Archive for August, 2008

A two-year look at Georgetown’s real estate trends

Friday, August 15th, 2008

The Austin Board of REALTORS, to which I belong, has provided its members with a new tool called Clarus MarketMetrics. With this powerful tool, I can quickly look at two years’ worth of sales data for the entire MLS area, at the county level, the city level, even down to the subdivision level. (I could do this already, but it would have taken a lot more time and effort to put together these quick, useful charts.) In all the charts below, I looked at the combined MLS areas of GTE and GTW.
Number of properties for sale in Georgetown, TX
Pay particular attention to the straight line that runs behind the columns. In each chart, this line shows the general trend from July 2006 through July 2008. The number of properties for sale has increased between those two periods.
Number of properties for sale in Georgetown, TX
This chart shows the number of residential units that have sold each month. Although we sold 2 more units this past July than we did two years ago, you’ll notice that the trend line shows a general decline. (But a sharp increase from this past winter.)
Number of properties for sale in Georgetown, TX
This chart really doesn’t provide new information, but a new way of looking at the information we’ve already seen, the units sold juxtaposed with the properties for sale each month. With all the building that’s gone on over the past few years, it’s no surprise to see the sharp increase in number of properties for sale in our market. Ideally, the number of sales would increase at the same level as the number of properties for sale, so that the two lines would parallel each other to maintain a balanced market.
Number of properties for sale in Georgetown, TX
However, as you can see from this chart, the median home price in Georgetown has gone up pretty steadily the last two years. Part of that is because we have more higher priced homes in our marketplace than we used to have, and part is that our property values have continued to rise at a nice, even pace. Take a look at the months that saw the slowest sales this past winter, November through January. Isn’t it interesting that the median sales price spiked during those months? So there were fewer sales, but for a higher price.

More medical office space coming soon

Tuesday, August 12th, 2008

According to the Austin Business Journal, construction will begin soon on the Austin Avenue Professional Plaza, a 90,000 square foot facility of medical office space. The developers of the Plaza have created a website with architectural renderings and more information. It’s interesting, they say that no individual investor will own more than 10% of the development; it will truly be a group affair. Looks like they’re still looking for investors, if you’re interested. It’s going to change the look of the southern end of Austin Avenue. (The Plaza will be located on Austin Avenue, between Inner Loop and Leander Road.) Longhorn Junction, a planned retail space at the intersection of I-35/Austin Avenue and Inner Loop, should also bring jaw-dropping changes. This is going to be fun to watch!

A closer look at Riverview Estates

Monday, August 11th, 2008

Yesterday, I cohosted an open house with Rachel Logue, a colleague at Moreland, at her listing in Riverview Estates. Her client’s house is fabulous. When I first saw it, I called my husband and told him that I’d found our new house. Of course, since we just finished building our current house in 2007, we’re not quite ready to move yet, but I would be very proud to show Rachel’s Riverview listing to a buyer. The house is quality, custom construction from Steve Richmond Homes. The kitchen, dining, and living are all open and with very high ceilings (I’m guessing the vaulted ceiling in the living room goes up to 14 feet), with the warm color of saltillo tiles beneath your feet. This house is perfect for people who want easy living in an established neighborhood with great trees; the one-story house has two bedrooms and approximately 1550 square feet, with most of the yard taken up by the courtyard pool. (But still with enough space for a dog to run around outside.) The courtyard is fabulous. It feels like resort living. Double-door access from the kitchen, living room, and master bedroom creates an easy flow for entertaining.

Bird's eye view of Riverview Estates in Georgetown, TX
The Riverview Estates subdivision is just off Leander Road (aka, FM 2243), about a mile or so from I-35. As you can see from the image above, the neighborhood is full of trees that have had years and years to grow. The homes have three or four sides brick or stone and were built beginning in 1992. The average lot is just over half an acre, and the average home is 2228 square feet. The tax-assessed values range from about $144,000 up to almost $570,000.

