Janet Yellen has the unenviable position to determine when the interest rate merry go round will pause and rates will begin to rise to a more “normal” level.
When the feds began monetary easing in 2008 and 2009 I doubt anyone thought that we would still be here in 2016.
The good news for the current homeowner is the loan you have will never be lower in rate. Smart consumers have created long term debt at incredibly low rates, an opportunity of a lifetime. The move up buyer will eventually face some tough choices. Keep the loan they have or move up in both price and rate. This combination of forces is likely to put pressure on real estate pricing advances unless true wage rate growth leads the way.
In this cycle, rates have remained low while wage growth has been minimal.
The response to the economic woes of 2007 and 2008 have created a generational opportunity for many people. In time we will see clearly how this all plays out. The past decade has been a great experiment in the complex world of negative interest rates and quantitative easing.
Juliette has one of my favorite patios. What are yours?
Culture map highlights great places to meet up click here to see their latest recommendations.
As housing affordability declines, the percentage of renters is expected to increase. Rental rates are projected to rise 5% during 2016. The property investors that I know feel that property taxes are chewing them up and spitting them out. So the tax coffers are taking in the majority of rental increases.
Here is a great article on how the rising rents impacts our economy:
Click HERE to read the one of my favorite reports in 2016 from the Austin Business Journal.
400 homes are owned by investors and used by visitors to ATX for short term stays while visiting central Texas. I am curious how phasing out TYPE 2 short term rentals will repurpose these homes and impact these neighborhoods?
Interesting article today in the Austin Business journal, written by :
Michael Theis Staff writer Austin Business Journal
See the map HERE for view of detail neighborhoods currently with TYPE 2 STR
“Mar 8, 2016, 8:07am CST
Who’s ready to build a new 1,000-room hotel to serve Austin?
That’s roughly what it would take to make up for the capacity that will eventually
disappear once Austin’s ban on so-called Type 2 short-term rentals takes effect in 2022.
Short-term rentals are the class of vacation rentals in otherwise residential housing
made popular by Web-based services such as Austin-based HomeAway Inc. and San
Francisco-based Airbnb Inc. In Austin, generally speaking, Type 2 STRs are single-family
short-term rental houses that are not occupied by their primary owners or managers are
classified as Type 2 STRs.
City Council’s recent decision to remove the expiration date for a moratorium on the
issuance of new Type 2 STR permits will completely ban such short-term rentals by April 2022.
There are now 400 licensed Type 2 STRs in Austin. Consider that the average short-term vacation rental home hosts 2.7
guests. If on one rare night every single Type 2 STR in Austin held the average number of guests, they would host a total of
In other words, Type 2 STRs are collectively the third-largest hotel in Austin. Only two hotels, the 1,012-room JW Marriott
Austin on Congress Avenue and the 801-room Hilton Austin on East Fourth Street could be expected to have a larger “novacancy”
capacity than Austin’s Type 2 STRs. Assuming that the national average of 1.5 guests per rented hotel room holds
true in Austin, the JW Marriott has a “no-vacancy” capacity of 1,500 guests, while the Hilton Austin has a “no-vacancy”
capacity of 1,200 guests.
So, where is all this soon-to-be lost capacity located? Check the interactive maps embedded below this article that show the
location of every licensed Type 2 STR in Austin. In addition to representing future lost hospitality capacity, these non-owneroccupied
properties could see market pressure to trade hands if their source of revenue dries up. I’ll have more about the
Type 2 STR situation and what it means for the owners of such properties in the March 11 weekly print and digital edition of
The second map, seen in the image above, is a heat map that shows the relative density of Type 2 STRs in Austin.
I was surprised to see how few licensed Type 2 STRs exist in the well-heeled West Austin enclave bordered by MoPac
Expressway to the east, Loop 360 to the west, U.S. 183 to the north and Lake Austin and Town Lake to the south. It’s also
apparent that Hyde Park, near-East Austin and South Austin, areas that have been subject to dramatic rises in home values in
recent years, host notable Type 2 STRs density.”
The sprawling capital of Texas has welcomed over 100,000 new residents since 2010. Along with all the new Austinites, dozens of new shops, restaurants, bars and hotels have appeared, turning the formerly sleepy city into a thriving metropolis quickly approaching a million inhabitants. This month, the South by Southwest Festivals will only add to the bustle. To catch up on the cool arrivals, you’ll need a rental car or a service like Uber or Lyft, as well as the patience to brave the city’s traffic. If you’re a first-time visitor, take time for the city’s must-sees, like Lady Bird Lake, the State Capitol and the enormous bat colony that lives under the Ann W. Richards Congress Avenue Bridge. With all the excitement in Austin, you might also find yourself considering moving here for good.
