Austin Real Estate Scene

The Statesman today published a story about how the Austin Home Builders are cutting back homon building new homes due to the credit crunch.

Tight credit for builders and buyers alike, slowing job growth and the darkening clouds over the economy have dramatically changed the new-home landscape in Central Texas.

Most the builders have their own in house mortgage or are partnered with a major loan company and offer lots of incentives to use their loan service. This is because they make a lot of money on the back with all the interest that accrues over the life of the loan. But with the financial markets in turmoil the landscape of home buying has slowed way down.

Two years ago, builders started a record 16,000 homes in Central Texas. This year, they’re on track to build slightly more than 10,000, based on new figures from Residential Strategies Inc.

But it also means there are great deals out there!

Short term, that means some good deals for buyers as builders pile on incentives to sell off their inventory before the end of the year.

builders are offering concessions ranging from free upgrades for buyers making a full-price offer to as much as $100,000 off on an $800,000 home.

This housing slowdown will take some time work out.

Housing experts say the slowdown could continue to deepen for at least another year, until the mortgage and financial markets recover.

Here is the full story from the Austin American Statesman

http://www.statesman.com/business/content/business/stories/realestate/10/12/1012housing.html