Austin's market appears to be firming

Recent data quoted in the Statesman suggest the Austin market might be stabilizing after considerable weakness late last year. We are fortunate to live in Austin where the housing market has held up better than most of the country. Unfortunately, when credit markets began to tighten in 2007, the housing market here felt the impact (after all, most people can't buy a house without a loan!). Since then, the deteriorating national and global economic situation has had an impact as well, as fewer jobs were created in Austin than we would have expected in healthier economic times. Current extremely low interest rates should help to motivate some of the home buyers who are sitting on the sidelines to take advantage of this rare interest rate environment and help to counterbalance the rising unemployment that is likely to occur over the near term.

To Sellers

• If you are a seller, note the comment in the Statesman article about how houses priced competitively (5-10% below last years highs) are selling. If you really want to sell your home, you need to price it to sell. Too many people make the classic blunder of over pricing their properties only to lower them gradually after they realize they are over priced and no one is biting. If you are serious about selling your property, why not price it right in the first place and eliminate all of those needless headaches?

To Buyers

• If you are considering buying and you are reasonably secure in terms of where your income is going to be coming from and you aren't planning to move within the next few years, now is a great time to buy a house. Remember Warren Buffet's mantra: you want to buy when everyone else is fearful and sell when everyone else is greedy. Take a good hard look at your situation and make sure buying makes sense (a financial professional can help you decide what you can really "afford"). If it does, now is the time to make your money. Remember, you make your money on the buy side--not the sell side (i.e. you might get lucky and sell your house for more than it's worth, but I wouldn't plan on it). If you're smart, you'll buy something now while you can negotiate a better deal, rather than wait until most of the sweet deals have passed you by.
  

One more thing!

• Remember that ups and downs are a normal part of the business cycle. This one is scarier than most, but it too shall end! If you've got time to buy and hold, now looks to be a good time to get in the game!