We're improving the look of our "For Sale" signs. We're going with a green and gray color scheme and a re-design that we hope comes across as more modern and urban. It's a fresh look that better conveys who we are as a company.


I've also heard complaints that our phone number on the old sign, "997-SOLD," led to some confusion as to whether a listing was still available or under contract. So we scrapped the whole "SOLD" thing and printed our actual phone number on the new signs to eliminate any further chances of misunderstanding.


Comments, anyone?

BEFORE:

AFTER:

Austin real estate agent Jay Carter offers a free Austin MLS search at his website, Living In Austin .com

If an Austin real estate agent tells you that an "economic recovery" was underway, would you believe him?

Here's what one local agent had to say in a sales flyer that appeared on my doorstep today:

The pattern gets clearer week after week: We are looking at a slow-motion housing recovery that is itself feeding into a broader economic recovery that should have us out of the recession later this year.

Now that's not to ignore the fact that there are markets in the country that still face very challenging economic dynamics - with no real turnaround in view yet on housing sales, prices and employment.

But the national numbers are telling us something important, and they increasingly look positive.

Are any of you buying this? I'm not.

Consider:

• Another foreclosure wave is coming, thanks to an even nastier upcoming round of new mortgage rate "re-sets."


• The collapse of commercial real estate is just beginning to warm up. We will soon see many more empty store fronts at our favorite shopping centers, yes, even here in Austin.


• City and state governments across the country are broke, and unlike the Feds, cannot simply print more money. As a result of a continued sharp decline in collected sales, income and property tax revenue, we're likely to see significant job losses in that sector (city/state gov't, schools, etc.) come this fall. There are many private industries that also depend on these government expenditures that will suffer.


• In this climate, Americans will continue to focus on paying down debt and saving money, which is exactly what they should do. But in an economy so dependent on consumption and leisure, that pullback in spending will have negative consequences for years to come.
  
• As if this weren't enough, a plethora of other economic storms are also forming on the horizon, trends which we've talked about before on this blog, which will most certainly affect the housing market over the next 1 to 5 years...possibly even longer.

So is real estate still a good investment? It depends on what your expectations are. Specifically, your exit strategy will make all the difference. I keep running into people who want to hear how much I think their houses will "go up" in value when they sell in a few years. I think that's a dangerous financial plan.

I am still actively shopping for cash-flowing real estate, and am quite pleased to see more of it for sale out there at fantastic prices. I have some very smart clients right now who are a few days from closing on a cash-flowing fourplex in east Austin. The numbers look great. We negotiated hard to get a surprisingly low price for the property. But as we haggled with the listing agent over additional terms, I was stunned to hear him argue that "we've already hit bottom, the recovery is underway." He's in for a rude surprise, in my opinion.

This is the time to buy, buy, buy -- but only if you plan to hold your property for the long term with a nice, low mortgage interest rate.

And what if prices get any lower? Then I'll buy again. And again. That's how it works.

Looking to sell? Right now is a lousy time to do it, and I'm willing to make a bet with that agent who put the flyer on my door that "later this year" will be an even worse time to do so.


Austin real estate agent Jay Carter offers a free Austin MLS search at his website, Living In Austin .com

And now there's this bit of happy news from a new article on Forbes.com:

The Best Cities for Recession Recovery
#1. Austin-Round Rock, Texas
Current GDP: $72.4 billion
End of 2010: $77.7 billion (projected)
Unemployment: 5.8%

From now to the end of 2010, the economy of Austin is projected to grow by $5 billion, and unemployment has stayed relatively subdued. The city's diverse economy, home to Dell, the University of Texas and the Texas state government, has kept the economy strong. Forbes.com also recently ranked Austin the Best Big City for Jobs.

Read the entire article here.

Austin real estate agent Jay Carter offers a free Austin MLS search at his website, Living In Austin .com

The population of the Austin metro area will grow to more than 2.7 million by the year 2025, according to an analysis of government data by bizjournals.

The projected growth rate of Austin and its suburbs ranks 5th among 250 U.S. metropolitan areas studied in the report.

Bizjournals forecasts that the Austin-Round Rock area will grow nearly 87 percent from its 2005 estimated population of nearly 1.5 million to a 2025 projected population of 2.7 million, an increase of nearly 1.3 million residents.

Austin will see the most growth of any Texas city, according to the bizjournals analysis. The McAllen-Edinburg area will be the second-fastest growing metro in Texas, ranking 22nd on the list with an estimated 56 percent growth in population.

