Austin real estate market improving

AUSTIN (KXAN) - Real estate in the Austin area is starting to make a comeback despite home sales being down year-to-date.

And it turns out if a home is priced under $200,000, it's not staying on the market long.

"It's white stone, it backs to a greenbelt, it's on a culdesac, and its in perfect condition," said Michaela Brown Hachtel, a RE/MAX real estate agent describing a home she just sold.

Priced at $179,900 a home in Northeast Austin didn't stay on the market long.

"We had two contracts," said Brown Hachtel. "The first was after about five days."

That's because homes priced at or below $200,000 are becoming the hottest thing on the market.

"Between last year and this year, we've seen an increase in sales of a little over 10 percent, which is great in this economy," said Robert Shaw, with Advocate Properties.

Considering the fact that 17 percent fewer homes have been put on the market this year over last.

And overall home sales are down year-to-date. Real estate agents credit first-time home buyers for putting a surge in the Austin market , thanks to the $8,000 first-time home buyer tax credit.

"They have to close by Nov. 30, so that means they have to have a contract by Oct. 15 to about Nov. 1," said Brown Hachtel. "If you're thinking about doing it, you need to go to the bank and get pre-approved right now."

Because if you find a home you like that's under $200,000, Brown Hachtel said you will be competing with multiple people for that house.

Real estate agents said most of the homes priced under $200,000 are located in North- or South Austin. There are 690 homes listed between $150,000 and $200,000.