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Well the stats are in for the May 2009 reporting period.  This information is supplied by the Austin Board of Realtors and tracks all transactions and activity through its Multiple Listing Service.  In short, activity for the month of May 2009 compared to a year ago (MAY 2008), is off around 30%.  Simply meaning that sales activity has slowed compared to the same time 1 year ago. However the good news is that May 2009 was up compared to the previous months activity year to date.  Not a huge surprise as we move into the peak of the traditional "buying season". 

 BUt the OTHER good news is that current market conditions spell GREAT OPPORTUNITY for those seeking to buy a home. This really applies to 1st time home buyers who have a buyer's market to take advantage of with softened prices along with stimulus incentives of $8,000 from the Fed. Government to add to the pot.  They can qualify for more home, purchase more home than normal and get tax breaks as well.  Remember 1st time home buyer is defined by the Government as those who have never owned a home or those who have not owned a home in the last 3 years.  That covers a bunch of you! With rental rates continuing to escalate and so much ownership opportunity currently available in the market it just doesn't make economic sense to continue renting. YOU ARE THROWING MONEY AWAY! 

This also applies to you move up buyers as well. Granted your home may not be worth what is was a year ago.  But if the savings you can get on the new home is equal or greater than the loos you face on your current home, it still makes great economic sense.  The net vale is equal or great to you and you get a larger or better home with more features and a newer design.  It's a win-win proposition.  By utilizing our Cornerstone Move-Up Program you can really take advantage of the market conditions and come out ahead.  

So here's a short summary of where we are in the market place:

NUMBER OF HOMES SOLD                  ACTIVE LISTINGS

MAY 2009 -1707 UNITS                   MAY 2009- 9939    UNITS

MAY 2008- 2108 UNITS                   MAY 2008- 10,577  UNITS

DIFFERENCE- <23.5%> Decline          DIFFERENCE- <6.5%> DECLINE

*** Watch this one. Notice that while sales are off, the inventory is still declining as well.  There are fewer homes on the market currently for sale than the same time last year.  This means upward pressure on home prices over time as inventory continues to decline and a clear signal that the current "Buyer's Market" condition will start to lessen. NOW is a great time to buy! Your purchasing power has never been stronger.

MEDIAN SALES PRICE                       AVERAGE SALES PRICE 

May 2009- $193,000                          MAY 2009- $253,608

MAY 2008- $195,000                          MAY 2008- $261,580

DIFFERENCE- <1.0%> DECLINE             DIFFERENCE- <3.25%> DECLINE

*** Look close at this with me.  The median price- meaning the price at which half of the homes sold were above and half of the homes sold were below, held relatively constant. Not much has changed there.  But look at the average price- down over 3% compared to the same time a year ago. That means more purchasing power. You can buy more home for the same Dollar.  I will say again- NOW is a great time to buy!  You have hit a peak in the market- home prices are down but inventory is declining which means that is about to start changing. Prices are going to stabilize and then start back upward. NOW is a peak time to purchase in the buyers marketplace.

Another important point- the cost of money or Interest Rates, are creeping upward.  The 4.75% standard is gone.  The new standard is 5.125%. Still not bad but creeping upward.  The cost to borrow is getting more expensive and economic pressure will continue in that direction as credit markets continue to be tight.  It all adds up folks. Time is money. Your money and more if it! 

If you would like a free and confidential analysis of your personal situation in regards to buying a new home or assistance in looking at what is the best direction for you at this stage with regards to your current home I will be happy to help you. We can provide you solutions to reaching your goal of home ownership. Give us a call.

Stephen B. McClain, Broker Owner

Cornerstone New Home Solutions

smcclain@cornerstonenewhomesolutions.com

512 876-3116