|Posted on January 19, 2012 at 3:05 PM|
The Austin Texas Real Estate Market
is Still Moving Along
[Posted: Dec 19, 2011]
Austin Texas's main industry is technology, and they are well known for being a producer of both software and hardware in this part of the country. In 2006 when the recession hit, some of the workers at the plants located in Austin were laid off, which hurt their real estate market. Since then, the orders for the products that are produced in this area have picked up significantly, which has helped to strengthen the overall real estate market.
In September of 2011 the foreclosure rate in Austin was 2.4 which is below the national average of 3.48 The 90-day delinquency rate also witness a decrease from 3.44in 2010, to 3.13in 2011. A few real estate experts stated that the reason they are still seeing above average rates of foreclosure is that just like in the rest of the country, the housing market was overbuilt during the good times.
However, the new home inventory is steadily decreasing because investors and builders have become more realistic about the future, which is driving up the prices for both new and existing homes. In addition, the commercial real estate market is starting to pick up steam as investors are taking advantage of depressed prices, which is also fallout from the recession.
Recently, a Chicago based firm who was acting on the behalf of investors acquired two large office buildings in downtown. The Setting I-III and Cityview Centre were sold for an undisclosed price. They will be managed by Transwestern, which is a national company that has local connections.
The director of market analysis for Real Capital Analytics in New York who researches the real estate market in Austin said, 'that office space is now selling for $140 per square foot'. However, Las Cimas IV which is a new office building recently sold for $260 per square foot. The vacancy rate for Class A office space has declined from a high of 22.4 to 18.3 which has enabled the owners of office building the ability to maintain their pricing structures.
All of the recent data that has been pouring in reveals a defiant upturn in the market for both residential and commercial properties. If you happen to be thing about purchasing Austin home anytime in the near future, now would certainly be the time to jump into the market before it begins to explode once again.
Each and every area of the country that experienced a real estate slump was directly related to what was happening in the local economy. In many parts of the country where the local economy has already full recovered, home prices have also returned to their previous levels.
There can be no questioning the fact that Austin\'s economy is now stronger than it has been in the past few years, and it is only going to improve over the next few years. If you or somebody that you know has been waiting to purchase a home, please do not wait too long and get yourself priced out of the market.
About the Author
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