The latest sales reports from the Austin Board of Realtors has shown sales calming down closer to more “normal” levels in Austin, although you should take that news with a grain of salt because “normal” for Austin is still red hot compared to the rest of the country. What’s interesting is that new home starts are still on the rise, helping to ease the extreme imbalance between supply and demand that Austin’s housing market has seen in the past couple of years.
Our growth is still strong as is our local economy, so we encourage clients to look at the big picture when looking into sales trends in Austin. MLS statistics are only one part of the story and don’t even include all sales. Half of Aria Realty’s 2013 business was done outside of the MLS with data that was never reported since many of our clients have privacy as their upmost concern and we specialize in identifying properties that match our clients’ needs before they are mass-marketed.
New home starts are still up, but higher prices are slowing the rate at which new homes are started according to the latest reports.
On an annual basis, housing starts were up 9 percent in the 12 months that ended in September as builders started construction on 10,205 new homes. That 9 percent increase marks a significant slowing from the prior year, when the annual increase was 30 percent.
“The Austin market has experienced a strong year thus far but momentum has started to slow as builders and home buyers are starting to feel the pinch of higher costs and home prices,” said Randall Allsup, regional director of the Austin market for Metrostudy.
The region continues to see robust job and population growth, and Allsup said demand for new homes remains strong, especially in areas that are producing entry- level houses priced below $200,000. He said the upswing in starts in the third quarter was primarily due to lots becoming available in high-demand areas where builders rushed to get houses started.
So, when is a good time to buy a home in Austin? It depends on your goals, but for the most part, anytime is a good time to buy in Austin. Our population and economy still show amazing growth with no signs of dramatically slowing down any time soon. Certain pockets of Austin make better short-term investments, but prices in Austin have always and will continue to rise because of the great culture, growth, and economy.
Although some click-bait articles are touting Austin as over-priced and ready to burst, the data and interpretations from real experts just doesn’t support this theory. We continue to see strong and steady growth and prices that are on the rise, but by the multipliers that the bust-cities of the sub-prime mortgage fiasco.
New homes are primarily built in Austin’s suburbs where prices have risen but to the dramatic extent as central home re-sales.
If you would like additional advice on buying and selling real estate in Austin, let a member of our team know.