Hang in There Sellers!

For those of you who missed the Austin Business Journal's article September 15th, recovery is just around the corner for the Capitol City. The article cited a report from IHS Global Insight which stated that "the first two U.S. cities to recover from the recession will be Austin and San Antonio (2010)." Dallas-Fort Worth and Houston are in the group expected to bounce back in 2011.

It's another report stating that Austin is surviving this recession better than most of the country. But what does this mean for our real estate market? Ask your neighbor who has had their home on the market for the better part of the last year, and I doubt they will tell you things are looking up. Their home has probably been on the market for months, and they have been adjusting their price as the market has dictated. Adding insult to injury, many sellers have received offers so far below market value that they have refused to respond.

But the truth is that while the Austin market has declined in the past year, the Austin Board of Realtors just reported that although home sales in August were down 10% from August 2008 there was only a 4% decrease in price. Sellers are willing to have their homes on the market longer and wait out the decline rather than accept an unreasonable offer. For instance a house that would have sold for $1,300,000 last August would sell for $1,248,000 today. And while luxury properties are taking longer to sell and inventory is still high, the percent of price decline is still between 4 and 5 percent.

So the question surfaces, why leave a house on the market allowing it to accumulate a high number of "days on the market"? Simple answer, buyers are still buying (90% is a healthy number) and if the house is off the market a showing and possible sale may be missed. Of course there are hip pocket listings and silent listings, especially in the luxury market (I admit I have one), but it is impossible to market to all agents at all times any more efficiently than through the MLS system. And most sellers are savvy enough to understand the power of this network.

Now there are still a few uninformed buyers/agents focused on "days on the market" who are under the assumption that most sellers are in dire straights and are willing to discount their homes, but many buyers/agents are noticing that Austin's housing market may be at its' lowest point and now is the time to buy. Low interest rates are also enticing buyers to get under contract.

So hang in there sellers, as frustrating it may seem right now, your buyer is nearby. While I don't think we will see a boom in real estate sales in 2010, I do think that we will continue to see a steady strengthening of the market.

Sustainable Development

Is it possible to build high density, sustainable, mixed use developments close to Lady Bird Lake while still preserving the integrity of the landscape? That is the question facing the Austin City Council this week. The current proposed development includes a building with a maximum height of 90 feet (7 stories) exceeding the current city maximum of 60 feet.

There seems to be gray area in the interpretation of the height restrictions along the lake. The attorney for the project, Steve Drenner, was quoted in the Austin American Statesman in August saying that "the project meets or exceeds the city's requirements for planned unit development zoning, which allows more density in large, mixed use projects if developers provide certain benefits".

Some of those proposed benefits are additional roads, bike paths, and street level retail space. The developers would also donate $225,000 to the city's parks system and for a police substation nearby. The proposed project is 390 feet from the shore at its closet point, on the south side of Lakeshore Blvd., with Lakeshore Park between the development and Lady Bird Lake.

Save Town Lake and the East Riverside/Oltorf Neighborhood Planning Area groups are concerned about preserving the waterfront and staying within the City Guidelines. They are also concerned with losing affordable housing in the neighborhood, an apartment building (lower income) will be demolished if the proposal is approved, with no plans for relocation of the residents.

As I see it, this could be a win-win situation for both sides.  Currently, the 30 acre site is in shambles, and does not encourage visitors along the banks of Lady Bird Lake. The apartments are in disarray with no plans for improvement and the crime rate is high. The site is not directly adjacent to the lake, but  provides for beautification of existing and future park space.  The proposed development encourages urban renewal, uses less land space and provides for a more sustainable living environment than currently exists. A flourishing neighborhood with public shops, restaurants and parks fits into the Austin's vision of re-gentrification of the city.

While the height restrictions may be in question, there are a handful of other developments which exceed the proposed 90' maximum.  Most recently the Milago (142') and Legacy at the Lake (339'), neither of which have park land included.  The San Jacinto Bldg (324'), Four Seasons (140'), Hyatt Regency (185') and Radisson (129') all exceed the current maximum height restrictions and have improved the waterfront sites to which they are adjacent.

A well planned, flourishing, sustainable development has got to be better than the high crime, run down neighborhood that currently exists on this site. Hopefully the neighborhood associations, Save Town Lake group and the developers will find a way to work together and make this work for the entire community.

If the City Council does approve this or any other development, it will be their responsibility to monitor its' progress.  They must be sure that promises to improve the sites with park land, shops and pedestrian friendly trails are completed. 

Active input from the community has helped Austin grow while preserving its' green spaces. Please take the time to get informed. For more information about the proposed vote on Thursday: http://www.ci.austin.tx.us/council/

Click on the Contact button on the bottom left side of the page to email the council members with your opinions.

FYI~Grist named Austin the 6th most sustainable city in the US in July.  http://www.grist.org/article/2009-07-16-sustainable-green-us-cities/PALL/

Are you Really Listening?

Over the past weekend I had the privilege of spending time with some remarkable men and women. While each one of them has an amazing business resume, their community service resumes were in most cases even more impressive. This was the first of many meetings of this unique group of individuals, all dedicated to addressing the needs of community issues and challenges for the good of the whole.

When I first walked into the room, I was caught off guard when I realized I only knew two people in the room. Being involved in many different civic organizations for 20 or so years had lulled me into thinking I would at least recognize half the people there. It was a gift meeting my class!

The weekend centered around self awareness and forming relationships with each other. We got to know one another without the usual self promotion of a business relationship, and without the power struggle of a first meeting on a new project. We formed relationships with people we might never have met without this opportunity. New partners for projects, ideas and friendships. The diversity of talent and interest among this group is staggering.

As the weekend progressed it was fun to see how differently each of us sought solutions to games, situations, etc. And how we interpreted the means to an end so differently. We were all given the same instructions, at the same time but we heard/interpreted the directions in such different ways. Even asking for clarification didn't change the way we heard. As one of my classmates concluded we are "hardwired" to hear/do things our way and it is difficult to see another point of view.

We were reminded (one of many aha moments) of the importance of a collaborative process between civic minded groups, working together for the good of the community rather than as individual islands within the community. When differing opinions/approaches to a situation come together through a dialogue instead of a discussion, mutual understanding of the issues, and therefore a consensus of approach are much more likely to occur.

Now that our first meeting is over, and I have had time to decompress, I am trying to listen more to how and why something is said, not just what is said. Old habits are hard to break, I imagine this will be a work in progress for quite some time.