Austin Real Estate Market: 4th Quarter 2009

The Austin real estate market continued on an even keel through the 4^th quarter of 2009, with an overall supply level of 4.6 months, down from 5.7 months in the 3^rd quarter. We normally see a drop in supply during the last few months of the year, so the market is behaving as expected. Here is a map showing the variations in the Austin market by area: 4th Quarter 2009 Market Report.

 Sellers Markets: 1 – 3 months of supply
There were 13 areas with sellers’ markets in the 4^th quarter, up from 9 areas in the previous quarter. Most of the sellers’ markets were in central core neighborhoods and close-in suburban parts of Austin – both on the south and north sides.

The central core and close-in suburban neighborhoods of Austin have always had strong demand and tight inventory. Builders are limited to remodels or some infill construction, so inventory is not being created as fast as it is in areas that have lots available.

In central core neighborhoods, where upper end homes are available, we see two types of market side by side. For example, in the close-in part of Westake, there is only a 2.8 month supply of homes under $800,000, with a 10.5 month supply over $800,000.

Balanced Markets: 4 – 6 months of supply
There were 22 areas with balanced markets – up from 17 in the 3^rd quarter.  The balanced markets were distributed through the central core, close-in suburban, and outer-suburban areas.  There is new construction in these areas – which increases the supply side.  But, readily available mortgages; first-time and move-up buyer tax credits; and low interest rate loans have fueled the demand side. So we saw many neighborhoods with balanced markets in the last quarter of the year.

Buyers Markets: 7 + months of supply
There were 11 buyers markets at the end of the 4^th quarter – down from 20 in the 3rd quarter.  Generally, these neighborhoods have more new home construction available – which increases supply. And, all sections with upper end homes continue to have higher inventory levels.

Upper End Market:
Areas with homes over $800,000 include Central and Northwest Austin, Westlake, Barton Creek, and Lake Travis. These neighborhoods have been popular locations for speculative building or remodeling.
Although most builders have slowed or stopped speculative building in the high end, the supply has been slow to tighten.  This is because jumbo mortgages are not as readily available.  Also, buyers in this market are often unable to sell their home in another state, requiring them to rent when they arrive in Austin.

However, you can see from the chart below that upper end inventory dropped by almost 50% in the 4^th quarter. We went from an average of 30 months supply in 3^rd Quarter to 16 months in the 4^th Quarter.

Months of supply on the market for homes over $800,000:
                 1st Q       2ndQ       3rd Q 4^th Q
Area 1B    25.1         28.7         27.2 14.4
Area 8E    21.0          21.6         17.8 10.5
Area 8W   22.1         23.7          24.6 15.8
Area W     24.0         25.8          20.7 12.6
Area LN    34.0        40.4          56.6 42.9
Area LS     28.8        38.8          41.1 25.0
Area RN    18.6        20.2          20.9 17.1
 

Foreclosures:
On average, foreclosures are 4.6% of listings on the market, which is not a significant part of our market.  (1st Q – 3.7%; 2nd Q – 3.6%; 3^rd Q – 3.1%)  However, foreclosures in some outer-suburban areas may be up to 8% to 12% of their local market. These include the Manor, Elgin, Bastrop and some Southeast areas. These areas were popular with first time homebuyers, and were also targeted by investors during the boom market. 

The good news is that these neighborhoods do not have very high inventory levels.  This indicates that their foreclosures are being absorbed quickly and inventory is not building up.

Conclusion:
Texas is out performing every other state in the country. This is clear from the graph below, showing appreciation rates during 2008 and 2009. Most parts of the country had their worse decline in 2008, followed by a further slump in 2009. Texas has stayed at par during these two difficult years. Austin is the crown jewel of Texas. It offers an entrepreneurial culture, employment opportunities, and a high quality of life.

Of course Austin has faced a depression, just as any other city. But, our real estate market has had less price depreciation than nearly any other city.

Joel Kotkin, whose research appears on Forbes, ranks Austin as the best big city for jobs.  He says, “Few places have received more accolades in recent years than Austin, the city that ranked first on our list of the best big cities for jobs.”  Compared to similar “idea cities,” Austin has always been affordable. Forbes just listed Austin as #2 in Best Cities for Recovery.

For buyers in all price ranges it is time to take advantage of the best interest rates in a lifetime, plus the first-time and move-up buyer tax credits. It is a great time to own a piece of a great place to live – Austin!

————————————–

Most parts of the country had their worse decline in 2008, followed by a further slump in 2009.

Texas stayed at par during these difficult years.

This graph is from www.FHFA.gov – the agency that regulates Fannie Mae,Freddie Mac and other federal home loan banks. They keep data on housing appreciation across the country.

Roselind Hejl, CRS

Coldwell Banker United

512-327-0385 office

512-789-4563 cell

www.weloveaustin.com

Green Home Trends for 2010

Houses are central to the green movement. Buyers today are more aware of the consequences of their choices. When greener choices can be made, today’s buyers want to make them. They want to do the right thing – both for themselves and for the planet. Many of the design choices that we see coming in 2010 are grounded in the green movement.

