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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (62499)	6/2/2006 9:42:28 AM
From: Wyätt Gwyön	Respond to of 110194

i am not knowledgeable about rent levels in Austin, but i do seem to recall reading in the local paper that they are up. still, a lot of the new job adds are in edge cities like Round Rock with very cheap housing, so i think people with OK jobs are not going to forego purchases to rent (as they might in Clownifornia). i did help my mom find a rental house that i thought was incredibly cheap (i think the rent will just about cover the property tax and maintenance bills, leaving a zero net caprate and serious negative CF if the landlord has a m*rtgage.) one thing that has kept prices from skyrocketing here is the ability of builders to just add tons of supply to the periphery (as is the case elsewhere in TX). so roads to these areas are very underdeveloped and in a constant state of construction. i just noticed the other day that they are installing toll booths on North MoPac (a big freeway), so i guess they are not getting enough dough from the state and feds.

To: John Vosilla who wrote (62499)	6/2/2006 9:45:17 AM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 110194

Just a theory that perhaps a large part of the demand the past 6-9 months was Californication spreading (after doing their dirty deeds in Phoenix, Vegas and countless other cities on the way) and absorbing all the oversupply that normally occurs in the Texas markets.. i have heard a lot of anecdotes of Clownifornians swooping in and picking up three or four houses on the weekend, so there could indeed be something to that theory. i think it is especially so in the under-200K market, which means outside Austin proper for the most part, these days.