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January 2016 Austin Real Estate Review

Austin-area home sales dip, community leaders tackle affordability issues

Austin Board of REALTORS® releases real estate statistics for January 2016

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Click on any image above to view statistics for each area.

AUSTIN, Texas – Feb. 22, 2016 – According to the Multiple Listing Service (MLS) report released today by the Austin Board of REALTORS®, Austin-area single-family home sales dropped slightly in January 2016 compared to the same month the year prior. Home sales decreased by 1.9 percent year-over-year to 1,459 home sales and median price increased 6.3 percent year-over-year, reaching $254,999 in January 2016.

Aaron Farmer, 2016 President of the Austin Board of REALTORS­®, explained, “If we’re going to successfully address our city’s continued affordability issues, we all need to work together. We’re excited that several business owners and community leaders are stepping up and bringing new, tangible solutions to the table to help alleviate some of the challenges.”

Developers such as President of Momark Development Terry Mitchell are working to provide more affordable solutions through projects that provide workforce housing or subsidized housing for families who make 80 percent or less of median family income.

“We all know someone – our children, parents, our children’s teachers and friends – who are affected by the affordability issues in Austin,” said Mitchell. “The lack of affordability is affecting transportation, economic development and literally the future of our city. There are solutions, but they require a clear vision and a willingness to change.”

Executive Director of HousingWorks Austin Mandy De Mayo plays a large role in ensuring diversified housing is developed in Austin. In 2016, HousingWorks will focus on research, advocacy and education through initiatives involving research on the impact of stable, affordable housing on families’ health outcomes, an annual district-by-district analysis of affordable housing, support of CodeNEXT and other key projects.

“Rewriting the land development code is incredibly important to overall market affordability and will ensure that Austin can serve a wide range of households with homes marketed at a variety of price points,” said De Mayo. “We haven’t had a new code since the 1980s and if we can get it right this time, the end result will be a variety of housing options for all income levels.”

Austin-area monthly housing inventory was 2.0 months in January 2016, an increase of 0.1 months from January 2015. This figure is still well below the 6.5 month level the Real Estate Center at Texas A&M University estimates as a balanced housing market. Homes spent 56 days on market in January 2016.

“Inventory has fallen below three months for three years and while we’ve seen this affect home prices for months, it’s possible that we’re now seeing it affect home sales,” added Farmer.

New listings increased by 8.0 percent to 2,399 listings in January 2016 and active listings increased by 11.4 percent year-over-year reaching 4,751 listings. Additionally, pending sales increased by 16.6 percent at 2,207 sales.

Farmer concluded, “We know this climate is confusing for anyone living in Austin and we’re equipping our members to help homeowners navigate this competitive market through programs like our upcoming Member Forum. We’re bringing in development experts like Terry Mitchell, lending advisors and legislative advocates who are helping to shape the affordability landscape in Central Texas.”

January 2016 Statistics

  • 1,459 – Single-family homes sold, 1.9 percent less than January 2015.
  • $254,999 – Median price for single-family homes, 6.3 percent more than January 2015.
  • $322,620 – Average price for single-family homes, 3.8 percent more than January 2015.
  • 56 – Average number of days single-family homes spent on the market, seven days less than January 2015.
  • 2,399 – New single-family home listings on the market, 8.0 percent more than January 2015.
  • 4,751 – Active single-family home listings on the market, 11.4 percent more than January 2015.
  • 2,207 – Pending sales for single-family homes, 16.6 percent more than January 2015.
  • 2.0 – Months of inventory* of single-family homes, 0.1 months more than January 2015.
  • $470,702,965 – Total dollar volume of single-family properties sold, 1.9 percent more than January 2015.

* 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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Don’t Forget To File Your Homestead Exemption!

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Did you purchase a home in 2015? Is this new home your primary residence? If so, congratulations! It is now time to file for your Homestead Exemption, a tax exemption for primary home owners. The exemption is free to obtain and can save you up to 20% on your property taxes. In addition to submitting the exemption application, you may also need to provide a copy of your driver’s license showing the address of your new property and a copy of your vehicle registration with the same address. The deadline for filing your Texas Homestead Exemption is April 30th.

There is no fee to file your homestead exemption.  But, please beware that you might receive an official looking letter asking for $25+ to file this exemption for you.  This is not necessary.

Please see the contact information below for Travis, Williamson, Hays and Bastrop counties for the Homestead Exemption forms and instructions on filing.

Travis County – http://www.traviscad.org

Williamson County – http://www.wcad.org

Hays County – http://www.hayscad.com

Bastrop County – Call 512-303-1930 ext. 22

To qualify for the Homestead Exemption in the state of Texas, you must own your home on January 1, 2015 and it must be your principle residence.

Additionally, if you are older than 65 or a disabled veteran, you may also qualify for other exemptions.   Please go to http://www.window.state.tx.us/taxinfo for more information and what exemptions you might be eligible for.

If you have any questions or need help filing your Homestead Exemption form, don’t hesitate to call or email us. We are always happy to help!

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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.