The New York Times

October 24, 2008

By BETHANY LYTTLE

MORE than 200 live music sites, weather with annual temperature averages in the 70s, and thoughtful urban planning make downtown Austin an appealing second-home location.

Beginning in the 1990s, city planners decided to model its urban core on the downtown in Vancouver, British Columbia. The result is an area of high-density housing; vertical mixed-use building; plenty of cafes, restaurants and bars; and pedestrian-friendly public spaces that include biking and hiking trails around Lady Bird Lake (formerly Town Lake).

Buyers of second-home downtown condominiums come from larger cities like Boston, New York, Dallas, Houston and San Francisco. Some choose the area based on their experiences there while attending the University of Texas. Others, like young technology professionals, come to the city while on business, then choose to purchase small units for use on weekends or vacations.

Retirees and those who are about to retire are often attracted by the area's amenities, real estate agents said. Another group of buyers are people who don't want to be dependent on cars.

Eric Winkler, owner of E. J. Winkler Realty Company in Austin, said the supply of new construction condominiums now exceeds the demand. "Prices are negotiable," he said. "I've seen $90,000 come off a $490,000 list price."

Buyers at the Plaza Lofts at Republic Square Park can find one-bedroom units listing for about $329,000. Cory Culpepper, an agent at van Heuven Properties, said that the price is about $100,000 less than a year ago.

Dave van Heuven, owner of van Heuven Properties, said that changes in lending practices, not an excess of building, account for a trend in pricing. "If you look at the 43-story 360 Condominiums, all 432-plus units were sold out, most of them preconstruction," he said. "Now some of these same units are being offered again because of financing that didn't go through."

At the low end, listings range from about $250,000 to $450,000 for an 800-square-foot unit in a new building. At the high end, prices range from about $750,000 to $1 million, with penthouses in luxury buildings listing for up to two-thirds more.