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August 2015 Austin Real Estate Review

Aug15_1
Austin-area home prices set August record, outpace household income growth in August 2015
Austin Board of REALTORS® releases real estate statistics for August 2015

AUSTIN, Texas – September 22, 2015 – According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR), Austin-area single-family home sales remained high in August, increasing eight percent to 2,943 home sales compared to August 2014. Austin-area single-family median home prices, for both sales and leasing, set a record for the month of August. Median home sales prices increased by eight percent year-over-year to $265,000, while median home lease payments increased by seven percent to $1,600.

Barb Cooper, 2015 President of the Austin Board of REALTORS¬®, explained, “As Austin REALTORS®, we’ve seen our city expand in ways we never could have imagined, but household incomes have not been expanding at the same rate as the cost of living in Austin. We will continue working with our city’s leaders to find a solution to the complex affordability issues, with the end of goal of providing affordable and diverse housing stock for our growing population that aligns with the actual incomes of Central Texas residents.”

Recent data from the U.S. Bureau of Labor Statistics shows that approximately 65 percent of Austin-area professionals made less than $50,000 in 2014. Additionally, the City of Austin’s 2014 Comprehensive Housing Market Analysis cited that affordable housing costs should be less than 30 percent of gross monthly income.

That means for residents making $50,000 per year, a mortgage payment translates to $1,250 per month and would fall in a home sales price range of $200,000–$215,000. To compare, the August 2015 median home price was $265,000 and the median lease payment in Central Texas was $1,600.

Simultaneously, median home prices continue to rise and have increased by more than 30 percent from August 2010 to August 2015, a $65,000 difference over the last five years.

Average home price increased six percent compared to August 2014 to $329,620. Total dollar volume continued to rise year-over-year to $970,071,660, increasing by 15 percent.

Monthly housing inventory decreased by 0.1 months compared to August 2014, remaining flat at 2.9 months. This number is still well below the Real Estate Center at Texas A&M University’s balanced housing inventory level of 6.5 months.

New listings increased two percent to 3,364 listings and active listings increased by four percent year-over-year to 6,979 listings. In addition, pending sales increased 11 percent to 2,686 single-family home sales. Homes remained on the market for 42 days in August 2015, the same length of time as in August 2014.

Cooper concluded, “This new report from the Bureau of Labor Statistics provides further evidence of the affordability issue in Central Texas. The growing disparity between rising home prices and what Austin residents can afford, combined with low inventory levels, will continue to drive residents outside of Austin’s city limits to buy a home, putting further strain on our region’s infrastructure and resources.”

August 2015 Statistics
2943 – Single-family homes sold, eight percent more than August 2014.

$265,000 – Median price for single-family homes, eight percent more than August 2014.

$329,620 – Average price for single-family homes, six percent more than August 2014.

42 – Average number of days single-family homes spent on the market, unchanged from August 2014.

3,364 – New single-family home listings on the market, two percent more than August 2014.

6,979 – Active single-family home listings on the market, four percent more than August 2014.

2,686 – Pending sales for single-family homes, 11 percent more than August 2014.

2.9 – Months of inventory* of single-family homes, 0.1 months less than August 2014.

$970,071,660 – Total dollar volume of single-family properties sold, 15 percent more than August 2014.
The following sections describe trends in other sectors of the Austin-area real estate market.

Townhouses & Condominiums
The volume of townhouses and condominiums (condos) purchased in the Austin area in August 2015 was 305, a one percent increase from August 2014. The median price for condos was $225,500, which is five percent more than the same month of the prior year. These properties spent 37 days on market, or three more days than August 2014.