1.THE NEW SOUTH, 4 P.M.
While South Congress Avenue, a.k.a. SoCo, has been a countercultural favorite for generations, new arrivals are refreshing this colorful strip south of the Colorado River. Joining established shops like Service Menswear, the recently opened Revival Cycles stocks cool jeans from Austin’s own Traveller Denim, next to the sleek South Congress Hotel, whose lobby bar has become a destination in and of itself. Across the street, Cove offers casual women’s clothing from Mara Hoffman and other indie designers. Down the street, the well-established Stag Provisions gives its old fans a new reason to shop through its collection of heritage men’s clothing: an exclusive collaboration with boot maker Red Wing, finished in the same rough-out Mohave leather used by the United States Marine Corps ($260).
2.FRENCH FARE, 8 P.M.
With a name like Hopfields, it might sound like this place is all about the suds, but locals love this central Austin gastropub for such French-inspired fare as steak frites with Dijon mustard, house-made pâtés, and the Pascal burger (with Camembert, cornichons, whole grain mustard and caramelized onions), which many call the city’s best. At just over four years old, Hopfields is nearly a veteran now, but keep an ear out: Rumors of a coming second location abound.
3.FOWL PLAY, 9:30 P.M.
Betting on its hometown’s claim as the Live Music Capital of the World,Geraldine’s — the stunning fourth-floor bar and restaurant inside the newHotel Van Zandt — offers live concerts 365 days a year. (Geraldine’s is named after a neighborhood guinea fowl, who moved on to the great farmyard in the sky after being hit by a car in 2014.) Geraldine’s offers killer views of the downtown skyline, as well as up-close views of musiciansperforming everything from modern indie-rock to traditional blues and country.
4.HISTORIC HOMES, 11 P.M.
Check out the numerous watering holes on nearby Rainey Street, like 2014’s Container Bar, built out of shipping containers. Many popular Austin destinations were constructed inside Rainey’s historic bungalows, like Javelina, a friendly roadhouse with communal tables and outdoor seats that face the evening parade.
5.JAVA UPGRADE, 10 A.M.
Austin’s burgeoning barista scene offers plenty of options for a morning pick-me-up, from old favorites like the original location of Caffé Medici onWest Lynn Street to newer spots like Radio. Before you explore the shops and restaurants in the South Lamar neighborhood, start at Picnik, a coffee trailer that serves high-grade java, including upgraded options with grass-fed butter and medium-chain triglyceride oil. The pastry case includesPaleo-inspired treats — that morning poppy seed muffin might be delicious, but it’s also gluten-free, grain-free and free of refined sugar.
6.PUNK RAMEN , NOON
The city’s mainstream prefers noodles in their Italian form, but the hottest new arrival on South Lamar is the second location of Ramen Tatsu-Ya, a Japanese noodle bar. With its plywood furniture and Rancid soundtrack, Tatsu-Ya feels like a punk club, albeit one with a popular weekend lunch that brings in a crowd ranging from university students to Japanese families and grandparents. Stick with the Ol’ Skool ($9.50), the house take on Tokyo-style clear broth, served with thick ramen noodles, or dig into the richer, almost creamy tonkotsu ($9.50), dressed up with toppings like brussels sprouts, garlic or chile “bombs.”
7.INSTRUMENTS TO GO, 2 P.M.
Take inspiration from local musical talent and shop for instruments as souvenirs. From South Lamar, start out at South Austin Music, a favorite for electric guitars and effects, then head north across the river to Hill Country Guitars, where a gorgeous, Sitka-topped acoustic from the local luthier Collings Guitars will set you back a cool $4,568. A bit farther north,Austin Vintage Guitars offers collectible models from brands like Fender, Gibson, Rickenbacker and Danelectro, as well as guitar picks, slides and T-shirts in a spacious new shop.CreditStacy Sodolak for The New York Times
8.NEW ’CUE, 3 P.M.
