Strong Job Growth will Help Austin Real Estate Market

Job growth is a requirement for real estate appreciation in a normal market. While this still isn't a normal market, the latest Central Texas employment numbers provide hope that normalcy may someday return.

According to the Texas Workforce Commission, the Austin-San Marcos-Round Rock metropolitan area added 17,300 jobs over the last 12 month period. This 2.3 percent increase dropped the unemployment rate from 7.2% in August to 6.8% in September. In comparison, the national unemployment rate is still 9.2% and the Texas unemployment rate is 7.9%.

According to the Austin American Statesman, "From August to September, the area brought on 2,700 positions, primarily from government adding 4,400 jobs. Government employment was up about 3,000 jobs year-over-year in September. Education, health, leisure and hospitality were the only other sectors to add jobs from August to September, adding a cumulative 1,400 jobs. Professional and business services shed about 1,100 positions during the same one-month period, the largest decrease that period."

Austin has been very lucky. Our real estate dip has been relatively minor. Read More...

Exclusive: Strong August but Weaker September Downtown Condo Sales

We've updated the AustinTowers | urbanspace Downtown Austin Condo Market Index for August and September, 2010. After 14 months of year-over-year sales gains, sales volumes in September dropped to below their year ago level.

Month
Sales
Avg. Price
$/SF
Avg SF
Avg Year
% Ask
ADOM
Aug-09

14

$252,029

$255
986
1987
93%
57

Aug-10

16

$330,088

$298
1,056
2004
94%
57

Change

14%

31%

16%
7%
16.07
1%
0%

Month

Sales
Avg. Price
$/SF
Avg SF
Avg Year
% Ask
ADOM
Sep-09

15

$258,993

$307
845
1986
91%
81

Sep-10

12

$221,745

$282
786
1993
96%
113

Change

-20%

-14%

-8%
-7%
7.13
6%
40%

During August and September, 28 units worth a total of $7.9M were transacted on the MLS: 1 less than during the same period in 2009. While volume and price both increased in August and then decreased in September

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Seaholm Redevelopment Goes to Council Vote

It was announced in May that Constructive Ventures plans to build 425 new condos in two 400-500 foot towers on an Austin Energy site just West of the 360 condo project downtown. This week, the City council's draft agenda for the 10/14 meeting includes an agenda item to review the master development agreement for the site.

The new project by the developers of Spring would include 425 condo units and 15,000 square feet of retail in two point towers on a 1.7 acre site adjacent to 360 and the decommissioned Green Water Treatment Plant downtown. The project would cost $220 million and construction would begin in 2013.

Seaholm  Condo Towers Austin

According to the Austin Business Journal, "unanswered questions regarding the cost for Austin Energy to relocate its control center from the Seaholm redevelopment area stalled the residential condominium project planned to replace it. Austin City Council members questioned Read More...