Connect with us

Austin, TX

Austin-area housing outlook positive; job growth, slower home prices pluses, expert says

Published

on

Austin-area housing outlook positive; job growth, slower home prices pluses, expert says


Longtime Central Texas housing market analyst Eldon Rude recently gave his 21st annual forecast at an event sponsored by the Home Builders Association of Greater Austin. Rude is principal of 360° Real Estate Analytics, an Austin-based real estate consulting firm.

“This year is going to be better than last year, for many reasons,” Rude said.

Rude said that, among its peer cities, Austin had the biggest decline in its ratio of median family income to median home price last year, as home prices declined amid rising mortgage interest rates.

(According to Fidelity, for most individuals and families, a home’s value, generally speaking, should be no more than three to five times their total annual household income.)

Advertisement

Austin saw a decline from the high end of that range —from a multiplier where the median home price was five times that of the median family income in 2022 — down to a multiplier last year of 3.9 (that is, the median home price last year was $481,200, while the median family income was $122,300).

Some slowdown in home prices could be a plus in helping Austin continue to attract people and businesses.

“In the span of a year, we got more attractive, and I think that’s a good thing,” Rude said.

In another positive, Rude said, his homebuilder clients report that sales have started off well in the first six weeks of the year.

Advertisement

“All industry eyes are on the direction of interest rates,” Rude said.

And while some other metros are losing population and jobs, Rude said, he and other analysts expect Texas and the Austin area to outperform many places around the country.

“There is reason for all of us to feel good about where we are,” Rude said.

He said the Austin region gained 32,800 jobs from December 2022 to December 2023, a 2.5% job growth rate. The local jobless rate was 3% in December.

“So many talented people and companies have decided over time this is a place they want to live and grow their businesses,” Rude said. “We are so lucky we are in this industry in Austin, Texas.”

Advertisement

In advance of his presentation, attended by nearly 700 industry professionals Thursday, Rude shared these takeaways of his 2024 forecast with the Statesman:

  • “Looking at the market for previously owned homes, I see available inventory remaining tight this year as many existing home owners remain reluctant to sell their homes if they have an existing mortgage with an interest rate well below what they can get with a new loan.”
  • “New homebuilders are starting the year with enough inventory to give prospective buyers options as they look for a new home. Also, many builders are offering interest rate buy-downs to purchasers to help them qualify for a mortgage.”
  • “As we move deeper into 2024, I expect the number of available new homes will drop as builders work to reduce their inventory to levels more consistent with pre-COVID norms for the industry.”
  • “With fewer new homes in inventory expected later this year, homebuyers will see more competition for available homes, with builders likely offering fewer price concessions than buyers have seen over the last year or so.”
  • The biggest challenge I see emerging in the new home market in the coming years is the dwindling supply of lots and land available to build homes. The most significant issues are related to the challenges in securing adequate water supplies to build enough homes to accommodate the region’s future needs. Builders, developers and investors continue to look further out for land.”



Source link

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Austin, TX

Lakeline Mall shooting: APD release video of suspect

Published

on

Lakeline Mall shooting: APD release video of suspect


APD searching for suspect in Lakeline Mall shooting

Austin police are still searching for the suspect involved in a shooting at Lakeline Mall on Thursday.

Police said on Jan. 2, around 3:55 p.m., officers responded to an incident inside Lakeline Mall in Cedar Park.

Advertisement

The suspect and a victim left the mall immediately after the shooting.

MORE STORIES:

Advertisement

Initially, police said, there was no indication of any injuries. However, it was later determined a victim had minor injuries and self-reported to the hospital after leaving the mall.

Advertisement

A photo and video of the suspect has been shared by police. They described the suspect as a Hispanic man in his late teens to early 20s. He was last seen wearing a black hoodie, dark pants, and dark shoes.

Advertisement

If you have any videos, photos, etc., Austin police are asking people to share them by scanning the QR code below.

