We have long suspected that Austin is a hidden treasure in the housing market, and now the facts are beginning to back it up.

The financial and business Web site Bloomberg.com last month named Austin as one of the country's select few attractive, low-risk housing markets.  And according to the Office of Federal Housing Enterprise Oversight (OFHEO), Texas has seen almost a 5% increase in housing prices in the first quarter of 2008 with the Austin-Round Rock metropolitan statistical area (MSA) experiencing an average appreciation of almost 7.75% (ranking 4th nationwide).

How can this be true in light of the national downturn?  Well it is commonly know that "Most people pay attention to the national weather, but dress for the local conditions"

The good news is this; since the housing downturn wasn't directly caused by a decline in the economy or job losses, but instead by lax lending standards and too much over built inventory, this should correct itself over time.

Currently Austin is one of the most affordable markets in the country and is predicted to remain one of the top real estate markets in the nation over the next 10 - 20 years.

Austin is different than the rest of the country in several ways:

  • Home prices are stable
  • Home are appreciating
  • We have a strong local economy
  • Interest rates are low
  • Local builders had the foresight to limit the supply of new built homes

In the meantime, local consensus is that slow conditions in Austin and Texas will be short-lived - and you now is a great time to pick up some screaming deals.