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/

What does Austin's ECAD mean to you?

Approved by the Austin City Council, the Energy Conservation Audit and Disclosure (ECAD) ordinance became effective on June 1st. Currently the ordinance applies only to properties within the city limits of Austin who receive electricity from Austin Energy, but it is sure to expand throughout the county in the coming years.

What does this mean for a homeowner considering putting their home on the market? A homeowner must get the audit before the sale of their home. There are no requirements to fix/upgrade any of the deficiencies, it is for information only. But beware, while the auditors need to meet the City's certification requirements, and perform a specific audit, there is not yet a standard for pricing. Be sure to get two or three quotes before you hire an auditor.

Many of the auditors may also be service providers for the needed energy-efficiency improvements. Before they do the audit, let them know you will not be hiring them to do any needed improvements, it is best to hire a provider that is neutral to the transaction.

So, does your house need an energy audit? There are many exceptions. If your home is less than 10 years old or has received energy-efficiency improvements or a total of $500 in rebates through the Austin Energy Home Performance with Energy Star (R) Program within 10 years of the sale your home is exempt.

Other exemptions include condominiums, mobile/manufactured homes, foreclosures, pre-foreclosures, trustee or deed sales, gifts within families, court order, probate, decree of legal separation or divorce. A homeowner can go to the website (below) and do an ECAD Audit Self-Check to see if your home qualifies for an exemption.

What does the ECAD tell an owner about their home? Among other things, the audit measures air leakage from ducts, R-value and efficiency of attic insulation and heating and cooling efficiency. The audit also identifies windows which are receiving at least one hour of sun per day.

While the ordinance doesn't apply to many homeowners in the Austin metro area, the idea of making repairs/upgrades to our homes while we still live in them is a good thing to consider. When the need for a new HVAC system, or refrigerator arises, be sure they are Energy Star (R) rated. Replace the old water heater with a tankless one, or re-insulate your attic, done over a period of time, when needed, these improvements will make the eventual sale of your home smoother.

My suggestion to anyone (inside or out of the Austin city limits), thinking of selling their home is to go ahead an get an energy audit. You may be able to upgrade some of the smaller deficiencies in your home and you will have the information ready to give to potential buyers from the beginning. Many buyers outside the city limits are asking for an audit to be performed as part of the contract, and will be pleased to know that you have been proactive.


Please feel free to contact me for names of approved energy auditors, with questions about the ECAD, or for help buying or selling your home.

For more information about Austin's ECAD ordinance http://www.austinenergy.com/About%20Us/Environmental%20Initiatives/ordinance/index.htm

UPDATE: Tim Arndt @ Austin Energy read my blog and sent a shorter link:
http://www.austinenergy.com/go/ecad

And the Home Performance with Energy Star (R) site is:
http://www.austinenergy.com/go/rebates

What's New is Old

As a child of the 60's & 70's growing up in California I am a product of the original "Green" movement: "Save Our Coastline", "Save the Whales" "Ecology Day" , etc. Social movements and peace movements were the way in which young idealists got out the word, protesting everything from war and nuclear weapons to deforestation and the need for cleaner national and local parks. It was the birth of Earth Day and many conservation groups, most notably Greenpeace.


We thought we were conservationists, but I think most of us were more into the idea of the cause rather than the practice of conservation. We spent designated days cleaning up the beach, the road, the water but never really stopped using the products causing the problems. It was about being heard, protesting, bringing attention to the problem, not finding a long lasting or "Sustainable" solution.


What's new is old. We are "Green" again, but now it's more mainstream to have solar energy or to use biodegradable products. Instead of strictly conserving or not using resources, we are balancing the use of these products with our lifestyles. We are becoming Sustainable.



Sustainability is defined as "the ability to satisfy the basic needs of today without compromising the ability of future generations to satisfy their needs.(1)" This is often defined as people, planet, and prosperity. It's no longer an all or nothing solution, it's about using and reusing what best suits our individual lifestyles.



We want "green" homes, but what does that mean? Is it enough to have energy efficient appliances and windows? For some it is, but others may need rainwater collection systems and xeriscaped lots. Or do you want all the building material in your home locally harvested? Maybe you just want low VOC paint and no carpet, there is no wrong answer.



