A beginners guide to Austin Real Estate Market
Updated: Jun 6, 2020
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The Austin real estate market experienced a double-digit increase of 11.2% year-over-year to $503,132,316 in March 2020. Homebuyers are still looking to buy homes in the “Austin Housing Market.” There are fewer homes on the market and strong demand, both indicating that the Austin home prices would rise in 2020.
Austin has a record of being one of the best long term real estate investments in the U.S. over the past 10 years. Last December, the median home price increased 8% year-over-year to $405,093. The Austin real estate appreciation rate in the last quarter was around 1.7%, which amounts to an annual rate of 6.8%. However, it is quite unclear whether it would remain steady or not due to the short term effects of the ongoing pandemic. Economic uncertainty may hold back sales volume in 2020
The latest Austin Housing Market Report from the “Austin Board of Realtors”shows that inventory remained very tight in March 2020 and more sellers lowered the asking price of their homes
The median price for residential homes in the city of Austin rose 14% year over year to $415,000, an all-time high for any month on record
Austin Real Estate Market Forecast 2020 – 2021
What are the Austin real estate market predictions for 2020? Austin housing market 2020 is shaping up to continue the trend of the last few years as one of the hottest markets in the nation. Let us look at the price trends recorded by Zillow (a real estate database company) over the past few years. Since 2015, the median home price in Austin has appreciated by roughly 33.6% from 301,000 to $401,999.
Now that you know where Austin is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy.Should you consider Austin real estate investment?Many real estate investors have asked themselves if buying an investment property in Austin is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the real estate investors and buyers in 2020.
10 Reasons to invest in real estate in Austin Texas
1. Austin’s Massive Student Population
2. Austin Is The Silicon Prairie
3. Austin, the Hidden Health Hub
4. Austin, the State Capital
5. Great Quality of Life in Austin
6. Austin is Relatively Friendly City for Landlords
7. The Excellent Tax Environment
8. Austin’s Affordable Real Estate
9. Positive Demographic Momentum of Austin
10. Certain Future Appreciation for Austin Real Estate
An author in Forbes wrote in 2016 that Austin real estate is appreciating at one of the highest rates in the state because of NIMBY-ism, a reluctance to develop riverfront or Texas hill country to build new homes. This has pushed development out along the highway and forced dense development in areas already zoned for housing.
This pushes up the price for existing homes, driving many in the Austin housing market to rent when they want to buy, while it guarantees capital gains for those who buy and hold property. During the latest twelve months, Austin’s real estate appreciation rate, at 7.01%, has been at or slightly above the national average. In the latest quarter, Austin’s real estate appreciation rate has been 2.05%, which annualizes to a rate of 8.45%
Austin Investment Properties: Real Estate Investment
Are you looking for an investment property in the Austin real estate market? Maybe you have done a bit of real estate investing in Austin but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. With Austin becoming a more diverse city every year, there are plenty of opportunities to take advantage of – from buying homes as rental properties to different investment options in the Austin real estate market.
Austin is a leader across the country with jobs and when you combine that with home prices not as drastically increasing, you’ll get a real estate market that many others envy. Good cash flow from Austin investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding the best investment property in Austin in a growing neighborhood would be key to your success. If you invest wisely in Austin’s real estate, you could secure your future.