Among the major Texas cities:

• Dallas/Fort Worth ranks 26th with a projected 50 percent population increase to 8.8 million people;
• Houston ranks 27th with a projected 48 percent population increase to 7.9 million people;
• San Antonio ranks 40th with a projected 41 percent population increase to 2.7 million people.

Austin real estate agent Jay Carter offers a free Austin MLS search at his website, Living In Austin .com

Today's the day!

If you are an Austin Energy customer, from this day on, you'll have to complete a City of Austin energy audit on your home before you can sell it.

The Austin City Council approved the Energy Conservation Audit and Disclosure (ECAD) ordinance to improve the energy efficiency of Austin homes and buildings that receive electricity from Austin Energy.

Improving energy efficiency can help reduce electricity bills for renters and owners of homes, multifamily properties, and commercial buildings. The ordinance also helps meet one of the goals of the Austin Climate Protection Plan—offsetting 700 megawatts of peak energy demand by 2020 to reduce Austin’s carbon footprint.

The ordinance takes effect today -- June 1, 2009.

Here's more information from the City of Austin's website.

AUSTIN REAL ESTATE
Austin home sellers to have new chore: energy audits

By Shonda Novak
AUSTIN AMERICAN-STATESMAN
Tuesday, May 26, 2009

Come Monday, many Austin home sellers will have one more chore, along with touching up the paint and sprucing up the yard, before putting their house on the market.

That's when a new city ordinance kicks in that requires sellers of homes older than 10 years to get an energy audit and disclose the results to prospective buyers.

City leaders who approved the audits last year said it was one more way to reduce Austin's energy consumption and make Austin greener, although sellers are not required to make any improvements as a result of the audit. The idea is to encourage sellers or buyers to make their houses more energy-efficient.

But with the requirement taking effect in a slower housing market, some real estate agents say it could delay or torpedo sales and will add costs for sellers.

"There's never a good time to add fees to a transaction," said City Council Member Mike Martinez, "but I think this requirement is a good thing. It allows the consumer to fully understand the purchase they're about to make. If you spend hundreds of thousands of dollars on an investment, you would want to know how efficient that investment is going to be for you."

As for sellers who may be concerned that the ordinance could hurt their negotiating power, Martinez said: "It's no different than a home inspection. The consumer needs to know what they're buying."

The audits are expected to cost $200 to $300 for a typical home of 1,800 square feet or less. Austin Energy anticipates that 3,000 to 4,000 homes a year will be audited under the ordinance.

Jay Gohil, chairman of the Austin Board of Realtors, said the ordinance "is reasonably acceptable for buyers as well as sellers."

The board was represented on the task force that created the ordinance, along with contractors, city officials and others, and fought successfully against any provision that would require sellers to make energy upgrades.

"With the cost of electricity rising, it's an important part of knowing if you can afford a home. Buyers are looking for houses with lower utility costs," Gohil said.

But Robin Curle, an agent with JB Goodwin Realtors, said the ordinance "needs to be overturned or revised."

"The ordinance might have been a good idea in a very hot real estate market, but to pass it this year when the market is recovering from a slowdown ... will only slow the contract process and give buyers one more thing other than repairs to negotiate," she said. "Now they can also negotiate (energy) upgrades, which puts us at risk for a hit on the market."

Michael Lucy, whose four-bedroom home in Northwest Austin is on the market for $489,000, said he got widely varying quotes on the energy audit and eventually paid $400.
Lucy said he is all for the city promoting energy conservation but thinks that the audit requirement is misguided because sellers have no incentive to make upgrades.

"They should involve the people with a vested interest in the future of the home, not the people that are on their way out the door, literally," said Lucy, who works for a pharmaceutical company. "There's no reason in the world why this should be tied to the purchase or sale of a house."

The ordinance was part of Mayor Will Wynn's initiative to reduce energy use in Austin and the need for new power plants, thus shrinking the city's carbon footprint.

After months of work by the task force, the City Council unanimously passed the ordinance in November, setting June 1 as the effective date. The ordinance also has provisions for multifamily properties and commercial buildings.

A City Council resolution accompanying the ordinance includes a goal of having 25 percent of homes sold between June 2009 and June 2010 receive upgrades and more homes in later years.
The reports must be done by auditors who are certified by the Building Performance Institute, a national educational organization for home performance contractors. Austin Energy lists 45 approved inspectors on its Web site.

