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Austin Market Booming
By Nick Rian
 Austin, Texas homes sales skyrocketed during the first two quarters of 2006.
The number of homes sold nearly doubled from more than 1600 homes sold in January to more than 3,000 homes sold in June.
"Overall Austin residential market is running counter to National trends," says realtor Bob McKenna. "Increased demand, reduced inventory of available homes - an improving economic picture resulting in shorter days on market and increasing ask prices."
Austin home prices haven't suffered from the rising prime interest rate. Average home prices climbed almost $10,000 as prime jumped almost one point before leveling off for three months in a row.
"Most projections for mortgage interest rates this year anticipate the 30-year fixed rate to stay below 7 percent," says research economist James Gaines. "The Federal Reserve is expected to discontinue its regular increases in short-term rates during the year as inflation fears stabilize," says research economist James Gaines. "If these expectations hold, mortgage rates should continue to be attractive to the market." Second mortgage rates for home equity loans dropped slightly, and applications rose steadily as homeowners clearly took advantage of favorable interest rates.
The prime interest rate has held steady at 8.25% for the past three months. And economists predict a good economy should keep home markets strong.
"Expectations for 2006 are for continuation of a fairly robust overall economy with moderate-to-good job growth and sustained business productivity," says Gaines. "Corporate profits are up; the stock market closed up for 2005, and small businesses' prospects are positive. For now, there are no heavy clouds suggesting an economic slowdown or recession, but there may be a few wisps on the horizon."
MSA Name |
County Name |
State |
One-Family |
Two-Family |
Three-Family |
Four-Family |
HOUSTON-SUGAR LAND-BAYTOWN |
AUSTIN |
TX |
$271,050 |
$347,000 |
$419,400 |
$521,250 |
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