The Central Texas housing market is still struggling, but experts say there is good news in the near future. Still, buyers and builders are facing challenges.
Eric Olson, of Olson Defendorf Custom Homes, has seen a change in the Austin housing market since this time last year.
"The first six months of 2009 were tough, very tough. There was no money, there were no buyers, there was nothing. Starting end of summer, things started to pick up a bit and it's been slowly growing," said Olson.
That growth is expected to continue. At the 2010 Economic Housing Forecast in downtown Austin on Wednesday, economists predicted Austin's job market will be growing again by the end of the year. That is good news for the housing market.
"Austin is very well positioned in our housing market, with respect to inventory and pricing to really capitalize and move forward as the economy begins to recover late this year and moving into 2011," said Eldon Rude, with Austin's Metro Study.
Still, the number of homes on the market today is far less than a couple years ago. In part, because financing is so tough to get for both buyers and builders. Some sellers are holding off, waiting for a better market.
But people it's good news for people who can afford to buy or build now. Building projects are getting done much faster.
"Three years ago, when you ordered concrete -- get in line, we'll be there when we get there. When we ordered concrete for this job. We ordered it on noon on Tuesday, and at 5am on Wednesday, trucks were lined up ready to go," said Olson.
One agent at the conference said the vast majority of their home buyers are now putting down 20 percent on their homes and paying closing costs. Experts say while that's hard for some people, it's actually good for the market in the long run because they're more stable buyers.
Plus, buyers are paying less. The cost of materials is down slightly, but the cost of labor is down almost 20 percent compared to three years ago.
That makes the view from Olson's latest building project, and for the the future, all that much nicer.
