Real estate markets are always changing and evolving, but some trends stay constant. This is especially true in Austin, Texas where we’ve seen several major shifts over the past few years. While Austin’s housing prices have been rising at a steady pace, the city has experienced numerous changes that have helped shape its real estate market.
With a population increase, shifting demographics, and a booming economy, Austin residents are flocking to the area and driving demand for homes, making now a prime time to buy.
We provide general information for informational purposes only. Contact experts like Mark Hairston at Texas Mortgage Source LLC for up-to-date information.
Austin Housing Prices Continue to Rise
Austin housing prices continue to rise, reaching $238,000 in August 2019 according to Zillow data. Since January 2018, home prices across the city have increased by 5 percent overall. As a comparison, the national average price rose by 2.7 percent between Q4 2018 and Q4 2019. A strong job market, low-interest rates, and higher wages are contributing factors to this trend.
With Austin’s population increasing by 6,000 people per year, the median age is 27.6 years old, and the median household income is around $53,800, homeownership is still high at 77.1%. However, there is a lack of inventory, especially for single-family homes. In fact, Austin’s supply rate was only 1.9 months in July 2019 compared to 3.8 months nationally.
Austin Homeownership Rate Steady At 79%
Homeownership in Austin continues to remain high at 79.6%, which is slightly lower than the national rate of 80.1%. While the number of single-family homes for sale is down 12.5 percent from last year, the total number of active listings is up 20 percent. Active listings are currently 4,540, while the supply rate remains at 1.9 months. As a result, the days on market are 14.4 days, which is comparable to the national average of 15.0 days.
- Austin’s housing market has been steadily gaining momentum since 2013. In fact, according to realtor.com, home prices have increased by an average of $8,000 per month over the past year. This is good news considering that the median price of homes sold in Austin was $225,500 in 2015.
- According to 2016 U.S. Census Bureau data, the median age of residents in Austin is 37 years old. With this demographic shift comes a need for many people to move into the city. As a result, demand has grown for rental properties due to the influx of younger renters who are looking to live closer to their jobs.
- As the population continues to increase, the number of houses for sale is expected to rise too. Over the last year, the supply of homes listed for sale in Austin has decreased by 10%, but the inventory currently sits at just 2% below its five-year peak.
- While the current state of the housing market is positive overall, property taxes continue to be quite high in Austin. According to a study done by Zillow, the median tax bill in Austin is about $3,300 per year. That’s much higher than the national average ($1,560).
The information stated in this article is for general informational purposes only. Contact the professionals at Texas Mortgage Source LLC in Austin for updated information.