The audits will cover issues such as how much insulation the house has and the condition of the heating and cooling equipment and include recommendations for improvements.

Sellers must provide a copy of the report to buyers. The auditors are required to provide a copy of their report to Austin Energy within 30 days.

The ordinance says violations are a Class C misdemeanor, punishable by a fine of up to $500.
However, an amendment bound for a conference committee in the state Legislature could strip the ordinance of its teeth.

The amendment says that "a municipality may not impose a criminal penalty on the seller of real property for the failure to perform an energy audit." Rep. Jim Keffer, R-Eastland, filed the amendment to an energy efficiency bill introduced by state Sen. Troy Fraser, R-Horseshoe Bay.

Ed Clark, a spokesman for Austin Energy, said that on average, a home that is 25 to 30 years old and has never had energy improvements wastes 30 to 50 percent of the energy it uses.

Austin Energy offers rebates or zero percent loans for energy upgrades. In the past five years, 23,800 residential customers have made improvements that collectively reduced their energy use by 38 million kilowatt-hours and saved a total of $3 million on their energy bills, according to the utility.

Jay Carter, an agent with LivingInAustin.com, a real estate Web site, said that it's a good idea for homeowners to have the audit done and take care of any issues they can afford to get done.

"It's going to make the property sell a little faster, in my opinion," he said. With uncertainty about jobs and the economy, "buyers are looking for peace of mind right now. They want to make sure the AC's not going to break down in three months."

Energy audit highlights

Who needs one: Sellers of homes 10 or more years old in Austin that get their electricity from Austin Energy.

Who can skip it: Owners who have made certain improvements under Austin Energy programs in the previous 10 years. The ordinance does not apply to condominiums or mobile homes.

Who does the audits: City-approved firms that are certified by a national organization.

Costs: Estimated at $200 to $300 for a typical home of 1,800 square feet or less. Austin Energy recommends getting at least three bids.

More information: http://www.austinenergy.com/



Austin real estate agent Jay Carter offers a free Austin MLS search at his website, Living In Austin .com

Austin home market showing signs of a pickup
April sales highest since September but down 18 percent from a year ago

By Shonda Novak
AUSTIN AMERICAN-STATESMAN STAFF

Thursday, May 21, 2009

Austin-area home sales last month were the highest since September, and several agents said they're seeing signs the market is stabilizing.

The Austin Board of Realtors said Wednesday that 1,601 single-family homes sold last month, with a median price of $189,000.

Although sales were down 18 percent on a year-ago basis, board Chairman Jay Gohil said that was the smallest percentage decline this year.

"With each month, the gap in sales volume from 2008 to 2009 is closing," Gohil said.

The April percentage decline was half as big as the gap in January.

There were 1,919 sales in the pipeline for May, the most since July, although they were down 9 percent from a year earlier.

The median price was 1 percent higher than a year ago.

R. Michael Brown, owner/broker of Avalar Austin, said the market in general seems to be picking up but cautioned that there were wide differences based on neighborhoods and subdivisions.

"We're seeing a very nice ramp-up" in the market for homes priced between $300,000 and $600,000, where his company focuses, Brown said.

That includes buyers of second homes in areas such as Lakeway and Lake Travis.

"People are looking to park some money in a tangible asset that they can use and have some fun with," he said.

But he said that getting approved for a mortgage remains a challenge for some prospective buyers, estimating that about 35 percent of his company's potential buyers encounter financing issues.

The hitch is typically "the perceived stability of their job," Brown said, particularly if they work in a industry that's declining.

In Austin, Jay Carter, an agent with LivingInAustin.com, said it seems to be a buyer's market for homes priced $350,000 and higher.

In that price range, mainly in Central and West Austin, Carter said, "we're noticing homes sitting on the market a bit longer and where some asking prices are being dropped deeply and frequently."

He said many potential buyers are "becoming convinced those prices have still further to drop. And I can't say I disagree with them."

On the other hand, for houses under $250,000, "the market is incredibly intense and competitive," Carter said.

He said the best homes in that category are attracting multiple bids after just a day or so on the market.

"If you have a nice home within the city limits to sell for under $200,000, you're still finding lots of buyers at your doorstep," Carter said. "They're taking advantage of 4.75 percent interest rates and the $8,000 first-time buyer tax credit."

