The Austin real estate market is one of the hottest and craziest markets in America. More and more people are flocking to Austin each year to settle down and/or invest in a property. The City of Austin is known for its low price housing costs compared to other cities near the coast, neighborhood walkability, the city being the live music capital of the world with various entertainment events and venues, stunning natural parks, and delicious local food. The top-notch tech companies such as Dell, Google, and the new Apple campus (expected to open in 2022) are found within Austin. This gives more employment opportunities to over 5,000 to 15,000 people.
Current Austin Real Estate Market
Austin MSA has a population of over two million and this year over more than 60,000 residents are added within the greater Austin MSA. From our blog State of the Market 2019 Q3, there were 384,000 homes built from 2001-2008 and within the said period, over 101,000 people moved to Austin. There was a shortage of about 11,000 homes during that time. Then there was a shortage of 41,000 homes from 2009 to 2016 since we completely stopped building homes and there were about 423,000 people that moved to Austin. People are still moving to Austin in greater numbers compared to leaving and will continuously happen in the future.
From 2010 to 2018, there was an increase of 25.5% in population which is one of the factors in home sales that increases the price and narrows the real estate inventory. According to Kevin P. Scanlan, 2019 President of the ABoR®, it's a seller's market right now. Even if there is an increase in new listings, the inventory seems to be low. Homes located within the city limits are spending less than one month on the market on average. Tech companies are coming into the Austin area as well such as Apple, Google, and Dell that attracts young professionals who are interested or are currently working within the said industry. Home values are up 12% in dollar value sold this year. The average price in Austin is up 7.7% and the median price increased to 6.1%.
Austin Real Estate Market Trends
The Austin real estate market is still at a competitive state where homes typically sell for about 1% below the listing price and go into pending for about 23 days. While homes that are really hot in the market go into pending in less than a week, in just about 6 days. Austin homes for sale have an average of over $400K which is a 9.6% increase since last year.
On the first quarter of 2019, the Austin office market is on fire with
over 3,000,000 square feet of construction for companies such as Indeed, Google, Facebook, Apple, and WeWork. These companies were eyeing on CBD, Domain and the East. Also, new developments are on the rise such as the Seaholm District which is said to be completed on 2022, The Austin Proper Hotel and Residences which opened this year, and The Independent, a residential skyscraper in Downtown Austin was recently completed over spring.
Austin's market remained steady in the second quarter of 2019. The Austin metro had 3.3% of annualized increased jobs within the three months. The growth was led by the construction and mining sector which grew to about 27.5% while the information sector experienced a growth of about 9.7%. The city of Austin declined with its single-family home sales in the first half of 2019 while the Austin-Round Rock MSA experienced strong gains. As the third quarter began, the Austin-area home sales have set an all-time high for any July on record sales with an increase of 11.7% to 3,439 home sales.
Cost of Living in Austin, Texas
To give you an idea of the cost of living in Austin, here are the following statistics you should know. Despite the high housing prices, the cost of living in Austin is relatively affordable and reasonable. The city is 3% below the national average for the cost of living, while the cost for housing is 15% below the national average so the area might be a good fit for you.
The average cost of buying a home in Greater Austin as of May 2019 is at $305,000 and try to differentiate that by paying $1,364 for your monthly rent. Although there are some factors to consider when you're buying a home such as stable income, spending money wisely, and more which you can check out on this blog about When Should You Stop Renting?
Now, to know more about the Austin Real Estate Pricing Trends and if you are interested in buying, selling, or investing in a home within Austin, fill out the form below and we will be happy to answer your questions.