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Real Estate Blog

2007 4Q Commercial Real Estate Industry Numbers Not Looking Good

Saturday, February 9th, 2008 at 3:06am. 3,003 Views

While final numbers on the value changes in the national commercial real estate market during the fourth quarter are not yet in, MIT has released an important study on the subject.  The Transaction-Based Index follows the values of the nation's major pension funds' Commercial Real Estate holdings.

In the third quarter of 2007, MIT reported that values declined 2%.  During the fourth quarter, this trend accelerated to 5%. 

The director of the MIT center that conducted the study, David Geltner, claims that “This is evidence that the commercial property market continued to fall, and at an accelerated rate, through the last quarter of 2007, no doubt due to the effects of the credit crunch.”  A survey by the Federal Reserve, however, recently found that

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Tighter Credit Market Reported for National Commercial Real Estate Industry

Thursday, February 7th, 2008 at 11:47pm. 3,193 Views

The Federal Reserve recently completed its “2008 Senior Loan Officer Opinion Survey on Bank Lending Practices.”  It is a much-awaited quarterly survey of the opinion of banking executives that specialize in lending for the real estate market. 

While the results were expected to suggest a tightening of loan requirements throughout the industry, the results for commercial real estate were particularly stark.  “About 80 percent of domestic banks,” according to the survey, “reported tightening their lending standards on commercial real estate loans over the past three months.”

Roughly about forty percent of foreign banks and fifty-five percent of domestic banks reported requiring higher debt service coverage ratios and lower loan to value ratios than in

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2008 Home Sales Have Started Off Beat

Thursday, January 31st, 2008 at 12:03pm. 2,450 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. 1,789 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. 5,470 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. 2,115 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. 1,992 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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Neighborhood Statistics - Residential Real Estate in Austin Texas - January – November, 2007

Wednesday, December 19th, 2007 at 1:30pm. 1,921 Views

As you can see in my chart below, the neighborhoods that have been hit the hardest by the market slow down in terms of reduced home sales on a % basis have been Rollingwood, Travis Country, Barton Creek, Lakeway, West Lake Hills, and Westlake. Communities that actually improved in 2007 compared to 2006 are Davenport West, the Ridge at Lantana, Davenport Ranch, and Lost Creek. Travis Country West had the same number of home sales in 2007 as in 2006.   Homes Sold                                                               Neighborhoods            2006            2007            2006-2007 % Change Barton Creek                 128              78                 -39% Davenport Ranch         35                 39                 11% Davenport

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Neighborhood Statistics - Residential Real Estate in Austin Texas - January through November 2007

Wednesday, December 19th, 2007 at 1:14pm. 1,712 Views

Neighborhood Statistics Residential Real Estate in Austin Texas January – November, 2007    1.       Barton Creek: There were 50 more homes sold in Barton Creek between January and November in 2006 than in 2007, although they sold for more per square foot on average in 2007. It took about the same amount of time for homes in sell in 2007 versus 2006 on average. There were 78 homes sold in Barton Creek from January through November, 2007. The average home that sold was 4 beds, 4 baths, 4,464 square feet, and sold for $231 per square foot ($1,146,203) after 103 days on the market. There were 128 homes sold during the same period in 2006. In 2006 the average home that sold was 4 beds, 3 baths, 4,143 square feet, and sold for $205 per square foot…

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Austin Texas Residential Real Estate Market Report January - November 2007- Chart

Tuesday, December 18th, 2007 at 3:59pm. 2,042 Views

  Homes Sold Sales Price (Per Square Foot) Days on Market
January 770 $138 59
February 913 $142 58
March 1248 $150 54
April 1241 $149 44
May 1466 $148 40
June 1581 $150 39
July 1439 $156 38
August 1380 $154 42
September 897 $151 47
October 820 $145 53
November 761 $148 54
December      
Average 1138 $148 48

Click here to conduct an Austin home search.  Contact Brian Talley at 512-554-9714 if you need help buying or selling an Austin home or if you have a need for Austin office space.

Notice: Although the above information is deemed reliable, it is not guaranteed to be reliable or accurate.  The information

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