Phil Hutson

If you like it, and want it , and can afford it, it has never been more affordably priced!

The "it" I am referring to is not a new diamond ring or a new car, it's a luxury custom home with a price tag at or exceeding $1,000,000 in Austin, Texas. There are a lot of them for sale, and not too many selling. As of today, 11/06/2008, there are 526 of them on the market in the metro area, and sales are down from last year almost 40% - 216 have sold so far this year, compared with 354 total last year.

If you factor in the custom homes in the next bracket down, the $750,000 - $999,999 price range, the picture gets even bleaker. There are 413 of these homes on the market, some of them just moving into this category after being reduced by the listing Realtors. Another indicator that times are not good for luxury home sellers - since January 1, 568 of these homes, including both price brackets, have been listed for sale, and subsequently withdrawn from the MLS because they had not sold. Granted, some of these may have been withdrawn and later put back on the market, but this is still a staggering number!

There are several reasons for this scenario. Most obvious is the "economic epidemic" that is gripping the nation and certainly impacting real estate prices. Although Austin hasn't experienced the "flu-like" home symptoms most metro areas have, we do seem to have "caught a bad cold", especially in the upper price tier. Savings accounts and stock portfolios are being hammered, and a lot of these buyers were paying cash for these homes as little as last summer - cash that has suddenly vanished.

Second, with $1,000,000+ home sales going from 125 in 2003 to 354 in 2007, it was only natural that custom home builders from across the planet flocked to Austin to cash in! There are over 150 (this number is being reduced almost daily) custom builders in the Austin area, compared to about 40 production builders ($100,000 - $600,000). With a large custom home taking from 8-14 months to build, a number of these homes were started before the market starting going south earlier this year, and are now gathering dust.

Third, from a resale perspective, a number of sellers are simply looking to downsize their house payment, and/or moving out of state. This is , of course, natural attrition in a normal market, but this isn't a normal market, and the "downsizers" are abundant this year, and the "upsizers" aren't to be found!

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These $1,000,000+ homes are found throughout some of the most sought after areas - from central Austin to the lakes. A breakdown of these areas follows:

Area 1B: 50 homes for sale- (zip code 78703) includes Tarrytown, Hyde Park, and Pemberton Heights

Areas 8E & 8W: 118 homes for sale- (zip codes 78746, 78733, 78738) includes Westlake, Seven Oaks, Davenport, Lake Pointe, and Rob Roy

Area LN & LS: (Lake Travis) - 127 homes for sale- (zip codes 78732, 78734, 78738, 78669, 78641) includes Lakeway, Hughes Park, Spanish Oaks, Bella Montagna, Belvedre, Bella Strada, Flintrock, and Falconhead

Area RN: 53 homes for sale- (zip codes 78730, 78732) includes Steiner Ranch, Greenshores, Riverplace, Long Canyon, and Westminster

Area W: 48 homes for sale - (zip code78735) includes Barton Creek and Gaines Ranch

So, back to my original theme - IF YOU CAN AFFORD IT, COME AND GET IT - CHEAP (or at least, cheaper)! I have seen some of these homes discounted as much as $300,000. For the best prices, locations, complete market analysis and more on these homes, contact Phil Hutson toll free @ (888) 410-5858.

Accolades continue from a variety of sources for the Austin, Texas metro area, as to the potential for job-seekers, opportunists, and those simply seeking a better way of life/standard of living.

* Forbes magazine named Austin the 3rd city on a list of "recession-proof" cities due to its strong housing market, low unemployment rates, and growth in agriculture, energy and manufacturing, May '08

* Austin ranks 3rd Best City for Jobs in 2008 by forbes.com, Jan. '08

* Popular Science names Austin as one of the top 10 green cities in the US, Feb. '08

* Austin ranks 1st in Fastest Growing Metros in 2008 by Forbes.com, March '08

* Round Rock ranked the 7th Best Places to Live in America by Money Magazine, July '08

* Orbitz.com lists Austin as one of the Country's top 6 movie landmark destinations, March '08

* Austin ranks as the 4th Best City in Overall Standard of Living by Expansion Management

* Austin ranks 2nd among the 50 Best Places to Live comparing the combinations of adventure, attractiveness, and affordability by Men's Journal

Contact me for a free 350-page Relocation Guide - a comprehensive resource for everything in Austin! Table of contents include: Business and Economy (cost of living, top 25 employers, etc.), Education (schools), Healthcare Resources (hospitals/healthcare facilities), Housing (area map, communities), Leisure (museums, theatres, wine tasting, etc.), Lake Living (all about the lakes), Shopping and Dining, and Getting Settled (moving resources, religion, etc.)

Eldon Rude of Austin MetroStudy gave his third quarter report, "Housing Update and Economic Outlook," last week, and I thought I would share some notes. In general, we have some ongoing challenges in our local market, but there are a number of factors that set us apart from more troubled parts of the country. We're not entirely out of the woods because of several possible national economic threats looming ahead, including - scarce availability of financing, selective corporate bailouts, scarce down-payment assistance, slowing job growth, and increase in foreclosures - but there are a number of positive signs, and as I've said in numerous articles, if you are looking for a place to relocate, Austin, Texas, should be high on your list!

