The Gibbs Team

512-431-2403

Austin Area Real Estate

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2015 Housing Forecast

Briarcliff.lakeviewThe Home Builder Association of Greater Austin recently presented the 2015 Housing Forecast that showed great news for the next few years! Always glad to hear good news!!

The information was gathered by 360° Real Estate Analytics and John Burns Real Estate Consulting – both of which are known for their expertise in economic analysis and the real estate industry. The information gave an overview of the U.S. economy, Austin’s economy and the many factors that directly relate to the housing industry.

One of the main points that I found interesting was that they pointed out that economic expansions after a significant recession normally last 3-9 years and that 2017 will mark the 8th year of our country’s economic recovery since the Great Recession of 2008. This data was useful when looking at their key assumptions for the housing forecast.

  • Assumption #1 – Mortgage rates on a 30-year fixed rate will remain low through 2018 with a rise to 4% in 2015 and up to 4.7% in 2018.
  • Assumption #2 – The U.S. will continue to have growth in the job market through 2016 with it slowing down in 2017-2018 (Hence, the reason for them pointing out that economies come back in 3-9 year intervals.)

Additionally, Austin had a 17% growth in builder’s active communities – the highest in the major Texas markets. Most of this is due to the rapid growth, 110+ people moving to our area every day and the lack of homes on the market.

Overall, U.S. home sales are expected to grow 6% in 2015 with a rise in mortgage payments of 4-10% each year through 2018. Payment increases will derive from rising mortgage rates and to price appreciation.

The rising payments is not surprising, as on average the national monthly mortgage payment rose 30% from July 2012 to December 2013. Austin was below average with only a 26% increase.

Unfortunately, first-time-home buyers account for only 31% of resale sales compared to a historical average of 40%. This could be due to high costs, people marrying later and many other factors.

However, as a whole, the future looks bright for the next few years with strong job growth and a healthy real estate industry – which means an overall advantageous economy for us all!

If you or someone you know would like to purchase real estate while the interest rates are still low or sell real estate while the Austin market is still great, please do not hesitate to contact Mary Lynne Gibbs at 512.431.2403 or austinluxurybroker@gmail.com. It would be an honor to earn your business!

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Goals and Objectives

930A5923_4_5_fused (1)The first week of 2015 has flown by and that means if we haven’t already mapped out our goals and objectives for this New Year, we’d better get to it.

However, as I’ve been thinking of my own aspirations for 2015, it occurred to me that many people have dreams and goals, but have no idea of how to achieve them.

I’d like to help!

As a Realtor® I can help in four obvious ways: buying, selling, investing and leasing.

Some not-so-obvious ways that I can help include: service provider referrals, area information, up-to-date local news and happenings in my weekly blog, local and national information provided daily on Facebook, Twitter, LinkedIn and Google+, real estate market information, home market analysis, relocation information, and much, much more!

I grew up in the Oak Hill area and have called Lakeway home for more than 30 years, so I have a vast knowledge of the neighborhoods, culture and continued change our unique city of Austin is going through.

Additionally, I diligently stay current on our economy, market and industry – all of which are ever-changing and none have a crystal ball to tell us what to expect.

It’s no surprise that Austin is a bit different than most places in the country. The biggest difference I see is that Austin was not hit as hard economically as most areas back in 2008 and it is likely because after the fall of the Dotcoms in 2001 – Austin worked hard to bring in diverse industries. Therefore, our city has continued to bring new people, jobs and growth over the past several years.

Having said all this, economic indicators do show that mortgage rates may potentially go UP in 2015, which means it will be more expensive to buy a home. AND housing prices MAY be the highest they will be in our area for the short term.

Both of these indicators bode well for selling and buying real estate, of which I can definitely help with!

Please call me at 512.431.2403 or email me at austinluxurybroker@gmail.com if you have any questions. I would love to discuss your goals and help you in any way that I can. There is absolutely no obligation if you call me! I’m here to help!