We can be as much or as little "green" as we want and it's okay. The options and sources are out there, it's just a matter of education and practice. So if you are ready to start "greening" your life take baby steps. Start with grocery sacks or recycled paper, change out your light bulbs or toilets. For a list of Green resources go to my website under Reports and click on Central Texas Green Resource Guide. (http://www.susanavant.com/)





(1) United Nations "Our Common Future, Report of the World Commission on Environment and Development," 1987. Published as Annex to General Assembly document A/42/427.

Forbes Predicting Austin Economy Will Grow $5 Billion By The End of 2010.

After a fun filled weekend showing buyers around Austin, and again this morning, before the heat became too much, I realized that I've been busier these last few weeks than I have been in a long time. While this is traditionally a busy time, buyers trying to get into a new home before school starts and sellers hoping to have time to sell and settle into their new home before it gets too late in the fall, nothing has gone as expected recently.

It's odd to be so excited about "normal" activity in the marketplace, but I can't help myself. The past year has been unusually unpredictable, and this is coming from someone who threw out her crystal ball in the 80's! I've worked through many cycles in the market, some fantastic and some not so great, but there has always been a method to the madness, until the past Fall. No one, not even the "experts" have been able to come to a consensus, at least until recently.

Now, more often than not, I have been reading that Austin is rebounding on many different fronts (housing, jobs, best places for this & that) and my business is living proof that indeed, at least on the housing front, this is true.

I appreciate your referrals. When you work with me you'll know that A Class Act in Austin is in your corner.

For more information, read the latest news from Forbes. They predict Austin's economy will grow by $5 billion by the end of 2010. http://bit.ly/hE9sJ


http://www.SusanAvant.com/

Susan Avant, CLHMS, CRS, GRI
AvenueOne Properties
512-917-9936
susanavant@aveone.com
www.linkedin.com/in/susanavant

Despite Heat Wave Austin's Market is Looking Up

We are in the middle of an unprecedented heat wave in Austin, with more days over 100 degrees than I am willing to acknowledge. But despite the fact that no one wants to venture outside, I have been showing property with amazing frequency.

Anyone with their house listed will agree that this is great news. And any buyer willing to brave this heat and spend hours looking for a house must be serious. Unfortunately our luxury marketplace is still slow, most of the activity is under $800,000. But just a few months ago we were seeing little or no activity over $500,000 so things are looking up.

That said, here's some news put together by Real Estate Center Online News (TAMU):

FORECLOSURES FALL ACROSS STATE AUSTIN (Austin American-Statesman) – Residential foreclosures are at a five-month low in Central Texas, reflecting a trend in other parts of Texas, according to Foreclosure Listing Service (FLS) data.
"The tide may have changed," said FLS President George Roddy Sr., adding that the figures offer hope that foreclosure postings may have peaked.
Travis, Williamson, Hays and Bastrop counties posted a combined 1,072 properties for foreclosure in the August auction, down 27 percent from July.
The Dallas area saw foreclosures fall below 5,000 for the first time since March. In Bexar County, postings fell to their lowest level since March, according to Real Estate Foreclosures Inc.

AUSTIN HOUSING MARKET SHOWS SIGNS OF LIFE AUSTIN (Austin Board of Realtors) – Just over 2,100 single-family homes were sold last month, according to the June 2009 Multiple Listing Service report by the Austin Board of Realtors. That’s 4 percent less than a year ago. Meanwhile, the median price was $199,900, unchanged from last year.
"We've seen the year-over-year gap in sales volume close steadily throughout 2009, and that momentum continues this month," said Jay Gohil, chairman of the Austin Board of Realtors.
Home prices in the Austin area have continued gaining momentum since the beginning of the year. Over the first two quarters of 2009, the average sale price for a single-family home has increased $20,824, while median sales price has increased $24,400.
Also, since January 2009, sales volume is up 61 percent, and active listings are up 14 percent.

AUSTIN GROWS DESPITE DOWNTURN AUSTIN (Austin American-Statesman) – After moving past Columbus, Ohio, to become the 15th-largest city in the nation, Austin continues to grow despite the economic downturn.
Austin city demographer Ryan Robinson expects Travis County to add more than 30,000 people this year, including births. New residents keep the local economy going by renting apartments, buying homes and cars and starting new businesses. Of the country's largest metropolitan regions, Austin–Round Rock boasts the fourth-largest rate of self-employment, according to Brian Kelsey, director of community and economic development for the Capital Area Council of Governments.
Twenty-two percent of the area's workforce meets that qualification, serving as either an asset or a liability, depending on the state of the economy.