Apr
17
Austin Mortgage Rates: Weekend Update
Posted by garreth under First Time Homebuyers, For Buyers, General Information, Mortgage and Finance
Here™s some pretty good news on mortgage rates for Austin. This is John Schutze™s mortgage rate update:
œMortgage rates inched higher late this week.
The continued stock market rally finally pressured rates higher this week. Stronger than expected earning reports from several large corporations like Citigroup, GE and Google helped fuel the stock market. Rates increased .125 to .25 across the board…still below 5.0% for 30 year rates though!
John™s Austin mortgage blog has news on factors that impact lending rates.
Garreth Wilcock is a Austin, TX Realtor ®. You can search Austin homes for sale at his website.
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Mar
14
Here’s John Schutze with his Austin mortgage rate outlook:
Weekend Rate Outlook by John Schutze
“Mortgage rates are mostly unchanged from last week despite a fairly active week of news. The stock market has been up for 3 days in a row. Great news for investors! This would normally cause mortgage rates to increase, but rates haven’t reacted as we would expect. The government is still the largest purchaser of mortgages and their target price remains in the 4.5% to 5.0% range which I think has helped keep rates near current levels.”
John™s Austin mortgage blog is where he tracks changes in the mortgage industry and contains contact details for more personal advice.
Garreth Wilcock is an Austin real estate agent. You can search available homes in Austin, Texas at his website.
Oct
21
Austin Home Prices – Higher or Lower Than Last Year?
Posted by garreth under For Buyers, For Realty Professionals, For Sellers, General Information
Here is an analysis of some Austin MLS data, and my thoughts on prices now versus last year in Austin Texas.

The folliowing data was compiled from the Austin Board of Realtors ® monthly statistics report, covering all Austin homes.
| # homes sold in 2008 | % change from 2007 | median price 2008 | median price 2007 | % change in median price | dollar volume 2008 | |
| June | 2211 | -20 | $200,000.00 | $191,050.00 | 4.7 | $577,471,191.00 |
| July | 2071 | -21 | $195,000.00 | $190,000.00 | 2.6 | $534,206,166.00 |
| August | 1992 | -20 | $195,000.00 | $192,200.00 | 1.5 | $521,503,608.00 |
| September | 1670 | -8 | $182,600.00 | $182,500.00 | 0.1 | $406,955,620.00 |
- The broad Austin market has seen around 20% less sales per month compared with the same month last year.
- September 2008 is only down in sales 8 percent over September 2007, as this was around the time that the credit crunch hit the market last year – the start of lower sales volume.
- The median price has risen over last year by a few percent – median is defined by the halfway point of all sales – half of the home sales were above median price, half were below.
- September’s median price is very close in the last 2 years.
One problems with this very broad data is that it doesn’t deal with the specifics of a neighborhood – homes in Hutto are very different to homes in Cherrywood.
It also doesn’t show the mix of homes that are being sold. For example, the median home price could rise higher than last year if there were no homes below $200,000 being sold this year, and the prices for $600,000 homes slipped to $500,000 but they continued to sell.
And more importantly, it doesn’t show the market value of a home compared to the value last year. Given that there is more supply in most areas of Central Austin than last year, and similar or less demand, it’s reasonable to expect sales prices to be impacted.
Interesting to my mind is that for September 2008, the dollar volume sold is down 11% and the number of homes sold is down 8%, meaning the average home sold price is lower than last year. Whether your home is worth more or less than it was last year depends on your specific location – let me know if you want me to perform a CMA for you.
Garreth Wilcock is a real estate consultant. He helps investors find Central and East Austin real estate. Call 512 694 8873 or contact him at his website if you want a free valuation of your Austin home. You can search the Austin MLS at his website.
Oct
8
Foreclosure in Austin: Crunching the Credit Numbers
Posted by garreth under For Buyers, For Realty Professionals, General Information
Foreclosure homes in Austin: How many, and what kind? Many investors are thinking that it’s a great time to buy real estate in Austin, and some are looking at foreclosures despite the government bailout bid to stop foreclosures. Here are some of the questions that I am often asked, and some data about Travis County foreclosure postings to consider.
I took my data from the postings listed in Travis County, and from foreclosure listing data in the RexReport. Not all of these postings made it to auction – some homeowners may have cured their default, others may have sold their home in pre-foreclosure.
Is it just homes that are foreclosed upon or commercial real estate too? The chart on the right shows the dollar volume breakdown of posted foreclosure listings in Travis County on October 7th 2008.
