So, what kind of deals can you negotiate for Austin luxury homes? There's good news for those buying luxury new construction homes in the Austin hill country this year. While there was a July bump in pendings and solds for luxury new construction homes, there is still plenty of inventory available. Areas like Spanish Oaks, Seven Oaks and Barton Creek Calera Drive have lots of choices for buyers. On average, new construction luxury homes (over $1 million list price) are closing at 95% of list price or about $106k savings on average. There were a couple of recent closings where the buyers saved over $300k vs the list price...not bad! The average days on market for these Austin luxury homes was 336 days on the market. I have a full breakdown PDF if you're interested, contact me. 512-413-0870
Austin Luxury Homes New Construction Sales Price Ratios
0 comments • Tom Bates • July 30 2008 06:43PMMortgage Recap by Martin Ochs
The following was submitted by Austin mortgage broker Martin Ochs - 512-784-5038 - email Martin
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MARKET RECAP If misery loves company, then few of us are lonely these days, at least if last week's spat of economic doom-and-gloom news is any indication. Where to start? Well, foreclosure filings rose 14% in the second quarter of 2008 from first quarter totals, according to property-information firm RealtyTrac. More troubling, foreclosures are spreading beyond so-called bubble states - Nevada , California , Florida , Arizona - and beyond economic-disaster states - Ohio and Michigan . RealtyTrac says that 48 of 50 states and 95 of the nation's 100 largest metro areas experienced year-over-year increases in foreclosure filings in the second quarter. More foreclosures will pressure inventory levels on existing homes, where sales continue to slow. Indeed, sales of existing homes slowed in June and hit their lowest level in 10 years, dipping to an annual pace of 4.86 million units, down 2.6% from a pace of 4.99 million units in May, the NAR reported. New homes sales were also languid, though less so. Sales of new single-family homes dropped 0.6% last month to a seasonally adjusted annual rate of 530,000 units, which is actually better than most expected. The "smart-money" was betting that sales would fall to a 500,000 annual rate. Unfortunately, homes that are for sale will be more costly to finance. Mortgage rates surged last week to their highest levels this year. Reasons offered for the surge include rising inflation (indicated in last week's jump in consumer prices) and investor fears over Freddie Mac's and Fannie Mae's future. Whatever the reasons, the prime 30-year fixed-rated mortgage averaged 6.77%, the prime 15-year fixed-rate mortgage averaged 6.32%, and the prime 5/1 adjustable-rate mortgage averaged 6.48 percent last week, according to Bankrate.com's survey. There was one morsel of good news in last week's cornucopia of bad. Consumers are feeling a little more chipper. The University of Michigan 's consumer-sentiment index rose five points to 61.2 in July, after hitting a multi-year low in June, lending some hope that an improving consumer outlook will offer housing some support. |
|
Economic |
Release |
Consensus |
Analysis |
|
Consumer Confidence |
Tues. July 29, |
50 Index |
Moderately Important. Falling energy prices could lift consumer confidence. |
|
Mortgage Applications |
Wed. July 30, |
None |
Important. Higher rates and stricter lending standards continue to slow application activity. |
|
Employment Cost Index |
Thurs. July 31, |
0.7% |
Important. Employment costs are expected to rise within inflation-friendly limits. |
|
Gross Domestic Product |
Thurs. July 31, |
2.2% (Annualized Increase) |
Very Important. Despite dour prognostications of recession, the U.S. economy continues to grow. |
|
Employment Situation |
Fri. Aug. 1, |
Unemployment Rate: 5.6% Hourly Wages: 0.3% (Increase) |
Very Important. A lower unemployment rate coupled with continued GDP growth could portent an improving economy. |
|
Construction Spending |
Fri. Aug. 1, |
0.5% (Decrease) |
Moderately Important. Lower residential construction spending continues to pressure overall spending. |
