Tuesday, May 20, 2008

Austin area home sales fall for 10th month in a row

"Sales of existing homes fell 14 percent to 1,981 compared to the same month last year, according to the Austin Board of Realtors.
It was the highest number of sales so far this year, indicative of the seasonal increase seen during spring and summer months. The median price was $187,900, inching up 2 percent from last year."

Click here for complete article.

I always find articles like this to be very interesting. They are using statistics to draw conclusions but their conclusions are based on their viewpoint. At first glance it appears that people are buying and selling less homes this year than last year. Does this mean that less people are moving to Austin? No. Are less people moving up to different neighborhoods? Maybe. Or does it means there are simply less volume of homes that are being bought or sold this year than last? It doesn't explore the cause of why that could be. What do you think?
I think it has a lot to do with the sub-prime fallout and strict mortgage qualifications that have been effecting home sales or the last 8+ months. Austin and its surrounding areas are doing much better than other cities in the nation. Houses are still selling and people are still buying. The difference between this year and last is that people hear a lot of negative, national real estate news that says now is a horrible time to purchase a home. The truth is that now is a great time to buy a home. People that are financially stable and are able to qualify for funding, can get a great deal on a home. The seller of that home can in turn, get a great deal on the purchase of the home they will then purchase and so on. Prices overall are still rising. Make sure that when you read a headline like this to think about what it really means. Less buyers overall=less sales overall. Finding the cause is simple and there is a basic relationship between the buyer pool and # of overall sales. Let me know what you think in the comment section.

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