Hard Surface Floors

Hard surface floors are a green design feature. Carpets hold dust, germs, mites and allergens. In the past, the smell of new carpet signaled a clean, updated house. Today, this smell signals chemicals used to make the glues, fibers, pesticides, and fire retardants in the material. There is serious concern about infants crawling on carpet before it has had time to cure. Concrete, stone, natural linoleum, cork, bamboo, and wood are favored floorings. Bamboo, which grows a foot per day, is a popular choice because it is safe and sustainable to produce.

Healthy Choices

Buyers today are more health conscious. Through the green movement, their construction knowledge is deeper and more technical. There is a generalized concern about asbestos fibers, adhesives, high VOC paint, pressboard glues, and off-gassing from carpet. Homebuyers today feel good about using locally made materials and recycled products. For example, insulation made from old blue jeans is a gaining popularity. It makes use of recycled materials, is sustainable, is safe to use in homes.

Alternative Energy

Energy that can be produced on the property is gaining ground. Homes that operate at net-zero energy are possible. As alternative energy sources become more cost effective they will be more widely used. Neighborhood associations are now facing questions about solar panels and wind turbines on roofs. We will see more of them in 2010. A popular recent trend has been the solar tube, an alternative to the skylight, to gather solar energy and reflect the light down a tube into the room.

Re-thinking Fireplaces

These have been a must since the 1980’s. However, today air pollution and the net heat loss from fireplaces have people re-thinking the fireplace. Many have been converted to gas log systems. An alternative is the “direct vent” fireplace, which functions as a gas heating appliance. In warmer climates buyers may opt out of fireplaces altogether. On the other hand, outdoor fireplaces and fire pits are trending in.

Lower Utility Bills

Today’s home buyers would like to reduce their carbon footprint and save on utility bills. They want their homes to be energy efficient. Low E Glass, R 38 insulation, high efficiency AC systems, passive solar orientation, solar panels, energy rated appliances, tank-less water heaters, and LED lighting are some of the basics that buyers expect to find, or are willing to upgrade to.

Down Sizing

The green construction trend, plus the current economic slowdown, has led naturally to a reduction in excess space in homes. Smaller homes, clean lines, and less clutter resonate with today’s buyers. Formal living rooms or media rooms that are unconnected to other core areas tend to not be used. They may be converted to studies or left off altogether. The open floor plan is a green choice. It allows conditioned air to flow easily, and it optimizes the effect of passive solar design.

Places to Walk

There is considerably more interest in walkability. Developers are re-thinking how neighborhoods are planned. People want to walk to parks, shops, and restaurants. They are concerned about our dependence on cars – unstable gasoline costs, environmental damage, and negative effects on personal heath. Garages are being left off in some urban areas in favor of carports or open parking. Home offices are expanding. Live-work lofts are a popular new design style. We are seeing this transfer to live-work spaces in homes.

Learn more about Austin at:  Austin Texas Real Estate Guide

Join me on Linkedin

Dining Area: A Core Space in the Home

 

Sitting down for a meal is a central function in the design of a home. The space for dining can range from a grand hall to a counter with stools in the kitchen. Dining spaces are as various as houses themselves.

Many homes have a separate formal dining room. Though used only occasionally, this area is often the most elegant and best furnished room in the house. It sets the design style of the house. There is something romantic about sitting down in a room especially devoted to the dining experience. Even the simplest food looks special on your best china in a formal dining room. It is a more private and serene place, separate from the work area and clutter in the kitchen.

Sometimes formal dining rooms develop a rigid, impractical look, more suited to viewing than eating. There are lots of creative ways to personalize a formal dining room to make the space feel safe and comfortable. Consider using a formal table with mix and match chairs, modern placemats, bright colors, assorted candle holders, and lamp lighting. The trend is away from having carpet in dining areas – giving the room a stuffy, impractical feel. Hard surface flooring is more inviting and can take the spills that inevitably happen.

In addition to the formal dining, there is usually a breakfast nook or a central counter for everyday meals. Although the formal dining is separate from the kitchen, it should be easily accessed from the kitchen. The passage to the dining may contain a butler’s pantry – cabinets for serving dishes or glassware.

A less formal alternative is to have the main common areas – kitchen, dining and living – all combined into one large space. Guests feel close to the core of the home, and can participate in cooking or mill around the living and dining area. This is a fun, open style that draws people together to cook, eat, and visit. A successful sequence is to have the spaces move from the most protected to the most outdoor – from the kitchen, to dining, to living, to porch.

Regardless of its location, the dining area should have enough space for a good sized table and at least one additional piece of furniture. Dining areas need natural light from windows or doors. Natural light makes food more appetizing. Dimmers to soften interior lighting at night are a good idea. The dining area is a core space in the house – a place for the important activity of eating and entertaining. How this space is configured, either as a separate room or a part of the living area, depends on the style of your home, degree of formality, and your personal preference.

