Recently, I listened to Eldon Rude, Principal, 360 Real Estate Analytics, discuss the 2020 market and 2021 going forward - specifically the housing market, builders, sunbelt surge, land, office market, and jobs. I wanted my readers to have some of these insights into the 2021 Central Texas Housing Market as well. So, here is a summary of my notes taken during his presentation. I think you will see this Central Texas Real Estate Market is complex, so please don't hesitate to contact me.
The Central Texas Housing Market Surge
This "surge" began in mid-May 2020 and never waned. Builders sold 20-30% MORE homes in 2020, even as labor and materials were unstable.
Due to the pandemic, many job holders realized they could LIVE wherever they wanted, and for many that "where" meant Austin, TX. They want to flee density, flee apartments, and flee high burdensome tax structures.
What else contributed to this surge?
High Tech Is Coming To Austin
NASDAQ is up 99% from the low in March 2020. Major tech companies do business in Austin and the wealth effect here is apparent.
In addition, with the US 30 year fixed mortgages near 2.75%, the lowest in a generation or so, this fuels demand to jump in now.
Austin has an EXTREME imbalance in supply/demand, as major economic development continues:
- Oracle moving their headquarters to Austin,
- Tesla building a plant along SH130 (with 15 huge cranes in the air you can't miss this construction),
- Samsung building a $10 BILLION new factory.
These are just some examples of companies that have been in recent news settling here, adding here, and building here. Construction jobs now will translate into high tech jobs later.
The 2021 Central Texas Housing Market Is Growing
The Urban Land Institute 2021 Trends Top 10 Markets look like this:
- Overall Real Estate growth: Raleigh, Austin, Nashville DFW
- Homebuilding growth: Raleigh, Austin, DFW, Jacksonville
- Sunbelt surge: Austin #1, Phoenix, Nashville, Tampa, Denver
- Inventory: in the past 12 months new construction permits = 20,713 (up 15% from a year ago)
- Supply: in the past 12 months builders SOLD 30% more homes than a year ago
- 2019: builders had 600 finished homes in inventory
- 2020: builders had 60 finished homes in inventory (YES, you read that number correctly)
What Does All This Mean For You? You Need ME!
It is a very tough time for buyers, but a perfect storm for sellers. Call me at 512-917-1542 or simply click here if you'd like a 20-year veteran broker like me to help navigate you successfully through this.
Posted by Gay Puckett on