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December 2015 Austin Real Estate Review

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Austin Board of REALTORS® releases real estate statistics for December 2015 and 2015 Year-End Totals

AUSTIN, Texas – Jan. 21, 2016 – Austin-area single-family home sales and prices set all-time records in 2015, as well as records for the month of December 2015, according to the December 2015 and Year-End 2015 Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS®.

Aaron Farmer, 2016 President of the Austin Board of REALTORS®, explained, “Demand for Austin-area real estate was stronger than ever in 2015, primarily due to our region’s job and ongoing population growth. However, low housing inventory levels, rising home prices and high housing development costs have brought Austin’s housing affordability issues to critical levels. Median price for single-family homes in the Austin area increased nearly $30,000 in the last year alone.”

According to the report, 29,068 single-family homes were sold in the Austin area in 2015, a five percent increase from 2014 and an all-time high for Austin-area home sales. Single-family home sales for the Austin area also set a monthly record in December 2015, increasing five percent year-over-year to 2,390 home sales.

Over the course of 2015, median price for Austin-area single-family homes increased nine percent from 2014 to $263,900. In December 2015, the median price for Austin-area homes was $270,000, 10 percent higher than December 2014. As a result, the total sales dollar volume for single-family homes in 2015 topped $9.6 billion, an increase of more than $1 billion from 2014.

Farmer continued, “The Austin Board of REALTORS® plans to build upon the past year’s efforts to advocate for a more affordable Austin, which included supporting Mayor Adler’s Housing Our Heroes initiative and advocating for permanent tax relief for Austin homeowners at the polls last November. It’s crucial that Austin continues to make strides with pivotal policy issues in 2016 to improve the land development code through CodeNEXT and take next steps to achieve more stringent code enforcement.”

The Austin area’s housing affordability challenges were intensified by a continued shortage of housing inventory in 2015. Monthly housing inventory in December 2015 remained unchanged from 2014 at 2.2 months, less than half of what the Real Estate Center at Texas A&M University considers a balanced housing inventory level of approximately 6.5 months.

Austin-area homes spent two more days on the market in 2015 as the year prior, or an average of 49 days. In December 2015, the average amount of time homes spent on the market was 57 days, one day more than December 2014. Pending sales for single-family homes decreased one percent year-over-year to 1,601 pending sales, but pending sales for all of 2015 rose five percent from 2014 to 29,839 pending sales.

Active listings in December 2015 rose three percent year-over-year to 5,214 listings, while new listings increased six percent to 1,646 new listings from December 2014. Throughout the year, active listings rose five percent in 2015 to 6,044 listings and new listings increased four percent to 36,810 listings.

“There are many opportunities, as well as many challenges, ahead in 2016,” Farmer concluded. “Austin residents can count on the Austin Board of REALTORS® to continue to work with the community and city leaders to advocate for policies that ensure everyone in Austin’s communities have a safe, affordable place to live.”

December 2015 Statistics

  • 2,390 – Single-family homes sold, five percent more than December 2014.
  • $270,000 – Median price for single-family homes, 10 percent more than December 2014.
  • $348,904 – Average price for single-family homes, 13 percent more than December 2014.
  • 57 – Average number of days single-family homes spent on the market, one day more than December 2014.
  • 1,646 – New single-family home listings on the market, six percent more than December 2014.
  • 5,214 – Active single-family home listings on the market, three percent more than December 2014.
  • 1,601 – Pending sales for single-family homes, one percent less than December 2014.
  • 2 – Months of inventory* of single-family homes, unchanged compared to December 2014.
  • $833,880,560 – Total dollar volume of single-family properties sold, 19 percent more than December 2014.

