All Encompassing Mortgage and Real Estate Thread

[jimmyjazz 46165]

11 minutes ago, troph said:

you're right the sell to trade up doesn't do a whole lot of good if you aren't changing some part of the dynamic - moving further out, downsizing, moving to a different market, etc.

I don't see how it works for the average Austin homebuyer, if they're trying to reduce their burn.  More than a few years with a homestead exemption means they'd probably have to downsize 25% or more (similar neighborhood) just to keep property taxes the same, and then add in realtor commissions and other fees . . . man, I'm just gonna wait until I'm ready to leave town (which could be as soon as 12 months from now).

[Guest Lobo]

Yeah, we shopped the shit out of everything within our current school district, getting pretty far away from downtown/work/campus.  We just can't make it work economically even with how well we'd cash out with the current house (home is fairly nice and aging fast, but it's a large lot with well located dirt).  So we started thinking about really far out like Lakeway/Hays County/Bee Cave/etc.  It's somewhat tempting but even out there we can double our home size but it's just too far from everything we've ever known.  That tug on us would fucking sting every single week. 

So then we did an extensive look in my wife's sisters area in Fort Worth.  The one other large city in Texas we could raise kids in before retiring out to the country.  But holy fucking shit...I didn't get the fucking email on Fort Worth.  What the fuck happened there?  I know it's growing but $700/foot for 40 year old houses in decent school districts?  For the time being, gotta stay here unless somebody just offers us something so ridiculous that we take it and rent in the same district (lots of apartments and townhomes where we are near the elementary school) for a couple years until this cycle blows over and we can pounce on some shit.  I'm starting to think that's the play.  Wife doesn't want to move twice in two years but for the right check amount, we're doing it.  With a leaseback provision while we figure it out which seems to be woefully unpopular as of late. 

Are we all crazy with this current valuation and cheap interest to just grab our 80% equity through a HELOC and lever some other investments with the capital?  I know we're overvalued, but I wouldn't mind  tapping into half of it at least.  Plus the house needs some work and I don't have the time to do it anymore.  We did non-stop DIY shit for the first 10 years, but we just dont' have the fucking time anymore.  /rant.

[jimmyjazz 46165]

If you can beat the HELOC rates with other investments then that's a play.  It shouldn't be that difficult in this economy, but of course, a downturn might make you regret that move.  I haven't studied it, but I seriously doubt home values swing the way the market does.

Personally, I feel way overinvested in real estate.  I want no more exposure.

EDIT:  the flip side of that argument might be "good debt" vs "bad debt", meaning debt one can deduct and debt one can't.  So, if you're able to pay off revolving CC debt, etc., then a HELOC probably makes sense, but I am so not a financial planner and I haven't done the math.

Edited June 29, 2021 by jimmyjazz

[Guest Lobo]

No, I wouldn't put any of that HELOC money into real estate.  Other than fixing a few things up around the house which we've been putting off since we had kids.  But not using it to lever another real estate play or anything.  In fact, only "investment" would be to dump a lump sum into the girls 529 plans to get them fully funded.  With their young ages, and the low fees, I can all but eclipse the interest rate I'll be charged on a HELOC.  It's the cheapest money I can access right now. 

There really isn't a good homeowner tool for measuring what all you can do with your home equity.  This thread is about the best I've found and you surly bastards are good, but you're tough to deal with. 

[Mother mopar 3324]

Bullard area?

Close...Jacksonville

[Mother mopar 3324]

Bullard area?

Close...Jacksonville

[Armybrat 40917]

On 6/28/2021 at 5:34 PM, Lobo said:

Yeah, that's some bullshit.  We take the kids to see their cousins all the time in Belterra.  We live 3 miles SW of downtown.  With mild traffic/reverse commute times, it is a 30 minute commute door-to-door.  With typical Y-Oak Hill traffic, it is more than that obviously.  If there is someone selling Belterra residents, "Be at your downtown office, meeting, dinner, event in 25 minutes"...they are fucking lying.  But every fucking realtor does it, this shouldn't be any different.  Same people that now classify Buda as South Austin, 183 as Central Austin, and Bastrop as East Austin.  

Gottdam Crestview is far north Austin to me.

[troph 24911]

2 hours ago, Lobo said:

Yeah, we shopped the shit out of everything within our current school district, getting pretty far away from downtown/work/campus.  We just can't make it work economically even with how well we'd cash out with the current house (home is fairly nice and aging fast, but it's a large lot with well located dirt).  So we started thinking about really far out like Lakeway/Hays County/Bee Cave/etc.  It's somewhat tempting but even out there we can double our home size but it's just too far from everything we've ever known.  That tug on us would fucking sting every single week. 