Let me assist you with your 2015 real estate goals and objectives! It would be an honor to earn your business!

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2015 Housing Predictions

930A5923_4_5_fused (1)As the year draws to an end, 2015 housing predictions are already being calculated. Seems like we just started 2014 and here we are closing it up!!

Nonetheless, Realtor.com’s Top 5 Predictions are not all that shocking, but they are definitely good to know if you will be looking to buy or sell real estate in the upcoming year.

The entire article can be found at 2015 Housing Predictions if you would like to peruse what economic experts have to say in detail about the following list. But, for the shorter version…look no further.

The 2015 housing industry expected trends include:

1.     Mortgage Rates Will Head Back Up

2.     Millennials (ages 25-34) Will Set up House

3.     Builders Will Break New Ground

4.     Credit Will Continue to Be a Major Factor

5.     We’ll Close Out the Foreclosure Crisis

Basically, mortgage rates can’t stay low forever, but good credit will be the determining factor of whether banks will loan someone money because of continued stringent mortgage qualifications.

This just means that if you are thinking about buying a home in the near future, you must tighten up your spending, pay bills on time and straighten up any credit issues you currently have.

Moreover, with more millennials buying homes, builders will have to add inventory to keep up with the housing demands. The home building industry will be interesting to watch in 2015, as their greatest issues include shortages in labor and materials.

The best news is that the U.S. economy continues to strengthen and that helps people find jobs to pay their mortgages and in effect puts a halt to the foreclosure crisis we have seen in the past several years.

Obviously, every market is different and if you would like to know more about the Austin area real estate market, please contact Mary Lynne Gibbs at 512.431.2403 or austinluxurybroker@gmail.com. It would be an honor to earn your business!

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11251 Pinehurst

930A6774_5_6_fused 11251 Pinehurst (MLS #5900901) – a recently updated home due to the Halloween flooding of 2013 and located in Onion Creek in South Austin – sits on the edge of a cul-de-sac and boasts a large lot with mature trees and a private oasis in the backyard.

Offered at $359,500, this three bedroom and two and a half bathroom home is quite the find.

Built in 1978, tax records show a square footage of 2226. However, this number does not include the approximately 1400 square-foot, screened-in back porch located on the back of the home, nor does it include an air conditioned/heated office space in the side-entry, two-car garage.

930A6711_2_3_fused11251 Pinehurst is open, light, bright and airy with a lovely covered front porch to welcome residents and guests alike. Covered with a metal shingle roof, this home contains a variety of exquisite characteristics that you will be delighted to discover.

For example, a dining area just off of the front entrance leads into a sizeable living area that features a massive stacked rock fireplace flanked by built-in shelving units. This main living area has vaulted ceilings and lots of windows, which lends itself to a comfortable and relaxed atmosphere. Three windows located at the top of the entrance wall offer extra sunshine in the morning.

930A6828_29_30_fused(1)Additionally, the entire home is covered with tile flooring, some of which looks like wood planks. The flooring is definitely a sight to behold and a must see!

All three bedrooms are located off of the living room on the left side of the home. The two extra bedrooms are spacious and connected by a large Jack-and-Jill type bathroom, which also possesses a few disability features.

930A6680_1_2_fusedThe master bedroom has a vaulted ceiling with a wood beam running the length of the room. This bedroom is suited for a king-sized bed, along with several more large pieces of furniture and the bathroom is absolutely magnificent! Featuring a sizeable shower area, the master bathroom contains his and her vanities, a spacious dressing area and two walk-in closets.

11251 Pinehurst boasts an eat-in kitchen with walls of white cabinets, Corian-type countertops, a convection oven, recessed lighting and an attached table countertop that seats three. The kitchen is connected with an impressive breakfast area that is currently being used as a den.

930A6631_2_3_fusedI saved the best for last! The backyard is truly an amazing outdoor retreat with a salt water pool, hot tub and gorgeous landscaping. The pool is partially covered for those who don’t want to swim in the sun and it is deep enough for a diving board. The covered patio area has space for several seating arrangements and for a dining area.

