Quick Links
Follow us on:
 |
 |
 |
 |
 |
 |
Subscribe to News & Housing RSS
| Austin housing market showing positive signs for 2011 |
| Latest News |
|
Metrostudy Report - (Austin, TX– May 1, 2011) Job growth and healthy inventory levels point to potential in the Austin housing market, according to a recent report by Metrostudy, a national housing data and consulting firm that maintains the most extensive primary database on residential construction in the US housing market. After losing over 2 million jobs in the twelve-month period ending in March 2010, the U.S. economy has gained jobs the last 7 months, with Bureau of Labor Statistics reporting the U.S. gained 1.3 million jobs in the 12 months ending in March. In the twelve months ending in March 2010 the Texas Workforce Commission reported the Austin region had added 13,900 new jobs (a 1.8% rate), with an unemployment rate of 6.8%, below the national unemployment rate of 8.8%. “These positive indicators are slowly beginning to result in improved consumer confidence,“ said Eldon Rude, director of Metrostudy’s Austin Region.Metrostudy recorded 1,288 starts in 1Q11, down 21% (344 units) from the same quarter one year ago. “The decrease in starts compared to a year ago is to be expected given the tax credit impacts last year as well as strict mortgage criteria negatively impacting activity in the lower price points,” said Rude. Our surveys indicated there were 1,237 closings in 1Q11, down 12% (164 units) from 1Q10. Overall new home inventory remains low at 2,942 homes. Inventory levels below $200K are very low compared to historic totals. “Any bump in demand in this market will have to be met with more starts,” said Rude. The most positive signs from the Austin new home market are in the move-up prices ranges above $300,000 where builders are reporting more sales activity than they have seen in several years. “While subdued consumer confidence in home ownership, as well as strict mortgage underwriting criteria, are certainly keeping would be home buyers in the rental market, it is our expectation that in the coming quarters a segment of this population will begin to look more seriously at buying,” said Rude. “The biggest motivation for this group will ultimately be increasing home prices resulting from the combination of low supply and increasing demand.” About Metrostudy For information contact: |
