Hereโs what you need to know about Austin Real Estate today:
- Austin’s housing market surges ๐ : More buyers, lower prices, but longer waits.
- Texas real estate faces legal battles ๐ข: Antitrust lawsuits target commissions.
- Newcomers to Texas share cost-saving secrets ๐ฐ: Property taxes a surprise.
- Austin’s affordable housing programs on hold ๐ก: Impact on availability ๐ง.
Real Estate Market in Austin
More homebuyers are plunging into pricey Austin market, says report
Source: Austin Culturemap
Article Summary: Austin is enduring a surge in homebuyers despite higher interest rates, with a 4.1% increase in home sales in October 2023, and median prices slightly declining across most counties, according to the latest report from Austin’s Board of Realtors. However, homes are spending more time on the market, with an average of 68 days compared to 47 days the same time last year. The report indicates the housing market dynamics are shifting towards more buyer-friendly conditions, providing buyers more bargaining power.
Key Takeaways: The continued interest in the Austin market, despite higher rates, and the subtle decline in prices, signals a shift in market dynamics that could benefit clients looking for more affordable homes in Central Texas.
Hunt Capital Partners Provides $16.5M in LIHTC Equity for Austin Affordable Housing Project
Source: REBusinessOnline
Article Summary: Hunt Capital Partners has granted $16.5 million in Low-Income Housing Tax Credit equity for the development of Cady Lofts, a 100-unit housing project in Austin, Texas. This project, set for completion in March 2025, will cater to individuals earning 30 to 60 percent of the median area income and those experiencing homelessness or physical/developmental disabilities. The project is a collaboration between SGI Ventures and the Housing Authority of the City of Austin, with Skybeck Construction handling the construction.
Key Takeaways: This significant investment in the Austin’s affordable housing sector signals growing opportunities in the city’s residential property market, a trend that could influence housing prices and availability in the future.
Austin renters finally getting a break on prices, according to Zillow. But how much?
Source: Austin American-Statesman
Article Summary: According to the latest data from Zillow, apartment rents in the Austin area are on a decline, largely due to slower job growth and a surge in new constructions. The typical asking rents for the Austin region fell by 2.84% year-over-year and 1.06% from September. Despite the slowdown, rents are still up about 25% compared to 2019. Experts attribute this to a rise in the vacancy rate and the oversupply of new apartments. The decline is seen as respite for renters and prospective homebuyers in Austin.
Key Takeaways: The current downturn in rent growth presents potential opportunities for real estate professionals in Central Texas to pivot their strategies, focusing more on affordable housing solutions or capitalizing on the high vacancy rate to negotiate better deals for their clients.
Signed order expected to halt Austin’s land development programs for affordable housing
Source: KVUE
Article Summary: The City of Austin’s affordable housing land development programs are expected to be halted due to a signed order by the same group who previously halted Austin’s CodeNEXT. This can potentially impact the availability of affordable housing in the region, potentially influencing the real estate market dynamics.
Key Takeaways: Understanding the implications of this development halt can provide real estate professionals with a strategic advantage, as it will impact both the availability and pricing trends of affordable housing in Austin, which can be a critical factor in advising clients.
Legal and Regulatory Issues in Texas Real Estate
After $1.8 Billion Verdict in National Association of Real Estate Lawsuit, Texas Gets Its Own Version
Source: D Magazine
Article Summary: Two North Texas real estate companies, QJ Homes LLC and Five Points Holdings LLC, have filed a lawsuit against the Texas Association of Realtors and the real estate associations in Austin, Dallas-Fort Worth, Houston, and San Antonio, following a similar landmark lawsuit that concluded last month, leading to a $1.8 billion verdict against the National Association of Realtors and two brokerage firms. The Texas lawsuit centers around the practice of real estate agent commission payments and alleges that these organizations compel home sellers to fork out these commissions as a condition for their properties to be listed in the Multiple Listing Service (MLS). The lawsuit argues that these practices restrict price competition and violate federal antitrust regulations.
Key Takeaway: This lawsuit, while currently focused on Texas, has the potential to reshape the standard commission structure in real estate transactions nationwide, and real estate professionals in Central Texas should be prepared to adapt their practices and inform their clients about possible changes in real estate transaction costs.
Texas legislation reveals policy trends for CRE
Source: Commercial Property Executive
Article Summary: The Texas legislature convened in 2023 to debate major property tax reforms, which led to clashes among lawmakers over how best to alleviate escalating property taxes. The two main competing plans included the Senate’s focus on increasing homestead exemptions to decrease the assessed value of primary residences, and the House’s focus on appraisal caps across all real estate. Governor Greg Abbott called two special sessions that ultimately produced a property tax relief plan that included appraisal cap “”circuit breakers,”” tax rate reductions, expanded homestead exemptions, and elected positions in some appraisal districts. Despite appraisal caps, tax rates and levies are not limited in the same way, suggesting that owners of qualifying properties might not see a reduction in the overall tax levy.
Key Takeaway: Understanding the recent Texas legislative session’s property tax reforms can help real estate professionals make informed decisions, strategize tax-saving opportunities, and provide valuable advice to their clients amid an evolving property tax landscape in the state.
Relocation and Lifestyle Changes
I’m a boomer who moved to Texas and was able to retire early. Almost everything is cheaper here, but the bugs and snakes are wild.
Source: Business Insider
Article Summary: Jayne Jordan, a 61-year-old retiree, shares her story about her move from Corona, California to Azle, Texas. She and her husband were drawn to Texas due to the significantly lower cost of living, including housing, gas, and groceries, which allowed her to retire earlier than she would have been able to in California. However, she also notes that property taxes are higher in Texas. Despite the climate and wildlife adjustments, Jordan expresses overall satisfaction with her decision, mentioning the friendliness of the locals and the tranquility of her new locale.
Key Takeaway: Readers can utilize this article as a case study when advising clients on the financial benefits of moving from higher-cost states like California to Texas. It’s a personal, relatable narrative that emphasizes the potential for early retirement and improved quality of life, which could affect their marketing strategies and client counseling process.
Californians who moved to Texas reveal the one thing that gave them sticker shock in their new state
Source: Business Insider
Article Summary: As Californians continue to flock to Texas in search of a more affordable lifestyle, they are experiencing an unexpected expense – higher property taxes. Despite housing, gas, and grocery prices being significantly cheaper in Texas, the property tax percentage rates are noticeably steeper, with Texas having one of the highest rates in the country, between 1.6% to 2.7%. However, many who have moved from California to Texas find the increased property taxes balanced out by the lack of a state income tax and the overall lower cost of living. Texas is also taking steps to ease the burden of property taxes; recently, voters in the state passed Proposition 4, offering property tax relief and raising the homestead exemption.
Key Takeaway: This article emphasizes the importance of understanding the full financial picture when considering a move from high-cost states like California to more affordable ones like Texas; while the lower cost of living is attractive, clients should be prepared for higher property taxes which can still result in significant savings overall considering Texas’s lack of a state income tax.
