Real Estate News You Can Use
January 2008
Risé Johns ASR®, CRS®, GRI
While the north shore is not Austin, there is a trickle down effect that impacts our economy. While black clouds are gathering over the nation’s economy, the forecast for our area is better.
The end of 2007 will see the north shore’s housing market sell 85% of the number of homes that were sold through the MLS in 2006, the most prolific year ever. Historically, this will place 2007 home sales in second place. Yet, I hear concern about the slowing housing market comparing ‘07 with ‘06. If you compare any year to the best year ever, the numbers will always be disappointing. The north shore’s average sales price is up $32,800 over ‘06!
So why all the doom and gloom? We read too many national stories and apply it locally. We are not in a declining market. Our inventory is growing for only two reasons: fewer buyers and more homes. Why? We have fewer buyers due to the tightening of the mortgage market. We had drifted into a time when anyone who wanted a loan could obtain one. Foreclosures started mounting so lenders went back to their former guidelines—a buyer needs decent credit, a down payment and a job to get a mortgage. What a novel concept!
This is a healthy adjustment. The problems nationwide are bringing interest rates down enabling more buyers to afford homes.
Currently Lago Vista is in a slowing, not declining market due to the time of the year. Our market definitely picks up in the spring and summer. There is no better place to invest today than the north shore.
Risé Johns has been involved in real estate for over 27 years. Her knowledge, experience and customer service will make your next real estate transaction a smooth one. Call Risé at (512) 267-LAGO for “World Class Service.”