So then we did an extensive look in my wife's sisters area in Fort Worth.  The one other large city in Texas we could raise kids in before retiring out to the country.  But holy fucking shit...I didn't get the fucking email on Fort Worth.  What the fuck happened there?  I know it's growing but $700/foot for 40 year old houses in decent school districts?  For the time being, gotta stay here unless somebody just offers us something so ridiculous that we take it and rent in the same district (lots of apartments and townhomes where we are near the elementary school) for a couple years until this cycle blows over and we can pounce on some shit.  I'm starting to think that's the play.  Wife doesn't want to move twice in two years but for the right check amount, we're doing it.  With a leaseback provision while we figure it out which seems to be woefully unpopular as of late. 

Are we all crazy with this current valuation and cheap interest to just grab our 80% equity through a HELOC and lever some other investments with the capital?  I know we're overvalued, but I wouldn't mind  tapping into half of it at least.  Plus the house needs some work and I don't have the time to do it anymore.  We did non-stop DIY shit for the first 10 years, but we just dont' have the fucking time anymore.  /rant.

Lake Travis is legit if you like the lake lifestyle. I’ve never regretted moving out to the lake for a second. But then you have to enjoy the water, live near it, have a boat and fully embrace the life style. If you do, nothing in town will matter and if it does it’s an easy drive in.

[closetohumping 17474]

4 hours ago, South Austin said:

In Texas, I think that would constitute puffery and wouldn't be actionable.  That's just douchy sales hype, with some fear baked in there.  That kind of marketing is nothing new. 

If it's quantifiable is it puffery?

 

 

Look, I actually don't care as I don't live in Texas but I just wanted to post this to say your mom has puffy nips.

[Guest Lobo]

26 minutes ago, troph said:

Lake Travis is legit if you like the lake lifestyle. I’ve never regretted moving out to the lake for a second. But then you have to enjoy the water, live near it, have a boat and fully embrace the life style. If you do, nothing in town will matter and if it does it’s an easy drive in.

I am happiest near/on water since I was a kid.  Fishing, swimming, boating.  But our kids are a little too young for that still.  But I'm tempted to cash out now, rent near here for two years, and then buy out there on the water...or at least within 100 yards of it.  Wishful thinking probably to hope inventory opens up out that way in 24-30 months, but it can't get any more compressed---can it?  

[Pato del Muerto 52608]

Do you think that securing a rental is all that easy right now?  Not enough sales inventory means all these people are being forced into rentals…which there are also now not enough of. 

[troph 24911]

Dp

Edited June 30, 2021 by troph

[troph 24911]

50 minutes ago, Lobo said:

I am happiest near/on water since I was a kid.  Fishing, swimming, boating.  But our kids are a little too young for that still.  But I'm tempted to cash out now, rent near here for two years, and then buy out there on the water...or at least within 100 yards of it.  Wishful thinking probably to hope inventory opens up out that way in 24-30 months, but it can't get any more compressed---can it?  

Do what you gotta do raising kids out here isn’t hard, it’s easy, maybe easier. And prices are catching up to central Austin.  Water adjacent with a nice view is pushing $2m now. Some higher, others much higher. Water front is double to triple that.

I think the only thing that changes the price trajectory is interest rates and not much else. I don’t think scarce properties will become less scarce. Sure production builds will increase when supply chain evens out but does that directly impact these sub markets we are talking about - doubtful.  

Edited June 30, 2021 by troph

[UTPhil2006 3815]

Jumbo rates between 2.8-3.25 definitely helps

[CHIEF 5095]

9 hours ago, troph said:

Do what you gotta do raising kids out here isn’t hard, it’s easy, maybe easier. And prices are catching up to central Austin.  Water adjacent with a nice view is pushing $2m now. Some higher, others much higher. Water front is double to triple that.

I think the only thing that changes the price trajectory is interest rates and not much else. I don’t think scarce properties will become less scarce. Sure production builds will increase when supply chain evens out but does that directly impact these sub markets we are talking about - doubtful.  

I know waterfront has always been crazy, even when I lived in Austin in the late 90s/early 2000s, but holy fuck. I'm putting a waterfront 3/2, with a canal in back, boat slip, and about 100 foot of canal front under contract later today for $515,000. Just shows how big of a difference there is in our markets. We are at $211.59/sqft. on this one. I bet lakefront on Lake Travis was past $200/sqft. in the 80s.

