For the past several years now, Austin’s housing market has been hot, hot, hot! Austin’s area population now exceeds two million and reports of up to 115 people move into town each and every day. The traffic alone can testify to that! The result? Housing options are tight and prices continue to shoot up.
The cumulative value of homes in Austin for 2015, according to a recent Zillow report, was $155,000,000,000 – yeah, that’s a “B” – a staggering number. In fact, according to the Austin Board of REALTORS, Austin homes snagged the highest prices in the state of Texas. An Austin-area single-family home average price came in at $347,292. That’s an annual average price increase of a whopping 12 percent. The three hottest areas? South Lamar, Southeast Austin and Northwest Austin.
Due to the low apartment vacancy rates, the rental market has also seen historic growth in the amounts charged for rent. According to Forbes, it rose 7% in 2015. That rise is more than twice as fast as the national average of 3.3% and more than three times as fast as the New York City metro area average of 2.1%. As of November, the median Austin rent was $1683 while the national median rent was only $1382.
However, could the winds of change have started showing signs around Austin? The Feds recently raised interest rates, albeit slightly, and after increasing for five consecutive months, Austin-area home sales dipped four percent in November 2015 compared to the same time last year. Perhaps that’s due to the home values in the core city being well out of range for many would-be homeowners. Despite this, most economists believe despite the lowering oil prices negatively affecting cities like Houston, Austin’s strong job market and local economy should contribute to a healthy real estate market for 2016.
If you are interested in buying or selling a home in Austin, Texas, please contact MacKenzie Realty. We wrote the book on Austin real estate and we work hard to make your transaction easy, and even fun, by being prompt, hard-working, ethical, and, of course, thorough. Check out what others say about us.