Sunday, November 20, 2005

Reduced, Repo'd And Foreclosured In Austin, TX

A reader sent in these observations from Austin, Texas. "Last night I picked up the current copy of 'Homes & Land of Greater Austin,' a color glossy freebie at the grocery store. 95 pages, and lots of pages filled with 'Reduced,' 'Bank Repo,' and 'Foreclosure' tagged houses."

"It looks like things are beginning to trend downward here. The interesting thing about all the foreclosures and repos is the evidence that they're moving up the food chain."

"For example:

* Two story, 5 bedroom 3 bath, 3699 sq ft, 2004 Appraised value $565,261. Bank repo listed at $463,400.

* Two story french style, 4 bedroom, 4 1/2 bath, 2 living areas in an exclusive neighborhood. 2004 Appraised value $614,426. Foreclosure listed at $474,930.

* One story, 5 bedroom, 4 1/2 bath, 2 living areas, 5984 sq ft. 2004 Appraised value $645,195. Foreclosure listed at $498,950.

"And those were off *just one page*. This may not be shocking to people used to California prices, but for Austin (even with the inflated prices) $600k homes are probably double the average house value."

"Perhaps we need a contest to find the 'Highest appraised value foreclosure.'"

And my comments, "What people don't understand about Austin is that it had a boom in the late 90's and into 2000. I realize prices have been flat since, but I doubt they are in line with rents. When you look at many listings there, you have to consider that much of the housing stock is old. The newly sprouting subdivisions on the outskirts have soil problems and long commutes."

2 Comments:

At 1:17 PM, Blogger Ben Jones said...

What people don't understand about Austin is that it had a boom in the late 90's and into 2000. I realize prices have been flat since, but I doubt they are in line with rents. When you look at many listings there, you have to consider that much of the housing stock is old. And the newly sprouting subdivisions on the outskirts have soil problems and long commutes.

BTW, the last time I drove through the Hill Country, there were houses being built like crazy. Is everybody going to work in antique shops?

 
At 1:46 PM, Blogger Roastbeef said...

At my last job we had an engineer that lived in *Temple* and drove down to Austin every day to work.

As to how crazy prices have been here in town: A couple of years ago a couple I know spent $190k on a 1900 sq ft KB Home, east of I-35, backing to a drainage ditch and across the street from a sewer lift-station. (For those of you not in the know: KB Homes, formerly Kaufman & Broad, is a "most sq ft for the dollar" type builder)

 

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