Even if you haven’t bought or sold property in the Austin area recently, you have probably heard about the wild ride that we are on currently. To put it simply, prices are up and inventory is down. Take a look at the latest numbers…
So, the question that so many people in the Austin area are asking is, “Is the Austin housing market in a bubble?” That’s a valid question and the answer is definitively NO. We are NOT in a bubble.
Colin Pope of the Austin Business Journal comes to this same conclusion in his article entitled, “NOPE – Experts Agree: This Isn’t a Housing Bubble.”
What is Causing the High Real Estate Values in Austin?
Ok – so if we are not in a bubble, what exactly is causing the high real estate values in the Austin area? As an experienced realtor who has lived in the Austin area for over 40 years, I watch the market carefully. It is always good to evaluate any fluctuations.
Our rising values are due to jobs, jobs, jobs. Companies are flocking to Austin! But it’s not just Tesla, SpaceX, Apple, Amazon, and Oracle. Yes – those certainly contribute, of course. But smaller companies are coming from California to escape taxes, politics, lockdowns, and prices as well.
KXAN’s Tahera Rahman notes various reasons that smaller companies are heading to Austin in the article entitled, “Why Startups and New Businesses are Moving to Austin.” A friendly business climate, opportunities to shape the business landscape, and a promising source of skilled workers are just a few of the reasons named in the article as to why Austin is such an enticing professional landscape.
It is a people exodus from high-rises in big cities wanting space and land.
It is folks realizing they can “work from anywhere” and that means now they can move to Austin and work remotely.
Austin, quite simply, has a lot to offer companies and their employees in a post-pandemic world.
Supply and Demand
So, everyone wants to relocate to Austin, and we understand why. But we still have the issue of inventory. Currently, we have a low supply of homes. There are a few reasons for this:
- Some sellers are unsure if they want to end up on the buyer’s side of their next home. Selling your existing home for an increase in price is great – but then you might need to turn around and buy something else. That is not always enticing to folks, especially in this type of market.
- Also, some sellers simply are not yet comfortable with strangers in their house – mask or no mask.
Austin’s Housing Market Is NOT in a Bubble, But You Do Want Representation to Navigate It
While Austin’s housing market is not in a bubble, we are seeing some interesting effects on the market, some of which I have noted here. To navigate this Austin real estate market, you will want someone who understands how to best represent you and your real estate needs. I hope you will call me at 512-917-1542 or contact me here so that we can work together to achieve your real estate goals.Posted by Gay Puckett on
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