Leasing
In August 2015, a total of 2,080 properties were leased in Austin, which is three percent more than August 2014. Properties spent an average of 36 days on the market, or four fewer days than in August 2014. Active property listings increased by eight percent compared to August 2014, reaching 1,986.
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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Why Are Fire Sprinkler Systems So Important?

ltfrLake Travis Fire Rescue – Official Press Release

  • Incident Type: Structure Fire
  • Location: Long Horn Landing, Austin, Texas 78734
  • Date of Initial Alarm: 7/24/2015
  • Time of Initial Alarm: 14:33 or (2:33 PM)
  • Status of Incident at Time of Press Release: Fire Out, Investigation
  • Agencies Involved: Lake Travis Fire Rescue (Primary),  Austin Fire Department, Travis County Sheriff’s Office, Travis County Fire Marshal’s Office, Austin/Travis EMS
  • Location of Press Briefing: Not Assigned
  • Time of Press Briefing(s): Not Scheduled
  • Further Press Releases Planned: Not Planned

Lake Travis Fire & Rescue Incident Summary:

A passerby called 911 to report a house on fire in the 15600 Blk. of Cedar LedgeBlk. in the Hudson Bend area. Fire crews quickly arrived on-scene to find a two story unsprinklered residential home with fire showing from the rear of the structure.  Fire crews were able to extinguish the fire and prevent further damage to the other portions of the home. No one was home at the time of the fire. There were no injuries reported and damage estimates are pending. Travis County Fire Marshal’s Office is investigating the cause of the fire.

Lake Travis Fire Rescue is a supporter of residential fire sprinkler systems, also known as “13D and 13R” systems.  If you are planning to build a new home or remodel your current home and would like to learn more about residential fire sprinkler systems, please contact the Lake Travis Fire Rescue Fire Prevention Division today at 512-266-2533 or visit us on the web at www.ltfr.org

WHY ARE SPRINKLER SYSTEMS SO IMPORTANT?

For more than 100 years, fire sprinklers have been one of the most important elements of home fire safety. This is just one incident that displays why they can be so important to your home and family’s safety. As of 2009, Texas (TX) law requires that all new homes have fire sprinkler systems installed. While existing homes are not required to have fire sprinklers installed, it is highly recommended that you install a fire sprinkler system, since have been proven to dramatically increase your life expectancy in the event of a fire.sprinklers

SAVING LIVES

According to the NFPA, having a residential fire sprinkler system installed in your home can increase your survival expectancy during a fire by 80%. Residential fire sprinklers are effective because they activate faster than any other response mechanism and help to control the fire immediately at the point of origin.

The most lethal aspect of a fire is neither the heat nor the flames produced. Instead, toxic fumes and smoke are by far the most dangerous effects of fire. Worse yet, smoke produced by a fire can quickly and easily spread to all rooms in your property, impeding your vision and filling your home with poison. Installing a residential fire sprinkler system can dramatically reduce smoke production and can keep toxic fumes at survivable levels.

Untamed fires can spread to uncontrollable levels in seconds, and blinding smoke can reduce visibility and make it difficult to breathe in an already extremely stressful situation. Fire sprinklers give the people in your home approximately 10 minutes of cool, clean air to safely escape from your home.

sfdsfPROTECTING PROPERTY

Even if you managed to get your entire family out of a fire in an unsprinklered home, there would be nothing you could do to stop the fire from consuming your home. A residential fire sprinkler system can change that. Having a home fire sprinkler system installed in your home can help curb the flames and keep the damage to your home at a minimum.

One concern many people have when they consider installing a residential fire sprinkler system in their homes is the belief that fire sprinklers would soak their home and all of their belongings when they went off, doing as much (or more) damage as a small fire. This is not the case. In fact, fire sprinklers use the minimum amount of water necessary to control the fire, usually spraying 8-24 gallons of water per minute to control home fires (a small amount compared to the 50 – 125 gallons per minute that the fire department’s hose supplies!).

In addition, there is very little risk of fire sprinkler systems leaking. Most residential fire sprinkler leaks that do occur only occur as a result of pipes freezing and bursting, an effect rarely seen in Austin or Texas. If you are still worried about your residential fire sprinkler pipes leaking, there is also the dry pipe fire sprinkler option which does not keep water in pipes.

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Your Guide to Central Texas Roofing

how-to-choose-roofing-material

As many veteran homeowners know, it’s important to keep the roof of your home in good condition. A leaking or damaged roof can lead to costly and potentially devastating problems—from structural damage to pervasive mold—but a carefully selected roof can also be an essential part of your house’s curb appeal, since it is one of the most visible external features. Choosing the right roofing material is very important.The material should be matched to your overall house design as well as the state of weather at your residence. 