How to De-clutter: A 12 Step Program

De-cluttering your home is a need that tends to move down the to-do list, below more pressing items. It can be put off for years. Meanwhile you don’t feel relaxed in your home, or enjoy viewing things that express your life today. The excess of stuff can be confusing, and you may be reaching the point of serious overload. Here are some tips to help you move the roadblocks and get started.

“I have wanted to de-clutter for years, but don’t know where to begin.”
First, acknowledge the need to take control of your environment. Are you about to show your home for sale? Or, are you are moving to a smaller place? Or do you dream of a cleaner, simpler lifestyle? Second, consider getting some help. Your stuff is personal and has deep roots. A friend or professional organizer can help you to let go of some of it.

“I’m not sure what is clutter, and what is important.”
Some people do not see clutter. They are more auditory or emotional in how they perceive. They don’t see the six hair brushes in the bathroom drawer, along with old toothbrushes, expired medicines, and pens that don’t write. If you are one of these folks, it would help a lot to enlist the help of a visually oriented friend or professional.

“I might need this someday.”
Famous last words.  How often has my husband said, “No, don’t throw that out.  We might need it someday.” Ten years later we still have those extra rolls of carpet, fan pull chains, old manuals, etc. Lots of things hanging around tend to fit into this category. But, think about it.  Can you live with having to replace something once in a while?  After all, spices and canned foods don’t taste as good after ten years. Give yourself permission to need something someday and not have it. The cost of saving extra stuff can be quite high.

“Magazines cannot be put in the trash.”
Yes they can. People do it all the time. National Geographic is not a national treasure. And, there are libraries, schools, and other places to drop them off. Today, we have to be ruthless about paper. Don’t expect to read everything that comes into your home.

“If our stuff were more organized it would not seem cluttered.”
False. You have been moving this stuff around for years. Re-sorting is just a temporary solution. It is time for a lot of it to go out the door. You will be amazed at how easy it is to organize less stuff.

“If we just had more shelves, file cabinets, clear shoe boxes, labeled bins, we could find places for things.”
This is more avoidance thinking. The idea is to get rid of the stuff, not to label it. Sorting and re-stacking takes energy, and the constant need to do this is stressful.  Visualize a clean, organized, simple environment. 

“I would get rid of this if someone (the kids, perhaps) would take it.”
This requirement is a common way to table the issue. You want someone to take over your stuff. This may be more of an impediment than you think. It takes time to contact recipients, find out their responses. The chances are good that they will want you to hang on to it for them, since they are short on space. It might hold up your de-cluttering for years.

“I’ve been meaning to get that thing fixed.”
Ok, it was a shame that that calculator only lasted a few months, but you know, it has long since been replaced. The one-in-one-out rule is a good one. Let’s let broken things go, and get them off your to-do list. Two words: Good Will.

“Some things just can’t go in the trash because it’s bad for the environment.”
I know. But, how far away is the re-cycle place? It’s not another state. All that old paint, car oil (that you don’t change yourself anymore), batteries, and bug poison is really unpleasant to have around. Hire a teenager to haul it over to a re-cycle center for you.

“I can’t get rid of this.  We bought it on our trip to the wine country. Or, it was a wedding gift. Or, it’s been in the family for years.”
Yes, some things are mementos of trips and good times in life. But will smaller or fewer mementos do? Will digital photographs of some items serve as mementos?  Getting rid of some stuff that is not to your taste, or does not fit your lifestyle anymore does not negate how happy the time was. Will one clay figure from sixth grade pottery class be fine? Do you need six or seven?  The goal is to move on from the past, and have a functional, stress free living space now.

“My closet is overloaded, but I’m planning to lose some weight.”
What about those clothes that don’t fit? They’re the reward you’ve been promising yourself for losing that weight. But, you know, it doesn’t work that way. You won’t lose weight any faster with a ton of clothes (that don’t fit) crammed in your closet. Plan to get yourself with some new clothes. That is really more of a reward to look forward to.

When you have taken control of clutter in your home, your will find that your have a renewed energy to take on new things in life. Managing the chaos of clutter and a long to-do list takes a lot of energy. A clean, minimal environment  is a simple everyday joy. You may be able to do this yourself. There are plenty of self-help lists online. However, the boost from a consultant will be invaluable in getting you started. From time to time, you will need to come back and re-visit your clutter. It is an ongoing deliberate process. But the rewards are great.

Technorati Tags: declutter,home improvement,street free environment,preparing home for sale

The Best Time to Remodel, and Why

When people are getting ready to put their home on the market for sale, they often ask if it would be a good idea to remodel. Generally, the answer is, “No, this is not the time to undertake a serious remodeling project.”  Most projects only return a portion of the cost in the sale price of the home.  This does not mean that a home seller should not make repairs, paint, and stage their home. 

