Let's Build

Your dream home can be a reality with this Central Texas bank

When building a new home, you have to set the right foundation first.

When it comes to building your dream home, you may have checked the box on selecting your architect and interior designer, pinned your favorite styles, and watched too many HGTV shows to count. But one thing that may not be at the top of your inspo boards is a bank.

Whether you’re selecting the perfect-for-you lot, building a new custom home, or both, you have to set the right foundation first — and SouthStar Bank firmly believes this, too. They can provide the financing you need to get started on your dream project.

As a people-first, community-minded Texas bank, they’re dedicated to offering personalized service every step of the way in the home-building journey. Their knowledgeable lending team is experienced in the construction process and will work with you to get pre-qualified, understand the realities of your budget, create a financial plan, and guide you through the phases of funding your custom home.

The first step in building a new home is identifying the property. Through a raw land or lot loan, SouthStar Bank can help you secure the site until you’re ready to build. Land loan terms are typically 12 months or three years, depending on how much time is needed before converting to a construction loan.

Once your plans and budget are finalized with your builder, you’re ready to shift to a construction loan, which is a short-term loan of generally 12 or 18 months, depending on the size and budget of the home you’re building.

SouthStar Bank typically uses the down payment on the land toward the construction loan and, in some cases, lot appreciation may contribute to the required down payment.

Construction almost always requires non-traditional financing because funds are advanced toward a home that does not already exist. Because construction loans are more complex, it’s so important to work with a partner like SouthStar Bank that has experts who are specialized in construction lending. They can also advise on construction loan options that roll into long-term mortgage financing when your dream home is complete.

With more than 100 years of lending expertise, SouthStar Bank understands every step of the home-building journey and was recognized as a Top Austin Mortgage Company by the Austin Business Journal.

“We are about to wrap up our second loan with SouthStar Bank; our first was a land loan and the current is a construction loan,” says client James A. “I cannot say enough about what a fantastic job they did. They worked both loans and were extremely professional and went above and beyond to deliver. I would highly recommend them to anyone. Their communication and responsiveness were spot on.”

Locate your nearest branch in the Austin area to speak directly with a lot loan and construction loan professional, or visit the SouthStar Bank website to explore your loan options and begin the application process.

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All loans subject to approval. Other fees and restrictions may apply. SouthStar Bank NMLS #410624. Member FDIC. Equal Housing Lender.

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local real estate report

Homebuyers can afford to be picky as Austin housing inventory rises

Photo by Avinash Kumar on Unsplash

Housing economist Clare Losey said the most significant factor affecting home sales in Austin is high mortgage rates.

The latest real estate report from Unlock MLS and the Austin Board of Realtors (ABoR) has revealed housing inventory is still on a steady rise in the Austin-Round Rock-San Marcos MSA, creating more choices for potential homebuyers as they navigate a high interest rate market.

Residential home sales dipped by a mere 1.5 percent year-over-year from October 2023, amounting to 2,248 closed sales in the Austin-Round Rock-San Marcos MSA. Median prices have also dropped to $430,000, or 3.2 percent less than this time last year. More than 3,300 new home listings were added on the market — a 7.4 percent increase from 2023 — bringing the total number of active home listings to 11,599.

According to Unlock MLS and ABoR housing economist Clare Losey, Ph.D., October's mortgage rates stood at 6.4 percent and are showing no signs of a significant drop in the near future. Even heading into 2025, Losey says potential homebuyers who are biding their time in the hopes of seeing rates plummet "may be in for a long wait."

"In the meantime, sellers must recognize that bringing buyers to the table requires a more aggressive pricing approach," Losey said. "Even in a more balanced market, buyers with limited purchasing power are struggling to meet current price expectations."

As for the overall health of the Central Texas housing market, 2024 Unlock MLS and ABoR president Kent Redding labeled recent news reports that called Austin "ground zero" for a downturn as an "extreme over-exaggeration."

"Austin led the state and nation in record-breaking home price growth and sales activity during the pandemic," Redding said. "For three years, near-zero housing inventory, numerous offers above list price and a rapid-paced market raised home prices and left little negotiating power for buyers. During this record-setting growth, ABoR and Unlock MLS consistently emphasized the unsustainability of the rapid growth, and now, our market is working to balance those extremes."

Central Texas housing trends in October 2024

In Travis County, 979 homes were sold last month — a slight 2.5 percent increase from last year. Median prices remained flat year-over-year at $510,000. Active home listings continued growing to 5,702 homes, which is 9.4 percent more year-over-year.

In Williamson County, 807 homes were sold in October, with median prices steadily dropping to $420,000. There were 1,028 new home listings on the market, showing a 4.5 percent increase from October 2023, bringing the total number of active home listings to 3,369.

Residential home sales dropped by nearly eight percent in Hays County in October, totaling 315 sales. Median prices also fell 5.5 percent year-over-year to $359,000. Active listings rose 6.6 percent year-over-year to 1,740 homes with the addition of 534 new listings on the market.

Meanwhile, 114 homes were sold in Bastrop County last month, which is 4.4 percent more than this time last year. Median prices dropped by a single percentage point year-over-year to $355,000. There were 654 active listings on the market in October, and 152 new home listings, representing a 1.3 percent slip in new inventory when compared to last year.

Only 33 homes were sold in Caldwell County in October to reflect a near 14 percent decline year-over-year from October 2023. Median prices fell to $262,990, which was a 13.5 percent decrease from last year. There were 136 active homes on the market last month, and 40 new homes added on the market.

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