http://recenter.tamu.edu/mreports/2010/AustinRRock.pdf
The health of a particular real estate market is measured by the increase or decrease in average home prices and the number of months of inventory in the MLS system. The Austin Board of Realtors keeps monthly statistics on the number of homes for sales, the average selling price and calculates the amount of “inventory” by dividing the total number of listings and dividing it by the number of sales per month. As of October, Austin had 6.8 months of inventory and an average selling price 4.6% higher than 2009. See the chart below: or (http://recenter.tamu.edu/data/hs/hs140.asp)
Austin Real Estate Activity
| # of sales | Dollar Volume | Avg Sales Price | $ of listings | mos of inventory | |
| Jan | 985 | 230,799,130 | 234,300 | 9,931 | 5.7 |
| Feb | 1,249 | 293,085,886 | 234,700 | 10,825 | 6.2 |
| Mar | 1,986 | 461,057,256 | 232,200 | 11,846 | 6.7 |
| Apr | 2,230 | 513,122,847 | 230,100 | 12,270 | 6.7 |
| May | 2,285 | 542,996,713 | 237,600 | 12,786 | 6.9 |
| Jun | 2,190 | 584,250,558 | 266,800 | 13,353 | 7.2 |
| Jul | 1,639 | 453,917,033 | 276,900 | 13,336 | 7.4 |
| Aug | 1,665 | 429,294,357 | 257,800 | 12,575 | 7.1 |
| Sep | 1,363 | 334,079,457 | 245,100 | 11,834 | 6.8 |
| Oct | 1,331 | 344,749,823 | 259,000 | 11,003 | 6.5 |
| Average | 2010 | (10 months) | 247,450 | ||
| Average | 2009 | 236,558 |
This next chart, provide by Texas A&M’s Real Estate Center show the nine year price history of the average home in Austin, including the dot com crash of 2000-2002.
More About Austin
U.S. Census data shows that the Austin is adding 50.000 new residents per years since 2006. Employment is up 2.7% year over year as of October 2010. According to the Bureau of Labor Statistics, Austin unemployment is 6.8% compared to 9% for the nation and .3% lower than a year ago. 2011 is expected to bring 19,000 net new jobs.
Our process
A number of factors are used to locate and purchase potential properties. Some of the criteria includes:
1. price per square foot
2. rent per $ invested
3. age of property/condition
4. location – is it mostly homeowners or renters?
5. selling price compared to “true market value”
Each property will be carefully screened by a team of professional investors. A list of candidates will be provided to investors to consider along with all the data we have compiled. It is recommended that all investors form an LLC to own the house in order to shield them from personal liability.
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