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January 2008

There are 5 blog entries for January 2008.

2008 Home Sales Have Started Off Beat

Thursday, January 31st, 2008 at 12:03pm. 2,227 Views

In 2007 there were a total of 13,162 homes sold in Austin Texas at a 9% average increase in value from the previous year. While the number of homes sold was down 12% in 2007 compared to 2006 in Austin Texas, homes sold for an average of $14 per square foot more in 2007 than in 2006. The net result was a 3.6% overall decrease in sales revenue for Austin homeowners in 2007, which is a relatively modest decrease.

However, as of 11:00am on January 31, 2008 the number of homes sold in January 2008 compared to January 2007 has decreased by 37%.  Although the median price of homes sold has increased in 2008, it is a modest increase of approximately 6%.  Additionally, 50% more homes were withdrawn from the market in January 2008 compared to the same time in

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The US Economy in 2008 and What it Means for the Real Estate Market

Wednesday, January 30th, 2008 at 9:34am. 1,570 Views

Signs of economic turmoil have become too obvious to ignore.  2007 saw the greatest one-year drop in the value of the national real estate market since the great depression, according to the Commerce Department's new numbers. 

There is certainly no consensus among economists as to whether we are in a recession – the International Monetary Fund, for instance, prediected recently that it is unlikely the US will slip into a recession. Actions, however speak far louder than words, especially when it comes to the words of bureaucrats and politicians.  And the actions of those in government recently suggest that we are indeed entering a recession.  Last week, for instance, the Federal Reserve cut interests rates by three-quarters of a point to stave off a

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The Future of the Subprime Crisis and its Effect on the Real Estate Market

Tuesday, January 29th, 2008 at 4:44pm. 5,105 Views

Testifying before Congress about a year ago, the President of the Center for Responsible Lending predicted that 2.4 million homes will eventually face foreclosure from the subprime crisis. At the time, this estimate was considered by some economists to be an excessively large figure created by a consumer rights organization with an agenda.  Today, Congress' Joint Economic Committee estimates that, through August of this year, 1.7 million homes were lost.  Looking only as far as August of 2009, it estimates that up to another 2 million homes will be lost.  So, if anything, the Center for Responsible Lending was overly conservative.

Other analysts predict similar activity, at least insofar as 2008:  The consensus is that roughly a quarter of a million

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Austin Real Estate Market

Thursday, January 3rd, 2008 at 8:11pm. 1,947 Views

The headline of the business page today shows Austin new home starts at their lowest since 2004 with the market down 20% in the 4th quarter.  For some this might bring fear and dismay at how one of the fastest growing cities in the country could be showing continued weakness in the real estate market.  To those looking forward to better days to come, this is actually good news!  It sounds elementary, but the truth is that the less new home inventory on the market the better our resales will hold their value over the long term.  It looks like painful lessons from the past and the lack of tollerance from shareholders has motivated homebuilders to pull back as far as necessary to keep profitable (or at least we hope so).  Keeping inventory at a managable

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Austin Real Estate Statistics and Summary 2007 in Review

Tuesday, January 1st, 2008 at 8:54pm. 1,788 Views

What is all the fuss? Austin real estate was still strong in 2007.    While the number of homes sales was down 12% in 2007 compared to 2006 in Austin Texas, homes sold for an average of $14 per square foot more in 2007 than in 2006. Using the average home sales price times the number of homes sold in 2006 and 2007, the net result was a total of $4,057,530,000 in home sales revenue in 2006 compared to $3,910,654,000 in 2007, which is only a 3.6% overall decrease in sales revenue in 2007. So yes, the market has softened compared to 2006, but it isn’t nearly as bad as the headlines may make it seem. Furthermore, homes are still selling strong with 13,162 homes sold in 2007 at a 9% average increase in value from the previous year.   There is no…

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