Central East Austin Real Estate - Mueller and More

New homes have dominated the sales at Austin’s Mueller Development in 2009, though there has been a mixed bag of results for the resale homes. Here’s a quick recap and some thoughts on how to sell your home here. All data is from the Austin MLS.

The successes: Three resale homes have sold in 2009.

Time on market: The number of days on market averages at 18, which is outstanding for an average list price of $341k. Compare this with an average of 81 days for other homes in the city of Austin sold in 2009 between $300,000 and $400,000.

Other listings that didn’t sell: Two were leased out rather than sold, one failed to sell (expired) and one is temporarily off the market. So 25% of listings have failed to sell, though the statistical sample is laughably small.

Other resale homes available: There is one other home available on Pinckney Street opposite the pool. There are around 14 new homes in various stages of completion available as of this morning.

What’s the price per square foot of homes at Mueller? I’m not a big fan of this basic type of analysis - it misses out the detail of what makes each home unique, and sales between $150/sqft and $202/sqft give a very wide deviation. I don’t put much stock in the number.

How do I price my home at Mueller for sale? Pricing is always interesting when there have only been a few resales and the builders are still active in a neighborhood. The good news for those considering reselling right now is that the Mueller builders only have very limited inventory, and no fixed plans are in place for the next phase of development.

Pricing must be realistic and is based on competition, supply and demand. If your home is competing with a builder model, then pay attention to the incentives that they are offering, and what upgrades and options your home has.

For example, an inventory home listed at $369,000 might seem like fair competition for your two year home unless you consider that the builder may be offering seller paid closing costs or other incentives to use their preferred lender. The builder will also offer a warranty with their new home, while much of your warranty might have expired.

When pricing your home, get professional advice from a local real estate agent who has been involved in the new home sales. There are several that live in Mueller including myself.

Garreth Wilcock is a Realtor® specializing in new and resale homes at Mueller.Call him on 512 215 4785 for a chat about home sales.

The continuing development at the old Mueller airport in Austin has seen fast paced sales in 2009, and the developer Catellus is remaining tight lipped about plans for 2010.

New home sales in 2009 have been brisk to say the least, and I’m grateful for all the business. At a recent development budget meeting, the number of residential homeowner assessments was announced as 671.

Compare that with the number of occupied units at the end of 2008 (around 350) and assuming 20 unsold units, that means that around 300 new homes have sold in 2009. Mueller is certainly Austin’s fastest selling development.

Another example is a success in a tricky price point. The 2009 Parade of Homes showcased five million dollar five star green homes. This is a slow selling price right now - the absorption rate of homes in the $900k-$2m range within Austin is very low - there are over 15 months of inventory right now. Nevertheless, one of the five in Mueller has sold this year - congratulations to The Muskin Company and Kevin Burns.

During 2009, most of the remaining builder lots have been sold and much of the construction completed. Visiting the model homes right now shows that there are only a handful for each builder available. I ran into Bob Brock at Streetman Homes a few days ago and he has only three townhomes available and three other lots to build on (and the Parade home).

There are some new homes still available at Mueller, but not many.

So what’s in store for 2010 at Mueller? The developer’s original plans have certainly changed. While we had anticipated an announcement from Catellus on the next phase by the end of this year, it looks like this has been pushed back until 2010. So when will we see new homes under construction at the old airport? It’s unclear at this stage.

I’ll talk about what this means for the resale market in Mueller in my next post.

Garreth Wilcock is a Realtor® specializing in new and resale homes at Mueller. Get in touch at 512 215 478, or leave a question in the comments below!

The Austin Chronicle ran a story on another sustainable accolade achieved by Mueller, Austin last week. Where are we in the development and where is it heading?

The Mueller Development has been awarded a silver LEED-ND status - a new designation at the neighborhood level which allows recognition of sustainable design and construction. The US Green Building Council allowed Mueller to participate in the pilot program which rewards developments in categories such as Smart Location (Mueller is a few miles from UT and Downtown) Pattern and Design (compact development and walkable streets).

Some aspects are mandatory (walkable streets) and some score points towards the rating (solar orientation, mixed-use neighborhood centers). Ratings are silver, gold and platinum, and at 51 points out of 100 Mueller is silver.

There are some 4600 homes planned for Mueller, of which around 400 are occupied presently. The timeline for development has been extended and the roll out of new homes has been modified. While the original plan called for development to move East of Berkman, it seems slated to move North now - towards the planned town center.

While the developer is still waiting to reveal exact plans, it sounds like denser development is coming:  town homes and possibly Mueller Houses may be the next steps along Berkman. Maybe this more compact development will help the neighborhood gain the next rating level - LEED-ND Gold.

I’ll write some more about the developer’s announcements as they happen, and talk about implications for future home buyers and existing home sellers.

Garreth Wilcock is a Realtor resident in the Mueller Development. Search homes at the old airport.

The second question I normally get asked by people looking to buy a home at Mueller is “When is the grocery store going to get here and which one is it?”. The developer gave some positive news this morning.

