In conversations with realtors and developers who focus on downtown Austin, everyone agrees that the last few months have been really tough. Ever since the fall economic collapse, the downtown real estate market has essentially ground to a halt. Surprisingly enough, everyone also seems to agree that there was a noticeable uptick in January.
While theAustinTowers Downtown Market Index shows 4 transactions totaling roughly $1.5 million, we have been able to $10 million in downtown condos that was either put under contract or closed. After a very slow November and December, January was a positive surprise.
According to the analysts, price drops and record low interest rates have helped to spur a new round of real estate transactions. January, however, also included a couple of $1 million + reservations in new projects which would not have benefited from reduced interest rates (jumbos are high) or aggressive pricing. While one month does not make a trend, it’s good to see increasing strength downtown and across the city. While activity has picked up, it is important to note that prices are not on the rise. Most experts still predict modest declines for central Austin during the first half of the year.
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