If you think the market in Austin will turn around sometime in the next few years then the strategy of trying to wait the market out might make some sense. The key, of course, is dependent on what you think the long term trend for that area is.

If the property were here, I’d tell you to discount it like you really mean it and get out now before it gets even worse. But that’s because I am of the opinion that this type of home in this area is going to take a beating for the next few years.

Austin was late to the speculation party and apparently has also lagged going into correction. That doesn’t mean it’s immune or that the correction will somehow overlook that area.