A profitable remodel takes a lot of skill, market savvy, and luck. It is possible that a few minor, strategic touches can transform a house, but those opportunities are rare.  The flip-this-house programs on television do not translate to the real world. Professional remodelers buy low, make some improvements, and tolerate a certain amount of risk.  Many factors can affect profitability. For example, the home may already be at peak value for the neighborhood. Or, prices may fall due to economic conditions. Or, you may make changes that are important to you, but do not create higher resale value.

Therefore, think of remodeling as a way to improve your home for you and your family.  It is well worth it to consult with an architect and Realtor  before proceeding.  They will know the latest trends in materials and colors, and will bring a higher level of expertise to your job. Sometimes people make the mistake of not thinking deeply enough about how to improve their home. You may be thinking of enlarging the kitchen, when you could simply open a wall to have a lighter, bigger space.  It is more cost effective to make better use of the space you have than to add on.

One of the biggest mistakes we see is the surface remodeling of a house, room by room. This misses the opportunity to consider how the architecture of the space can be redone to create more dynamic changes that improve the livability of the house and its market value.

Here are seven popular reasons for doing a remodeling project:

Stay in Style:

Colors and finishes transition to new styles about every ten years.  For example, in the early 1990’s bath tile tended to be white with green or maroon accents.  In the 2000’s that was out, and granite or travertine was in.  Now we see glass tiles, concrete, and engineered stone.  People want to refresh the look of their homes. Staying in style with the current trend in colors and finishes adds to the value of your home.  It gives it emotional appeal – an important thing to have when you are ready to sell.  Finishes are not difficult to change, and they make a big visual change – a lot of bang for the buck.

Get Ready for Move In:

An optimum time for updates is just after the purchase of a home. Vacant houses are much easier to work with. This is the time to attack that popcorn ceiling, remove old wallpaper, re-finish wood floors, paint, and re-carpet. It is safer and faster to work in an empty space.

Build Bigger Closets:

In small homes the most common addition is a new master bedroom and bath.  Modern baths are bigger and brighter than they used to be.  Although the trend is toward smaller baths, we have moved from humongous to simply big. Closet needs today will not go back to the 1950’s. The limited closet space in older homes will simply not work for today’s buyers.  

Bring Kids In:

A popular motivation for remodeling is the need for more living space for expanded families.  Couples have more children, or children get older and want more space.  We see game or media rooms added for teenagers, as well as outdoor spaces, such as covered patios or pools. 

Move Kids Out:

It is not uncommon to see homes re-done after the kids move out.  Couples want to clean out and simplify their lives.

Improve Kitchen Appeal:

By far, the kitchen is the room most often updated.  This is the heart of the home and gets the most intense use.  When it looks dated or worn, it establishes the condition of the house.  This is the area that has the best return on investment.  New appliances, countertops, lighting, floors, paint, and updated cabinets are very visual improvements, and can transform the look of the home.  These changes are enjoyable to live with, and are upgrades that add market value. So, kitchen updates are a win on several different levels.

Expand to the Outdoors:

A better connection with the outdoors will add to the emotional appeal of your home.  People love front porches, screened rooms, covered patios, and courtyards.  Improving tired old landscaping can make a huge difference. One of the most common remodeling mistakes is not realizing that old, woody shrubs come across as stodgy, and set a dated tone before people even come inside.

Visit me at:  www.weloveaustin.com

Kitchen Countertops Today: Granite and Beyond

Kitchen countertops make a strong design statement in your home.  They are highly visible and tactile.  The material you use should be able withstand heat, stains, and intensive use.  And it should be a good fit with your home style.  The cleaner, greener trend in home design today has opened up new choices in kitchen countertops.  A big thank-you to Steve Rymer, the owner of Architectural Tile & Stone, who patiently shared his thoughts on new ideas in kitchen countertops.    

Granite 

Steve says polished granite is still the most popular surface for countertops, and for good reason.  Granite is a very dense stone made of crystallized minerals formed at extremely high temperatures.  It is not subject to etching by cooking acids, or to scratching by knives or pots and pans.  Steve says selections today have moved away from busy granite patterns.  This coincides with a housing trend toward modern styling with cleaner lines and simple, soothing colors and patterns.  Although non-shiny finishes are now available, he does not see a strong movement toward the use of honed granites on countertops.  When granites are matt finished, the natural colors and patterns are subdued or lost.  In granites, Steve sees the demand at about 95% for polished material, and 5% for honed.

 There are several finishes for granite: 

High Gloss Polished – This is the most reflective and the least porous of the surfaces available.  Fine polishing brings out the depth, color, and pattern in granite.  Each piece has it own natural movement of pattern and color.   

Honed Finish – To create a honed surface, the polishing process is not taken to its full potential.  Rather than a 3,000 grit polished surface, it is taken to a soft sheen 600-grit surface.  The result is a less formal, satin finish.  The surface is more absorptive, so it will show stains easier than a closed-pore polished surface. 

