5 facts about house market in Austin
The house market in Austin is booming but homebuyers don’t have it easy. Ever since the pandemic hit, things got messy in this department. Now with the global crisis, it’s even worse. But that is not always the case when it comes to the housing market in Austin. Texas in general can be a great place to live or to invest in property. We are here to show you a few facts and how we can be of help if you decide to relocate to Austin. Moving to Austin can be an amazing idea but first, you need to find that ideal home.
#1 Austin is a perfect place for investors
Many investors are wondering the same thing – Is Austin a good rental market? We all know that it’s a great place for young couples but how about investors? Austin’s rental market is one of the fastest-growing in the state of Texas. A growing population means housing demand. Austin is among the fastest-growing metro areas in the U.S. The population growth is expected to continue for the next 14 years. So, if you are looking at this area to invest in real estate it might be an excellent opportunity. Just make sure to wait until the winter to buy. Chances are you will get a better deal during the winter months.
The ultimate question – to buy or to rent
Whoever is looking at houses in Austin, the first thing that comes to mind is – is it better to buy or to rent Astin? If this is your first relocation you will need to research this a bit more. The study concludes that in Austin, monthly rent is less expensive than mortgage payments. The LendingTree study discovered that up until the mortgage is completely paid off, renting a home in Austin is cheaper than buying by an average of $636 per month. That’s why investors like this area but we will talk about this phenomenon a bit later.
#2 The prices have been on the rise since 2017
We already said that Austin is a very popular place and it’s an especially good place for families. It has been that way for quite some time. Surely you know what happens once any city becomes popular. People start coming more, buying homes and the prices start rising. It’s just the way it is. The more popular the city – the higher the prices. House prices continue to rise at a rate that is significantly higher than the average rate of growth over the past several decades, which has been around 5% to 6% per year.
#3 Experts claim that the prices will drop due to the inflation
The real estate market in Austin is showing signs of cooling off as a result of fewer home sales. That can be due to the current global state with the war impending in Europe and obviously the inflation that we are all feeling. While this is true, the increase in home value since June 2021 is more than 13%. The board of Realtors of Austin reported in July 2022 that the housing inventory in this area (Austin-Round Rock) was the highest it had been in nearly three years. Additionally, the median home price rose by 8% to $515,000 in the last month. Since June 2020, it is the first time annual growth has been below 10%. Obviously, we need to wait and see what will happen with the housing market and, when the opportunity presents itself, we can always call Evolution Moving to get us to the new home. You can easily check the prices online by using websites like Zillow.com.
#4 Do you want to know how inflation will affect the house market in Austin?
It is expected by economists that the recent rise in housing prices will show up in CPI readings in the future, possibly as early as the first quarter of 2022. The White House, for instance, expected in Sept. that the monthly CPI would reflect relatively high housing prices by a few basis points in the months that followed. Yet, they predicted that this expansion might just portray the pre-pandemic effects of housing prices on inflation and that inflation projections are anticipated to slow in coming quarters. According to Fannie Mae’s housing market forecast released in November, the third quarter of 2021 was likely the peak of the housing price surge.
#5 Fixer-uppers are a much better option here
We already talked about the higher prices in Austin. For both investors and home buyers, fixer-uppers are a much better option. This is of course if you have the time to wait to do all the necessary work. Before we continue it’s important to say that buying a fixer-upper means that you find a house that is in a bad shape for a very good price and then do the necessary work on your own or with some help from professionals. Then once the work is done, skilled people can assist you with moving in and unpacking. We are talking about movers in the area obviously.
As you can see this can be a much more affordable option. The only downside is that it can take a lot of time to do all the necessary work. On the bright side, you get to decide every little detail and you don’t have to settle for anything you don’t like. Now you can make a pro and con list and see if this can be a good option for you. For those who are willing to make sacrifices, you can even earn a lot of money if you sell the completely redone house since the demand is on the rise. Good luck with researching more about the house market in Austin and surely whatever you choose will work out great!