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Too Little, and Maybe Too Late A lot of ink and pixels were dedicated to last week's House vote to offer $300 billion in assistance to troubled homeowners and to throw government support behind Fannie Mae and Freddie Mac. The bill has won endorsements from key senators in both parties and convinced President Bush to withdraw his long-standing veto threat. Major provisions of the bill for mortgage markets include permanently increasing the cap on the size of mortgages guaranteed by Fannie Mae and Freddie Mac to a maximum of $625,000 from $417,000. It would also raise the FHA maximum loan limits for high-cost areas to $625,000. For first-time home buyers, the bill includes a tax refund worth up to 10% of a home's purchase price but no more than $7,500. That said, the refund really isn't a refund - it's more of an interest-free loan, because the "refund" has to be repaid over 15 years in equal installments. The bill will likely give the mortgage and housing markets an immediate boost, but let's not get carried away with the back-slapping. Artificial stimulus packages are fickle; you can't be assured that what you want stimulated is actually being stimulated. Besides, markets, if left to their own devices, eventually get it right, though sometimes not as quickly as we'd like. But when they do get it right, they tend to get it right on a more permanent footing. |
Submitted by Austin mortgage broker Martin Ochs - 512-784-5038 - email Martin
0 comments • Tom Bates • July 28 2008 06:06PMModern Luxury in Travis Heights, 78704
1402 Alta Vista, Modern Luxury, Travis Heights, MLS 8881972, 78704
New construction modern luxury 4 bed modern house in hot Travis Heights in South Austin in the 78704 zip code. The scoop: This Austin modern luxury house has a clean edgy feel and fits nicely on this Travis Heights lots. Home has downtown views from the top deck, one of three decks in all. The home is still under construction but coming along nicely. A bit too early to comment on fish out since it's still under construction. It's on Alta Vista Avenue which is in the heart of the eclectic and highly sought after Travis Heights area the 78704 zip code. Travis Heights has been the breeding ground of plenty of non-traditional modern luxury architecture in recent years. Of course, most new construction in Travis Heights is still traditional bungalow style. The average new construction price in Travis Heights right now is $298/sf or about $860k. There are currently 5 homes in Travis Heights (resales of course!) on the market for under $500k. A couple of these would be fine projects lots for an Austin modern luxury project.
Click here for more photos
Click here to see more Austin modern luxury homes
0 comments • Tom Bates • July 28 2008 05:35PMModern house off Cuernavaca, Eanes ISD, Austin Lake Hills
Very cool 3 bed 2 bath hip modern houses near Cuernavaca in the Austin Lake Hills community in the Eanes ISD. This is a new construction property and you can still pick out selections. Cuernavaca is home to more and more modern homes which is great for the neighborhood which can have challenging looking spots. This builder has two homes right next to each other, currently listed at about $459k. The homes are built green with the option of solar panels on the butterfly roof. Call me for the floorplan PDF.
There are currently 16 lots available for sale on this street, most of them slated for modern building, but not all builder restricted. Right now you can pick up 8 of the lots as a package. The lot prices are $90k to $115k...most are very flat and buildable. The curbs and utilities just went in at this Lake Hills/Cuernavaca hidden enclave. This is a great opportunity to build a spec house, hold the lots or build a dream house. Lots are up to .56 acres, wooded and perfect. Call me for details 512-413-0870.
0 comments • Tom Bates • July 27 2008 02:18PM5431 Tortuga, Austin Dick Clark modern MLS 2202054
Here is the quintessential Dick Clark Architecture modern home. This is a resale just off Mount Bonnell in the northwest Austin hills off 2222. It is clean, sleek, private, livable and killer modern. It has great outdoor living space including a very private screened in porch and a private pool and entertaining area. This is a modern house that's been lauded over by countless architectural magazines and has been the poster child of Austin nouveau-modern-residential-architecture. (Dick Clark, please send me $5.00 for that plug.) Achem. "Tom, is there anything not perfect about this house?!" Well, it's not a new house but it's clear that it's been very well cared for. Still, there are a couple of very minor items to think about. Call me for the full field notes.