CHIEF

 

Edited June 30, 2021 by CHIEF

[CHIEF 5095]

NM

Edited June 30, 2021 by CHIEF

[troph 24911]

55 minutes ago, CHIEF said:

I know waterfront has always been crazy, even when I lived in Austin in the late 90s/early 2000s, but holy fuck. I'm putting a waterfront 3/2, with a canal in back, boat slip, and about 100 foot of canal front under contract later today for $515,000. Just shows how big of a difference there is in our markets. We are at $211.59/sqft. on this one. I bet lakefront on Lake Travis was past $200/sqft. in the 80s.

CHIEF

 

Where are you again? Where is this canal/water front property? I’ll admit I was looking at corpus water front/canal properties for giggles and grins a few months back and surprised how “affordable” it seemed compared to lake Austin/lake Travis. Quality of the builds are often better on lake Austin/lake Travis but it’s the difference between $1m and $4m for water front. Kinda insane.

[CHIEF 5095]

58 minutes ago, troph said:

Where are you again? Where is this canal/water front property? I’ll admit I was looking at corpus water front/canal properties for giggles and grins a few months back and surprised how “affordable” it seemed compared to lake Austin/lake Travis. Quality of the builds are often better on lake Austin/lake Travis but it’s the difference between $1m and $4m for water front. Kinda insane.

Lake Granbury. It takes about the same amount of time to get to  central Ft. Worth as it does to get from Volente into central Austin. You can still get 10-15 year old 4000 sqft. waterfront homes with two boat slips for $700-900k.

CHIEF

[troph 24911]

1 hour ago, CHIEF said:

Lake Granbury. It takes about the same amount of time to get to  central Ft. Worth as it does to get from Volente into central Austin. You can still get 10-15 year old 4000 sqft. waterfront homes with two boat slips for $700-900k.

CHIEF

Nuts. I bet that pops eventually too. 

[Catpfish 618]

20 hours ago, Wulaw Horn said:

Mom and dad are selling their house in Houston and just got a pretty good offer.  255 (ask was 235) buyer paying title, HOA docs and not asking for warranty, with short option period and healthy earnest money and short financing contingency.  
Only problem with the offer was they only waived appraisal up to 230k.  I think it will appraise for 250k ish and if it does they will get top of appraisal.  Nobody else guaranteed appraisal up to anything, so... no reason to look at other offers.  11 offers in 3 days, 1 open house and 9 showings.  Houston is a sellers market.  I knew this because of being in the industry as a mortgage guy and having my clients experience it- but it is so freaking odd after 25 years of being a buyers market outside of hot neighborhoods and the like.  When I say Houston in this sense I'm not talking about in the loop I'm talking about cookie cutter houses in the burbs.  What a weird thing after all this time.

Nothing like yall's ATX stories, but this is a weird development for Htown.  

Yeah, good luck getting anything accepted here without a full waiver of appraisal.  

[Catpfish 618]

And just for giggles, I checked the leases in the Westlake ISD areas (mostly 8E and 8W).  There is one house (not counting condos, townhouses and duplexes) that is 3+ bedrooms under $4,000 asking.  In checking that listing, apparently the agent thinks Del Valle school district pulls from west Austin...dumbass.

So for a 3+ bedroom house in 8E or 8W, you are looking minimum $4,000/month

  

[Wulaw Horn 19152]

I have to say, I don’t understand the value prop of living in Austin at those prices. 

It’s not a major city, but you are paying higher than major city prices, without the big city amenities. 

[Surly Bevo 25159]

I have to say, I don’t understand the value prop of living in Austin at those prices. 
It’s not a major city, but you are paying higher than major city prices, without the big city amenities. 

So you’re saying Austin is weird?

[jimmyjazz 46165]

58 minutes ago, Wulaw Horn said:

I have to say, I don’t understand the value prop of living in Austin at those prices. 

It’s not a major city, but you are paying higher than major city prices, without the big city amenities. 

I think you might be a little behind on the news cycle.

[Wulaw Horn 19152]

3 minutes ago, jimmyjazz said:

I think you might be a little behind on the news cycle.

I don’t understand what you are trying to say here. You sound like you are thinking about selling out and moving after kids are settled so I guess you don’t think it’s great value right now either. 
 

[jimmyjazz 46165]

2 minutes ago, Wulaw Horn said:

I don’t understand what you are trying to say here. You sound like you are thinking about selling out and moving after kids are settled so I guess you don’t think it’s great value right now either. 
 

Our desire to move to a beach has nothing to do with Austin's value or lack thereof.  My comment was really directed at your second sentence, regarding Austin's status as a "big city" and its lack of amenities.  It's big enough to attract major business and tons of people, and while it may not have the best public transportation, it's not a dusty hippie commune any more, either.  It's also STILL cheaper than the major coastal communities.