View from a back lot at Riverview Estates in Georgetown, TX
Market values in Riverview Estates have fluctuated some over the years. There have been 59 sales through the MLS; the table to the right shows those properties that have sold more than once. The homeowners who saw the greatest annual rate of growth were those who held onto the property the longest. The owners of Property G were able to sell for almost $81,000 more than they initially paid. In this particular case, they purchased the home in 1997 for $165,000 and sold in 2007 for over $245,000. After just one day on the market. There have only been two MLS sales in Riverview in 2007 and 2008, and the homes spent 1 and 4 days on the market, respectively. Home sales in Riverview Estates, Georgetown, TX
In addition to Rachel’s two-bedroom listing, there is one other home currently on the market in Riverview Estates. This one is a little more traditional, with three bedrooms, two baths, and about 2000 square feet. If you’d like to see either of these listings, or any other homes on the market in our area, please call me at 512-876-6544. I would enjoy hearing from you! I’d also be happy to talk to you if you’re planning to sell your house soon. Don’t hesitate to call.

Check out my new professional designation

Sunday, August 10th, 2008

You may have noticed a new symbol in the right-hand column of this page, beneath my office address. I am now officially a Seller Representative Specialist. Recently, I attended a class to gain new insights and strategies to better serve my seller clients. After the class, I was provided with the following press release. 

Jenel Looney with Moreland Properties has earned the Seller Representative SpecialistÔ (SRSÔ) professional real estate designation conferred by the SRS CouncilÔ.  The SRS CouncilÔ  educates REALTORS® in the specialty of representing consumers looking for the highest benchmark of service and professionalism.  When selecting a listing agent to market their home, we believe the seller should have the best.  

“Listing agents have sought course material targeting their specific needs for some time”, says co-author of the course material, Steve Casper, ABR, SRSÔ and National Association of REALTORS® (NAR) Distinguished Service Award Recipient.   

Co-author Adorna Carroll, ABR, ABRM, GRI, SRS, PMN, SRES, ePRO, national instructor and co-author Bruce Aydt, SRS, ABR, ABRM, CRB, attorney and national instructor state, “The SRSÔ - Seller Representative SpecialistÔ Designation course is a two-day content rich course focusing on the special skills Listing Agents need to represent their seller clients plus interface with cooperating agents - specifically Buyer Agents”.

Congratulations to Jenel Looney from all three founders of SRS Council, LLP.  Jenel completed her required course work in August and now joins an elite number designees who have earned the SRSÔ designation.  Moreland Properties is proud that their fellow associate has reached a most sought after professional pinnacle by obtaining this designation and becoming one of the first associates in Georgetown to do so.

I’m not sure about the “most sought after pinnacle” bit, what with it being a two-day class. However, I did get some excellent new ideas for better serving sellers. If you’re thinking about selling your home, especially in today’s market, you really will benefit from the advice and expertise of a REALTOR like me. Give me a call at 512-876-6544, and I’ll prepare a free Comparative Market Analysis for you with no obligation whatsoever. I pride myself on being an honest person, and I’m not pushy at all. I will become your partner in the process, giving you information and advice, but ultimately, it’s your home and I let you make the decisions. I really mean it when I say I’m here to help!

This week in residential real estate in Georgetown, TX

Sunday, August 10th, 2008

There are currently 684 homes active on the market in MLS areas GTE and GTW (Georgetown East and West). With just 21 deals closing this week, that means that at this current pace, we have about 32 weeks of inventory.
MLS activity in Georgetown, TX for week ending August 10 Those 684 homes include 56 that were added to the market this week. The rest of Williamson County is faring a bit better. Hutto and Round Rock both have approximately 21 weeks of inventory at their current sales pace, and Cedar Park/Leander have just 17 weeks of inventory. (Cedar Park and Leander are combined in terms of MLS areas, a situation that I feel needs to be corrected in light of the growth those cities are experiencing.)In reality, there weren’t truly 56 homes added to the market. Many of those homes were on the market already, and either were withdrawn or the original listing expired. The homeowners would still like to sell, so they put the home back on the market, and it appeared as a new listing. So in the table to the left, some of the properties that show as “Withdrawn” or “Expired” cancel out some of the new listings.
The total sales this past week for Round Rock and Cedar Park/Leander outstripped those of Georgetown. Round Rock’s average sales price of $247,734 was the highest in the County, and Georgetown’s average sales price of $221,917 came in second place. Our highest sale of the week was $520,000, and the least expensive home went for exactly $100,000. We have quite a range of homes for sale here in Georgetown, TX. Williamson County home sales for week ending August 10