In this article, we’ll go over different types of roofing material and you can decide which one works best with your roof.

The most common types of roofing material are:

  • Asphalt shingles
  • Wood shingles and shakes
  • Clay tile
  • Slate tile
  • Metal

Now we’ll go over each type and see what the pros and cons are as well as give you a rough cost estimate.

Asphalt shingles – These are probably the most popular with about ¾ of the homes in the US using them. Why? They’re low cost, easy to install and resilient. Standard asphalt shingles come in a variety of colors, longevity options and price points. They can be used on just about any architectural style. However, there are cons to this type of roofing too. They provide low insulation and have a shorter life span than most other roofing products – about 15 to 30 years. They are also made from petroleum products and are not recyclable. They have the worst environmental record of any other type of roofing.

Cost – $50 – $150 per square. (100 square feet = 1 square).

asphalt

 

Wood shingles and shakes – Used most commonly in the Northeast, wooden shakes and shingles are among the best for the climate in that area. They are natural products that help the home blend into the environment and are very simple to replace if damaged. Cons are that they are not very fire-resistant; they are high maintenance and tend to rot, split and get mold.  The roof will last 30 to 50 years with some maintenance, however and the material is best for ranches, cottage houses, bungalows, historic and contemporary houses.

Cost – $100 – $150 per square.

wood

 

Clay tiles – They are non-combustible and very durable. They can come in lighter colors and stick to the cool roof standards, saving you energy. It is said that they can reflect 50% of the sun’s solar energy. They are elegant and enduring. They are very versatile and come in so many colors and shapes that they don’t even look like tiles at all. Unfortunately, they’re very heavy and require additional roof framing, which can add to your project costs. Clay tiles are among the most environmentally friendly whereas concrete can be made from a sustainable mixture.  They look great on Mediterranean, European, and Mission and contemporary and ranch homes.

Cost – $300 – $600 per square.

clay tile

 

Slate tiles – These tiles have a beautiful and distinctive appearance. A slate roof will last for about a hundred years, maybe more. It is easy to repair and recycle. It’s an excellent sustainable roofing choice. Unfortunately slate is very heavy. It’s also usually a dark color so it’s not recommended for high-heat locations like Central Texas. Slate roofs look best on Colonial and French style homes.

Cost: $550 – $1,000 per square.

slate

 

 

Metal –  Metal roofing is becoming more popular around the country. It’s pretty inexpensive, durable and easy to install. Metal roofing is usually made of aluminum or tin but can be made of steel or copper. The type of metal determines the cost. You can get your metal roofing pre-engineered to the size of your house so it will fit in one piece or you can use metal shingles. Properly maintained, metal roofs last at least 50 years. They are very green because they are energy efficient and environmentally friendly. They often have a high percentage of recycled content.  Metal roofing looks great on bungalows, ranches and contemporary or cottage homes.

Cost – $100 – $600 per square depending upon the material.

metal

 

There you have it, some of the more common roofing types and their pros and cons as well as their basic cost. Now that you know more about these roofing materials, perhaps you’ll be able to make an educated decision when it comes time to upgrade your roof.

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July 2015 Austin Real Estate Review

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Austin-area home sales hit all-time high, inventory levels rising in July 2015
Austin Board of REALTORS® releases real estate statistics for July 2015

 

AUSTIN, Texas – August 20, 2015 – According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS® (ABoR), Austin-area home sales hit an all-time high, increasing 12 percent year-over-year to 3,149 sales for the month of July.

Barb Cooper, 2015 President of the Austin Board of REALTORS¬®, explained, “We’re in the midst of one of the most active summer selling seasons to-date, with more single-family home sales than ever before. Home prices remain high, but inventory levels have increased steadily throughout 2015, perhaps taking a step toward a more balanced housing market.”

According to the report, the median price for Austin-area single-family homes increased eight percent year-over-year to $269,500 in July 2015, while average price increased six percent to $338,452 during the same time frame.