[Wulaw Horn 19152]

3 minutes ago, jimmyjazz said:

Our desire to move to a beach has nothing to do with Austin's value or lack thereof.  My comment was really directed at your second sentence, regarding Austin's status as a "big city" and its lack of amenities.  It's big enough to attract major business and tons of people, and while it may not have the best public transportation, it's not a dusty hippie commune any more, either.  It's also STILL cheaper than the major coastal communities.

I don’t consider any city without a major league sports team to be a major city. That essentially means you aren’t in the 30 or 40 biggest markets or cities. 
the airport is expanding but not great by major city standards. You don’t have a massive health industry where people come from all over. 
Is there a world class museum?  
Food scene people come from all over to?

Shopping district that pulls the hicks from 5 hours away? 
That’s my definition of major city and that probably fits 25 or 30 cities around the country of which Austin isn’t yet one of those kind, yet Austin has pricing like its what- a top 10 city?  You can say it’s more expensive than the major metro coastal cities and while that’s true as far as it goes that’s the most expensive metric in America. 
If you want to say a Cory in the 25-50 market is major when lacking some of these things I use to define major city that’s fine. I also don’t consider Columbus a major city and that seems pretty similar to Austin. 
My cut line is probably Portland/Nashville with Charlotte/salt lake city a little bit ahead of those two and Austin a little bit behind. 
if Austin wasn’t within 3 hours of SA, Houston and Dallas it probably would have some/all of that stuff. 

[jimmyjazz 46165]

2 minutes ago, Wulaw Horn said:

I don’t consider any city without a major league sports team to be a major city.

Odd standard, but it definitely sets Austin apart, as it's by far the most major US city *without* a "major league" sports team, and that's if you ignore MLS.  I would also throw in COTA as a pretty fucking big deal.

 

Quote

Food scene people come from all over to?

Well, yeah.

 

Quote

That’s my definition of major city and that probably fits 25 or 30 cities around the country of which Austin isn’t yet one of those kind, yet Austin has pricing like its what- a top 10 city?  

No, not top 10.  Top 10 urban real estate is $700/sf.  We're not there yet, except maybe in the hottest of hot spots, but not as an average or median price city-wide.

 

 

I know better than to engage this further with you, so you are welcome to your opinion, but I'm pretty sure the rest of the country sees Austin as on the list of "major" cities, and definitely so if we limit it do desirable major cities.

 

 

[Wulaw Horn 19152]

20 minutes ago, jimmyjazz said:

Odd standard, but it definitely sets Austin apart, as it's by far the most major US city *without* a "major league" sports team, and that's if you ignore MLS.  I would also throw in COTA as a pretty fucking big deal.

 

Well, yeah.

 

No, not top 10.  Top 10 urban real estate is $700/sf.  We're not there yet, except maybe in the hottest of hot spots, but not as an average or median price city-wide.

 

 

I know better than to engage this further with you, so you are welcome to your opinion, but I'm pretty sure the rest of the country sees Austin as on the list of "major" cities, and definitely so if we limit it do desirable major cities.

 

 

I’m not arguing I was trying to understand what you were saying and now I do. Thank you. 
I don’t think it’s unreasonable to cut the “major city” designation at 20 or 25.  You are going down to probably 35 or 40. There’s people who might say we only have 5 major cities in this country. 
I’ve lived in San Fran, Seattle, houston, Austin, St Louis, Minneapolis and Washington DC as my frame of reference. Austin sticks out as less major to me from an ammenities standpoint. Would I rather live in Austin than St Louis?  Yes.  By far. 
It’s the 38th sized TV market. It’s probably a top 30-35 city. 

[jimmyjazz 46165]

 

St. Louis MSA:  20

Charlotte MSA:  22

San Antonio MSA:  24

Portland MSA:  25

Austin MSA:  29

Columbus MSA:  32

 

[jimmyjazz 46165]

If one just goes by city proper population, Austin is #11, ahead of all I listed save San Antonio (#7).

 

[Guest Lobo]

My property taxes and the absolutely insane purchase price I was offered earlier this month for our rapidly-outdated modest size home don't seem to much give a fuck that Austin doesn't have an NBA franchise.  

 

Edited June 30, 2021 by Lobo

[Wulaw Horn 19152]

20 minutes ago, jimmyjazz said:

 

St. Louis MSA:  20

Charlotte MSA:  22

San Antonio MSA:  24

Portland MSA:  25

Austin MSA:  29

Columbus MSA:  32

 

So basically the exact order I ranked them with my cut at 20-25, instead of 30 or so. Unless you are trying to make the argument Austin is a top 20 city (which I don’t think you are) we have zero disagreement as to what austin is. 

