Is this is a good time to invest in Austin real estate?

The Greater Austin real estate market has shifted recently. We've gone from a seller's market to more of a flat market. Flat in the sense that we're not quite in a buyer's market at this point. Homes are taking more time to sell than they did earlier this year. However, the average sales price has gone up 6.9% between September 2006 and September 2007.

Part of the drop in sales volume can be attributed to the disappearance of the subprime mortgage market. The removal of risky lending practices has pushed out a sizable segment of the buyer pool in most markets across the country. Fewer buyers reduces overall demand, causing a market shift.

What does this mean for real estate investors?

It's a great time for anyone looking to invest in property with a long term strategy. Great deals are available since many homes have been on the market for much longer than their owners expected. Whenever markets shift and properties start taking longer to sell, you will find opportunities where sellers are willing to take substantially less than asking. Oh, and those buyers who no longer qualify for financing under today's guidelines...they're increasing the tenant pool!

Smart real estate investing is not unlike investing in other products and markets. Those who succeed at it know their numbers and can quickly evaluate whether a property is a good buy based on where the market is going. They also build in equity by including a down payment on their purchases and negotiating the best deal possible.

Want to discuss real estate investing further, call or e-mail me!

Danny Gallant, Owner/Realtor
The Gallant Group - Keller Williams Realty
512-922-1273
danny_gallant@kw.com
1801 S. Mopac, Suite 100
Austin, TX 78746