3 Austin Real Estate Trends and How They Might Impact Your Home Search
Can you feel the heat in Austin? No, we're not talking about the stifling temperatures throughout the summer months. We're talking about the record-setting housing market that continues to show gains in just about every section of the city. Home buyers are facing competition at every corner, and sellers are enjoying significant returns as they look to upgrade to more luxurious properties in and around Austin. This hot market doesn't show any signs of slowing down, but there are several trends identified by the Community Impact Newspaper taking shape that may impact your home search in the city.
1. In the last 5 years, new home construction in the city has more than doubled.
The Austin Board of Realtors reported that just 167 homes were built in the central part of the city in 2011 — but by 2016, more than 550 homes were being built each year. By May of 2017, 255 homes had already been constructed, with plenty more in development for the rest of the calendar year.
New development is great news for potential home buyers, who are faced with a competitive market. Having the option to build or purchase a new construction home allows buyers to avoid the bidding wars that are taking place over existing homes and also gives them an opportunity to create the house that they want. City officials are encouraging this new construction as well. In April, the city council adopted a Strategic Housing Blueprint that calls for the creation of more than 135,000 housing units in the next decade. Outside of the city, areas like the Leander real estate market are growing quickly as well – buyers looking to take advantage of this construction may find more affordable housing.
2. Median home prices in central Austin have increased significantly in the last 5 years.
It's only natural for home prices to rise given the fact that the economy is strong. Inventory isn't limitless and there is an influx of buyers hoping to find a great home in the city. However, central Austin has enjoyed a boost in home values that is unlike anything the city has seen before. Between May 2011 and May 2017, the median price of the homes for sale in Austin increased by more than $200,000. Currently, the median price in Austin is about $490,000.
3. Zip code matters, and 78704 is leading the pack
This area includes popular Austin neighborhoods such as Barton Hills, Bouldin Creek, Dawson and Travis Heights, to name a few. And by May 2017, more than 333 homes had been sold within this zip code. Home buyers who may be looking for a property that will greatly appreciate, or who know that they want to move again in the next several years, may want to zero in on this desirable zip code. Prices are high, but values are expected to continue to rise. It's a great place to invest in real estate, but it also boasts a high quality of life for those who reside there.
Even as the summer days wane and the fall begins, real estate experts do not expect the market to settle down for the winter months. The economy is strong, there are new jobs to be found in the growing tech sector, and residents are looking for high-quality housing in the many welcoming neighborhoods of Austin.
To learn more about the housing market in Austin and to find out about the available inventory, contact our experienced local agents today.