[Hefeweizen 5333]

39 minutes ago, Lobo said:

My property taxes and the absolutely insane purchase price I was offered earlier this month for our rapidly-outdated modest size home don't seem to much give a fuck that Austin doesn't have an NBA franchise.  

 

You don’t understand that Austin is barely a top 30 city and therefore your property is actually worthless.

 

I guess Carmel, Santa Barbara, Cape Cod, and Sonoma County are all worthless because they have no sports franchises.

 

Shit land in Detroit must be super valuable since they have all major sports!

[Hefeweizen 5333]

3 hours ago, Wulaw Horn said:

I have to say, I don’t understand the value prop of living in Austin at those prices. 

It’s not a major city, but you are paying higher than major city prices, without the big city amenities. 

Lol.  You don’t get it alright.

[Wulaw Horn 19152]

8 minutes ago, Hefeweizen said:

Lol.  You don’t get it alright.

Value doesn’t equal cheapest prices nor best places to live. It’s a combination and give and take both ways. 
Plenty of people on here are arguing this is just a housing bubble, unsustainable and prices are going to crash. That would signify that austin isn’t a great value proposition. I actually have argued I don’t think that’s going to happen multiple times on here so I’m not hating on Austin nor saying it’s sucks. I’d just rather live in Dallas or Houston for cheaper. To each his own. I will now out here as although this isn’t off topic as it discusses real estate market, pricing and what’s going on in the Austin market it’s probably pointless to say more. Austin’s a great place to live. I get that. I just can’t believe there are that many people that can and choose to afford it.  I hope it’s still an attainable dream for the average Texan to live there and not the playground of the costal refugees who decide they want a cheaper place that reminds them of where they moved from. That’s all. YMMV

[jimmyjazz 46165]

Well, a whole lot of Austinites already own their houses, and are just watching their equity climb (along with property taxes, although that should be less severe in most cases with homestead exemptions).

So, while it may be true that a married pair of schoolteachers aren't likely to find something suitable in the inner city these days, it doesn't mean that there aren't plenty of middle class families still doing fine, all the while watching their net worth climb at a rate they didn't expect.  Personally, I don't see much impetus for a crash, although I do imagine we'll see things level off at some point, and likely stagnate.  That's not the same as a price collapse, though.  The ingredients just aren't there.  Demand is huge, supply isn't, interest rates are historically low . . . could it flip?  Sure.  I'm just doing what I can to try to see what's down the road a few months so I can pull the trigger when I think I'm right (and thus likely wrong).

[Pato del Muerto 52608]

5 hours ago, CHIEF said:

Lake Granbury. It takes about the same amount of time to get to  central Ft. Worth as it does to get from Volente into central Austin. You can still get 10-15 year old 4000 sqft. waterfront homes with two boat slips for $700-900k.

CHIEF

It’s a tiny damn lake though.  Works fine for views, less fun for boating and shit. 

[Wulaw Horn 19152]

7 minutes ago, jimmyjazz said:

Well, a whole lot of Austinites already own their houses, and are just watching their equity climb (along with property taxes, although that should be less severe in most cases with homestead exemptions).

So, while it may be true that a married pair of schoolteachers aren't likely to find something suitable in the inner city these days, it doesn't mean that there aren't plenty of middle class families still doing fine, all the while watching their net worth climb at a rate they didn't expect.  Personally, I don't see much impetus for a crash, although I do imagine we'll see things level off at some point, and likely stagnate.  That's not the same as a price collapse, though.  The ingredients just aren't there.  Demand is huge, supply isn't, interest rates are historically low . . . could it flip?  Sure.  I'm just doing what I can to try to see what's down the road a few months so I can pull the trigger when I think I'm right (and thus likely wrong).

Totally in agreement and that’s what I’ve been predicting all thread long to people who say the values are going to crash. 
As a guy who does this for a living and believes in home ownership questions about affordability really bum me out. I guess I juts work with so many people who see 200 as a stretch and 300 as a. Impossible dream that the idea of a 500k+ entry to the market just depresses the hell out of me. 
I do fine for myself professionally now but I’m one generation removed from 8th grade drop outs, substance abusers, blue collar workers and bottom of the barrel types and the ones that owned their homes were able to make a life for themselves and the ones that didn’t died destitute and penniless. Affordability in housing is the answer to so many people’s problems and the problem of poverty in general. It’s why our ancestors came over from Europe, what settled the frontier and what’s kept us out Revolution and radicalism as we’ve grown into a world power. Seeing people squeezed out is heartbreaking. 

