Austin Real Estate Guy Blog

I've asked it before and I'll ask it again, Sam:  How much did prices go UP in Austin from the beginning of the pricing frenzy until the beginning of the crash?

Really a very simple calculation, Sam, and you have the figures but haven't yet chosen to share them with your readers.  Because that will tell us how far prices have to go down.

Because the days of:

1. Easy credit, and

2. Buyers ignoring the time honored tradition of taking out a mortgage more than 3X income, and

3. Buyers believing the big lie of the NAR, namely that prices are going UP, UP, UP forever,

are OVER.

"Realistic" would be a better description. Which, I would humbly submit, is a far wiser basis on which to base what is for most people the biggest financial commitment of their life.

So that would be a 33.5% increase, correct?  That's where I predict it's going back to, overall.  And I was here in the late 80's when that's precisely what happened.

Unlike the NAR, I don't have a vested interest in home price appreciation completely out of whack with income appreciation.  You know, the kind of scare tactic that characterized NAR's media drumbeat to prospective buyers, "Buy now or be forever priced out of the market".

But more to the point, what's been the level of price appreciation in the areas YOU focus upon on your site, like Lake South?  That is, after all, the kind of localized information you seem to have a good grip upon and the kind of thing I think we'd all like to see.

I'm glad you posted this information. Just last night I listened to President Oboma use the scare tactics on the Democratic Caucus (and the nation) about our looming disasters if congress doesn't pass the stimulus package. I disagree with him based on numbers you provided. The market will rebound as the supply level continues to drop. Which it well. Builders have almost completely stopped construction in many areas and tons of home owners are either buying up foreclosures or refinancing. I think the market is very promising!

The property price crash is being experienced all over the world. Here in the UK, the property prices saw a quick decline, shortly following the US prices decline. The financial market in UK is linked quite closely to US financial markets. The market here in UK will continue to decline till the US markets fall.

I disagree with him based on numbers you provided. The market will rebound as the supply level continues to drop. Which it well. Builders have almost completely stopped construction in many areas and tons of home owners are either buying up foreclosures or refinancing.