In the old days, lovers of great barbecue knew to leave Austin for smoke pits in nearby towns like Lockhart and Driftwood. Then came East Austin’sFranklin Barbecue in 2009, frequently called the best in the country. With the line often stretching for hours, you can get a quicker snack atMicklethwait Craft Meats, which serves fall-apart smoked brisket, massive beef ribs and flavorful specialty sausages. (The backyard party vibe is another draw.) Afterward, clear the smoke from your palate with a tasting tour at Blue Owl, a brewery specializing in sour ales.
9.ART HUNGRY, 4 P.M.
Last November’s East Austin Studio Tour included more than 280 artists’ studios — and that was just in rapidly gentrifying East Austin. Catch up on the area’s colorful new venues like Wade ArtRoom, an intimate gallery run by the painter Angela Mathias, or stop by East Austin’s long-runningPump Project, a warehouse studio space featuring some 35 artists, which was joined by the new Icosa Collective, a group of 20 visual artists, last year. Then cross Interstate 35 into downtown Austin, home to the Jones Center, which merged with the beautiful villa and sculpture park out at Laguna Gloria to form a museum called the Contemporary Austin in 2013. The current exhibition, “Mark Mothersbaugh: Myopia,” a solo show from the co-founder of the band Devo, runs through April 17.CreditStacy Sodolak for The New York Times
10.MY BEAUTIFUL LAUNDROMAT, 7 P.M.
Many of the city’s coolest restaurants — places like Wu Chow, Bullfightand Geraldine’s — are less than a year old. Among the best new arrivals isLaunderette, where Rene Ortiz extends contemporary Mediterranean cuisine to include influences from regions like North Africa and the Levant: rich beet hummus and crisp flatbreads accompany a creamy labneh appetizer, spicy Aleppo prawns get an aromatic dose of mint, and the juicy house burger arrives on a fluffy challah bun from the acclaimed pastry chef Laura Sawicki. Launderette’s front of the house can’t always keep up with the kitchen, but the excellent cooking and fun-loving crowd in this former laundromat make up for the kitsch soundtrack and hit-or-miss service.
11.CRAFT COCKTAILS, 10 P.M.
Check out the expanding bar scene in downtown’s Warehouse District, surrounding Republic Square, with a sampling of craft cocktails at the newRoosevelt Room, which lists its mixed drinks by era of origin, from classic “early years” concoctions like the Brandy Crusta (Cognac, orange liqueur, fresh lemon juice, bitters) through Prohibition-era favorites like the Blood & Sand (Scotch, orange juice, sweet vermouth, Cherry Heering). Intimate booths and videos projected on the wall give an underground character to the long, dark space. Afterward, see how the newcomer compares with an old favorite like Péché, just two blocks away, where the focus is on high-grade absinthes like Switzerland’s exceptional Clandestine.
12.TACO BBQ, 11 A.M.
There’s no better morning-after restorative than Valentina’s, which combines classic Texas barbecue with authentic Mexican fare. Fans followed this food trailer’s move from downtown to a parking lot in South Austin, lining up for potato-egg-and-cheese breakfast tacos with house-made chorizo ($3), as well as lunch tacos like the smoked-brisket taco, topped with guacamole and a mild tomato-serrano salsa ($5), and the pulled “pollo” chicken taco, dressed with spicy tomatillo-habanero sauce ($4).
13.TO THE HILLS, NOON
There are many reasons to head to Hill Country, the undulating landscape that starts just outside Austin, but for beer fans, ground zero is Jester King: Set on a working ranch, this brewery and beer garden is the No. 1Austin destination for users of Ratebeer.com. After sampling rare drafts like El Cedro, a cedar-aged farmhouse ale, direct your designated driver toRevolution Spirits, a distillery that makes raspberry, apricot and cherry liqueurs with fruit pulp left over from Jester King’s brews, as well as Austin Reserve, a richly aromatic gin. Then walk across the parking lot to Last Stand, a new microbrewery, where you can sip a pint of bittersweet coffee porter while enjoying a classic Texas pastime: a game of chicken-poop bingo.
What on earth is a “SHARKNADO”?
Central Texas boasts a significant global economy, read about it HERE. And learn more about Sharknados while you do.
That’s what home buyers are experiencing in Central Texas. When you throw your hat into the purchase ring and lose the first few houses you are wanting to buy…home purchasing becomes stressful.
Today’s article Austin’s skyrocketing rent prices force locals to make major cuts in these areas explains why buyers are feeling this stress.
Home prices in quality locations and neighborhoods will not be going down. I specialize in working with professionals who can make things happen. It doesn’t cost a thing to call me for advice or referrals.