Across the country, and here in Austin especially, a combination of factors is leading to a potentially strong environment for home values once again.
As Steve Sjuggerud notes in a recent column at the Stansberry & Associates website:
There aren’t enough homes for sale right now. In January, housing supply reached a 13-year low. Meanwhile, demand is high. (My colleague Brett Eversole is buying a house as I write. His mortgage company – a nationwide bank – says it will take 45 days to close on his house, because it’s swamped with buyers.) Houses are cheap. We are coming off the greatest bust in housing prices in our lifetimes! Thanks to record-low mortgage rates (at around 3.5% for a 30-year mortgage), housing is literally more affordable than ever.
Conditions like these indicate, among other great things, a fantastic time for home remodeling, since a healthy market tends to support even higher Return on Investment (ROI) for renovation projects.