We wanted to share some of the information that Mark Sprague shared yesterday morning, April 16th, at the Residential Report Breakfast at Barton Creek Country Club.  Mark Sprague is with Residential Strategies and is widely accepted as the Austin Real Estate expert.

A very positive bit of information was that our median new home prices continue to increase.  As of the 1st Qtr for this year, the median new home price is $213, 059.  This is great news since Austin ranks as one of the most affordable housing markets in the nation.   Since housing prices did not surge during the first part of the decade, and due to the strength of local economies in combination with affordable housing, most markets in Texas are deemed "very unlikely" to see price depreciation. 

The U.S foreclosure filings were up 75% in 2007 vs. 1st Qtr of 2006.  The 1st Qtr of '08 shows a 71% increase as compared to the same time of '07.  Texas foreclosures DECLINED 4.57% in 2007 vs. same time 2006.  There has been a 17% decrease in February of 2008.

NAHB (Nat'l Assn Home Bldrs) predicts sales to stabilize in the 1st half of '08 and beginning to recover as prices increase.  Local builders reported reasonable traffic and sales for Jan - Feb, with mixed results in March of this year. New home starts declined 32% for the quarter and closings dropped 24% for the quarter.  The local total housing inventory is in good shape with a total of 5.7 months inventory.  Historically, a 6 month supply is considered normal.  Lot supplies continue to grow to 28.2 months.  A 24 month supply for lots is considered balanced.  The big market driver is that the local job growth remains healthy at 24,100.

Areas with the highest and lowest months supply of finished vacant houses (FVH) were SW & West Travis Co w/ a 7.1 month supply, being the highest and Kyle with 1.1 month supply representing the lowest.

There are currently 5,800+ condos planned or recently delivered in Downtown.  Tear-downs are still strong under the $1mil range.  There is a great deal of activity in the Rollingwood area, Tarrytown, NW Hills, Barton Hills, Zilker, and Allandale.  New duplex rules after the McMansion ordinance have dramatically curtailed the building of duplexes within the areas governed by the MM Ordinance.

The Eanes/Bee Cave corridor shows Senna Hills having the most activity considering new construction.  The median price in the Eanes ISD is currently $697,710 w/ Bee Cave being $496,985.

This is just a smidgin (Texas word) of information that is contained in the report delivered by Sprague yesterday.  If you would like to see the complete report, email us and we are happy to send you a copy.