What’s Up with Real Estate in Austin?

Hey Y’all! It’s been an amazing first few months in real estate since I started my new business in December. I sold one, bought one, rented one, and helped a friend buy a house for her daughter! It’s been a wild ride, and more to come, I’m sure! I’ve had a few questions from all of you about the Real Estate market in Austin that I thought I’d answer.

How has COVID-19 affected the Real Estate market?

The impact of COVID-19 showed up in April when the market experienced a dip in sales of 21%, as buyers and sellers Sheltered-in-Place to comply with health directives. However, overall real estate market has remained robust, with the impact of the pandemic less severe than anticipated. There is already a healthy uptick in pent-up demand as the economy begins to open up again.

Is COVID-19 going to lead to foreclosures and short sales in 2008-2009?

In othe words, can we bid super-low on this property?  An average of 169 more people move into Austin on a daily basis and there are just 0.2 months of inventory in the Austin market (economists say that a balanced market should have about 6.5 months of inventory.) As a result, sellers are seeing multiple offers on every property, and the Average Days on Market have reduced to just 27 days. Low inventory is due in part to the fact that the last time new homes were built at any scale was 2010.  But thankfully there is a double digit increase in housing starts, that will help ease the crunch in housing supply.

Is it a good time to refinance?

Yes, of course! It is also a great time to go start looking for your dream home, as mortgage rates are historically low, meaning that qualified buyers can afford more than they could at the start of 2020. Just be ready for more questions, more documents, and more up-to-date data as lenders apply greater scrutiny standards for financing a loan.

What is the future for Real Estate in Austin?

Several economists have rated the Austin metropolitan area as one of the best to recover from the pandemic, according to Yahoo Finance. Austin’s diverse and tech-based economy continues to be a huge advantage. Austin ranks #3 after San Jose and Washington, DC as the city most likely to offer remote working opportunities. Austin’s median home price of $325,000 — a 3.5% increase from last year — still compares favorably price-wise when compared to housing in other high tech cities around the country. There is an ongoing exodus to the Austin area from other parts of the country, from California, New York, Chicago, Houston, Dallas.  Many economists forecast that Austin is anticipated to rebound by 2021, so if you’re in the market to upsize, downsize or re-size, 2020 is the right time to jump in to take advantage of these historically low interest rates!

Here are a few more links that makes Austin such an attractive real estate investment!

— Austin to recovery quickly from coronavirus    

— Tesla may build Austin Factory

— Zillow picks Austin #1 Real Estate market for 2020 Jan 2020

— Amazon to build Massive Distribution Center in Pflugerville Jan 2020  

— 18 Major projects for Austin in 2020 Jan 2020  

Call me if you’re ready to venture back into the market! I’ll be ready to greet you with my mask, gloves and sanitising wipes!