According to Residential Strategies, Inc., the number of new home starts increased in the city of Austin during the second quarter, but the number of closings on new homes actually went down when compared to first quarter figures. During the second quarter, the city saw a 52% increase in new starts when compared to the first quarter, resulting in a total of 1,861 new units. This brings the city’s annual start rate from the third quarter in 2008 to the second quarter of 2009 to 6,949.
“The second quarter period historically marks a time of increased start activity, based on increased buyer traffic and sales during the spring selling season,” said Mark Sprague, who is an Austin partner with Residential Strategies, Inc., in a recent Biz Journals article. “Homebuilders had very few backlog orders to fulfill during the first quarter and no need to begin any speculative construction, but buyer traffic and sales have increased, marking the need for additional starts during the second quarter of 2009.”
Although it is good to see the number of new starts on the rise, the overall number of new home starts for the year is still 41% lower than where they were during the third quarter of 2007 and the second quarter of 2008. New home closings, on the other hand, dropped by about 17% when comparing the second quarter to the first quarter, bringing the total new home sales down to 1,786. Per year, the city has completed about 8,900 home closings.
About the Author:
Jim Olenbush is the owner of Cantera Real Estate in Austin, Texas. His team of Austin Realtors specialize in waterfront properties and luxury neighborhoods around the city.
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