Both buyers and sellers in Austin are seeing a real estate market that’s to their advantage. Homes are more affordable; the construction industry has incentives for building more new, affordable houses; interest rates are low; the job market and economy are growing; and the sharp rise in apartment rentals are turning renters into buyers.
Let’s look at some statistics and a few predictions by the local real estate professionals, industry experts, and state government forecasts to see why the Austin real estate market is great for both buyers and sellers right now.
For Austin Home Sellers:
- The metro area is expecting a continuation of a record in home sales. They’ve been on the rise for 4 straight years— 2% greater last year over the year before.
- Homes were on the market for an average of 47 days last year, a few days less than the previous year. While that doesn’t sound like a big jump, progress is being made.
- The median price of a home rose last year by 8% over the previous year. December home sales last year compared to those in December 2013 increased by a whopping 14%.
- Rents are making home sales look a lot more attractive. Renters within 10 miles of the city are paying over $1300 on average. Rental increases by percentage in some areas have jumped well into the double digits beginning around 2010. The reason: not enough housing.
For Austin Home Buyers:
- While demand is still outpacing supply, more listings are on the market. Buyers had 4% more new single-family homes to choose from last year compared to the year before. (Note that these statistics are for the greater Austin area. Specific places like Round Rock are seeing historical lows in inventory. Ask us for more information about specific areas you're interested in.)
- Some local industry experts are predicting builders will start more homes in 2015, which will lower the appreciation in prices. One estimate was a 10% increase over 2014. Translation: homes should be more affordable as supply increases.
- Buyers will have more money to spend. Personal income in the Austin area over the next 5 years is expected to rise 6-7%. Plus, estimates show the metro area should have over 30,000 new jobs this year.
- The majority of new jobs will be in the private sector: the services area, along with leisure and hospitality. Construction will need to keep up with this demand—another incentive for builders to create more affordable housing options for first-time buyers or those falling in the lower income brackets.
- Interest rates for home loans are still lower than they’ve been since the 70s. Even if there is a slight increase, which some market experts are saying might be a possibility, the trend has been that interest rates have remained low over the last five or so years. Since the economic downturn, that trend will be continuing.
Austin is a fantastic place to live, and more people move here every day because of the growing workforce, relatively affordable cost of living and all the great opportunities the area provides. The Austin real estate market is booming, so take advantage of low interest rates and start looking for your next home today. We would love to be your resource whether you're buying or selling. Call us at 512.537.4977 to learn more about what we can do for you to help obtain your next home ownership goal!