[gmr548 16617]

I don’t consider any city without a major league sports team to be a major city. That essentially means you aren’t in the 30 or 40 biggest markets or cities. 
the airport is expanding but not great by major city standards. You don’t have a massive health industry where people come from all over. 
Is there a world class museum?  
Food scene people come from all over to?
Shopping district that pulls the hicks from 5 hours away? 
That’s my definition of major city and that probably fits 25 or 30 cities around the country of which Austin isn’t yet one of those kind, yet Austin has pricing like its what- a top 10 city?  You can say it’s more expensive than the major metro coastal cities and while that’s true as far as it goes that’s the most expensive metric in America. 
If you want to say a Cory in the 25-50 market is major when lacking some of these things I use to define major city that’s fine. I also don’t consider Columbus a major city and that seems pretty similar to Austin. 
My cut line is probably Portland/Nashville with Charlotte/salt lake city a little bit ahead of those two and Austin a little bit behind. 
if Austin wasn’t within 3 hours of SA, Houston and Dallas it probably would have some/all of that stuff. 

Wulaw, this is a phenomenally dumb post. And as a Houston resident, let me say I see the noted Houston inferiority complex is coming out in your post.

1.) The sports team thing is completely arbitrary and incredibly stupid as a metric. Are Cleveland, St. Louis, and Detroit still premier metro areas because they have legacy sports franchises? Did LA and Houston just arrive as major cities when they got NFL franchises this century? That means you’re not in there top 30 cities/ markets? Austin is the 11th largest city in the country and the 29th largest MSA. Several MSAs are considered a single market as well. This is straight wrong and a very dumb lead off. Also, Austin FC. And Texas Athletics is a pro sports organization tangentially affiliated with a university. Finally, Formula Fucking One.

2.) The airport is not great by major city standards. What do you mean by this? You can get direct flights pretty much anywhere in the country. No one gives a fuck that you can’t get a nonstop flight to Shreveport. Also, have you been to the airports in the largest metro areas in this country? Many are abject messes inferior to Bergstrom.

3.) You don’t have a massive health industry where people come from all over. Now this is just trying to be a Houston stan. Healthcare isn’t the thing a city can be a hub for. Austin is a global tech hub at this point. But to the point of healthcare, UT just built a new med school, which along with the associated Seton hospital, is continuing to expand. It’s a regional health center with multiple quality hospital systems; no one in Austin has to go to Dallas or Houston to find care. They may go to see someone who is the absolute best in their field and happens to be in one of those two places, but no one has to.

4.) Food/shopping scene people come to visit for: Another comparison to Houston that falls flat. Houston has a globally competitive food scene yet people don’t come here to seek it out. People from all over Texas and the country come to visit Austin to eat and drink for entire weekends. Just because there’s better things to do in Austin than shopping doesn’t mean you can’t buy whatever you want. And it’s 2021, no one gives a fuck about in person shopping and Amazon delivers to Austin.

5.) Austin has pricing like it’s a top ten city? As mentioned, it’s the 11th largest city in the country so I don’t understand why that’s unreasonable on its face.

6.) If Austin wasn’t within 3 hours of Houston/SA/Dallas it wouldn’t be what it is. Okay. But it is. If NYC wasn’t a natural harbor, LA didn’t have perfect weather, DC wasn’t the capital… We can play this game with literally every city on Earth. The major Texas cities feed off proximity to each other at this point.

Just a horrible post all around. If you want to say Austin’s overpriced and you don’t care for it, go for it. That’s a reasonable opinion. Saying the eleventh largest city in the United States, a top 30 MSA, capital of the second largest state, and a global tech hub is not a major city is somebody ridiculous dumbassery I’d only have expected out of aggy until today.

[hornbri 1411]

39 minutes ago, gmr548 said:

Wulaw, this is a phenomenally dumb post. And as a Houston resident, let me say I see the noted Houston inferiority complex is coming out in your post.

1.) The sports team thing is completely arbitrary and incredibly stupid as a metric. Are Cleveland, St. Louis, and Detroit still premier metro areas because they have legacy sports franchises? Did LA and Houston just arrive as major cities when they got NFL franchises this century? That means you’re not in there top 30 cities/ markets? Austin is the 11th largest city in the country and the 29th largest MSA. Several MSAs are considered a single market as well. This is straight wrong and a very dumb lead off. Also, Austin FC. And Texas Athletics is a pro sports organization tangentially affiliated with a university. Finally, Formula Fucking One.

2.) The airport is not great by major city standards. What do you mean by this? You can get direct flights pretty much anywhere in the country. No one gives a fuck that you can’t get a nonstop flight to Shreveport. Also, have you been to the airports in the largest metro areas in this country? Many are abject messes inferior to Bergstrom.