http://austinmodernliving.wordpress.com/
Click here for the first 12 of 45 photos
3 comments • Tom Bates • July 27 2008 12:56PM500 Riley Road and 502 Riley Road, Austin MLS3597374, MLS9449998
500 Riley Rd and 502 Riley Rd in Austin are two truly incredible uber-modern-luxury new construction homes in Eanes ISD in Rollingwood in Austin Texas. These are designed by one of Austin very prestigious and highly decorated local architects Barley & Pfeiffer. These are uber-green homes: 5 Star Green Rating from Austin Energy's Green Building Program, recipient of 2008 "Healthy Child Healthy World Healthy Home" award, selected to be on the Texas Solar Energy Society 2008 Cool House Tour, and was selected for the AIA Austin 2008 Homes Tour. Wow...now that's a resume. These are great examples of responsible modern architecture, which I hope to see more of in the future. At the time of posting, 500 Riley Road was under construction and listed on the MLS for $2,498,000 and 502 Riley Rd was complete with a few punch items left and on the MLS for $2,575,000. Do I have a favorite: yes! I'll be happy to share my field notes, thoughts, and 9 page (fully packed) property feature sheet and description.
500 Riley Road - Click here for the first 15 of 128 photos
502 Riley Road - Click here for the first 15 of 62 photos
0 comments • Tom Bates • July 26 2008 05:58PMIs South Austin 1 Bed Condo Good Investment?
I was recently asked if a particular 1 bedroom condo in south Austin (name withheld for posting) was a good investment at $96,000. So, let's break it down and see:
Is it a good investment
I'll start by first saying that I meet very few people who have bought real estate, especially as close in as 78704 in south Austin, who are not very happy that they bought when they bought. I think the 78704 in south Austin is an obvious choice for continued popularity and appreciation. The average 1 bedroom condo has sold YTD for $245/sf ($194k). That's up from last year's average of $228/sf which is up from year 2000 average of $99/sf. An obvious trend, right? So, from an appreciation aspect, it's hard to say that 1 bedroom condos in 78704 south Austin are not a decent play. Those are averages, of course, and some do better and some do worse. Critical to your decision is the actual condo UNIT and PROJECT itself and how it feels and "works"...is it a good unit...how is the location of the unit itself...is it on a busy corner...how is the floorplan...what are the condo amenities, etc.
HOA Fees
Since this particualr condo is a condo conversion, rather than new construction, my advice is to be sure to budget for HOA fee increases to cover "old building maintenance costs" in the future. This may or may not ever be a factor, but if you don't budget for them now you won't be prepared if it ever does happen. Same for budgeting increased tax appraisals for future years. In my experience, the older the condo building, the more building maintenance is required, so be prepared, maintenance is just a fact of real estate life.
But will I make money?
Let's look at a typical scenario for a typical buyer. If you put 10% down that's $9,600 down on $96,000 sales price, and if your taxes are $2400/year and HOA including insurance is 1.5% then your monthly PITI+HOA will be around $895/month assuming 7% mortgage interest. Then you would want to deduct out an expense for vacancy and maintenance. If you rent it for the break-even at $895/month and your property appreciates at 5%/year for the coming years, then your ROI will be:
•1) Negative 39% if you sell in 12 months
•2) Positive 11% if you sell in 24 months
•3) 175% if you sell in 5 years
Most investors will take some net monthly cash flow losses (which they write off against other investment gains anyway) for the benefit of long term appreciation...which is where the smart money will focus...of course, a nice mix of cash flow and appreciation is best. Also consider that your rents should continue to go up in south Austin especially. Also keep in mind that 5% appreciation is number plucked straight of thin air! But I think it's a SAFE number: between 2006 and 2007 this section of 78704 in south Austin appreciated 19%! Is it a good investment? I think so, but you tell me...
More 78704 South Austin real estate at:
www.AustinModernLiving.com
0 comments • Tom Bates • July 14 2008 08:02AMAustin Remodel - Heart of Town - Not on MLS
Here's an excellent opportunity to get a great looking remodel in the Hyde Park / Shoal Creek area of Austin. This is a pocket listing and will not go on the MLS anytime soon. A few minutes to Central Market, HUGE lot, the sellers have their Airstream tucked away privatly in the backyard. Hardwood floors, great floor plan, plenty of room, detached garage and workshop/green house. Quiet street. Call me to show. Asking $530,000...price will go up when listed.
Click here for flickr photos
Click here for more info and virtual tour
See more listings and stylish modern Austin area homes at www.AustinModernLiving.com
See more listings and stylish modern Austin area homes at www.AustinModernLiving.com
Call 512-413-0870 for more info or to show.
