INHABIT AUSTIN: real estate

My deepest apologies for the long wait. I know you’re probably wondering what has been happening in the local real estate market. Well let’s get to it, shall we? December’s data will be available next month. I’ll refresh the index when the new numbers come out.

There is no denying Austin has been impacted by the ongoing recession and financial crises. Although we seem to be faring better than other cities, let’s not overlook the obvious. Many people are feeling pinched. Some realtors aren’t quite ready to swallow that pill and continue to sing a rosy tune, but we know it’s tough out there and we’re committed to seeing the shifting market through with you.

To get a better grasp of the full impact, it’s helpful to review the chart above against the backdrop of the volatility the US economy has experienced. Below is a timeline of key events that took place in 2008:

January 08: National Association of Realtors (NAR) announced that 2007 had the largest drop in existing home sales in 25 years, and the first price decline in many years. 

March 08: Dow Jones Industrial Average sinks to lowest level since 2006. Bears Stearns aquired by JP Morgan Chase with help of Fed.

June 08: Senate Banking Committee chair proposes housing bailout that would assist troubled subprime lending institutions

July 08: Major banks and financial institutions with exposure to high riskmortgage backed securities report losses of approx. $435 billion; President Bush signs Housing and Economic Recovery Act of 2008.

September 08: Federal take over of Fannie Mae and Freddie Mac; Lehman Brothers files for bankruptcy protection; Fed loans $85 billion to AIG.

October 08: Bush signs into law the Emergency Economic Stabilization Act creating $700 billion Troubled Assets Relief Program (TARP) to purchase failing bank assets; Dow caps its worst week ever with paper losses of $8.4 trillion from the market highs last year.

November 08: The Federal Reserve pledges $800 billion more to help revive the financial system; $600 billion will be used ot buy mortgage bonds issued or guaranteed by Fannie Mae, Freddie Mac, Ginnie Mae and Federal Home Loan Banks.

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