The rental market in Georgetown, TX

Saturday, August 9th, 2008

Lately, a lot of people have been asking me about the opportunity for investing in Georgetown real estate. Now is an excellent time to purchase an investment property and rent it out. The rental market is hot, hot, HOT! July 2008 saw 35% more homes with new leases through the MLS leasing system than July 2007, and the average rent went up by 9% for those two periods. (Caveat: One of the homes rented this July was in Cimarron Hills, a luxury subdivision here in Georgetown. When we take that house out of the mix, the average rent this past July was up just slightly from last year.)Intrigued? But maybe you’re thinking to yourself, “I don’t have an extra $150,000 lying around to buy an investment property.” Think of it this way, instead: Do you have around $25,000 to invest? Let’s use a $150,000 house as an example. There are currently 35 homes active on the market in Georgetown priced between $145,000 and $155,000. Your offer of $150,000 on a cute three-bedroom, two-bath home in an established neighborhood has been accepted. Congratulations! After putting down $22,500 and paying closing costs of $3,600, you’ll take out a mortgage of $127,500. (All figures are approximate.) Georgetown's rental market is on fire
I called Randall Goltzman, Loan Officer with Mortgage Pros, to ask for the current interest rate on investment properties for a buyer with excellent credit. These rates will be slightly higher than they would be if you were buying your primary residence, but you can still get a 30-year fixed rate loan for a very reasonable 7% if you put down 15%. Your monthly payment would be about $1284 including taxes and insurance. The average rent on three-bedroom, two-bath homes that were leased in July 2008 was $1315. But those numbers don’t tell the whole story. Depreciation is a magical thing. This article explains it well, but I recommend you talk to your financial advisor or tax preparer to more fully understand how depreciation could make real estate an excellent investment for you.
Illustration of investment property appreciation It will probably always seem strange to me that the IRS allows us to claim depreciation on real estate, when the reality is that most real estate appreciates in value. Let’s consider our sample investment, which you purchased for $150,000.
If property values go up at a sustainable level of 4% per year, then you should be able to sell that property in ten years for $213,500. Your initial investment was $26,100 (down payment plus closing costs). In the ten years following, the rent you receive will offset your mortgage payment, meaning that your tenants will in effect build equity in the home for you.
You sell the property in August of 2017 for $213,500. After paying off the remaining mortgage and your closing costs for the sale, you’re left with $86,700. $26,100 of that was your initial investment; the rest is profit.
What if you left that $26,100 in an interest-bearing account that earned 4% per year? According to my calculations, at the end of ten years, you would have just over $37,000. So what do you think about real estate investing now?
One word of caution: these figures are very, very rudimentary. There are no guarantees in investment. It’s likely that your rental property won’t remain rented 100% of the time. Tenants will leave, and sometimes it takes a while before you find a new tenant. During these periods, you are still responsible for paying the mortgage, so be sure that you allow for that. Also, there will be expenses associated with repair and upkeep. Again, I urge you to speak with your tax advisor to determine whether adding real estate to your investment portfolio would be a wise move.
If you decide that you’d like to investigate the opportunities out there, please call me at 512-876-6544 or email me at Jenel@HometownGeorgetown.com. I’m here to help!

July sales in Georgetown, TX

Sunday, August 3rd, 2008

July sales in MLS areas GTE and GTW
Average July sales price in GTE and GTW
The figures above illustrate what I’ve been saying all along… Central Texas is the place to be when it comes to real estate. Yes, we’re experiencing a significant dip from last year’s sales, but last year was the anomaly. This year is not. When you take last year out of the equation, we’re doing pretty darn good. The total number of July sales in MLS areas GTE and GTW is down slightly from 2005, but I attribute that to the fact that not all sales have been entered into the system yet. (Shame on those agents who don’t input their data immediately.) If just three more July sales are entered into the system in the coming days, then we’ll equal the number of sales for 2005. We’ve already outstripped every year but 2007 in terms of the total dollar value of sales. Any extra sales that are added are just gravy. (Bring on the gravy!)
Take a look at the average sales price table. Oftentimes, the media focuses only on how this year compares to last year, which is why we hear such doom-and-gloom headlines. But look closer and ignore last year. Our average sales price this year was 10.9% higher than that of two years ago, which averages out to 5.45% growth per year. That’s a sustainable level of growth, and it’s what I like to see. Skyrocketing growth is exhilarating, but the flipside of that coin is plummeting prices. With steady growth, we’re much less likely to get the gut-wrenching losses that other parts of the country are experiencing now.
Now is a great time to buy a home in Williamson County. Interest rates are still very low, and there are a lot of homes in every price range from which to choose. Please give me a call at 512-876-6544 or email me at Jenel@HometownGeorgetown.com so we can discuss what I can do for you. Traditionally here in Central Texas, sellers pay the professional fees of the agents on both sides of the transactions. Buyers who work without an agent are missing out. I have data at my fingertips, and I know how to use it!

