Wow!! What a list!
– Austin #1 Fastest Growing American Metro- Forbes
– Austin #3 Recession-Proof City- Forbes
– Austin #3 Best City for Jobs in 2008- Forbes
– Austin #1 City to Live, Work, and Make Movies- Movie Maker
– Austin #6 Preferred City for Job Relocation- Human Capital
– Austin #1 City for Relocating Singles- Primacy America
– Austin #1 City for Business Vitality- Wall Street Journal
– Austin Top 10 Greatest Places to Retire- US News
These are the accolades Austin has received this last year. As Real Estate has slowed locally due to the national housing market crash, Austin is poised for sustainable long term growth. In Forbes recent article on America’s most Recession-Proof cities, Austin rated 3rd behind Oklahoma City and San Antonio. The measures used included data for unemployment, job growth, median home price, and foreclosure rates. Texas four major cities rate at the top under these measures all boasting falling unemployment rates. Austin’s unemployment fell from 3.8% to 3.6% in the last quarter.
Recent inflation fears and rising energy costs have pummeled the bond market. Inflation erodes the value of the dollar and thus the value of the fixed returns of the bond market. Also a better than expected Job’s Report last month made the stock market more desirable to investors, who pulled out of the bond market. This resulted in home loan rates moving up 0.25% on average. Remember: a healthy bond market means low mortgage rates.
The median sales price in Austin has moved up from $185,000 a year ago to $187,900 in April, 2008. This partially reflects the tightening of loan requirements for first time home buyers. Total sales are down 314 units from a year ago to 1,981 units in April. Inventory is up from 8,354 to 10,034 units and days-to-sell has inched up to an average of 92 days.