Demand for West Round Rock housing is higher in February 2011,  proving that there is pent up demand for housing.  The proof is in the number of pending sales in almost every subdivision we analyze.  Buyers that have been hoping for another Government incentive program have conceded that another Governement Bail Out is not likely.  The mood has shifted.  First time home buyers know that NOW is the time to act…that although prices might drop some time in the future it is VERY UNLIKELY that interest rates will ever be this low again.  NOW is the time to lock in a low interest loan because eve a price drop will NOT help if interest rates rise up a half a point or more.

However, the buyers are stumped.  Where is the inventory?  My buyers keep asking me for more to show them.   Where are the steals? Where are the bargains we keep reading about?  The truth is the bargains are rare and when you find a bargain home they, often, come with problem.  Sometimes these are problems that take MONEY to correct or are uncorrectable.

UNDERSTANDING THE MARKET:

1. 50% of the buyers are first time home buyers.

2. 30% of the market are move-up buyers

3. 10% of the market is relocation buyers

4. 10% of the marekt is investors and other types of buyers.

These are the buyers that profit the most from this type of market. 

1. First time buyers know its the right time and they are grabbing affordable FHA loans at prices largely below $200,000. (but occassionally as high as $275,000)

2. Move-up buyers are generally growing families who recognize the value of the move-up home.  These buyers are even willing to take a loss on their existing home to grab even better values in a larger home with more upgrades.  Thes buyers are typically looking in the price range of $200,000 -$600,000.

3. Relocation buyers are moving here due to our growing economy and the opportunities that Austin provides.  These folks often rent for 6 – 12 months while waitng for inventory to appear.

NOTE:  Buyers are taking nearly twice as long to find properties due to low inventories and are being forced to rent and wait for homes to enter the market place.

CONCLUSION:  If you have a home that would be good for these buyers it is probably a great time to sell your home.  If you are thinking of getting a new home, prices may never be lower in the price range from $300,000 – $600,000 right now.  Just realize that inventories are a little low and it may be harder to find the perfect home to move-up to.  The process is not simple and their are no short cuts to selling or buying.