3.) You don’t have a massive health industry where people come from all over. Now this is just trying to be a Houston stan. Healthcare isn’t the thing a city can be a hub for. Austin is a global tech hub at this point. But to the point of healthcare, UT just built a new med school, which along with the associated Seton hospital, is continuing to expand. It’s a regional health center with multiple quality hospital systems; no one in Austin has to go to Dallas or Houston to find care. They may go to see someone who is the absolute best in their field and happens to be in one of those two places, but no one has to.

4.) Food/shopping scene people come to visit for: Another comparison to Houston that falls flat. Houston has a globally competitive food scene yet people don’t come here to seek it out. People from all over Texas and the country come to visit Austin to eat and drink for entire weekends. Just because there’s better things to do in Austin than shopping doesn’t mean you can’t buy whatever you want. And it’s 2021, no one gives a fuck about in person shopping and Amazon delivers to Austin.

5.) Austin has pricing like it’s a top ten city? As mentioned, it’s the 11th largest city in the country so I don’t understand why that’s unreasonable on its face.

6.) If Austin wasn’t within 3 hours of Houston/SA/Dallas it wouldn’t be what it is. Okay. But it is. If NYC wasn’t a natural harbor, LA didn’t have perfect weather, DC wasn’t the capital… We can play this game with literally every city on Earth. The major Texas cities feed off proximity to each other at this point.

Just a horrible post all around. If you want to say Austin’s overpriced and you don’t care for it, go for it. That’s a reasonable opinion. Saying the eleventh largest city in the United States, a top 30 MSA, capital of the second largest state, and a global tech hub is not a major city is somebody ridiculous dumbassery I’d only have expected out of aggy until today.

What he said. 

[Sam Lin 3561]

15 hours ago, Wulaw Horn said:

I don’t consider any city without a major league sports team to be a major city.
the airport is expanding but not great by major city standards.
You don’t have a massive health industry where people come from all over. 
Is there a world class museum?  
Food scene people come from all over to?
Shopping district that pulls the hicks from 5 hours away? 

Sharing an outsider's point of view:

F1, MotoGP, and COTA mean a lot (unless you don't consider racing a sport). COTA is up there with Daytona, Laguna Seca, and Watkins Glen as the best known tracks in the US.

I think the airport is "better" than many major cities, but what are you considering when you say "not great?"

Not seeing what health industry has to do with anything, health industry isn't a major attractor for many/most "major cities." As has been mentioned Austin is second only to San Jose/SFO area for tech industry, and that's an industry that is swimming in money.

Maybe not one specific museum, but plenty of Indian and US history in the vicinity. And if culture is the broader category you're addressing here, SXSW....!

Yes. Is everyone forgetting BBQ? Austin is becoming quite well known as a mecca for BBQ both nationally and internationally.

Not sure what you would list for this in any major city, but I've managed to hear Westlake and Galleria mentioned in random conversation halfway around the world, so there's something there for shopping.

Edited July 1, 2021 by Sam Lin
sxsw

[ZB'Tejas 593]

3 hours ago, Sam Lin said:

I think the airport is "better" than many major cities, but what are you considering when you say "not great?"

Not seeing what health industry has to do with anything, health industry isn't a major attractor for many/most "major cities." As has been mentioned Austin is second only to San Jose/SFO area for tech industry, and that's an industry that is swimming in money.

Maybe not one specific museum, but plenty of Indian and US history in the vicinity. And if culture is the broader category you're addressing here, SXSW....!

Yes. Is everyone forgetting BBQ? Austin is becoming quite well known as a mecca for BBQ both nationally and internationally.

Not sure what you would list for this in any major city, but I've managed to hear Westlake and Galleria mentioned in random conversation halfway around the world, so there's something there for shopping.

Maybe airport lacks in terms of international destinations but the food options in the airport are way better than the Chilis and Applebees that are littered at many "major" airports.

Healthcare I would agree lacks but is getting better. Might actually just be because we have a younger healthier population than a Houston, Cleveland, etc.

In terms of fine dining options (and Italian) Austin might be behind some but I would say there are a ton of cool options here in town. Everyone I run into from out of state that has been here would comment on the food scene. Look at the Sushi options here!!

Previously mentioned was shopping and my wife says the same thing but I'm just not sure what stores you need that are not already at the domain. Plus I thought we all shop online now so window shopping does not get me hard.

 

[CHIEF 5095]

17 hours ago, Pato del Muerto said:

It’s a tiny damn lake though.  Works fine for views, less fun for boating and shit. 