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2015 Year-End Totals

  • 29,068 – Single-family homes sold, five percent more than 2014.
  • $263,900 – Median price for single-family homes, nine percent more than 2014.
  • $333,558 – Average price for single-family homes, eight percent more than 2014.
  • 49 – Average number of days that single-family homes spent on the market, two days more than 2014.
  • 36,810 – New single-family home listings on the market, four percent more than 2014.
  • 6,044 – Active single-family home listings on the market, five percent more than 2014.
  • 29,839 – Pending sales for single-family homes, five percent more than 2014.
  • $9,695,852,178 – Total dollar volume of single-family properties sold, 13 percent more than 2014.

The following sections describe trends in other sectors of the Austin-area real estate market.

Townhouses & Condominiums

The number of townhouses and condominiums (condos) sold in the Austin area in December 2015 was 230 properties, unchanged from December 2014. The median price for condos was $250,000, which is eight percent more than the same month of the prior year. These properties spent an average of 46 days on market, 10 days fewer than in December 2014.

In 2015, Austin-area condo sales dipped three percent from the year prior to 3,057 condo sales. Median price for Austin-area condos was $227,700, a six percent increase from 2014. Condos spent the same amount of time on the market in 2015 as 2014, or an average of 43 days.

Leasing

In December 2015, a total of 1,153 properties were leased in Austin, which is three percent less than December 2014. Properties spent an average of 47 days available for lease, or two fewer days than December 2014. The median rent for property leases was $1,500 per month, a three percent increase from December 2014. Active property listings increased three percent from December 2014 to 1,630 properties. In all of 2015, a total of 17,875 properties were leased in Austin, which is five percent more than 2014, and the median rent was $1,540 per month, or four percent more than 2014.

* The inventory of homes for a market can be measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.

Source: Austin Board of REALTORS®

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Transfer on Death Deed – FAQs

Transfer on Death Deed – FAQs

Authored By: Texas Legal Services Center eco house

1. WHAT IS A TRANSFER ON DEATH DEED?

A new Texas state law allows real property owners to record a “Transfer on Death Deed” naming a beneficiary to own that real property after they die. With a properly recorded Transfer on Death Deed, no probate is needed to transfer the real property.

2. I ALREADY HAVE A WILL. WHY WOULD I WANT A TRANSFER ON DEATH DEED?

Whether you have a will or not, your property will still have to go through the probate court system. A Transfer on Death Deed conveys property outside of probate. The avoidance of probate allows for you to avoid incurring court costs and administrative costs to deed the property to your beneficiary. Under current law, it also excludes the real property from Medicaid estate recovery.

3. DOES A TRANSFER ON DEATH DEED REPLACE A WILL?

The Transfer on Death Deed does not replace a will. The will remains an important part of your estate plan. Your will may provide how property without beneficiary designations passes, and may provide what happens if all beneficiaries predecease you. Your will may allow you to provide in detail who gets items of personal property, including your motor vehicles, heirlooms and furniture. You should consult your attorney about how a Transfer on Death Deed fits into your estate plan.

4. WHAT IS CONSIDERED REAL PROPERTY?

Real property that can be transferred via a Transfer on Death Deed includes land, improvements, uncut timber and mineral rights.

5. CAN A TRANSFER ON DEATH DEED BE USED FOR PERSONAL PROPERTY?

No, the Transfer on Death Deed can only transfer real property.

6. WHAT ARE THE REQUIREMENTS OF THE TRANSFER ON DEATH DEED?

The Transfer on Death Deed must include the legal description of the property and the name of one or more beneficiaries. It must be signed, notarized and recorded in the county where the property is located before the grantor dies.

7. CAN I USE A TRANSFER ON DEATH DEED FOR REAL PROPERTY IN OTHER STATES?

No, while currently, about 1/2 of the states in the U.S. have some form of Transfer on Death Deed,  the Texas Transfer on Death Deed law and its related forms are only effective for real property located in Texas. You will have to check the laws in the other states to determine if they have a similar deed.

8. I DON’T HAVE MY DEED, BUT HAVE A COPY OF THE TAX RECORD. IS THIS OK?

It is highly recommended that a copy of the actual deed is obtained from the County where the property is located as information in tax records can be incomplete or inaccurate.