There were only three commercial property foreclosure postings – one of which was an apartment building. Their high dollar amount accounts for a high portion of the almost $100 million appraised value of the postings.
There were 393 single family house postings due for auction on October 7th 2008.
Is The Travis County Foreclosure Market Highly Seasonal? The chart on the left shows the percentage of annual foreclosure listings in Travis County averaged per month from 2001 to 2007.
There doesn’t appear to be any particularly significant deviation throughout the year – there is a steady rate of foreclosures.
Major economic events such as the bailout and plans to help homeowners in default may add fluctuations in the monthly averages, and it’s certainly something I’m going to be tracking in the coming months.
Are There More Foreclosed Properties in Travis County Right Now? Annual foreclosure posting volume by year is charted on the right for Travis County, with 2008 year to date data.
Foreclosure rates doubled between 2001 and 2003, and have hovered between 3500 and 4300 per year since then, after a peak in 2004.
Several of the postings will have their default cured and then re-appear back as a new posting later, and as I said earlier, not all of the postings end up being auctioned at the foreclosure auction. The posting rate gives an indication of how many property owners are in sufficient default to warrant a foreclosure.

Has The Austin Foreclosure Market Exploded in 2008? Headline making news for certain markets in the US has not apparent in the Austin area. The chart on the left shows monthly foreclosure postings in Travis County for 2008.
Given an average 332 Travis County foreclosure postings per month in the last five years, The current 2008 monthly average of 384 is 15% higher, but it certainly hasn’t doubled or exploded.
Garreth Wilcock is a real estate consultant. He helps investors find Central and East Austin real estate. Call 512 694 8873 or contact him at his website if you want a free valuation of your Austin home. You can search the Austin MLS at his website.
Sep
27
You are about to close on your brand new home in the perfect subdivision, and you schedule the final walkthrough with the builder. You could be about to make a costly mistake, unless you prepare yourself for the walkthrough process.
You are no doubt excited at this point at the prospect of moving in, but it pays to check your emotions at the door when you do the walkthrough, and to enlist as much help as you can. This is the time to get things rectified and to get plans to rectify things you find in writing. Here’s are my top five tips for Austin homebuyers to getting the most from the homebuying walkthrough process.
Consider who is working for whom. The builder’s sales staff and general contractors represent the builder. They have no formal responsibility to the buyer aside from a nebulous sense of customer satisfaction. They’re nice people, and may want to make small talk as you focus on the walkthrough. This is distracting. Take charge of the situation and let them know that you’re trying to concentrate.
Your REALTOR ® on the other hand, is explicitly representing your best interests. Their job is to help you with the process and ensure you get what you are due.
Be prepared. This isn’t just for boy scouts, this is for walkthroughs. Print out a checklist, take a clipboard and take some tools with you so that you can control the process. And make sure that you allow plenty of time – don’t let the builder rush you through the appointment. Make sure that the builder has all of the utilities turned on and systems enabled.
Handy items to take along:
- Clipboard, pen, pencil, checklist. The National Association of Homebuilders has a good overall checklist.
- A flashlight for inspecting the far reaches of the attic
- Hosepipe for spraying windows and gutters
- Level for checking doorways
- A digital camera and/or video camera for documenting what you find
- Your team…
Assemble a team. Ask your REALTOR ® to come along, and anyone else who you know who is accustomed to looking at real estate – if you have a friend who is a general contractor, they might be a good choice. Despite what the builder might tell you, you can take as many people as you like with you, and you are more likely to spot things if you do.
Here are some suggested team roles – not every role requires a person, but it’s good to have your different hats on when in the walkthrough:
- Documentor – to take notes and photos of everything that you find
- Eyeballer – paint and drywall finish, chipped surfaces
- Faucet operator to turn on all of the faucets and check the toilets flush
- Switcher – make sure all lights and fans work as designed
- White-gloved sergeant – check that everything is spotlessly clean
- Opener – windows, doors and cabinets should all open and close freely
- Waterer – see that drainage is correct and gutters work as designed, and windows and doors shouldn’t allow water penetration.
Get a licensed real estate inspector. The best source of advice on structural issues is a licensed home inspector. Unless your REALTOR ® is also an inspector, they can’t tell you whether the HVAC unit has the correct temperature differential, or if the GFCIs are functioning correctly. Their advice will be to hire a professional
The builder might suggest that hiring a licensed home inspector is a waste of money as the home has already been inspected by the City. It isn’t. I’ve never been to a home inspection on a new home where the inspector hasn’t found something that could have had costly consequences if not corrected before move-in.
