 months less than February 2012.

$430,324,152 – Total dollar volume of single-family properties sold, 32 percent more than February 2012.
The following sections describe trends in other sectors of the Austin real estate market.

Townhouses & Condominiums
The volume of townhouses and condominiums (condos) purchased in the Austin area in February 2013 was 169, which is 31 percent more than February 2012. In the same time period, the median price for condos was $187,000, which is nine percent more than the same month of the prior year. When compared to February 2012, these properties spent 27 percent less time on the market, or an average of 67 days.

Leasing
In February 2013, a total of 1,160 properties were leased in Austin, which is five percent more than February 2012. The median price for Austin-area leases was $1,320, which is six percent more than the same month of the prior year.

The Austin Board of REALTORS® (ABoR) is a non-profit, voluntary organization dedicated to educating and supporting Central Texas REALTORS®. ABoR proudly serves nearly 9,000 members, promotes private property rights, and provides accurate, comprehensive property listing information for the Greater Austin area.

Home sales statistics are released by ABoR on a monthly basis. For more information, please contact the ABoR Marketing Department at marketing@abor.com or 512-454-7636. Visit AustinHomeSearch.com, a public resource on Austin real estate, for the latest news on the local housing market.

* The inventory of homes for a market is measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.

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