Affordability and Inventory Continue to Impact Austin Market - July 2019
The Austin real estate market has suffered from a slight decline per the midyear report by Austin Board of Realtors ( 2019 Central Texas Housing Market). This decrease can be attributed to various factors which include:
· Increasing Home Prices in Austin
· Increase in Demand in Affordable Housing
· Growing Population
Increasing Home Prices In Austin
Home pricing increases across the country are slowing down as of summer 2019, but Austin home prices have gone up with 6 percent for the past 12 months. There are speculations that prices will continue to rise. Zillow predicts that this price increase in Austin real estate will extend to early summer 2020. Kevin Scanlan (President of the Austin Board of Realtors) indicated that increasing home prices will lead to a decline in Austin sales. Most people are choosing to live in suburbs than cities due to the low cost of housing. This has been one of the major factors that have caused declining Austin home sales.
No doubt that Austin has become a popular destination for many within and outside the US. This has made Austin a good market place for real estate investor to strive. Austin has been ranked the number one best city to live in by the U.S. News and World Report. Despite the increase in Austin home prices, people still find it more attractive to dwell in the suburbs. The city has a variety of features that attract dwellers. For instance, low cost of living, low housing costs, low crime rates, and more. Housing is more affordable in suburbs for everyone.
Increase In Demand In Affordable Housing
The decrease in Austin city home sales is due to the increase in demand in Austin with people locating from many different areas in the country. The price increase has conditioned people to live in the suburbs. This growth in demand has led to a price increases in the city. Higher pricing has a direct correlation with low inventory. Sellers don’t necessarily want to move unless they have a new home to move in to. It’s a vicious cycle. The demand for housing in Austin city is high and will indeed scale higher because more people are interested in living in Austin. According to May 2019 report by the U.S Census Bureau, Austin has remained the fastest-growing cities in the south.
You can definitely say the Austin market in general is a difficult one to maneuver. If you need an agent who understands how to help you be successful with such challenges, please reach out. We have a small group of emotionally intelligent agents who specialize personal service and excellence. Call 512-952-9323 for questions or help with your transition. Whether relocating or just moving across town, we are here to be your lifetime resource.
Reinae Kessler is a real estate broker in Austin, Texas and has been practicing real estate in Texas for for 14 years and specializes in marketing. She completed her first flip property in 1994, and understands better than most condition issues associated with buying a property. She is ranked among top agents in Austin. She prides herself on giving clients personal service and excellence along the process.