On numerous occasions, home inspectors that my clients have worked with have found that the HVAC was not operating effectively. It’s a bit disappointing when buying a new home, bur sometimes the HVAC is not filled with enough refrigerant. They’ve also found dishwashers that don’t drain, GFCIs wired up incorrectly, missing attic insulation and unsecured ranges that could tip over.
An inspector will not comment on the finish of items, such as paint overspray or drywall dings, so make sure you have that covered by the rest of the team.
Take notes, take pictures and video. The builder will give you some blue tape with which to mark items that need rectification – items that get put onto a punch list. The builder will take notes, and may even explain why some items don’t need to be addressed. In their opinion.
Be prepared to take advice on this from an external source if the explanation isn’t satisfactory – the builder doesn’t represent you after all. It is key to take notes of your own so that you can cross check later. Be prepared to demand that things get resolved to your satisfaction before you sign off any acceptance forms.
Take photos or document what you see by video. I’ve found pieces of blue tape that never got removed (as they were out of plain sight) when I’ve been back to check on alleged completion of a punchlist. I wouldn’t have known what things to check without photographs and notes to review.
This is the biggest purchase of our lives for most of us. Preparing for the walkthrough and conducting it in a thorough fashion will ensure that you get the most for your money and that your dream home is really move-in ready.
Garreth Wilcock is a real estate consultant. He specializes in Central and East Austin Homes. Call 512 694 8873 or contact him at his website if you want a free valuation of your Austin home. You can search the entire Austin MLS by map at his website.
Aug
23
Agave Homes – Nine Sixty Nine Shifts Gear
Posted by garreth under For Buyers, General Information
Austin’s contemporary design community is heading towards the end of phase one, and phase two sees some interesting new home options.
The premis of the Agave development was simple – get 10 architects to design modern, energy efficient homes, and build them in a subdivision on a hillside within seven miles of downtown.
They have done just that – the contemporary homes share a space at the Meadows at Trinity Crossing with the Mediterranean Villas at Sendero Hills, just on the East side of Highway 183 where MLK Blvd East becomes 969 – hence the name nine sixty nine. By my GPS, this makes it 6.5 miles to the center of Austin.
The architects include Rick Black, Kevin Stewart and Emily Little, and the homes look fantastic from the outside, as you can see from the skyline below. And while Phase One is completing (you can see a list of remaining homes available at Agave / Nine Sixty Nine here) the plans for Phase Two hit a different price point too.

The Agave Architectural series was priced from $250k and the currently available homes vary from $240k to $370k. The Agave Design Series featured in Phase Two starts from around $190k and features the same green building ethos as the Architect series.
There are several available models to look around, and the interiors have the same striking visual appeal as the exteriors. If you’re looking for contemporary green living, they’re certainly worth a look.
Garreth Wilcock is an Austin real estate agent specializing in Central and East Austin Real Estate. Call 512 694 8873 if you want to learn more. Search the Austin MLS.
Feb
24
Human Growth Factor
Posted by garreth under For Buyers, For Sellers, General Information
Central Austin: What economic factors affect your ability to buy and sell real estate? This question is paramount when people are talking to me about pricing their homes. Simply put, the availability and affordability of homes on the market help me generate a list price, and the market itself determines the price people will pay.
This slide courtesy of Keller Williams’ Agent Mountain site shows the different factors which impact affordability and availability:

At the macro level, we have seen interest rates on a 30 year fixed jump up 0.375% in the last few weeks, but at the metro level things are still looking strong for the Greater Austin Area. Forbes magazines reports:
“Of course, if one looks at economic growth in the country’s largest 100 metros, the usual suspects jump to the top of the list. With an estimated 32% GMP growth from 2007-2012, Austin, Texas, is the winner for big metros.”
The area is still experiencing job growth and population growth. Interest rates are still at historical lows, and there are still plenty of neighbourhoods bucking every trend. Make sure you’re getting your real estate advice from someone who takes all of the above factors into consideration with respect to your particular situation before you buy, sell or invest!
Garreth Wilcock is a real estate agent specializing in Central and East Austin Real Estate. Call 512 694 8873 if you want a free valuation of your home. You can search the Austin MLS at his website.