The Best Time to Purchase a Home in Austin? Now!

The Texas economy, and the Austin economy in particular, is strong compared to other areas of the country. Though potential homebuyers may be inclined to wait to buy a home in Austin, now is actually the best time to purchase property in the area. Though many news outlets report that the economy is at its weakest point since the Great Depression and daily stories about the credit crunch appear in the headlines, now is actually the best time for those with good credit to buy a home in Texas. The state of Texas is faring better than much of the country during this financial storm. Though U.S. unemployment is at 6.1%, Texas accounts for 54% of job growth over the last 12 months. Indeed, the Texas economy, and the Austin economy in particular, is strong compared to other areas of the country. Though potential homebuyers may be inclined to wait to buy a home in Austin, now is actually the best time to purchase property in the area. Here are some things to consider when approaching the Austin real estate market as a buyer: Everyone likes buying items on sale. This is the time to buy a home, allow it to appreciate, and sell it when the economy improves. With a new President taking office in January and the chance for the $700 billion dollar bailout to kick in, there may be a higher number of homes sold in Texas in the summer of 2009 compared to the summer of 2008. If sales volume does gain momentum this coming summer, then now could be the bottom of the Austin real estate market. This could possibly be the best time to find a deal on an Austin home.

Since the stock market is not doing well, real estate has become the way to invest and leverage money. While the stock market is quite unpredictable, home prices in Texas are sure to rise again. When they do, you will have a property you can sell for more than what you paid for it. Interest rates for home loans are low, with many hovering around 6%. The real estate market is often one with a future that is difficult to foretell, but some are predicting that interest rates will increase by at least 2% by this time next year. This is the time to lock in a low interest rate. Though there are numerous news stories focusing on the “credit crunch,” money still is available. For potential buyers who live within their means, have maintained a high credit score and are not over extended credit-wise, loans are available. For first-time home buyers, there is an added benefit in buying now. If you close on a home before July 1, 2009, the Housing and Economic Recovery Act of 2008 authorizes a tax credit of up to $7,500. Since many people have placed their homes on the market, inventory is high. As of November 2, 2008, there were 3,957 single-family homes for sale in Austin, Texas. With more properties to choose from and with each home being on the market for a longer period of time, buyers have a definite advantage. Federal Housing Administration (FHA) has made changes to their home loan structure, and now loan limits have increased. In addition, there is a low down payment option. This means buyers can obtain an FHA loan with 3% down. In Travis County, the loan limit is over $288K. This gives buyers in Austin more flexibility. Tuning in to the headlines each day may make buyers feel it’s best to wait to purchase a new home. In Austin, and in Texas in general, the economy remains stronger than other areas of the country. For buyers with secure employment, a good credit history and the ability to live within their means, the best time to buy in Austin is between now and the summer of 2009.

About the Author

Ben Hamilton. The Austin Institute of Real Estate provides online real estate classes, correspondence real estate classes, and live real estate classes for credit towards a Texas real estate license.

Rating: Not yet rated

Comments