Where is the Austin Real Estate Market Now?
September 30, 2022 by Laura Duggan · Leave a Comment
After over a year of an Extreme Seller’s Market (See Market Report Tab above) where there were fewer than 2,000 homes for sale and prices rose substantially, it all changed in May. There are now over 9,000 homes for sale, interests rates have risen 3.5 percent to just under 7%, inflation has increased the cost of goods and services and home values are leveling off or slightly declining.
What does the future hold for the Austin Real estate market?
According to economist and native Austinite, Mark Sprague, the State Director of Information Capital with Independence Title Company, the Austin real estate market remains one of the most robust in the country, primarily because of increasing job opportunities and people and companies moving to Austin.
According to Mark Sprague:
* Average interest rates will increase to 6.5 to 7.5% over the
next year, and stabilize at the 50 year average of of 7.4%
* The US will go into recession, following Europe and China, that
will last 3-5 years.
* Austin will continue to have consistent housing demand,
however Austin is critically short of homes on the market to
meet the demand and he predicts inventory will decrease 10 to
15% next year. Because Austin rents have gone up over 22%
in the last year, there will be an increase in demand for the
purchase of homes.
* Because the cost of materials have risen between 10 and 50%,
new homes will continue to cost more.
* Current homes values may decline slightly, however they will
increase in the Spring when our demand is traditionally higher.
Mark Sprague’s basic recommendation: Buy now as time will only
cost a buyer more. Austin is not slowing down.
For sellers, homes have to be presented extremely well and priced correctly. He said, “if your house does not sell in 30 days, you have missed getting the most value for your house and should lower the asking price.” Our experience tells us that you should price a house competitively and let the market set the sales price. If you have to reduce the price, buyers will generally ask for a further reduction. Price it to sell so that you avoid having to make reductions.
In this rapidly changing market, extensive experience in real estate is critical to evaluate the “the right price.” If you are a buyer in today’s market, you may pay a little more in interest rate but you likely won’t be competing with other buyers driving the price up. Interest is still the best tax deduction we have, and the loan can always be refinanced when the rate drops. If you are a seller, setting the right price the first time is key in getting top of the market pricing. We can help you figure out how to position the condition and price just right to make it an attractive buy.
As always, real estate is hyper local even by neighborhood. Let us know when it is time for you to make your next move.
Submitted by Laura Duggan, Broker, West Austin Properties, laura@westaustin.com, 512-750-2425.
Year End Market Report Indicates Austin’s Growth
December 29, 2021 by Laura Duggan · Leave a Comment
The real estate market in Austin continues to explode. We have sold more homes in Austin in 2021 than in any previous year, over 35,000. In fact, our team at West Austin Properties could have sold even more if we had had more inventory. Take a look at our December market report to see the statistics by price band and zip code across the Austin area.
Because of the lack of inventory, on average a one month or less supply, most homes are drawing multiple offers and are selling for a significant amount over the list price. In 78704 and 78731 for example, homes were selling for 105% over the list price.
Many agents are putting their listings on the market on Wednesday or Thursday, then taking offers through the weekend. Sellers often have a number of offers from which to choose, making it a strong seller’s market in every price range, even in the multi million price range. Average days on the market across the area is 25.
We have also noticed that homes are in a pending status, that is sold but not closed yet, for longer than the usual 30 day period. We attribute this trend to the higher demand for appraisals and the diminishing number of qualified appraisers. It is important to work with a strong, local lender when buying a home now. The appraisal process varies widely among lenders.
The trend for 2022 is more of the same for Austin. Over 600 companies moved to Austin last year during the pandemic putting more demand on housing and that trend continues with announcements from Tesla, Oracle, Samsung, Apple, Amazon and Google who are all increasing their numbers of employees by the thousands. In fact, Yahoo Finance recently reported that Austin is the hottest housing market in the country.
As always, real estate is local and varies by neighborhood and circumstance. Please reach out if you want specific information regarding your home or neighborhood.
Submitted by Laura Duggan, President, West Austin Properties, 3312 River Road, Austin, TX 78703, 512-750-2425, Laura@westaustin.com
Growth = Demand
April 14, 2021 by wampadmin · Leave a Comment
The Austin job market is expanding at a level that exceeds the availability of housing. While more homes sold in the first three months of this year compared to any prior year, the number of homes on the market is at record lows. This is occurring for several reasons.
Business relocations, combined with job expansion of current business and the attractiveness of the Austin business and social climate continues to bring more people to Austin. The Wall Street Journal claims Austin is the second fastest “boomtown” in the US, only behind Salt Lake City.
The Milken Institute rated Austin the Third Best Preforming city on metrics including jobs, wages, salaries and technology output , just behind Provo, Utah and Palm Bay, Florida.
Site Selection Magazine in March identified the cities with the most corporate expansion and Austin came in sixth in the nation for total active expansion with 84. And Austin came in second with 43 projects per capita.
Over 130 people are moving into the Austin area every day. Over half are relocating from Texas because of the strong job market. There is strong migration from California, Florida, New York and Illinois.
While the number of homes for sale continues to grow, this growth is not able to compete with the influx of new people. The result is houses listed for sale are sold quickly, having received multiple offers and with most homes selling for over list. This causes home prices to increase.
Austin Exploding
January 20, 2021 by wampadmin · Leave a Comment
Austin is now one of the fastest-growing cities in the United States. In the last 20 years, the city of Austin has seen a population increase of 48%, from 675 ,000 in 2000 to over 1 million today. Oracle Corporation and Tesla have both just moved their headquarters from California to Austin. Other companies like Microsoft, Amazon, Indeed are expanding their presence. According to the Austin Chamber of Commerce business relocations this year are expected to create nearly 10,000 jobs. The result is increasing demand. At a time when some home owners are hesitate to move because of the Covid19 Virus, demand for existing homes listed for sale are intensifying. The result is prices are rising. For a most up too date on the Austin market by Zip Code and Price Range, click on the Market Report link at the top of this page.