It's bigger than LBJ, and slightly smaller than Canyon. You can run upstream 40 miles from the dam.

CHIEF

[DonkeyCigars 143]

I don't have a dog in this fight because I think Austin was awesome for the 15 years I lived there-- and for a variety of reasons (real estate prices being a big one) it's not for me now. Good on those who love it for their personal reasons, why are we quibbling over matters of personal taste?

At any rate, read this today and thought it a bit absurd:

 

Quote

 

Would you buy two homes just to get the one you really want? One buyer in Austin, Texas, did.

 

Regardless of price point, there are multiple offers on every single home right now. I've never seen anything like it and the reality is it is not going to stop anytime soon.

 

Competing against 50 other offers on the home, the buyer offered more than $100,000 above the asking price -- all cash, according to Thomas Brown, agent with and founder of The Agency Texas, who represented the buyer who was moving to Austin from the San Francisco area. But that offer was matched by other buyers. So to seal the deal, Brown's buyer offered something extra: to buy the seller's next house.

 

Altogether the buyer paid $1 million for a $500,000 home, said Brown. "Buyers are coming here from living in $1 million condos and seeing they can buy a 3,000-square foot house for less. They're saying 'Even if I pay more, I'm only in for $1 million?' "

Brown said his buyer was concerned that putting all the money toward the home they wanted would cause the property taxes to shoot up, so they preferred to put the extra money toward a new home for the seller and keep it a separate transaction.

 

Brown got an understanding of the seller's needs and their plans for a next purchase. Together with his buyers they crafted a deal that had two distinct transactions: the home the buyer wanted, listed in the $400,000's, and a new home for the seller that was listed in the $300,000's. Both went over their listed price and were paid for in cash by the buyer.

 

"Regardless of price point, there are multiple offers on every single home right now," said Brown of the Austin market. "I've never seen anything like it and the reality is it is not going to stop anytime soon."

 

Adam Pugh, real estate lawyer and partner at the Cagle Pugh firm in Austin, said buying two homes just to get one is pretty wild, but creative.

 

"While we're seeing folks arriving from all over the country overpaying for Austin real estate, I've never heard of anyone buying a seller's next house as an incentive," he said. "But, honestly, it is not even that surprising." 

 

 

[Murfdogg21 4430]

The house we bought in Mueller in 2018 we sold this February for +40% and thought we were bandits. A smaller sqft house in the neighborhood just sold for another $200k over what we got in just 4 months’ time. Bastards. At least I no longer feel guilty about nickel and diming my buyers over the garage storage racks and cabinets. They can buy their own with their rapid equity. 
 

As someone who may want to return to Austin in 10-20 years, I hope it comes back to reality relative to other major Texas cities so we could afford to buy back in. 

Edited July 2, 2021 by Murfdogg21

[CooterBrown 18031]

1 hour ago, Murfdogg21 said:

As someone who may want to return to Austin in 10-20 years, I hope it comes back to reality relative to other major Texas cities so we could afford to buy back in. 

Famous last words. I'd bet there's still a bunch of 90 year old ex-San Franciscans who sold out in the 70s and are just biding their time to move back any day now.

[We’reTexas 1473]

On 7/1/2021 at 8:26 AM, DonkeyCigars said:

I don't have a dog in this fight because I think Austin was awesome for the 15 years I lived there-- and for a variety of reasons (real estate prices being a big one) it's not for me now. Good on those who love it for their personal reasons, why are we quibbling over matters of personal taste?

At any rate, read this today and thought it a bit absurd:

 

 

That’s insane, but having made the reverse move from ATX to SF I’m familiar with the mindset. I don’t see the exodus to Austin stopping soon. The market for engineers is hot right now and that talent pool is pushing for remote work. The Bay Area ‘burbs exploded this past year, as did Seattle and Portland, two other favored destinations. So if I’m paying $1M to live in fucking Concord, suburban Austin would seem like a pretty logical choice for me. 
 

I will be interested to see how the inevitable COL pay adjustments will affect the market. 

[DonkeyCigars 143]

31 minutes ago, We’reTexas said:

I will be interested to see how the inevitable COL pay adjustments will affect the market. 

From the spreadsheets I've seen (Big 4, organizational planning and design): COL for Austin is still in the lowest graded bucket for Geographic pay zones. So if you are moving from a top tier pay band (e.g. Bay Area or NYC) or the middle tiers (D.C., Boston, Seattle) you will get right sized, the wrong way.

YMMV, but this is what I'm seeing today.

[HRSchenker 2274]

Lesbian friend from high school just sold their home in Austin. Bought in 2018 at $385k, listed at $595k, and sold for $650k.