As the world sat watching the competition in Beijing, Russia took the opportunity to move forces into neighboring Georgia, a close ally of the U.S., and the key transit route by which oil is moved from the Caspian Sea to world markets. The effect on the bond market was immediate as inflation fears rose, demonstrating just how easily world events impact us in this global economy. Offsetting the concerns in Georgia has been a sustained reduction in the cost of crude oil from a high of $147/barrel in July to $113/barrel today. The bond market has rebounded from its initial shock and mortgage rates have improved accordingly to 6.25% for a 30 year conventional loan.
Though June sales in Austin are down 20% from June 2007, other parts of the country are in a more significant housing slump. Nationally, new homes starts have slowed to post World War II levels.
Though Austin has felt the impact of the housing crisis, the continued strong local economy has buoyed the real estate market here. At the moment it continues to be an excellent Buyers market with low interest rates, extensive inventory, and motivated Sellers.
York Real Estate has been blessed with the opportunity to support Lifeworks, a charitable organization committed to helping kids successfully transition from foster care to adult hood. Thanks to all of you who came to our “Flip That House” fundraiser. Click here for pictures of our event. You raised over $1,400 that will address significant needs for deserving young people in Austin. Lifeworks and York Real Estate thank you for your generous giving!