 

Leather Finish – A leather finish begins with a honed surface; then it is swept with diamond tipped brushes.  The process brings back the color and closes pores on the surface. The result is between polished and honed.  It has more sheen and is less porous than a honed finish.

Flame Finish – To create this surface, blowtorch-strength heat is applied to the granite surface.  This causes some of the granite crystals to explode and shatter, leaving a highly textured surface.  This surface is more suited for exterior paving, rather than for countertops.    

River Washed – To create this surface, the granite is first flamed; then it is wire brushed to smooth out the sharpness of the surface.  The result is a rustic texture with an aged, irregular finish.   

 Marble

The marble family – limestone, travertine, marble, onyx – starts out as sediment from shells and plant matter.  After millions of years under pressure, this forms into stone.  Because its main component is calcium, it will react to acids such as vinegar and citrus.  Marble can be used on kitchen counters as long as there is some tolerance for stains and scratches.  Steve strongly recommends the honed marble surface for kitchen countertops, rather than polished.  This is because the less perfect finish will accept wear and tear more naturally.  The honed surface offers a softer, less formal appearance.   

Slate & Soapstone 

A New York designer recently asked for Pietra de Cardosa.  This is a grey stone from northern Italy.  It is a type of slate – but very hard.  It must be cut with granite cutting machinery, rather than tile machinery.  This is a granite alternative that does not have a lot of pattern movement.

Soapstone is also a granite alternative.  It is a very dense stone – more so than even granite. Since soapstone is impenetrable, it will not stain.  It has been used for years as a work surface in chemistry labs.  The colors are mostly grays and blacks.   

 Limestone

 Limestone is an organic stone similar to marble, but not as hard.  It is readily available and easy to cut.  Limestone can be sealed and used for kitchen countertops.  However, there is likely to be some mottling and variations in color over time, as the calcium in the limestone is exposed to acids used in cooking.  Jerusalem Stone is a type of dense limestone found in Europe and the Middle East that is used for countertops.  It offers a warm, soft look in creams and earth tone colors.  Since limestone is absorptive, it should be sealed regularly.  Some staining and variations in color is a part of its organic, rustic look. 

 Engineered Stones

 The trend toward cleaner, greener finishes has led to greater use of engineered, or composite, stones.  Engineered stones are made from about 93% quartz, 7% epoxy, plus resin and color.  The use of crushed material is less wasteful, so it is considered a greener choice.  Quartz is readily available.  However, cutting and shaping of the material is done by fabricators.  So the cost is about the same as many granites or stone slabs. 

 Engineered stone is more homogenous in appearance than natural stone slabs.  There are no swirls and veining showing its creation over millenniums.  Some familiar names are:

 Caesarstone – evokes the look of limestone

 Cambria – a mock granite look

 Silestone – a very dense, polished surface

 Okite – introduces a veined marbled look

 Tile   

 Ceramic tile continues to be used mostly on backsplashes in kitchens.  On kitchen counters, it is scratch and heat resistant; however, the grout needs to be sealed for optimal stain protection.  Tiles cut from stone, such as granite or marble, can be set tighter together than ceramic tile, keeping the grout joints very narrow.  Stone tiles come in a variety of sizes, and are less expensive than slab material. 

Icestone

IceStone is a slab product made from recycled glass in a cement base.  It offers a clean, modern look, in a variety of colors.  Because it makes use of recycled glass, it is considered a green choice.  The cost is similar or higher than many natural stone slabs.     

Concrete

Concrete is a porous material that absorbs stains easily.  A good fabricator can build a beautiful, soft colored, well sealed countertop.  Although it is sealed, the homeowner should expect some mottling and staining over time.  That is a part of the more organic look of concrete.  A professional fabricator must be able to pour and finish the counter in place.  There is a lot of art and craft to making a concrete counter.  Although concrete is inexpensive, the labor brings the cost up to that of some stone slabs. 

Stainless Steel

Stainless steel is a good fit with today’s chic, contemporary look.  It has been used for years in professional kitchens.  Steel is stain resistant and durable, but does scratch and can be loud.  There are brushed or textured finishes that help camouflage scratches.  And, when attached to a wood under-layer, it is more sound resistant. 

Happy holidays to everyone!

 Thank-you to all of you who have sent us friends and associates who need to buy or sell houses!  Keep sending!

 

Please join me on  Facebook and Linkedin 

Thanks,

Roselind Hejl, CRS

Coldwell Banker United

512-327-0385 office

512-789-4563 cell

www.weloveaustin.com

Upgrading a 1970’s Vintage Home

Jennifer and Tony Latto, and their two girls, have a 1970’s vintage home in a very nice neighborhood of Austin.  Jennifer, who is a registered architect and interior designer, has made some interesting updates to their home. 

 

Roselind: 

Jennifer, first of all, thanks for sharing your ideas on the ongoing remodel of your home.  What have you done so far that has made a difference? 

