2012 Austin Housing Market Forecast: Positive Trend to Continue

According to the Fourth Annual Housing Forecast held by the Austin Board of Realtors and Home Builders Association, the housing market in Austin will continue to see improvement in 2012. Austin’s housing market saw growth in 2011 and that trend is expected to continue in 2012. 

Austin’s job growth, increasing population and tightening rental market should result in higher demand for housing in Austin and surrounding areas, according to Eldon Rude with Metrostudy.  

Texas experienced a 2.2% increase in job growth when comparing November 2010 to November 2011. One out of seven jobs created in the US have been in Texas. As a result, Texas consumer confidence is much higher than the overall south central region of the nation. The Austin/Round Rock/San Marcos MSA saw a 1.2% increase in job growth year over year which meant 9,600 new jobs. 

Texas had over 63,000 housing permits pulled for new construction in 2011. This is double the amount of the next highest state, California with over 33,000 new housing permits.  For 2012, Eldon Rude expects new home production in the Austin region to increase for the second straight year. There were 6,115 new home “starts” in the Austin region in 2011 which represents a nearly five percent increase in starts from 2010. The starts barely exceeded closings so inventory is declining....which is a good sign. Demand must be met by supply so builders must start building to meet that demand.  

Home starts in 2011 were up over 2010 levels in every price range except under $150,000, with the strongest increases in the move-up price points between $200,000 and $300,000.  

A factor that might limit new home starts in 2012, especially in more high demand areas, is a lack of developed lots to accommodate new home construction. Weather and water resources are also major concerns for homebuilders. 

According to 2010 and 2011 migration patterns, Texas nets more people moving into the state versus moving out. The IRS information census shows a strong population growth trend in the Austin MSA over the past 10 years.   

In 2011 the Austin MSA population was approximately 1.763 million. By 2020, Eldon Rude with Metrostudy predicts a population of approximately 2.304 million. This growth of 540,000 in population is equivalent to 31% total growth which is 3.4% per year. At 60% home ownership the result is 13,333 new homes per year in Austin. 

The upcoming Presidential election should generate confidence that the economy will improve, reflecting in many home buyer's decision to purchase. Due to continued job growth, a strong rental market and strong inward migration, we should experience a housing market that continues to improve in 2012.

Austin Achieves YET ANOTHER Ranking! #2 in Country for JOBS!!

Ajilon Professional Staffing, a leader in recruiting and project consulting, has just released their list of the 10 best cities for finding employment in the United States. Guess who ranked #2? AUSTIN, TEXAS of course! The only city surpassing Austin for the top spot is Minneapolis-St. Paul. This ranking only adds to the massive pile that Austin has achieved in the past few years. Austin has become a staple of resilience in an national economic crisis with the ability to keep unemployment low by generating new jobs and featuring a variety of available employment fields.

Ajilon Professional Staffing had this to say regarding Austin: "Austin, Texas came in second place on the list as a result of the city’s low cost of living and diverse talent pool. Austin’s robust educational community also contributed to boosting job growth in the market. Home to several major universities, including the University of Texas, local businesses have a vast pool of well-educated recent graduates to choose from for local employment opportunities in Austin."

As a man who's job it is to sell Austin, these rankings definitely make my job easier. I've lived all over the country, even living abroad, and I've travelled the vast majority of the United States and if there is a city that has it ALL, it's Austin. Night life, outdoor recreation, festivals, culture, lake fun, parks, low-cost of living, outstanding property values, job market, events, live music, and friendliness of the people... Austin is without a doubt one of the BEST places to live in the United States.

If you're interested in Austin, TX real estate and purchasing your piece of this great city, contact me at the numbers on the sidebar. I'd be happy to help! View my own personal compilation of Austin's rankings over just the past 3 years here:

http://www.i-am-real-estate.com/austin-rankings-c23311.html

IT'S A BOY!!

Well the verdict is in. My wife and I will have a son! We had a 3D ultrasound performed and the little guy had his legs crossed and pretended to be a little bashful at first, but soon revealed himself. It's unbelievable that I could make something like that. I can now breath easy as I was my family's only hope for continuing the Matthews name. That is now secure. It's breath-taking seeing your child on the screen for the first time. The essence of life.

As noted in prior posts, my wife had been mentally prepared for a girl for 17 weeks, so she was a little disappointed at first. She is now warming up to the idea of having a little laborer boy. Both sexes are exciting, just different. They can like different things and even the same things. It doesn't have to be so clear-cut with the gender stereotypes. Of course I'm not letting her play Barbies with my son, but if he wants to join the ballet later in life, fine. I'll no doubt put a football or a basketball in his hands any chance I get, but I'm going to try my best not to discourage the chap.

I can't wait to take my son to open houses and teach him at a young age how to sell. Business man in the making from the time he could walk. I'm going to put him in a matching collared shirt and slacks and a little clip-on tie. When people come in, he'll say, "Welcome folks, this four bed, two and half bath 2,458 sqft. exquisite home is perfect for entertaining. It features a large island, walk up bar, and.....wait for it.....icing on the cake....a built-in wine chiller!" Then, when the customers leave, he'll sit back on the rug say "goo goo gah gah" and stack his ABC blocks. Pro-style. This will of course start when he's 3 years old because that's when pros are made. Tiger Woods didn't learn golf at 14 years old! He was introduced to golf before the age of two! I'm going to have to teach him the necessary vocabulary from a young age. His first word will most likely be, "Sold." I'll need to get him some cool clothes and some mini penny loafers! 

As you can tell I am very excited to have a boy. If it turned out it was a girl, I'd be fine with that too. I'd teach her how to say no to boys and wear baggy clothes from the day she's born. No, that's not fair. I'd take her to open houses too. You know why? Because Chris Matthews doesn't discriminate and any child he produces gets the 100% proven, Guide To Becoming Successful training program. Boy or girl, achieving the highest level of success will be pounded into their brains from the exiting of the womb. My wife will teach him Japanese by the time he is 3 years old, Korean before he reaches 5, Spanish before he is 7, Chinese before he is 9, and English by the the time he is 15. English is hard. He will be able to communicate with 75% of the world. Yes, he will be a polyglot (speaker of many languages), a neurosurgeon, and do some modeling in his free time, but he will know how to be humble. Matthews' don't brag or boast. We just state the obvious.