Reasons include:

• Texas continues to be number one in job growth, with Austin high on all national lists for jobs, property appreciation and low inventory of homes for sale.
• Locally, Texas leads the nation in job growth, with 4 Texas metro markets in the top 10 for job creation, including Austin at #6.
• Single Family new home starts are down 42% nationally. SF starts are down 41% in Texas, although Texas is still #1 on the list for new starts.
• In the apartment market, occupancy is beginning to decline (at 91.4% city-wide), with rates flattening at $.98 per square foot on average.
• In the resale market, inventory is holding at 6 months, although we should anticipate an increase in the spring when more homes come on the market.
• Among sub-markets in the Austin area, Southern Travis County is still the most active in new home starts.
• The highest months of supply of finished vacant homes is in Lake South, where sales have slowed around high price points. Other areas with over a 7 months supply are Hays West, Central South Austin, Central North Austin, and Round Rock/183.
• Austin has the second lowest months of supply of new homes in all Metro Study markets nationally, second only to San Antonio. Austin is 4^th lowest in resale inventory of all Metro Study markets nationally, after Houston, Denver and Sacramento. This makes our market well positioned to experience an early recovery.
• Economic boosters include: Austin has never experienced a "bubble" in home prices and prices are holding; inventories are manageable; foreclosures in Austin have remained moderate; Central Texas is poised for significant growth in population over the next 5-10 years; tight financing has created pent-up demand for homes that will give our market a boost when more financing options become available; businesses continue to locate in Austin
• Forbes magazine calls Austin "Recession Proof" back in May - a bold statement that has a lot of merit, even in these tough "recession-like" times

Phil Hutson has over 20 years real estate experience selling Austin real estate, and is the Broker/Owner of Showcase of Homes.

Hey Mr./Ms. Custom Home Buyer - think you're smart/sophisticated enough to find that super deal on that million dollar home you've always wanted? Don't be so sure.............

Although sometimes more sophisticated than your average home buyer, since typically the upper-end luxury home buyer is older (not necessarily true in the Austin area), has done this many times before, and has more time TO look, the standards of finding the "best" deal still prevail. The "best" deal is not always so obvious if data obtained solely from web-based sources (numerous "find-the-best-home" Internet sites) is the main, if not only, source of information. Having access/knowledge to data not found on the Internet is sometimes crucial to not only saving thousands of dollars on the price, but in finding a Custom Builder that is reputable and financially sound to service warranty issues after closing.

I say this because it ceases to amaze me the number of high-end custom homes sold every year in the Austin area without a Realtor. True, a number of these homes are contracted directly with the Builder on a to-be-built basis, but even that process could have been enhanced if the Buyer had first obtained the services of a reputable Realtor with experience in and with custom home sales - before the bid process, during architectural planning, through construction, and to final closing. The mere price of that million dollar+ mansion should NOT be the only consideration in a buyer's thought process, as so much more goes into probably one of the most expensive investments one will make!

Here are a few items to consider that are VERY important, and that most if not all custom buyers either have expertise in, knowledge of, or access to:

• Inventory of available or soon-to-be-completed homes; access to all "appointment only" homes

• Synopsis of selected Builder, community history (appreciation/depreciation), school analysis

• Builder sites/lots available for construction

• Market/cost analysis including site procurement (lot cost), price/sf, sold comparables, etc.

• Architectural/structural/feature recommendations

• Construction walk-through inspections through completion, and final inspection w/builder

• Mortgage companies/interest rates (when applicable), and title and closing documentation review

Realtors that represent Custom/Luxury buyers are not usually the "rookies" in the office, but generally the more seasoned veterans that have done this before. In a previous post, Austin Real Estate Agent - Choose a Specialist, I mentioned qualities to look for when making a Realtor decision.

I built my own Custom home - I'd be glad to assist in helping build yours! With over 24 years experience, put my vast knowledge of the Austin Custom Home market to work for you! Contact Phil Hutson @ phil@showcaseofhomes.com, or call toll free (888) 410-5858.

Area Market Statistics

Home Sales Stabilize in Austin Area

October 20, 2008 - Central Texas home sales remain steady, according to the latest Multiple Listing Service (MLS) report from the Austin Board of REALTORS®. The median price for single family homes in September remained unchanged from one year ago, while the number of homes sold inched closer to 2007 sales totals.

The 1,670 homes sold in September reflect an eight percent decline from one year ago. These sales contributed $406,955,620 to the local economy, down 11 percent from 2007. Meanwhile, the median price for single family homes showed no change from last September, remaining at $182,600.

Active listings for September rose two percent from one year ago to 10,217, while pending sales dropped ten percent to 1,520 and new listings fell 11 percent to 2,617. The average amount of time these properties sat on the market rose 18 percent from 2007 to 71 days.

"National economic troubles and limited access to credit continue to impact the local housing industry," says ABoR Chairman Socar Chatmon-Thomas. "However, Austin's economy has avoided many of the ups and downs experienced by other parts of the U.S., and our city is poised to remain on the forefront of the country's economic turnaround."

September 2008 - Single Family Homes

• 1,670 was the number of homes sold, down 8 percent from one year ago
  
• $182,600 was the median price, unchanged from September 2007
  
• $406,955,620 was the total dollar volume of properties sold, down 11 percent from last year

For a comprehensive home analysis for the Austin metro area contact Phil Hutson @ phil@showcaseofhomes.com or call toll free (888) 410-5858.