Greg Weaver at Catellus discussed progress on the grocery store at the Mueller Neighborhood Association meeting today. Here’s a clip in which he talks about things in motion.

My take on what he said is:

• It could be soon
• He’s positive about the discussions that are happening with potential tenants
• The developer appreciates the importance to the community
• Berkman will probably be opened up to allow access to the market district
• It’s still planned to be at 51st and Berkman, with parking on the 51st side

Compared to the news on the Mueller town center timeline, this seems pretty positive.

Garreth Wilcock is a Mueller Resident and Realtor® and represents buyers and sellers of homes at Mueller. Which grocery store would you like to see at Mueller? Please comment below!

One of the first questions I get asked by people looking to buy a home at Mueller is “When is the Town Center going to be developed?”. Here’s the answer straight from the developer.

Greg Weaver at Catellus addressed the Mueller Neighborhood Association meeting today, and one of the topics discussed was the Town Center. There have been lots of discussions about the town center - for example a focus group 15 months ago as discussed in this Mueller blog.

Here’s the clip in which he talks about the potential timeline and challenges of developing the center.

In a nutshell he said:

• It could be three to five years out
• Perhaps it can be developed incrementally
• Maybe something will spring out of the Austin Children’s Museum moving here
• The developer is considering alternative development strategies

One interesting idea, which I hope isn’t a red herring, is to indulge in the Austin boom of Airstream restaurants. Greg said that he’d been watching videos of shipping container restaurants as one alternative. Check out one example of a Müvbox in action - a green shipping restaurant.

I for one would enjoy walking to eat a few Flip Happy Crepes and some Torchy’s tacos while I wait 3 years for the town center of my dreams. Will the news that the town center is so far out affect residential sales? That remains to be seen.

Garreth Wilcock is a Mueller Resident and Realtor® and represents buyers and sellers of homes at Mueller. What would you rather see? A full planned town center later, or an organic growth starting now - please feel free to comment!

How is the resale market at Mueller Austin? Here’s an overview of what has happened so far, and a brief clip of Catellus’ Greg Weaver talking about the upcoming development plans.

If you’ve been out and about in Mueller lately, you’ll have seen a few for sale signs - some of them popping up in the last fortnight. It’s interesting to see the difference between the current list prices and the orginal purchase prices a few years back, and the difference between list price and sales price of the recent sales. Contact me if you want more info on that.

Is now a good time to compete with new builds?

On the one hand, some of the resale floorplans or locations aren’t available for the builders. For example, the resale homes on Zach Scott with views of Lake Park or on Pinckney with easy access to the pool at Ella Wooten are hard to beat.

In addition, the builders are running out of lots and of homes they can build for the near future, until the next development phase is announced. David Weekley is selling it’s Willie model home on Zach Scott as one example, and Meritage have removed their construction trailer from McCloskey to build a home there.

Catellus, the developer, is still saying it may be 60-90 days before they release news of the next development steps. So there may be no new homes in the next phases ready in time for Spring 2010. Here’s Greg Weaver at Catellus talking about the next phases of development:

• smaller phases of development
• more organic evolution
• sticking to the original master plan, while changing the execution plan

So it seems that right now and for the next few months, there is less builder competition for portions of the resale market. Sellers can take advantage of the availability gap to sell their homes.

On the down side, the developer is talking of a 3-5 year lag for a town center, which is one key set of amenities in the eyes of many considering a new or resale home at Mueller. Less amenities might mean less interest.

In the last few months we have seen successful sales on Scales, Zach Scott and Cal Rodgers with low times on market compared to similar price points in the rest of Central Austin. If you’re considering selling, check out the tips in this article on selling your home at Mueller.

Garreth Wilcock is a Realtor® representing buyers and sellers at Mueller and beyond. Call 512 215 4785 for more info.

Affordable homes at Mueller Austin? Available in time for the $8,000 tax credit? Yes!

There are two Longhorn plans currently available for income qualified buyers. To write a contract you need to be pre-approved with the program and the preferrred lender. You can live opposite the beautiful Lake Park close to UT and downtown for under $165,000.

Let me know if you’ve missed out on the affordable program before or want to get into the Mueller shared equity scheme.

Garreth Wilcock is a Mueller Resident and Realtor® and represents buyers of homes at Mueller. Call 512 215 4785 to talk about your new home.

Mueller Austin Homes - is now a good time to sell? I take a quick look at some of the macro economic factors driving the Austin market right now and look at resale home availability in the $300k-$350k range.

How is the market in Austin doing in this price range? I took some statistics for the first half of each year for the last 4 years for comparison. The data are for single family homes in the City of Austin with a list price of $300k - $350k sold through the Austin MLS.
Not surprisingly, on the whole, less homes sold in the last two years than in the previous two years. The number of homes that failed to sell (that were expired or withdrawn) took a large increase in 2008 relative to previous years.

So in general there are less home sales in this price range. Or are there? These statistics don’t reflect all of the new home sales at Mueller, and David Weekley and Meritage homes in this price range have been moving briskly.

