How will the presidential election affect the Austin housing market?
President Barack Obama defeated Republican challenger Mitt Romney in the 2012 presidential election, and there could be dramatic changes over the next four years throughout the United States. Those who are checking out some of the homes for sale in Austin and other cities and towns across the country could see noticeable economic modifications that could affect property buyers and sellers.
"The next president, whoever it turns out to be, is going to have a couple of big housing issues to address," Barry Zigas, director of housing policy at the Consumer Federation of America, told The Washington Post in August 2012.
How will the President handle the housing market?
While the economic recession that affected many Americans in the late 2000s appears to have run its course, its ramifications are still being felt by many homeowners.
In Austin, many properties are available to homebuyers, but recent economic improvements have helped more sellers receive offers at or close to their initial asking prices. Demand is rising for Austin residences, which may not subside anytime soon due to the loan options available to property buyers.
Various 15- and 30-year fixed-term mortgage choices are available for those who are looking to buy homes in Austin. Freddie Mac notes that the average interest rate on these loans ranged between 2.69 percent and 3.40 percent as of November 8, 2012. These figures represent lower-than-average rates and could lead more buyers to pursue homes as the economy continues to recover from the recession.
Additionally, the Obama administration could look to new lending options to help more people become homeowners.
"The administration has put forward a plan to help more responsible borrowers refinance their mortgages...while taking concrete steps to help families stay in their homes, revitalize the communities hardest hit by the housing crisis, and reform the mortgage lending market to better protect both consumers and taxpayers," Obama campaign spokesman Adam Fetcher told The Washington Post.
Economic outlook looks positive in Austin
According to New Mexico Business Weekly, Austin was one of several cities to receive a prominent position on the Urban Land Institute's list of emerging national markets. Austin earned a spot among the top 10 because it displayed consistent growth in a number of industries, including education, energy, healthcare and technology.
A local real estate expert recently said that she feels the key to housing market improvements is job creation.
The housing expert told the San Antonio Business Journal that new property construction and home renovations help Americans. Because many projects require contractors, plumbers and other professionals, many businesses could look to local workers to fill job openings so their companies can meet the demands of their clientele.
Austin residents have contributed to the local economy, and their efforts have allowed the city to thrive. The U.S. Bureau of Labor Statistics notes that the Austin area's unemployment rate was 5.3 percent in September 2012, which is 2.6 percent lower than the national average. Local residents have also enjoyed ample employment opportunities, as the region's civilian labor force grew by 13,000 employees from April 2012 to September 2012.
The U.S. Census Bureau points out that between April 1, 2010, and July 1, 2011, Austin's population grew at a rate of 3.8 percent. Meanwhile, the Texas population increased 2.1 percent during that time.
More people appear interested in coming to Austin, and these newcomers could significantly impact the local economy. Join the Austin community by exploring the vast array of homes available in this city.