Pent up Demand

The NAR's chief economist made an insightful point: "We've added 30 million people to the U.S. population over the past ten years, but sales are where they were in 2000, so there appears to be a sizable pent-up demand that could come to the market once the economy gathers momentum." Other analysts commented that "decade low mortgage rates and near record highs in affordability should help stabilize sales in the near term, however it will take meaningful improvement in the labor market to drive housing going forward."


Even here in Austin sold properties in the Multiple Listing Service for our area shows that activity is lowest for the past 10 years for the months July through September.  I also believe there is a great deal of pent up demand but I don't think low mortgage rates will be enticing people out.  Until we see consecutive months of positive employment numbers like we saw in October, I don't think people will be leaving their leases to buy a house.  Better employment figures and low mortgage rates, that's what I want to see.

Starbucks report, my open house, and my fave mexican restaurant

What a nice crowd at my local Starbucks this morning.  I counted 9 in line, 6 waiting for their coffee and 23 sitting inside and outside.  It’s a gorgeous day too.  About 50 degrees, sunny, and I don’t see a cloud from a where I sit.  In my first blog I said I would observe the 8am – 9am crowd, but it is apparent from today the Saturday activity starts happening around 10am.

My open house in Anderson Mill West of Cedar Park went well today.  I consider it a success if I have just one qualified buyer come through the door.  Anderson Mill West is located just north of 620 along El Salido and is a pretty sizable area.  The open house I held today feeds to an exemplary elementary school and middle school in the Leander ISD.  That’s pretty exciting.   Especially since the elementary school is basically in the backyard of the house and the middle school is just down the street.  What more can you ask for at $183,000.

I drew the graph below based on data from the Austin Multiple Listing Service (which is deemed reliable but does not guarantee accuracy).  To me it shows a pretty stable market based on where the $ per square foot value starts 10 years ago and where it ends in 2010 so far.  It starts just under $80 and ends right in the middle of the 80 and 100 (the bars).  And look at the average sold price line…pretty darn stable.

Another thing I love about this area is the Mexican Restaurant down the street named Guadalajara.  I go there in the morning before 11am whenever I can (lately every other week) for the $2.49 Huevos Rancheros plate.  Whenever I am showing out of town clients that side of town I always invite them to have a genuine Mexican lunch with me to break up the day.  So far everyone I have taken there has gone back after settling in to their new home in Cedar Park or Northwest Austin.  The waitresses there are great.  Your cup of coffee never goes empty.  My usual is the plate with coffee, chips, corn tortillas, and a side of bacon (don't forget to exercise an extra 15 minutes or so the next day).