3rd quarter market update folks. Indeed an interesting 3rd quarter in our economy and real estate market. Austin has a lot of positives on a local level in the midst of large national macro-economic challenges though there are changes coming.

Job & Employment figures for Austin & Texas - Austin Letter

Business Week - Fastest selling markets in current economy

Forbes - Austin best value for the dollar

For the most part our local economy has not taken big hits throughout this year; in fact we're on pace for 12,000 net jobs added which is an average economic growth year for our economy. This is the major reason our real estate market has not tanked like most other cities - the job market is the primary driver for our real estate market. However, I feel this will change in the next 2 quarters. With the latest economic upheavel of '08 in the financial markets, corporations and companies are taking hits such that they likely have no choice but to shed jobs. This will trickle down to Austin which in turn will affect housing demand negatively over the next 2 quarters.

Metrostudy Austin economic report summary

Currently Austin is at a 6.4 mth inventory compared to 5.8 mths on my last update. 6 mths supply is considered a balanced market in terms of supply/demand. Comparatively speaking, the NATIONAL average is 12 mths. I do expect us to be at 7.5 mths by end of year given the high probability of job attrition as mentioned above. In new construction,supply will continue to increase from the current level of 6 mths (healthy compared to other markets) but since builders pulled back on bringing new inventory to market starting last June there won't be a huge oversupply. I think it will be late spring/early summer before supply in both arenas will stop climbing.

Austin area builder report

Texas Real Estate Center - Mark Dotzour report

While overall supply is at 6.4 mths, price-points and sectors are being affected differently. For example in central Austin under $400k, supply is still under 6mths. However, anything above $500k is oversupplied leading to more negotiability. Southwest is holding strong up to $350k. Areas like Round Rock are above a 6 mth supply over a $225k price point. Westlake is still undersupplied below $500k but oversupplied above $600k. Lakeway area is oversupplied starting in the $300k range. Downtown condo market will be oversupplied by end of first quarter above $300k.

It's the 7th annual EAST studio tour! Nov 22nd and 23rd, take advantage of the opportunity to view over 200 artists and 150 studios. There is truly something for everyone and a cool opportunity to support local economy. I suggest picking up the EAST studio tour guide (on website) and mapping out your faves as there is simply too much to see.