I was contacted by an Austin TX Home Buyer a couple of weeks ago to look at houses. After we talked about her getting approved for a mortgage and her time frame, I then received an email from her with some concerns that I would like to address.
She says, "I'm dropping the search for a house because I believe the economy is way too unstable here." Here? In Austin TX? We have the second lowest unemployment behind Washington DC, and we were recently at the top of a list for Best Economy.
She says, "I'm thinking we are in the middle of a big mess and prices are going to drop an additional 20% from where they are now." An additional 20%? When did they drop a first 20%? Prices in Austin TX have stayed pretty darn stable over the years. Granted, if you're looking over the million dollar mark, yes, that market has changed a little as a million dollar home a few years ago isn't today's million dollar home. However, the meats and potatoes of our Austin real estate market has not seen such a decline AT ALL!
She says, "I'm thinking prices are tanking now or will tank very shortly because people are unemployed, nearly 19% Nationwide." Ummm, where are you getting your information? Nationwide is just over 9%, no where near 19%. And Austin TX, as previously mentioned, has the second lowest unemployment because we're growing jobs! Many big companies have recently moved to Austin like Facebook and Google, and Ebay has moved some jobs here... and Sears is thinking of moving here because of everything going on here in Austin TX.
She says, "People have difficulty coming up with 20% down payments." You don't need 20% to buy a house! For an FHA loan, the minimum is 3.5%. For a basic Conventional loan, it's a 5% down payment. There are even some loan programs where you can still get 100% financing, but they have program fees that roll into the mortgage finance amount, so I suggest not doing those, but to each their own...
There were many more things in her email to me, but these were the main ones where I questioned if she was looking at National information or Local information. Real estate is LOCAL! Yes, National issues can effect Local economies, and no economy is immune to the outside world, however, Austin TX has shown over and over again that our real estate market is strong, and we're not facing challenges of the National market.
If you're looking to buy or sell a house in the Austin TX or surrounding area, please let me know help you gather some useful information.
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Copyright© 2011 By Donna Harris, All Rights Reserved. You may re-blog with links back to this post.
* Real Estate Concerns Should Be Addressed Locally - Not Nationally * was first published on donnahomesblog.com.