9. WHEN IS A TRANSFER ON DEATH DEED EFFECTIVE?

A properly executed Transfer on Death Deed is effective if it is recorded with the County Clerk in the county in which the real property is located, before the death of the grantor. If the deed is not recorded before the death of the grantor, it is ineffective.

10. WHERE IS A TRANSFER ON DEATH DEED FILED (RECORDED)?

A Transfer on Death Deed must be filed (recorded) with the county clerk in where the real property is located. There is usually a per page fee for filing the deed.

11. WHAT IF THE BENEFICIARY I CHOSE DIES?

A beneficiary must survive the grantor by 120 hours (5 days) for the transfer to be effective. It is highly recommended that a person executing a Transfer on Death Deed always identify an alternate beneficiary. If there is no beneficiary upon death, the Transfer on Death Deed is not valid and the property must be placed into probate.

12. CAN I NAME MORE THAN ONE BENEFICIARY?

Yes, the Transfer on Death Deed law allows you to name more than one beneficiary. Also, the law allows you to name an alternate beneficiary. This is highly recommended in case the first beneficiary dies before you do.

13. CAN THE BENEFICIARY BE AN ENTITY?

No, a beneficiary must be a person. It cannot be an organization or an institution.

14. CAN THE BENEFICIARY BE A CLASS OF PEOPLE?

No, be specific. The Transfer on Death Deed does not allow you to name classes of relatives, such as “all of my children.” The beneficiaries’ individual names must appear on the face of the deed.

15. DOES A BENEFICIARY NEED TO SIGN A TRANSFER ON DEATH DEED?

No, the beneficiary need not sign or agree to a Transfer on Death Deed. Further, the Transfer on Death Deed does not need to be delivered to the beneficiary to be effective. It is up to you whether you tell the beneficiary that you have named him/her in a Transfer on Death Deed.

16. DOES THE BENEFICIARY HAVE ANY CONTROL OVER MY  REAL PROPERTY DURING MY LIFE?

No, the Transfer on Death Deed is not effective until you die. That means the beneficiary you name in the Transfer on Death Deed cannot control your property. You do not need the beneficiary’s permission to sell or mortgage the land. You are not subject to the beneficiary’s debts. Your interest in the real property goes to the beneficiary only after you die.

17. I NAMED MY SON AS BENEFICIARY IN MY WILL, WHAT IF I NAME SOMEONE ELSE IN THE TRANSFER ON DEATH DEED?

If your will and Transfer on Death Deed are inconsistent, the Transfer on Death Deed controls who owns your real property after your death. This applies to wills executed before or after the Deed.

18. I OWN THE PROPERTY WITH MY WIFE AND TEXAS IS A COMMUNITY PROPERTY STATE SO I DO NOT NEED A TRANSFER ON DEATH DEED, CORRECT?

If a husband and wife own community property in Texas, it is true that the surviving spouse can claim the property. If a spouse dies without a will, though, the surviving spouse will have to file an “affidavit of heirship”. Challenges to this can be made and the affidavit alone does not confer title. Corroborating evidence of family members may be needed. A Transfer on Death Deed transfers title and eliminates the need for additional affidavit proof.

19. I OWN A HOUSE WITH MY BROTHER. MUST WE BOTH SIGN?

Joint tenancy is where more than one person owns real property and the property passes automatically on the death of one joint owner to the surviving joint owners. Ideally, all joint tenants should sign a Transfer on Death Deed. The death of one does NOT transfer the property to the beneficiary. The real property passes to the other transferor. Examples:

-If a brother and sister own real property as joint tenants and one dies, the surviving joint tenant will own the entire real property. The property will only vest with the beneficiary after the death of the last transferor.

-If only one owner signs, then his/her interest will transfer to a beneficiary only if he is the last joint tenant surviving. If the transferor dies before another transferor who has not executed a Transfer on Death Deed, then the deed becomes invalid.