 

Jennifer: 

We arrived from Boston just over two years ago and moved into a 70s home in Bee Cave Woods.  We loved the open floor plan, the private yard, the existing trees, and the location.  The home was smaller than those we’ve had in the past but we recognized the potential!   

 

We tackled items that were relatively inexpensive first, just to get the house to where it felt like “ours.”  Since I earn a living improving environments, I have a hard time staring at the ordinary or run down!  This trait drives my husband crazy because I constantly want to make upgrades! 

 

Most of the work we have achieved thus far was outside; however, one of the biggest impacts was to reface the stone fireplace with gradient glass tile on the vertical surface and a quartzite slab hearth to match the kitchen.  This is a focal point for our living area and always extracts comments!  I’ve included a photo (even though we have yet to grout it!).

 

 

Roselind: 

I’m glad to hear that you are like most folks – remodeling is something that does not get done all at once.  It can go on for years – and that is OK.  Shaping a home takes time. 

 

Tell me a little more about gradient glass tile.  I can see that is goes from a more intense color at the bottom to a lighter shade.  Where did you find this tile?  And, quartzite slab?  What is it, and where do you find it? 

 

Jennifer: 

This is our fourth home remodel in ten years.  We’re a bit tired but there’s still always a project around here and we attack them when finances and schedules allow!  It’s really a lifestyle!

 

There may be other resources for this but the tile on our fireplace is from Hakatai, www.hakatai.com.  I loved their program for customizing the blend from their glass tiles.  You can select the tile colors used.  By adding the same color twice, the intensity of that color is increased.  A minimum of two colors is required but a maximum of ten can be used.  Their custom design tool will allow you to preview the design and it generates a price.  The same tools are available for a custom “blend” which are popular for kitchen backsplashes and bathrooms.

 

The slab is quartzite, which is a man-made material composed of about 90% quartz combined with pigments and polymer resins. It is stain, scratch, and heat resistant and doesn’t require sealing like natural stone.  It can cost just as much, or more, than granite and marble but I love the modern monolithic look and you can’t beat the durability.  Vivid colors are also more readily available than in natural stone as well.   CaesarStone and Silestone are two brand names. 

 

 

Roselind:

Your backyard is amazing!  I remember when you bought the house, I was pleased with the big back yard – but it was pretty boring.  What a difference now!

 

 

Jennifer: 

Tony and I both grew up in the Southeast.  We have been corporate gypsies landing in Raleigh, NC, Portland, OR, and Boston, MA.  When Tony received an offer from Dell, we couldn’t wait to get back to the South and found Austin to be everything we were looking for with the weather, people, and lifestyle.  We gave away our snow shovels and made a commitment to a better life outdoors.  We agreed that the backyard was our favorite place and we were lucky that it was a “blank slate”. 

 

We evaluated joining a local pool versus building our own.  In an ideal world, we’d have both but having our own pool was more attractive because it would make our backyard the private escape and social place we wanted.  And when those temperatures soar, we gather outside and enjoy our investment (although Tony still calculates the dollars per dip)!

 

This spring we added a limestone patio with a fire pit.  This is used a lot, especially in the fall.  Tony was an Eagle Scout and loves to make fires and even cooks in a Dutch oven out there! 

 

The kid’s trampoline and swing set is in a mulch bed and disguised behind palms.  This area serves a more durable space for our pets too.  There is a storage area where pool supplies and equipment is kept.  We hid this behind a wire fence and flowering vines.  We stained the existing wood fireplace a dark brown for a dramatic background. The Tiki torches, string lights, and pool lights liven the atmosphere and show my passion for lighting.  Essentially, our outdoor space has been subdivided into comfortable “rooms”.  Each area has casual seating in groups perfect for entertaining.   

 

 

 

Roselind:

Are there parts of the interior that you want to tackle in the future?

 

 

Jennifer:

The next steps are refinishing the hardwood floors with a darker stain and a glossier finish to go with our décor. Then, we are replacing an old sliding glass door to the pool with a window and a bar counter for serving food and drinks from inside.  I hope these will be done in the next six months. 

 

Here’s my wish list (Tony rolls eyes): 

I’d like to expand our kitchen.  We usually eat at the kitchen island table and when the kitchen has all four of us and two big dogs nearby, navigating the room for the forgotten condiment proves challenging.  We have an enormous pantry that is great for storage but by expanding into this and a garage workroom, we gain about 7 more feet of floor space and another window in the kitchen. 

 

We would like to replace the ceramic tile in the kitchen and baths although my husband and I have not agreed on a material yet.  We own some basalt and granite slabs and copper sinks for the bathrooms and are just waiting on funds for the installation!  We would like to replace the standard fiberglass tubs with something more modern as well. 

Eventually, we plan to add a master suite over the garage to gain a guest bedroom.  This addition will serve to modernize the ranch exterior as well.  We’d like to build a pool house that serves as an office and bathhouse.  The entry will be off the limestone fire pit patio.  This is our forever home so we’ll build as we need instead of moving!