Gohil noted that there is a 6.4-month supply of homes for sale, considered a balanced market between supply and demand.

Brown said it's a good time to buy, with ample inventory to choose from and some sellers reducing prices, though he emphasized that buyers aren't likely to find fire sales.


Austin real estate agent Jay Carter offers a free Austin MLS search at his website, Living In Austin .com

The new monthly numbers are in from the Austin Board of Realtors. First, the quick news article from the Statesman:

Austin area home sales were down 18 percent last month from April 2008, but the median price was up 1 percent, to $189,000.

The Austin Board of Realtors said 1,601 homes sold last month, the highest number since September.

While sales pending for May were down 9 percent from a year ago, the 1,919 sales in the pipeline were the most since last July.

There were 9,889 homes on the market, one percent fewer than in April 2008.

Homes that sold last month were on the market for an average of 79 days, 20 percent more than a year ago.

An 18% drop in April home sales from the same month a year ago tells me there are a whole lot of home owners in Austin who are choosing to hold on to their properties rather than risk having to sell for less in today's market. But that one statistic doesn't tell the whole story.

Right now, I'm noticing two very different realities with my home buyer clients, based on the neighborhood and price range they're looking at.

It seems to be very much a buyer's market for those who are shopping in the $350,000 and above price range. The buyers I'm working with in this range feel like they've got plenty of time to shop, think and negotiate. It is in this price range - mainly in central and west Austin - where we're noticing homes sitting on the market a bit longer and where some asking prices are being dropped deeply and frequently. Many potential buyers I talk to just seem to be a little hesitant about purchasing in these areas because they're becoming convinced those prices have still further to drop. And I can't say I disagree with them. I just noticed a listing in Travis Heights the other day where the price has already come down $100,000 from where it was first listed. It still hasn't sold.

So that's one reality. But then here's the other: For my clients who need a house in Austin for under $250,000, the market is incredibly intense and competetive. The best homes in the under-$250K range are still attracting bidding wars after just a day or so on the market. If you have a nice home within the city limits to sell for under $200,000, you're still finding lots of buyers at your doorstep. They're taking advantage of 4.75% interest rates and the $8,000 first-time buyer tax credit. I just closed with a client this morning who told me he plans to file an amendment to his taxes this afternoon so he can get that tax credit as quickly as possible. By the way, he made his offer on the house within just a few days of it hitting the market.

I believe first-time buyers who are shopping in the lower, affordable range of Austin real estate will continue to find a tight real estate market as they compete with other first-time buyers for the best properties. That's why I'm thinking the city's established, affordable neighborhoods on the far north and south ends of town are going to continue to hold up pretty well for a while.


Austin real estate agent Jay Carter offers a free Austin MLS search at his website, Living In Austin .com

Right now, I'm planting all kinds of herbs, tomatoes, bell peppers, swiss chard, jalapenos, anaheim peppers, eggplant, zuchini, squash and cucumbers.

There's something very peaceful and relaxing about just hanging out on the back patio while surrounded by all those plants.

Austin real estate agent Jay Carter offers a free Austin MLS search at his website, Living In Austin .com

Before you buy a home, there’s something going on right now in Austin that you should know about.

Lately, I’ve noticed some Austin listings are still sitting on the market for months without so much as a single offer, while others are selling within the very same day they first hit the market. Seriously, I’ve been dealing with both situations repeatedly over the past few months.

Why is this happening? The answer is price.

The May issue of Texas Realtor magazine says "if a property is getting no showings, it's overpriced. If it's showing but not attracting offers, it is overpriced. Don't let the homeowner sell you on the idea that it's a lack of marketing. Price is 95% of marketing."

When we do come across homes that are priced correctly, you would not believe the number of multiple offers we've come up against. This is especially common with homes priced under $200,000. Not only are first-time homebuyers competing with other first-time buyers, but they’re also up against those who are moving here from job markets that are far worse than Austin’s. First-time homebuyers are also in hot competition with downsizers, people who are dumping their $400K houses for much more affordable options.

So what’s a first-time homebuyer to do in a market like this? Our best advice: Learn before you buy.

Join us at our next free Saturday seminar for Austin home buyers at Austin Community College. We'll cover lots of info in just a couple of hours. And in a market like this, I would strongly recommend you attend this class before starting your Austin home search.


Austin real estate agent Jay Carter offers a free Austin MLS search at his website, Living In Austin .com