20. I OWN THE PROPERTY WITH MY WIFE AND HOLD POWER OF ATTORNEY FOR HER AFFAIRS. CAN I EXECUTE A TRANSFER ON DEATH DEED FOR BOTH OF US?

No, a power of attorney can NOT be used to execute a Transfer on Death Deed. The person executing the deed must be competent and sign it himself/herself.

21. DOES A TRANSFER ON DEATH DEED SHIELD THE PROPERTY FROM THE CLAIMS OF CREDITORS?

No, property owners cannot escape the claims of creditors with a Transfer on Death Deed. All valid liens, mortgages, and judgments, as well as claims of other creditors, may be applied against the real property. Mortgages, liens and notes follow the property and will now be the responsibility of the new owner. Note: Creditors are not notified of a change in ownership when a transferor dies. The beneficiary can do so.

22. WILL THE PROPERTY BE SUBJECT TO MEDICAID ESTATE RECOVERY UNDER CURRENT LAW IF I CURRENTLY RECEIVE OR PLAN TO APPLY FOR LONG TERM CARE?

No, as the property does not go through the probate system, under current law it is not subject to Medicaid estate recovery, whether you are currently receiving long term care or plan to apply for it.

23. WHAT ARE THE TAX CONSEQUENCES OF A TRANSFER ON DEATH DEED?

For tax purposes, property transferred with the new deed should be treated in the same way as real property passing through probate. For most estates, there should be no federal or state estate tax (check with your accountant about current estate taxes). Additionally, the heirs should get the “stepped up basis” (date of death value) in the real property and may owe no tax on their inheritance.

24. CAN A TRANSFER ON DEATH DEED BE REVOKED?

Yes, a Transfer on Death Deed may be revoked or cancelled several ways.  The deed is considered revoked if you record a new Transfer on Death Deed, or if you record a cancellation of Transfer on Death Deed. A divorce decree will also invalidate the deed as to a spouse beneficiary. These instruments must be filed before the death of the grantor in the county where the property is located. The deed is also revoked by selling all of the interest in the real property.

Source: Texas Legal Services Center

Click here for the Transfer on Death Deed Form and Instructions

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November 2015 Austin Real Estate Review

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Austin-area home sales volume decreases in November while prices set record

Austin Board of REALTORS® releases real estate statistics for November 2015

AUSTIN, Texas – Dec. 21, 2015 – After increasing for five consecutive months, Austin-area home sales dipped four percent in November 2015 compared to the same month of the prior year, according to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR). This is only the second decrease in home sales volume for 2015 to date, with the first decrease occurring in May 2015.

Barb Cooper, 2015 President of the Austin Board of REALTORS¬®, explained, “While November single family home sales volume decreased slightly compared to last year, year-to-date home sales volume continues to outpace 2014. With the Austin-area population exceeding two million over the summer, growth in Central Texas is showing no signs of slowing.”

According to the report, the median price for Austin-area single-family homes increased 10 percent year-over-year to $270,000 in November 2015, setting a record for the month of November. Also setting a record for November, average price increased 12 percent to $347,292 during the same timeframe.

New listings increased by one percent and active listings increased by three percent year-over-year. Additionally, pending sales increased by four percent. Homes remained on the market for an average of 54 days in November 2015, one day less than November 2014.

Monthly housing inventory remained unchanged year-over-year at 2.4 months. Housing inventory remains at less than half of what the Real Estate Center at Texas A&M University considers a balanced housing inventory level of approximately 6.5 months.

“The Federal Reserve’s recent decision to raise interest rates is a sign of a healthy economy, and we’re fortunate that Austin has one of the strongest economies and housing markets in the nation,” said Mark Sprague, State Director of Information Capital at Independence Title Company. “Millennials—a large portion of Austin’s population—have never seen interest rates go above 10 percent, so some might be concerned about the impact higher interest rates will have on Austin’s housing market and economy. Even with this increase, however, interest rates are still among the lowest they have ever been, and we do not anticipate a significant impact on the Austin-area housing market.”

