Mueller Austin Homes – is now a good time to sell? I take a quick look at some of the macro economic factors driving the Austin market right now and look at resale home availability in the $300k-$350k range.
How is the market in Austin doing in this price range? I took some statistics for the first half of each year for the last 4 years for comparison. The data are for single family homes in the City of Austin with a list price of $300k – $350k sold through the Austin MLS.
Not surprisingly, on the whole, less homes sold in the last two years than in the previous two years. The number of homes that failed to sell (that were expired or withdrawn) took a large increase in 2008 relative to previous years.
So in general there are less home sales in this price range. Or are there? These statistics don’t reflect all of the new home sales at Mueller, and David Weekley and Meritage homes in this price range have been moving briskly.
How has the resale market been at Mueller so far? There have been three resale home listings that I have seen so far in 2009. They have all sold, or been leased before they sold.
Who is buying homes in this price range right now? Interest rates at around 5.25% mean that someone with stable employment, reasonable credit and a 10% downpayment can get around 10% more purchasing power than they could with an interest rate of 6.5%.
An extra $30,000 of home for the same mortgage payment makes the difference between a 2 bedroom David Weekley row home at Mueller and a 3 bedroom yard home here – it’s a significant change.
Austin is still growing, and is set to be in the top 5 growing metropolitan areas. Professionals are relocating here, and they need somewhere to live. Mueller certainly sees its share of relocating families in this price point. I got a call from a Realtor ® last night who wanted to know if there were any resale homes at Mueller for a relocating family from Colorado for example.
What about competition with the builders at Mueller? Catellus haven’t announced any plan for the development and release of Phase 3 residential lots to the builders yet. There’s an impending availability gap at Mueller, with Meritage having only 7 homes left, and David Weekley selling their homes at a reduced rate to “make stocks last”.
So one tactic for competing with the builders at Mueller is to sell when they have no available inventory. Which could be now or in the coming months.
So is now a good time to sell my home at Mueller, or should I wait until Spring 2010? Whether it’s a good time to sell really depends on your personal situation. Who knows whether interest rates will be low next Spring – I don’t! Who knows what Catellus will announce with regards to Phase 3 – I don’t!
One thing that I do know is that there isn’t much to choose from in this price point in Mueller right now, and less options if you consider what is available for move-in in the next few months.
Garreth Wilcock is a Realtor ® specializing in Mueller Austin Homes. Find out how he sells homes at Mueller.