As I noted last month, although prices are still up from last year, the indicators continue to point to a slowing market.  The table below shows inventory levels for August in different price markets, which have stayed constant since last month. Probably the largest threat to our market is the tightening of availability of mortgage funding. Amazingly, in light of what is happening in the rest of the country, our inventory in the $100K to $300K price ranges are still strong and fall in the category of a Seller's Market. However, homes in the $500K and higher price range are in a strong Buyer's Market.

Inventory Levels Based on Home Price in the Austin Area for July 2008

Home  Prices	Sales	Listings	Aug.Inventory	JulyInventory
100K-200K	913	3254	3.6 months	3.7 months
200K-300K	513	2367	4.6 months	5.0 months
300K-500K	321	2313	7.2 months	7.0 months
500K-1M	104	1455	14.0 months	10.7 months

The other area of our market that varies is in location.  The weakest areas have been west of the city and the southeastern areas within the city.  My opinion is that now is still a good time to buy a home in the Austin area. In light of the recent financial crisis within our national economy, real estate is becoming a place to invest where you know your asset is physical and won't just disappear over night.