Cooper concluded, “It’s encouraging to see an uptick in pending sales, active listings and new listings as a sign of more homes entering the market. Sellers are taking advantage of competitive market conditions and if active listings continue to increase year-over-year, it could lead to a much-needed increase in the Austin-area’s housing inventory level.”

November 2015 Statistics

  • 1,814 – Single-family homes sold, four percent less than November 2014.
  • $270,000 – Median price for single-family homes, 10 percent more than November 2014.
  • $347,292 – Average price for single-family homes, 12 percent more than November 2014.
  • 54 – Average number of days single-family homes spent on the market, one day less than November 2014.
  • 2,095 – New single-family home listings on the market, one percent more than November 2014.
  • 5,703 – Active single-family home listings on the market, three percent more than November 2014.
  • 1,965 – Pending sales for single-family homes, four percent more than November 2014.
  • 2.4 – Months of inventory* of single-family homes, unchanged compared to November 2014.
  • $629,987,688 – Total dollar volume of single-family properties sold, eight percent more than November 2014.

The following sections describe trends in other sectors of the Austin-area real estate market.

Townhouses & Condominiums

The number of townhouses and condominiums (condos) sold in the Austin area in November 2015 was 180, a 10 percent increase from November 2014. The median price for condos was $216,750, which is one percent less than the same month of the prior year. These properties spent an average of 43 days on market, six days less than in November 2014.

Leasing

In November 2015, a total of 1,205 properties were leased in Austin, which is five percent more than November 2014. Properties spent an average of 42 days on the market, or four fewer days than in November 2014. The median price for property leases was $1,550 per month, a nine percent increase from November 2014. Active property listings increased by one percent compared to November 2014, reaching 1,726 listings.

The Austin Board of REALTORS® (ABoR) builds connections through the use of technology, education and advocacy to strengthen the careers of its 11,000 members and improve the lives of Central Texas families. We empower Austin REALTORS® to connect their clients to the region’s most complete, accurate and up-to-date listings data. For more, contact the ABoR Department of Public Affairs at marketing@abor.com or 512-454-7636. For the latest local housing market listings, visit AustinHomeSearch.com.

* The inventory of homes for a market can be measured in months, which is defined as the number of active listings divided by the average sales per month of the prior 12 months. The Real Estate Center at Texas A&M University cites that 6.5 months of inventory represents a market in which supply and demand for homes is balanced.

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Holiday Home Selling. Sell it, Santa!

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Holiday Home Selling Myths

Myth #1: No one wants to buy a home during the holidays. People often believe that during the holidays, the last thing people want to buy is a home. They want to avoid the hassle of looking, closing, and moving. The market just isn’t there.

Fact: Homebuyers who are serious about moving shop 365 days a year. The smart homebuyer knows there won’t be as much risk in getting into a bidding war with other homebuyers. The available homes might be slimmer, but perhaps homebuyers are fine with having fewer options. After all if they want to move in by the end of year, they need to act fast. For sellers, a smaller inventory of homes means they could probably get more value for the home than they could during any other season.

Myth 2: Transactions take twice as a long. People figure with the holidays arriving, businesses are on limited availability, employees are out, and transactions take twice as a long to get done. You’ll be lucky if you get this sale in the books this year.

Fact: While limited personnel might be true, there are fewer transactions that take place during this season. This means the mortgage lenders have fewer loans to process, attorneys have fewer closings to do, and home inspectors have fewer inspections to fulfill. All of these factors should lead to a quicker transaction and closing for everyone involved.

Myth 3: It’s ok to take a house off the market during the holidays if it hasn’t sold.
A house hasn’t sold in almost two months and the holidays are upon us. In Austin, this duration is almost unheard of that we might as well call it quits until the New Year right?

