All Forum Posts by: Bryan Noth

August 2021 statistics have been released for the Central Texas Housing market. There was a notable decrease this month for the City of Austin and a slight decrease for the area overall.

The The City of Austin saw a change in median home price from $574,975 to $540,000, a month to month decrease of $34,975 but still a 27% increase from the previous year. The Austin-Round Rock MSA saw a change in median home price from $480,000 to $470,000, for a month to month decrease of $10,000 but still a 34% increase from the previous year.

The following infographics and data is courtesy of the Austin Board of Realtors:

Housing inventory remains virtually unchanged at 1 month for the entire MSA but the number of new listings is notably lower than it was in July. Year-over-year stats show new listings are up for the MSA by 14%, but when focusing solely on the City of Austin that figure drops to just 2%.

Looking at typical trends the real estate market tends to slow down heading into fall and winter months. This was especially true in 2020 and the decrease in available inventory exacerbated the low supply levels. As a result, home prices began to climb quickly with an excess of buyers competing for fewer available homes. The increase in inventory in July and August this year has provided relief but if inventory levels subside once again as we head into the winter months there could be a subsequent squeeze on inventory. Companies continue to expand and relocate to the region and they usually bring more residents to the area with them which creates more demand for housing.

The Austin market has done remarkably well in the face of the pandemic, both in residency and in recovery. Last month I mentioned that Austin has seen a rise in rent growth and accompanying the rise in rent are occupancy rates as well, coming in at 91.9% according to a September report from apartmentdata.com.  And with unemployment rates at 4.9% Austin is below the national average of 5.6% and the lowest in the State of Texas overall according to the Texas Real Estate Research Center.

Disclaimer: The information provided here is for educational purposes only, past performance is never a guarantee of future performance.

Additional sources:

https://www.apartmentdata.com/databases/marketlineADSonline_TXAU.pdf

https://www.recenter.tamu.edu/articles/technical-report/outlook-for-the-texas-economy

@Prash Manohar most lease listings on the MLS (which grants the largest exposure) offer 30% to the agent who brings a buyer. That is a bare minimum for a new lease up fee. I agree with @Drew Sygit here, you oftentimes get what you pay for.  There is some debate on high price rentals in opting with a flat fee versus percentage model.  Most PMs in the Austin area charge 50%-100% for a new lease / tenant placement.  Some hybrid models exist, @Brooke Roeder mentioned Mynd and I have had several client use that with good success.  

The only way to avoid a lease up fee entirely is to show it yourself, screen the tenant yourself, and if you are doing those two items, you may as well manage it yourself.  

@Guillermo Rozenblat it depends on your goals. If you want to start building a portfolio in Austin and have a long term strategy then house hacking a duplex or even picking up a SFH every 1-2 years could have solid returns, given historical data.

On the other hand, if you have a killer business idea that is capital intensive and you believe could outperform you REI returns then pursue that route. Though, a low down payment to lock in an owner occupied rate should not set you back too much if you wanted to blend the two strategies.

@Gary Parente it is an epic amount of money.   One of the largest corporate investments in America ever in fact.  For added perspective, Samsung would be dedicating 15x Tesla's promised investment for the Austin area.

@Jennifer Petrillo

There are many factor that could contribute to this.  

First, you or your agent should be checking in with the lender.  The appraiser works for the lender, not the buyer.  Have the lender clarify that the appraisal has been picked up, not if it has been assigned.  Assigning an appraisal does not mean an appraiser has accepted the job.  

Also on the lender front, ask what the AMC is offering for the appraisal splits. Especially with larger national AMC groups the reimbursement split can be ridiculous. I have seen lenders offering $1000 for an appraisal fee but the AMC is taking $650 and offering $350 to the appraiser. That is going to get passed over time and time again.

Next, consider the property itself.   If the property is more rural that can discourage an appraiser from picking that assignment up for the time commitment alone.  

Lastly on the appraiser front, is determining the property similar to others nearby.  If there are limited comparable properties, especially direct comparable properties, this makes appraising a property more uncertain and thus places greater liability on the appraiser.  This can also discourage the assignment from being picked up. 

Unfortunately, not much of this helps at this point in the transaction process for you.   Hopefully helps on future ones and for others reading. 

Tax incentives approved for the Samsung plant in this North East Austin Suburb.  If folks are interested in identifying the 'path of progress' this certainly looks promising.  Hopefully Samsung makes an official announcement soon.

https://www.bizjournals.com/au...

@Andrew Johnson it's a good thing you asked here first!  

Specifics may change based on your particular state guidelines but a general rule for an owner occupied loan will require the borrower have the intention to occupy the residence within 60 days.  Circumstances arise that may affect that (job change for example) but if the intention is to deceive and profit that falls clearly in the wrong and there are many BP forum responses from attorneys that echo that sentiment.  @Jordan Moorhead makes a good point on reviewing loan documents to ensure you are following all agreed upon loan provisions and I would add that you can always ask your loan provider / officer for clarification as well.  

The development in Round Rock just NorthEast of Austin, TX is positioned between Dell Diamond and the Kalahari Resort for those familiar with the area or looking up the location.  

https://www.bizjournals.com/au...

https://www.texasmonthly.com/n...

@Carson T. Cangshan Cutlery Company

If you want to cut right to the free article hyperlink it is below:

https://communityimpact.com/au...