Independence Title is a wonderful business partner that supplies us with incredible forecasts from their economist Mark Sprague, State Director of Information Capital.
Mark presented our office an excellent program outlining the Mid-Year Economic Forecast for 2016 for Austin. He stressed 44% of the nation recovered from the economic downturn. What is normal for us is not normal for the rest of the country. For the last 50 years Austin has enjoyed a 3.5% appreciation year after year. Is Austin in a Bubble? NO! We have lots of land and Austin’s energy, health and education businesses lead the nation in job creation. Homes sales continue positive appreciation values.
June 2016 was a recording breaking month but July and August will be slower. Why? Many are on vacation and the temperatures are hot..hot..hot. It’s normally the time we slow down during the dogs day of summer. Spring came early this year which peeked buyers interest and sales were record breaking! School starts in 3 weeks and college students will be leaving in 2 weeks. Stand by the fall market will be upon us with renewed interest!
2015 was a very good year in Austin. In May 2016 Austin enjoyed a 10% increase in home sales over May 2015 and the median value is up 5%. Austin’s economy continues to be in an expansion mode. There is less fear of losing employment labor shortages are more of a concern. With our high level of demand and low inventory levels there is an increase in home prices. The market is a great example of how supply and demand works.
As Mark states “There is not a better time to buy a home or real estate in Austin or Texas! If not now, when?”
- Austin area resale home inventory is at 2.1 months
- New and resale home levels are tight
- Austin home values continue to appreciate
- The mortgage rates are the 2nd lowest rates in 60+ years
However, some sellers have an unrealistic idea of their home price. If you are listing your home well above comparable sales you’re finding little activity and long days on market. In our market if you don’t have an offer in 30 days most likely you are overvalued and need to look at the most recent comparable properties sold to adjust your list price. Austin prices are increasing but remember buyers are educated and follow closely the homes that are selling and will wait for a reasonably priced home to purchase (or the price to be lowered). We are lacking in under $500,000 homes. If buyers purchase in the $500,000 – $700,000 the house must hold the desirable upgrades, location and amenities to be perceived as a good value.
As always, homes in Austin, TX that are selling the quickest have several characteristics in common…they are well maintained, reasonably updated, clean/uncluttered, and priced according to the current market conditions. Meet those conditions and your home has an excellent opportunity to be seen and sold in the Austin real estate market!
Selling or buying a NW Austin home is a complex process and you want to work with a REALTOR that understands the process and the ever changing dynamics of the Austin housing market. I have systems in place, references and am a good listener and communicator. It would be my pleasure to schedule time to see if we are a good match. Reach out to me at 512.346.1799 or email at dillard@reloaustin.com for an insightful conversation on our real estate market. I offer you hands on Professional guidance for all your real estate needs.
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Don’t forget to visit my website: www.reloaustin.com
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       Dorie Dillard is the most frequently hired REALTOR® in the Canyon Creek Subdivision. “YOUR PERFECT PARTNER”
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