Fact: There’s a whole different group of homebuyers coming into the picture. In fact, taking the property off the market abruptly may send the wrong message to prospects and destroy any possible opportunities you might have had. Take advantage of the time and think about offering incentives to homebuyers. Can you reduce the cost? Offer any concessions at closing? Just like buying a car, homebuyers appreciate extra incentives for these life-changing purchases, especially at holiday time.

Research Shows the Holidays Aren’t So Bad

A Realtor.com study shows that 79% of agents surveyed reported that more serious buyers come out during the holidays, and 61% said less competition from other properties make it a great time to sell. In addition, 17% of agents said the cold weather is actually a benefit, making homes feel cozier. These facts and others can be found in NAR’s Field Guides.

Source: Austin Board of Realtors: http://www.abor.com/blog-holiday-home-selling/

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Update on Lakeway Development Projects

LAKEWAY/ BEE CAVES AREA IS GROWING!

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Ranch Road 620

1. The Oaks at Lakeway – New Town Center of Lakeway. A total of 175,000 SF of retail space is planned. HEB has been open for several weeks. A total of 13 new businesses have signed leases to move in to the center, including several restaurants. Tenants to date include: HEB, High Five, Trattoria Toscano, Factory Mattress, Level 12 Salon, MOD Pizza, Twin Liquors, Pro Nails, Orange Leaf Yogurt, MAD Greens, Torchy’s Tacos, Subway, Asia Cafe, McArthur’s Restaurant, Raising Cane’s and Engel & Voelkers.

2. Lakeway Medical Center Village – The Harbor at Lakeway is a 150-room assisted living center now open. The Goddard School of Lakeway pre-school and day care is about to open. The 125-room independent living facility under construction behind The Harbor. Newest planned is an 80-90 room La Quinta and similar sized Marriot hotel.

3. Gateway at Falconhead Business Park – New office/ retail development under construction south of Falconhead Boulevard along the frontage of RR 620. The development includes 80,000 SF of office space in 6 buildings and 46,000 SF of retail space in 7 buildings. The buildings will be two-stories with a planned completion of June 2016.

4. The Backyard – New development approved by the City of Bee Caves to include 335,000 SF of office, 125-room hotel, 16,000 SF of meeting/ restaurant space, 4 firm and recording sound stages, 3,410 person capacity Live Oak Amphitheater, 500-person capacity private party venue and 2 parking garages.

5. The Terrace – New development approved by the City of Bee Caves to include 250,000 SF of office, 120-unit Ethan’s View Condominium project and 6,500 SF of restaurant space.

 

State Highway 71 West

1. Summit 56 Complex – Located on SH71W near Vail Divide currently has Nitro Swim Center and Hill Country Guitar & Golf, proposed Covert GM Auto Dealership (was proposed to be BMW Auto Dealership at one point) plus has site plan approval for two 4,500 SF fast-food restaurants and a 5,000 SF of convenience store space with gas pumps.

2. Canyonside at Falconhead West – Ash Creek Homes newest Master-planned Community at the northwest corner of SH71W/ Vail Divide with 60-70 homesites. LTISD also owns 100 acres across SH71W with 30 acres currently transportation facility and remaining 70 acres planned for 2nd Lake Travis High School.

3. The Mansions of Lakeway – New 300+ unit luxury apartment complex is under construction at the northeast corner of SH71W/ Serene Hills Dr. Units will range from 800 to 2,500 SF. Intersection also includes the two-story 24,000 SF retail/ office building space which recently got approved for a 15,000 SF joint replacement medical center. The northwest corner is still owned by HEB.

4. LTYA Field of Dreams Two – Conceptual 70-acre master-planned sports complex to include 10 soccer/ lacrosse fields, 9 baseball fields, 3 softball fields, 13 batting cages, 3 sand volleyball courts, 3 football fields, 2 playscapes, two-story indoor basketball/ volleyball building and 2 perimeter hike-bike trails and one zipline to connect to the new Lake Travis Middle School.

Source: Ross Frie, KW Commercial