How has the resale market been at Mueller so far? There have been three resale home listings that I have seen so far in 2009. They have all sold, or been leased before they sold.

Who is buying homes in this price range right now? Interest rates at around 5.25% mean that someone with stable employment, reasonable credit and a 10% downpayment can get around 10% more purchasing power than they could with an interest rate of 6.5%.

An extra $30,000 of home for the same mortgage payment makes the difference between a 2 bedroom David Weekley row home at Mueller and a 3 bedroom yard home here - it’s a significant change.

Austin is still growing, and is set to be in the top 5 growing metropolitan areas. Professionals are relocating here, and they need somewhere to live. Mueller certainly sees its share of relocating families in this price point. I got a call from a Realtor® last night who wanted to know if there were any resale homes at Mueller for a relocating family from Colorado for example.

What about competition with the builders at Mueller? Catellus haven’t announced any plan for the development and release of Phase 3 residential lots to the builders yet. There’s an impending availability gap at Mueller, with Meritage having only 7 homes left, and David Weekley selling their homes at a reduced rate to “make stocks last”.

So one tactic for competing with the builders at Mueller is to sell when they have no available inventory. Which could be now or in the coming months.

So is now a good time to sell my home at Mueller, or should I wait until Spring 2010? Whether it’s a good time to sell really depends on your personal situation. Who knows whether interest rates will be low next Spring - I don’t! Who knows what Catellus will announce with regards to Phase 3 - I don’t!

One thing that I do know is that there isn’t much to choose from in this price point in Mueller right now, and less options if you consider what is available for move-in in the next few months.

Garreth Wilcock is a Realtor® specializing in Mueller Austin Homes. Find out how he sells homes at Mueller.

Yes, there are condos coming to the Mueller redevelopment! There are a few different definitions of “condo”, so here’s what’s available right now, and what’s coming soon.

The Greenway Lofts These are traditional condominiums in a low rise four story building at Mueller. There are 34 units planned for residential occupancy.

Units range from a single bedroom unit ‘Jade’ currently selling for $149,000 to some of the penthouse two story units in the $450,000s. This includes the $10,000 discount for pre-construction pricing.

There will be no income qualified units in this development - all condos are market rate. The artists renderings show a great modern finish - granite counters, mosaic backsplashes and stainless appliances.

When Can I Buy A Greenway Loft? The Greenway lofts are available right now. Available to buy, that is. Ground breaking is planned for October, and the units are expected to be ready by summer 2010. The table below shows current pricing information which is subject to change (call me for more up to date pricing)

Townhomes and Row Homes In Mueller, there are two row home builders who currently have availability. Streetman Homes have the Icon Series - modern homes opposite the old airport control tower on Berkman Drive. These start in the $290s and go to the mid $300s.

David Weekley also have townhomes - there are two models on Zach Scott St which show the range of homes which start in the $270s.

When Can I Buy a Townhome at Mueller? The townhomes are available now. There are some homes in inventory that you could move into quickly. Streetman has more homes in Building III coming up for completion in September, and David Weekley have homes coming available steadily over the coming months. There are still a few options for first time homebuyers wanting to take advantage of the $8000 tax credit!

Garreth Wilcock is a Realtor® specializing in homes at Mueller where he lives. Get in touch to find out more about getting free buyer representation at the Mueller Development - 512 694 8873.

The Affordability Gap -The Mueller redevelopment in Austin TX has two gaps. The first is the availability gap which I discussed in part one, the second is the affordability gap which l cover here. What does this mean for buyers and sellers at Mueller?

What is the Mueller Affordability Gap? There are two ways to buy a single family home from a builder in Mueller - with the income-qualified affordable program, and the regular market rate program.

Homes in the affordable program typically cost up to $170,000, and homes in the market rate program started at $219,000, with the majority being at $250,000- $300,000 and above. So the affordability gap refers to the lack of homes around the median home price in the Austin metro area of around $200,000.

How The Affordable Program Might Fill The Affordable Gap

So what does someone looking for a home between $170,000 and $250,000 at Mueller get? There are options in the Greenway Lofts and the few homes that were in this price range were sold extremely quickly.

There may be another choice however. For someone who has bought an affordable home and owned it for over a year, they have the option to sell. The Mueller Foundation which runs the affordable program has first right to purchase the home in this case. If they choose not to, then the owner can sell on the open market, and the home would no longer be in the affordable scheme.

The appraisals for the affordable homes would put the homes right in the $210,000 to $240,000 range in my opinion. Given that there is little competition in this range from the builders at Mueller (none at present), and a wealth of people who have been enquiring about this price point, I think sellers who fall into this category will do well.

Right now buyers are struggling with the availability of the affordable program (a third affordable availability gap!) and are signing up for waiting lists for homes when they come available in Phase III from the builders. If a current owner of an affordable home sells their home back to the Mueller Foundation, then these too will become available on the resale market at the affordable program pricing.

Garreth Wilcock is a Realtor® living and working in Mueller Austin. He represents buyers and sellers at Mueller and beyond. Call 512 215 4785 to discuss your needs.