This week in residential real estate in Georgetown, TX

Sunday, August 3rd, 2008

Nineteen of this weeks’ thirty-three sales were priced between $100,000 and $200,000, six went for more than $300,000, and the rest were in between. On average, these homes spent 104 days on the market before selling. The sales price was, on average, 93.6% of the original asking price. Many of the homes saw price reductions during their listing period, and sold for an average of 96.5% of the final asking price. MLS activity in Georgetown TX for week ending August 3

A closer look at Summercrest

Saturday, August 2nd, 2008

One of my subscribers made a special request this week, that I do a feature on Summercrest (also known as Summer Crest). Summercrest is situated in an excellent location, just off Highway 29, very close to Southwestern University, Inner Loop and the TX-130 toll road, with a straight shot all the way down to the Austin airport and points beyond.
Summercrest neighborhood in Georgetown, TX
There are currently three homes that are active on the market in Summercrest, and three that are in Pending status. Since the start of 2008, the average sales price is $170,901, and the homes sold for an average of $70.09 per square foot. Homes in Summercrest average four bedrooms and two-and-a-half baths, with about 2200 square feet.

Do homes in Summercrest hold their value?
Honestly, I have no quick answer to this question. What I’m able to look at is sales that happened through the MLS. Often, when builders are selling their inventory, they don’t sell through the MLS, so I have no way of knowing what price they fetched on each of the sales. However, the sales that did take place through the MLS give us some excellent clues. Homes that sold more than once through the MLS in the Summercrest subdivision
For example, homes in the subdivision were built beginning in 2001. Take a look at the table above. In this table, I’ve pulled out each of the properties that had multiple sales through the MLS. In the “Change” column, you’re seeing the average annual increase or decrease in sales price.
The first house was purchased in October of 2001, probably new from the builder, for $147,990. The next time it sold through the MLS was in May of 2006 for $115,500. That’s a 28% decrease in value, averaging out to a 4.7% loss per year. Another house was purchased in June 2002 for $174,000, again so close to when the neighborhood was first being developed that it was quite likely purchased directly from the builder. That house sold this past April for $174,747, an increase of less than $1,000 after six years. But it was an increase.
Now take a look at the last house mentioned in that table. It was sold through the MLS in June 2004 for $115,900, and then again in July 2006 for $165,000. Presumably, the sellers in 2004 had purchased the home directly from the builder, outside of the MLS. They were the original owners. My guess is that they had to take a loss when they sold the house for just $115,900. (Again, this is just a guess.) But the next owners did very well, with an average annual increase of 19.3% in price.

How will H-E-B Plus affect home prices?
Sales trends within one-mile radius of the Round Rock H-E-B Plus Last I heard, H-E-B had plans to build a grocery superstore at the intersection of Highway 29 East and Georgetown’s Inner Loop. (Unless and until construction starts, I don’t put too much stock in these rumors. Plans have a way of changing.) My subscriber wondered how that might affect home values in Summercrest. The best way I could think of to answer that question was to look at how prices were affected near the H-E-B Plus, which opened in November 2005 in Round Rock.In the year following the opening of this H-E-B Plus, the average sales price shot up by more than 10%. In the year following that, there was a slight adjustment, but prices generally held steady. Since November of last year, there’s been another increase of just over 9%. (And doesn’t that fly in the face of all the national housing market news stories? Remember, Central Texas is the place to be right now.)
There’s no way of pinpointing the grocery superstore as the reason behind the sales price increase. Any number of factors would have played a role in this increase. Still, it’s an interesting snapshot. All in all, I think Summercrest homeowners will do well in years to come. The original homeowners who held onto their homes during the dip in property values should come out ahead if they sell now. They weathered the tough post-development time, and now they stand a good chance of reaping the benefits of their patience.

| Newer Entries »

Top of page