Is a Housing Shortgage Coming?

As the nation struggles to shrug off the worst housing crash since the Great Depression, it may be hard to believe a housing shortage could be on its way.  The nation is simply not building enough homes to keep up with potential demand. Just 672,000 new homes were started in April, an annualized rate and less than half the long-term run rate needed to meet the nation's natural population growth.  Read the article: Is a housing shortage coming?

The growth of the Austin economy will continue to outpace the rest of the nation over the next year, according to a forecast from one Texas economist.  Mark Dotzour, chief economist at Texas A&M University's Real Estate Center, predicts that the U.S. economy will slow in coming months--in part the result of forces such as increased global construction costs and the rising price of oil. But Austin is likely to add 20,800 new jobs over the next 12 months, a 2.9 percent increase in employment that will significantly outpace national job growth, he says.  Read the article: Austin will add 20,800 jobs in the next 12 months.

Real estate seller Trulia, Inc. reported 24 percent of its Austin listings reduced prices in June, which is down from 30 percent the same month in 2009. Austin was among metros with the best improvement in price depreciation, with 20 percent fewer homesellers cutting their listing price. The report compiled data from about 9,280 listings. Sellers reduced prices an average 7 percent, shaving off a total $73.2 million.  Read the article: 24% Austin home listings lowered price in June.