Right off of the backyard is the screened-in back porch which includes a countertop and sink-station, along with another outdoor living area and dining area – great for entertaining or just relaxing after a long day!

Other features include a sprinkler system, gas dryer connection, gas water heater, and storage building. This area is known for its great golf courses, parks, country club and tennis courts!

If you are interested in 11251 Pinehurst or buying/selling real estate in the Austin area, please contact Mary Lynne Gibbs at 512.431.2403 or austinluxurybroker@gmail.com. It would be an honor to earn your business!

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Texas Economy and Market Update

Briarcliff.lakeviewThe Austin Board of Realtors® welcomed Dr. James P. Gaines, a research economist, from Texas A&M University Real Estate Center to the Palmer Events Center on October 15th to discuss the Texas economy and give a real estate market update.

Although I was unable to attend this event, I did obtain Dr. Gaines’ presentation and thought you might be interested to review his findings.

As we have seen in the past few years, Texas and the Austin Housing Markets have continued to lead the country’s real estate market. There have been record highs for the last five years in Texas for median home prices and 2014 has seen a 5% increase in home sales, which makes it the second best year ever recorded.

The four reasons Dr. Gaines gave for the Texas economy doing better than other states are job gains, housing prices, general business growth and population growth.

I thought it was interesting to note that Texas has added 14 million people in the last 40 years and is expected to add another 30 million people in the next 40 years. Dr. Gaines claimed that with this exponential growth Dallas/Fort Worth, Houston and Austin populations will explode.

Obviously, the overall real estate market reflects the economic health of any area and Dr. Gaines gave his economic outlook for Texas, which included:

  • Downside risk is a national (global) recession, but even then, Texas may do better than most other states IF energy is strong
  • Energy sector subject to global actions – not as robust
  • High tech and business services fueling job growth
  • Job growth expected to stay relatively strong
  • Population expansion continues to fuel growth
  • Local growth issues becoming more pressing, causing greater strain on state and local resources
  • Local non-residential construction strong

Additionally, he mentioned that even though the past 20 years has seen a housing roller coaster due to monetary policy, political directives and capital market manipulation which then caused a boom-bust-boom scenario; Dr. Gaines believes that housing market is “returning” to fundamentals. These include:

  • Employment-income
  • Household formations
  • Affordability: Interest rates and financing

Dr. Gaines said his top housing issues are:

  • Sustainable price increases and Affordability
  • Mortgage interest rates
  • Construction & labor costs
  • Lot inventory for new construction
  • Mortgage market changes: loan limits; variable qualifying; closing costs
  • Higher “other” costs: taxes, insurance
  • Stronger rental market
  • Return to fundamentals: employment/income, household formations, affordability.

Dr. Gaines gave his Texas housing outlook, which included:

  • Percentage slowdown from past two years
  • Emphasis in new construction on high-end price range
  • Entry-level new homes difficult to finance; Gen-Y buyers most affected
  • Labor and lot inventory shortage across the state
  • Urban-central and suburban markets both strong
  • National and local regulations and controls becoming more stringent
  • Non-residential construction leads nation
  • Future Issues: flood insurance; affordability; EPA regulations on upland wetlands; local growth management efforts

Overall, the Austin and Texas economies are better than most and continue to have considerable potential. However, there will always be pros and cons to exceptional growth. Additionally, it would do us well to remember that there can be major changes due to unforeseen challenges and uncontrollable situations.

“It’s tough to make predictions, especially about the future.” Yogi Berra

Keep in mind that each of us has an opportunity to have our voice heard by the privilege of casting our vote. So, don’t forget to either vote early (ends October 31st) or vote on Election Day, which is November 4th!

If you or someone you know is interested in buying or selling real estate in the Austin area, please contact Mary Lynne Gibbs at 512.431.2403 or austinluxurybroker@gmail.com. It would be an honor to earn your business!