The real estate market in Austin has continued to see a high demand for homes driven by a strong labor market.
(Newswire.net — February 27, 2018) — The real estate market in Austin has continued to see a high demand for homes in the past few years. With a strong market driven by success in the subsequent job sector, the number of new homes entering Austin has more than doubled. Austin has become a hub for large businesses, a booming tech industry and great careers. These factors make Austin the region with the largest home price gains outside of cities like San Francisco and San Diego.
As the housing real estate market continues to experience a strong start to the year, we expect to see more homes for sale in some of the best neighborhoods in Austin such as the popular zip code 78704 which is one of the most sought-after areas, according to a top real estate company in Austin. Here are the top trends to watch for in the Austin real estate market.
Homebuyers are Getting More Confident
Over the years, some key indicators that impact the housing market have been rising. For instance, the Texas economy has already surpassed U.S growth, and nationally, home buyers are getting more confident. New housing developments have been coming up with around 23,000 new housing units added to the Austin area in 2016 alone.
While the housing inventory in other regions may be stagnating, the housing market in Austin has been growing, but homebuyers are still experiencing a housing shortage. Due to this, multi-family housing is set to be a strong segment in the market. Millennials and baby boomers are more willing to spend on starter homes, mid-market homes and affordable rental homes.
Prices are Expected to Continue Rising
According to a leading real estate marketplace, Austin’s home market has rebounded more than other regions in the market with prices expected to rise 3.3% in the next one year. Both resale market prices and median single-family home prices have continued to rise. The Austin home market has seen sustained growth in terms of new housing options catering for the entry-level market as well as the high-end suburban market.
Popular housing locations like the Zip code 78704 in the Southern Austin area are expected to continue driving prices higher. Market indicators also show that property appraisal values are also expected to reach record-high numbers and home buyers are expected to see an increase in home values. Despite the rising price trends, Austin homes are still considered affordable.
The “Individualism” Trend
As today’s consumer market embraces new technology, changing demographics and declining home ownership, the real estate market has to analyze the changes in the market to meet consumer needs and leverage those needs with the right product offerings. A look at the home property market in Austin reveals a growing trend of individualism as property developers include features, amenities and options that cater to today’s home buyer needs.
Consumer expectations across the housing market have changed. For instance, single mothers are the second largest group of homeowners after married couples. Real estate experts are using such information to advice housing professionals and homebuilders so they can open up the market to respond to consumer demands and create commonality.
The Job Market is Driving Growth
Texas has experienced a 25% growth in employment since 2006, a trend that is higher than in the rest of the U.S. With an average increase of 40,000 jobs annually and an unemployment rate of 3.5%, Austin’s job market has been the major driver of the housing market and is expected to continue doing so. Even with slowing growth, the housing market will continue to thrive.
Consistently as one of the hottest housing markets in the country, Austin has continued to see increasing prices for some time. Over one quarter alone, homes in the areas have appreciated by approximately $3,100. According to an Austin housing market trends article, real estate investing should continue to see more activity as the number of homebuyers increases.