0 comments • Tom Bates • July 11 2008 07:44AMAustin Real Estate Market Update
Here's a 2 minute recap of the Austin Texas real estate market in general:
According to Alamo Title research, the number active listings are up 38% over 2007. The number of new listings are down this week by 14% (compared to the same week last year). Pendings are down as well, but solds are up this week from last week. What we have is an accumulation of unsold single-family homes in Austin, especially in the outer regions of first and second-time home price-regions such as Kyle, Manor, Hutto and Leander. Those areas are further out and represent production builder inventories and re-sales in newer subdivision. Those numbers are weighing down the figures for the hotter areas of Austin. Those sellers are being forced to compete on prices, remain unsold or enter foreclosure. Closer in to the Austin core, while inventories are still high, the supply situation is much less severe, even in the skyrise condo market.
Sold average sales prices increased this week (from June 29th to July 5) by 14% to $338k. In 2007 it was $295k for the same week. Median prices continue to nudge upward, currently around 2% higher than last year depending on where you look.
Sales over 800k have slowed down, though there is still good activity above $2million. Most ulta-luxury home buyers are not affected by the lending issues of late. The hottest areas tend to be closer-in areas like Tarrytown, Rollingwood, 78704, east Austin, and Eanes. Luxury areas that are struggling tend to be newer construction areas further out. Most agree that this is a fantastic time to make purchases at this lower point in the cycle: continued job growth, relatively low interest rates still, and one of the hottest destination towns in the US all point to Austin bottoming out soon (already?) and firming up over the next 12 to 24 months. I hope this quickie analysis is useful. I find that an in-depth look at the numbers in the specific area of town you are considering buying is much more useful...please let me know if you would like to discuss any area in more depth. www.AustinModernLiving.com
0 comments • Tom Bates • July 09 2008 03:30PMLuxury Living in Eanes ISD
Eanes, the Tuscan Hills of Austin
The Eanes Independent School District in Austin not only contains some of the most luxurious single family living in the Austin area, but is also home to some of Texas' most highly sought after schools. The combination of beautiful rolling hill-country, the proximity to both Lake Austin and Lake Travis and the a top academic scene are fuel for a smoking hot real estate area. In my opinion, the drive along Bee Caves Road 2244 west of 360 is one of the most picturesque drives in town.
Luxury Neighborhoods in Eanes
Prices in Eanes currently range from the low $300s to $11 million, averaging out around $1 million. The ultra-high end areas are neighborhoods like Angelwyde, Mount Larson, Rob Roy, Stratford, Davenport, Seven Oaks, Barton Creek and most of West Lake Hills and Rollingwood. Places like Rollingwood are going through massive changes right now, similar to what's going on in east Austin but at a much higher price point -- call it Luxury Gentrification!
Luxury Gentrification in Rollingwood
Rollingwood, for instance, is as close to the Austin core as parts of Tarrytown and every bit as accommodating in terms of lot sizes, trees and scenery. Most homes were built in the 1960s to 1980s, and when they moved the homes from septic to city sewer the neighborhood took a sharp turn into ulta-luxury-land. Today spec home builders and custom builders alike are buying up homes for up to $800,000, tearing them down and replacing with ultra-luxury modern, craftsman and tudor style estates that go on the market between $1 and $3 million. Visit www.AustinModernLiving.com to see some listings.
Affordable Eanes under $500,000
So, can you be of modest means and send your kids to the best school district in Austin. Of course you can! More affordable Eanes living can be found off of Cuernavaca Road which borders Seven Oaks to the east, Lake Austin to the north and development ranch land to the west. The Cuernavaca area, in my opinion, is one of the best investment buys in all of Travis County. You have super large lots (our personal house is on 3/4 acres) with tons of Live Oak trees, you have proximity to ulta-luxury homes right next door at Seven Oaks, proximity to Barton Creek Resort luxury living, you can be members of the Lake Hills Association which gives you access to Lake Austin, you are a few minutes from the new Hill Country Galleria in Bee Cave, and you are just a 15 to 20 minute drive to your favorite downtown hot spot....a fine mix for Austin. Visit www.CuernavacaPrices.com to get a list of homes for sale.