Anyone with any information should contact APD’s Aggravated Assault Unit at 512-974-5245. You may submit your tip anonymously through the Capital Area Crime Stoppers Program by visiting austincrimestoppers.org or calling 512-472-8477. A reward of up to $1,000 may be available for any information that leads to an arrest.

The Source: Information from the Austin Police Department

Advertisement

Crime and Public SafetyCedar Park



Source link

Continue Reading

Austin, TX

ERCOT says grid is prepared for freezing temperatures

Published

on

ERCOT says grid is prepared for freezing temperatures


AUSTIN, Texas — Snow shovels may not be needed next week, but Spectrum News meteorologist Dan Robertson says northeast Texas down to San Marcos should prepare for colder weather. 


What You Need To Know

  • ERCOT officials expect the grid to be adequate in a winter storm
  • In correlation with low temperatures, ERCOT forecasts show an increased energy demand early next week
  • As the freezing weather moves closer, power plants are required to weatherize equipment, and Texans are advised to weatherize their homes

“In this particular case, the freezing temperatures will mainly be overnight, early morning, and each afternoon most of the state will rise a little bit above freezing,” said Robertson.

Officials with the Electric Reliability Council of Texas expect the grid to be adequate in a winter storm. However, there is a 50 to 80% chance of rolling blackouts if a storm lasts several days.

ERCOT said in a statement that it is “closely monitoring the winter weather conditions moving into Texas next week. Grid conditions are expected to be normal.” 

“One of the things that we don’t really know for sure is how long this is going to last, these polar air masses being very dense and heavy. They tend to get into the area and then just hang around until something comes along to push them out,” said Robertson.

Advertisement

In correlation with low temperatures, ERCOT forecasts show an increased energy demand early next week. Energy expert Ed Hirs predicts the power plants will remain operable, but at a cost to consumers.

“If a few of these plants don’t show up, then the price across the grid will go from, say, $50 a megawatt hour to $5,000 a megawatt hour, or in wholesale terms for the consumer, it will go from 5 cents a kilowatt hour to $5 a kilowatt hour,” said Hirs.

Competitive pricing for consumers is why the Rio Grande Electric Co-op, which owns power lines across 18 Texas counties, wants to connect its New Mexico consumers to the Texas power grid.

“Connect to ERCOT, then we have a bigger pool to, you know, find better pricing, a better source,” said Theresa Quiroz, CEO at Rio Grande Electric.

ERCOT and the Public Utilities Commission of Texas, which regulates the grid, oppose the out-of-state connection.

Advertisement

In a filing, PUCT warns that Rio Grande Electric’s request could trigger federal oversight and “disrupt the jurisdictional status quo for ERCOT and the utilities operating in ERCOT that the PUCT regulates.”

“We can’t leave our members out in the dark,” said Quiroz.

In November, Rio Grande Electric asked the Federal Energy Regulatory Commission to determine whether connecting its New Mexico customers to ERCOT would require federal regulation.

“In our filing we talk about hypothetical projects that could come to fruition if, you know, the FERC matter gets resolved and they give us permission to move forward. Now, once we get that, then we go to the Public Utility Commission with an actual project that they can review, dissect and inform us which direction we need to go in,” said Quiroz.

But energy experts warn federal oversight may be unavoidable if ERCOT can’t keep the power on this winter.

Advertisement

“I would expect that President Trump is going to make an effort to throw ERCOT under federal oversight and regulation, simply because this is a huge national security issue for this country,” said Hirs.

As the freezing weather moves closer, power plants are required to weatherize equipment, and Texans are advised to weatherize their homes. 

“The main thing is to make sure that your heating ventilation system is well-functioning and is ready to be tested over the next seven days or so,” said Robertson.



Source link

Advertisement
Continue Reading

Austin, TX

Lakeline Mall Shooting: Austin Chief gives update

Published

on

Lakeline Mall Shooting: Austin Chief gives update


Austin Police Chief Lisa Davis gives an update on a shooting at Lakeline Mall in Cedar Park. Davis says a shot was fired at the mall’s food court, but no one was hit and no one was injured. The mall was placed on lockdown for a time.



Source link

Continue Reading

Trending