In July 2015, less than 30 percent of single-family homes sold in Central Texas were priced below $200,000, outside of an affordable range for many Austin-area homebuyers. The majority of pending sales and active listings fall outside of Austin’s city limits in surrounding areas like Cedar Park, Leander, Hays County, Round Rock and Pflugerville, showing that Central Texas residents are continuing to prioritize affordability.

Once again, total dollar volume topped $1 billion, reaching $1,065,785,348 and increasing 19 percent compared to July 2014.

New listings increased nine percent to 4,133 listings and active listings increased by five percent year-over-year to 7,174 listings, driving inventory levels up to three months for the first time since July 2014. However, Austin-area housing inventory is still well below the 6.5 month level, which the Real Estate Center at Texas A&M University cites as a balanced market.

Pending sales rose eight percent year-over-year to 2,873 listings and homes remained on the market for an average of 41 days, or two days more than July 2014.

Cooper concluded, “Mayor Adler recently called for 100,000 new housing units to be built by 2025 as a first step to untangling the city of Austin’s complicated permit review process and alleviating affordability issues in Austin. The Austin Board of REALTORS® sees this initiative as progress toward a more sustainable Central Texas housing market and will continue to work with city leaders to make Austin an affordable place to call home for all residents.”

 

July 2015 Statistics
3,149 – Single-family homes sold, 12 percent more than July 2014.

$269,500 – Median price for single-family homes, eight percent more than July 2014.

$338,452 – Average price for single-family homes, six percent more than July 2014.

41 – Average number of days single-family homes spent on the market, two days more than July 2014.

4,133 – New single-family home listings on the market, nine percent more than July 2014.

7,174 – Active single-family home listings on the market, five percent more than July 2014.

2,873 – Pending sales for single-family homes, eight percent more than July 2014.

3.0 – Months of inventory* of single-family homes, unchanged compared to July 2014.

$1,065,785,348 – Total dollar volume of single-family properties sold, 19 percent more than July 2014.

 

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

Townhouses & Condominiums
The volume of townhouses and condominiums (condos) purchased in the Austin area in July 2015 was 317, a four percent decrease from July 2014. The median price for condos was $224,850, which is 10 percent more than the same month of the prior year. When compared to July 2014, these properties spent 42 days on market, or five more days than July 2014.

Leasing
In July 2015, a total of 2,187 properties were leased in Austin, which is nine percent more than July 2014. The median price for Austin-area home leases was $1,550, three percent higher than in July 2014.

 

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.

Source: Austin Board of Realtors®

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Why Real Estate Websites Give Bad Information

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TEXAS IS A NON-DISCLOSURE STATE

Online property search websites offer a really convenient way for you to search for properties and gather some valuable information; like number of bedrooms, bathrooms, square footage, and price. But these online tools don’t always offer the best information and shouldn’t be counted on for the most reliable data.

Sites like Trulia.com and Zillow.com claim to offer site visitors instant property value information with the click of a mouse. What’s missing on all these sites is the human element. As convenient as it might be to point and click your way to a home valuation, it takes a real estate professional with the experience and knowledge of the area and market, to give a truly accurate market valuation on a property – especially in a market like Austin or Lakeway.

For example, below are three different properties sold and listed on Zillow and Trulia. Note the difference in price and then compare them to the approximate price derived from the actual MLS listing. (Texas is a non-disclosure state so we, as agents, are not able to publish the actual sell price.). When they compute their automated property valuations, they are pulling data from local taxing authorities, who are also in the dark about home selling prices. This typically results in under-valuation by tens of thousands (if not hundreds of thousands) of dollars.

Lake Travis home
Zillow – $830K
Trulia – $792K
MLS ~ $729K

Lakeway home
Zillow – $250K
Trulia – $144K
MLS ~ $240K

For whatever reason, Trulia is off on all three listings. Zillow estimates are more in line, however is only closely “accurate” with one of the three. These are national portals…

So while online search websites are fun and interesting to browse, remember that you’re going to want to call a pro to help you buy or sell at the right price.

Meanwhile, my mobile app is perhaps the best available for searching for properties near you. Text “kwgk09dt” to 87778!