Austin Real Estate Statistics for February.
Posted Mar 24, 2008 @ 11:43 pm, Viewed by 195 Visitors, Read 202 Times.The February statistics for the Austin Real Estate market are out. So what is going on? It looks like prices are basically flat compared to last year. This is actually good considering prices in most real estate market around the country are dropping like a stone. I created a spreadsheet that breaksdown the real estate statistics in Austin for the last few years.
As far as areas the central Austin real estate market is doing better than the suburbs and the market for single family homes is outperforming the market for condos. This is probably because their were a large number of condo projects that have come on the market in the last 6 months.
The first 3 rate cuts by the Fed did not lower mortgage rates as the banks were looking to increase the spread between the discount rate and the mortgage rates on their loans. But the last fed cut has resulted in lower mortgage interest rates if future Fed cuts (and their will be more) are able to lower interest rates this should have a positive effect on the real estate market.
Ki is a realtor in Austin Texas. His website provides information about Austin Real Estate. He posts news and updates on the real estate market on his Austin Real Estate Blog and provides a free search for Austin MLS
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When the FED cuts the Fed funds rate, it is designed to spur investment into the market by making credit cheaper and more readily available; this tends to push money into stocks, which means bond prices go down- bond prices and yields have an inverse relationship; so lower bond prices mean higher interest rates. So- when the Fed makes a cut, it usually pushes long term interest rates UP, not down. However, there is a human element at work; traders on Wall Street are fickle; if the cut is not big enough, or they feel after a few days that it isn't working, money will flow out of stocks, and into bonds (meaning lower interest rates). What we have going on right now is pretty unusual; mortgage rates SHOULD be lower, but there is not much of an appetite for any financial product with the term "mortgage" in it. This is why jumbo rates are so much higher, ARMs are way up, etc. Is this as clear as mud? Sorry for the rambling.