Zip Codes in Eanes
If you are doing your own search (you can do so without having to register at www.AustinHomeSearch.com and of course on our website at www.AustinModernLiving.com) you can search for Eanes homes using the zip codes 78733 and 78746. The cities you can search under are Rollingwood, West Lake Hills and of course Austin. Good luck and call if you have any questions: Tom Bates at 512-413-0870.
Tom Bates
www.AustinModernLiving.com
512-413-0870
0 comments • Tom Bates • July 09 2008 08:08AMArticle About Designing Homes with Sun in Mind
Linked here is an Inman article about designing homes with the sun in mind. It's true, our 4-wall boxed home subdivisions didn't have to be and are a discredit to centuries of knowledge about designing homes and orienting them on the lot to maximize energy efficiencies. Even today few build homes with the sun's orientation in mind, the shape of the lot, the elevation and the use of existing trees on the lot. The truth is, smart design costs slightly more because you need smarter people to design them...and paying for smart people isn't a line item expense most builders (custom, spec and especially production) are willing to budget for. Neither is it an expense that lender require.
And it's not all about saving money on electric bills, even though that's one of the main goals of building sustainable green homes in Austin. Building with the sun's orientation in mind is about putting rooms, windows, eaves and outdoor living spaces in places that make sense for the way we live our lives, and to conserving energy. And it's also about using sustainable materials. Ask a builder why he's putting a 20 year shingle roof on your house that the insurance company will replace after the first hail storm, and the likely answer will be "that's how we build homes". That's a pathetic answer. There are SO MANY SO MANY SO MANY energy poor chooses from design to materials in today's homes that it would spin your head to know about them all (and we'll touch on them in the future). And I "get it" for supply and demand reasons at the production home building level...but at the custom and higher end spec level, well, I just expect more...especially for "modern" designed homes.
To truly build a smart house, not one that just been outfitted and accredited by Energy Wise, you have to hire a builder or an architect who believes in smart design. As the linked article above points out, not all "modern" design is smart design, some of it (if not most of it in Austin at least) is meant to look pretty and fit the modern visual vernacular. Dwell Magazine is great, but to get your project on the cover of Dwell you need a sharp looking model, and, hey, to be fair, not all super-models are rocket-scientists! And I'm not saying you can't both look sharp and be smart, but 99% of the new construction modern homes I walk through these days are pathetically build in terms of energy efficiencies and sun orientation.
And yes, there are some 100% smart modern homes and even small subdivisions being built in Austin, which is a great start. In the future I may do a QA panel with some local Austin modern smart home designers and builders like Eric Brown and Russ Becker.
4802 Ranch Road 2222 MLS 2982218
I recently showed this very creative modern house in Austin. This home is located just on the north side of the hill off 2222 in the Cat Mountain / Northwest Hills area. I drive 2222 quite often have watched this modern house evolve over the last year or so. Now that it's nearly complete, I love what this house does for the 2222 drive...it's great to have a loud statement of modern architecture as a staple backdrop to the Austin scenery. I LOVE THE WAY THIS HOUSE LOOKS! The sloping roof line really sets this house apart from other "boxy" modern homes that are so popular these days. Ask me if you want my full field notes on this house...I think one of the concerns that some people may have with this property is the proximity to 2222 and traffic, but the views make it well worth it. Click here for many more pictures.
Click here to learn more about Austin Modern Living.
I
0 comments • Tom Bates • July 04 2008 03:29PM8400 Big View, Austin, 78730, MLS 8483669
Current list price $2,999,000
Click here to learn more about Austin Modern Living.
I previewed 8400 Big View in Austin today for a client. This is a modern house with Lake Austin waterfront at the back of River Place Country Club. The property is very clean and livable. The house was designed by Doug Fry (who I understand used to work for famed Dick Clark Architecture). The house has pros and cons. Pros include great design, spacious and open, wine room, huge kitchen and catering kitchen, clean slick look, pool with full outdoor kitchen, Lake Austin frontage with boat dock (coming). Cons: not a lot of cons really, the price is on the high side, even for Lake Austin waterfront, and there is also the empty lot next door, which creates the risk of potential future privacy issues...or you could buy the lot next door and build your own spec house. There are several lots available on Big View both waterfront lots (up to $800 - 900k range) or on the other side of the street for less. I would buy this house if someone could loan me 3 million bucks. I took tons of photos of this property...
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