Another weird week in the global markets. Whew I’m not going to comment on that since I don’t have any real answers to the many questions. On the other hand, may be shaping up to be a very good time to invest in real estate. Rents continue to be high for detached single family homes and other multi-family. I would not want to be a tenant in Austin over the next few years since they are subject to the migration patterns, and where there is decent wages to be earned rental property will be in demand.
Interest rates continue to be at all-time lows, and that means good things for people that can qualify for a home loan. I can speculate that over the course of the next year some of the lending restrictions should ease and that would be a welcome relief for us in the business of trading homes, as well as the many potential buyers that are having a difficult time getting qualified right now. Cash has certainly been king recently.
Not much has changed lately regaarding the Austin real estate market place. If you own property in a prime location it has been flat to good, and if in other locations its probably not a good time to sell or try and refinance. I say refinance simply because, in most cases, you will need at least 20% equity in your home make that work and many home owners (even in Austin) just don’t have that. There is a good place to start with reforming mortgage rules…allow people to refinance, if they have good credit, regardless of their equity position. That would open the flood gates for new loan business and reduce some of the stress average folks are feeling trying to make their bills. And rather than pouring out billions of dollars to stimiulate the economy, the government would only have to insure the top 20% of the loan…and its a good risk if credit standards are met. Any way wishful thinking.