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Home Prices Rose In 2nd Quarter


This article was posted on RISMedia late last week:

Positive Signs: Home Prices Rise 1.7% in Second Quarter

http://rismedia.com/2009-09-10/positive-signs-home-prices-rise-1-7-in-second-quarter/#ixzz0R0ZmpLH1

It notes that “Over the year ending with the second quarter of 2009, U.S. home sales prices fell 6.7% in the CMHPI Purchase-Only Series – less than the 8.5% annual decline recorded between the first quarter of 2008 and the first quarter of 2009.”

For comparison, residential sale prices reported in the Austin-Central Texas MLS (single family homes) declined 2.0% from 1Q ’08 to 1Q ’09, about one-third of the national trend.  From 2Q ’08 to 2Q ’09 reported sale prices fell 3.5%, still just over half of the national trend.

The article also included this note about the measurement region (West South Central Division that includes Texas: 

“West South Central Division (AR, LA, OK, TX): [House prices] grew 1.6% (6.5%, annualized) in the second quarter of 2009. Over the last 12 months, home values decreased 0.3%, and during the last five years, home values increased 21.2%.”

Obviously, this has been a difficult time for homeowners who wanted or needed to sell their homes, but for many who thought home ownership was forever out of reach (particularly in California, Nevada, Arizona, and Florida), it has created buying opportunities.  More stringent mortgage lending practices have kept it from becoming the unbridled buying spree it might have been, but clearly some people with average or above average credit capabilities now own homes that they could not have afforded two years ago.

Market cycles happen.  I counsel my clients to (1) buy within your means, (2) use a mainstream, predictable mortgage product, and (c) choose your time to sell.  Over almost any 5 year period, home values appreciate.  It would be difficult, if not impossible, to find any 10 year period when values declined generally. 

Of course, conditions vary even with local market areas.  In the Austin area, there are neighborhoods today where listings sell in30 days or less and others where inventory can languish for months.  Nonetheless, if you’re going to pay for a place to live, why not give yourself the opportunity to grow financially. 

Where else could you have put your money that it would have grown more than 20% in the past 5 years?

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About Bill Morris, Realtor

More than thirty years of business experience (high tech, client service, business organization and start-up, including many years in real estate) tell me that service is the key to success and I look forward to serving you. I represent both buyers and sellers throughout the Austin metropolitan area, which means first-hand market knowledge is brought to bear on serving your needs: -- Seller Representation is a comprehensive process that begins with thorough market analysis and consultation, continues with properly staging the home to achieve the highest price possible in a reasonable time on market, a complete program of marketing and promotion, ongoing updates and communication, closing coordination, and follow-up throughout (and after) the sale. -- Buyer Representation is also full service: shopping, previewing, price and market consultation, contracting, negotiating, coordination of inspections, appraisals, repairs, and closing details, and follow-up beyond the closing of your purchase to ensure your lasting satisfaction. Because the real estate industry is becoming more sophisticated and challenging every day, you need a professional that understands the industry and is positioned to stay ahead of the game. I go the extra mile to help you achieve your goals. That's why I constantly research the market and property values so your home is priced effectively from day one. I also make sure the public knows your home is for sale by using innovative advertising and marketing techniques to attract potential buyers.

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