Roselind:

As an architect and interior designer, are you open to helping others who are thinking of remodeling? 

Jennifer:

Although I specialize in commercial work, specifically corporate and medical offices, during these times, I’m finding residential work is more readily available.  I used to think that the residential market was so different from the commercial world; and in way they are – different codes, materials, and client approach. But it’s all still design and it’s what I love to do!  I’m working on a kitchen remodel and overall facelift for a neighbor now.  My website is www.reddesignstudios.com.  I’m new to the area and am still building my practice, so I think I offer a great value on consultations. 

Roselind:

What advice do you have for people who are thinking of undertaking a remodeling project?

Jennifer:

I have found that many people may overspend on a project if they don’t have a professional partner.  Not “overspend” like they’re being overcharged but “overspend” because they spend money on things that don’t give them the biggest impact.  Many people are also missing out on real estate bargains or investment possibilities because they cannot see potential in the available property.  Having a professional shop with you can help the buyer understand how easily their goals and style can be obtained. 

Austin Texas Real Estate

Remodeling Decisions That Add Value: Better Living Areas

 

 The main living room is the central core area of your home.  It is both a private and public space that you share with family and guests.  The main living room should easily connect with dining areas, kitchen, and hallways to bedrooms.  This space should be given top priority in the hierarchy of rooms.  However, too often it is not. 

Sometimes the front door opens right into the living room, and the passage deeper into the house cuts right through it.  Please!  Before you go a step further, stop to imagine how you would furnish and enjoy being in a room like this.  If you home has this layout, consider some serious surgery to correct this problem.  Never allow walkways to cross through the middle of living areas.  This creates an unsettling division within the space which no furniture placement will solve.  If you have this floor plan, face up to it, and make the necessary changes before moving on.   

Most buyers today prefer two or more living areas.  In addition to the main living room, these may include a family room or den, a study, and a game room.  The trend today is to avoid wasted space.  Rooms that are used primarily for display have very little actual use and value.  Consider converting an unused formal living room into a study.  Sometimes a wall can be opened up to bring a seldom used room into a real relationship with the house.  This is much cheaper than adding on more space.  Remodeling tip:  Make better use of the space that you have.  It is cheaper than adding on. 

The “greatroom” is a popular layout that combines the living-dining-kitchen space.  This open style is efficient in its use of space, combining multiple uses.  The house seems bigger than it would if divided into small rooms.  You will be able to work in the kitchen and talk with family members and guests in the living area.  If you can open a wall to allow a better connection and more light to flow between spaces, you will be making a change that most buyers prefer.

If budget allows, a gameroom is a space that serves a multitude of functions.  It is a more private living area that is often used for TV watching, computers, pool table, or children’s toys.  The gameroom is often an upstairs common area that connects to bedrooms.  Special media rooms are sometimes added, although the trend today away from extra rooms that receive infrequent use.  Consider combining a media room with pool table, ping pong, or other gathering room functions.  

You cannot think about living areas without considering the traffic flow through rooms.  A natural and logical flow will guide people from the front door into the heart of the home – the main living area.  The pathway should not cut through the middle of rooms, or make you skirt around furniture.  Visitors should not be confused as to where to go.  A logical floor plan is crucial to making visitors feel welcome and comfortable in your home.  A great living area draws people into it in a natural way, and provides a center for common activities.  Remodeling decisions that place great importance on the main living area add value to the home.   

 Austin Texas Real Estate and Homes For Sale

Remodeling Decisions that Add Value to Your Home: Historic Connection

If you are planning a remodel, consider keeping the original design features of your home.  Historic elements contribute to an enduring style and will be more valuable to buyers if you decide to sell.

A sense of historic connection is valued by buyers. Build your improvements around the best original features of the home. Historic features endure and will give a sense of timelessness to your home. People love clues to the past. Don’t be afraid to blend old finishes with modern ones. The one-of-a-kind, eclectic look is much desired, instead of a mass produced sameness. Sometimes folks rip out interesting old finishes and replace them with bland, standard issue cabinetry or tiles. They miss the chance to create a truly unique combination of new and old.

Wood windows and doors, period door knobs, old stone steps, original baseboards, and refurbished fixtures can add a touch of historic significance to your home. People are delighted by retro bath tiles combined with a splash of new wall color. Consider working with the old fireplace tile or stone before tossing it into the dumpster. Retro wallpaper can be a great find. These touches of original character can be incorporated into your design to create a unique final product.

The Craftsman style, built in the early 1900’s, is in very much demand. Rustic stonework, deep eaves, tapered columns, stained woodwork, and wide trim reflect the handmade look that people love.

Farmhouses are a great style choice for today. Reclaim the basics of this style – simple floor plan, hardwood floors, wood windows, local stone, and muted colors that connect with nature. Like farm buildings, the rooms are informal, somewhat sparce and provide just what is needed.

