The main lesson is that Austin and Texas economically turned quicker than the rest of the country after the last crisis. Why? Because we did not have the amount of speculation or financial leverage that so many markets had. Travis County ranks 457 out of the 483 housing markets surveyed in vulnerability, meaning it is one of the 30 markets expected to be least vulnerable to effects from the coronavirus pandemic (Source: ATTOM Data Solutions).
Presently, the Austin economy continues to be based strongly on technology, higher learning, and state government with multiple other channels contributing. That’s important because many of the metros that experienced the economic crisis were dependent on one or two industries as well as highly leveraged financing. Highly leveraged financing has gone away, and the Austin Chamber’s focus on recruiting multiple segments of the industry should help tremendously.
From an article by Fox Business, they stated the prospect of remote work has spawned an exodus from New York and San Francisco to more affordable cities such as Austin. More opportunities in tech and other hot industries and affordable housing are reshaping what companies, families, and individuals look for in a hometown. Despite the pandemic, business relocations to Austin are expected to continue and create nearly 10,000 jobs. This will help offset the effects of COVID-19 on the City's tourism-dependent businesses. Chief Executive of real estate startup Tomo Networks, Greg Schwartz, said that it's a whole lot easier to hire, get housing, and business licenses in Austin than in other places.
According to the National Apartment Association, new construction in the city is booming as there are more new apartments on the rise. Airbnb's are as well thriving where a reservation for an entire home in Austin has increased to 57% during the third quarter in comparison to last year according to AirDNA. (Updated December 2020)
As discussed earlier, a large segment of the local population’s employment is dependent on Austin’s multiple festivals, sporting events, etc. They will recover, but their patience and assets will be tested as the length of this crisis are uncertain.
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None of us have seen a crisis like this. All we can rely on is facts. So:
- Facts prepare you and give you a basis for an appropriate response to evolving events.
- Don’t panic. A measured and analytic response should be more profitable, particularly long term.
- Don’t scrap your 2020 business plan! Your 2020 may not work out as you’d planned and believed in as recently as four weeks ago. Personally, I think it could be better in local real estate channels. Time will tell.
- It truly is how you handle it, whether you are successful or not. Much of the concern is on the demand and supply sides of the housing equation is timing. The good news is that people in real estate are used to dealing with hard news.
There are so many things we don't know could happen over the next few weeks of months but what we know as of now is the current economic impact of the coronavirus on businesses and the stock market. If you are going to enter the housing market in the midst of the pandemic, you're more likely to benefit from the low mortgage interest rates. Austin-area homebuyers are still looking to buy homes and with few homes on the market means a stronger demand and increased visibility for the sellers' properties.
Buying homes for sale in Austin during the pandemic has now looked different compared. Due to the safety precautions, virtual home buying and virtual tools, are being utilized by real estate agents in order for home buyers can safely purchase their Austin home while they are staying at home.
Everything from consultation, virtual tours, to closing can be done remotely through Virtual Home Buying which is one of the services we offer to our home buyers.
If you are going to purchase a home, talking to a real estate agent to get more guidance on the next step of the home buying process is very important as the housing market could change rapidly. With your real estate agent's advice, you will be able to stay updated when it comes to the US Housing Market's current conditions. Since we're in a seller's market today, there is a strong demand for homes and increased visibility for the properties that are being listed. Our Austin real estate agents can help you with the right strategies to take advantage of the Austin real estate market.