I have noticed that the homes sales in Austin are still strong. Homes sales in Southwest Austin are especially strong. For example Circle C, Legend Oaks, Western Oaks, and Shadowridge communities are still hot. These homes are located approx 10 minutes to downtown, have exemplary schools and are newer than many of the central Austin homes. The prices are still in the 200k to 500k arena, so they are still affordable and close to downtown restaurants, Lady Bird Lake, and lots of convenient shopping. Prices are stable in these communities, and I have even seen a couple of multiple offers in this area lately. Many people relocating to Austin request this area because of the proximity to their jobs, shopping, exemplary schools, close proximty to downtown, and affordability. The sellers are largely moving to the new construction being built in Circle C. They are cashing in on their equity and buying a larger home. Homes that are priced well sell in 30 to 90 days.
Homes over 500k are taking longer to sell right now. However, if they have been updated and staged properly there are buyers ready to pick those up. Buyers are being selective and choosing the ones that have been brought up to date, or they are looking for a bargain. These homes often take longer than 4 months to sell.
Financing is a big issue these days because of the national mortgage meltdown. There has not been a huge foreclosure market in Austin. However, this has caused the mortgage guidelines to become much more regulated and the days of zero down home loans are gone. You must now have a 3% down payment, unless you have a VA loan. The cost to buy a home is usually 3% down payment, plus closing costs. Closing costs are normally about 2 to 4% of the sales price. They cover things like starting an escrow account (4 months of taxes and insurance reserves), home insurance 1 year policy, and origination fee, title company ,attorney document preparation fees.
The good news is that you can usually roll your closing costs into the mortgage or negotiate for the seller to pay some or all of the cost for you. You still need to have that minimum down payment of 3%, plus you will want to have money set aside for a home inspection , and moving costs.
Now is a good time to buy in Austin. We have been consistantly rated one of three of the top markets in the US for growth, strong economy, green cities. The values here have grown at an average of 7% annually over the past 5 years. This is a fabulous place to live, because of all of the outdoor activities, hike and bike trails, wonderful restaurants, lakes, music and film festivals ,art, and much more.
It is a good time to get an FHA loan. If your home purchase qualifies, you can benefit by using this type of government backed financing. The interest rate is very low, and you can have a 2.25% down payment.
The FHA loan limit is $288,750. This is also a great loan program if your credit score is lower than 680, you still may qualify for the best rate available.
Call Dominik Kilpatrick at Sente Mortgage for more details and get pre approved.
You can reach him at 512-637-9900
To reach me to purchase a home in Austin:
Crystal Kilpatrick
Homes ATX
512-680-5835
www.CrystalSellsAustin.com