Younger folks are breathing new life into their parent’s ranch style and split level houses from the 1950’s and 1960’s. Mid-century modern furniture, paint colors, fixtures, and rugs are all the rage, and help to bring this style back into top form.

Urban modern has been around since the 1950’s, with experimental use of space, color, glass, plastic and metal. Simplified spaces with clean lines and fresh colors are an antidote to today’s complex lifestyle.

When planning a remodel, take care to reinforce and build on the design strengths that it already has. Your results will achieve greater value and stand the test of time.

Austin Texas Real Estate Guide

Austin Real Estate Market: 3rd Quarter 2009

The Austin real estate market tightened slightly during the 3rd quarter of 2009. Inventory for Austin as a whole is balanced – with a level of 5.7 months of supply. This is down from 6.3 months of supply at the end of the 2nd Quarter. However, throughout the Austin area, there are local variations in the market. Here is a map showing the state of the market within each local area: 3rd Quarter 2009 Market Data

Sellers Markets: 1 – 3 months of supply

There are 9 local areas with less than 4 months of inventory. These are all located in the close-in suburban part of Austin. Median home prices range from $100,000 to $400,000. Homes in these neighborhoods are mostly limited to re-sales. Builders have generally moved further out to find lots for new construction. There is strong demand for these close-in areas. Mortgages are readily available. And, the first time homebuyer tax credit has drawn buyers into the market. Strong demand has kept inventory at low levels.

Balanced Markets: 4 – 6 months of supply

There are 17 local areas with balanced markets. The balanced markets are distributed throughout central core areas; close-in suburban areas; and some outer-suburban areas. Median prices in these neighborhoods range from $100,000 to $400,000, with a couple of areas up to $600,000. There is some new construction in these areas – which increases inventory. Readily available conforming mortgages; first time homebuyer tax credit; and low interest rates have improved the demand side, and kept these areas balanced.

Buyers Markets: 7 + months of supply

There are 20 local areas with over 7 months of inventory. Median home prices in these areas vary from $100,000 to over $1 million. Generally, these neighborhoods have more new home construction available – which increases supply. Upper end homes continue to have higher inventory than the lower and mid level part of the market.

Upper End Market:

Areas with many homes over $800,000 include Central and Northwest Austin, Westlake, Barton Creek, and Lake Travis. These neighborhoods have been popular locations for speculative building or remodeling.

Although most builders have slowed or stopped speculative building in the high end, this level of inventory has been slow to contract. This is because mortgage money is not as readily available for buyers of high end homes. Jumbo mortgages (over $417,000) require 20% down payment; excellent credit and income; and a higher interest rate. Many buyers in this market have been unable to sell their previous home in another state, and this has slowed the demand for high end homes here.

Months of supply on the market for homes over $800,000:

                 1st Q       2ndQ       3rd Q

Area 1B    25.1         28.7         27.2

Area 8E    21.0          21.6         17.8

Area 8W   22.1         23.7          24.6

Area W     24.0         25.8          20.7

Area LN    34.0        40.4          56.6

Area LS     28.8        38.8          41.1

Area RN    18.6        20.2          20.9

Foreclosures:

On average, foreclosures are 3.1% of listings on the market – not a significant part of our market. (1st Quarter was 3.7%; 2nd Quarter was 3.6%) However, some sections of Austin have more foreclosures than this. These include the Manor, Elgin, Bastrop and some Southeast areas. Here you may see foreclosures at 8% to 12% of listings. These areas were popular with first time homebuyers, and were also targeted by investors during the boom market. The good news is that these neighborhoods do not have very high inventory levels. This indicates that their foreclosures are being absorbed quickly and inventory is not building up.

Conclusion:

In Austin we are not faced with serious depreciation, as a result of prices that were pushed to unsustainable levels. We are not faced with a serious foreclosure problem, generating its own downward spiral. And, we are not faced with widespread job loss.

Joel Kotkin, whose research appears on Forbes, ranks Austin as the best big city for jobs. He writes, “Few places have received more accolades in recent years than Austin, the city that ranked first on our list of the best big cities for jobs. 

Builder Magazine placed Austin second on their list of the “healthiest housing market for 2009.”  Their study says: “While other markets lost employment, Austin added 17,400 jobs last year – a 2.3% growth rate. It helps that Austin is home to both a major university and the state capital. Existing homes cost a little bit more in Austin than other Texas markets, roughly $188,600, but that’s still below the national average. Also, Austin is one of the few metro areas in the country where median prices actually rose in 2008 — 2.7%. Amazingly, Austin now generates more home building activity than Chicago, which has six times more people.”

For buyers in all price ranges it is a great time to come into the market. Interest rates below 5% are the best in a lifetime, and they certainly will not remain this low. This is not the time to be waiting around for a better deal. It is the time to start shopping for a great place to live in Austin!

Austin Texas Real Estate