Top 5 Things You Need to Know About the Austin Real Estate Market

If you are interested in buying a house in the Austin area right now, here are the top five things you need to know before you decide to seal the deal. Rest assured, we are here to help you if you have questions or need advice at any stage of the process of real estate in the Austin, Texas, market:

1. Demand driving prices and causing frustrations.
One thing you should know is that for the past 3 years the supply of homes has been low, and the demand has continued to grow at a faster rate than ever before. Having an extremely strong demand has weakened supply more and more. Currently in Austin, one-third of homes have a price tag set for over $500,000. With prices being so high and the competition being so fierce, you are most likely going to get out bid… and maybe several times overs. This has only made the process more stressful. Having a trusted real estate professional to help you is key in helping you keep your cool and be prepared.

2. Supply of homes will slowly grow.
Supply problems contributing to the shortage began happening before the pandemic due to factors such as increasing lumber prices and constrained land development, plus changes to laws and regulations that rolled out in the wake of the 2007-08 housing crisis. So, for now, the issue is affordability, and the greater Austin area is definitely more of a seller’s market. However, the supply of homes for sale will gradually grow.

3. Mortgage Rates are increasing.
Another factor is mortgage rates are increasing, and the housing demand will slow giving some time for supply to increase and catch up. “Now that mortgage rates are increasing, that will slow the demand, giving time for supply to increase…and catch up,” said Josh Friedman, Broker.

As mortgage rates increase and the possibility of two rate hikes in the coming year due to inflation, that will slow the housing demand. And high prices will eliminate some people from being able to buy which will also decrease demand as well. Experts predict we will be back to more normal trends like before the pandemic. 

4. Higher prices are here to stay.
Higher prices will stick around so be prepared. Austin's housing market has been one of the highest in the country over the past few months. Austin's fast expanding economic industry is pushing more people into the city which is increasing the housing demand. A surge of people moving in from other parts of the country, combined with fast-paced population growth and low mortgage interest rates, has turned Austin and its surrounding area into a sellers' market.

5. Patience is a virtue.
We want to stress the importance of being patient. Don’t feel as though you have to settle, just because there’s not much inventory.  Home ownership is a long game.  Make sure you love where you’ll live.  That said, when you do find your dream home--be prepared to ACT FAST!

No matter how competitive the market is, or your unique situation, Friedman Real Estate is your partner in the entire process. We have the experience and years of working in this market to help you navigate the unknown as well as the known factors in home buying and selling. Call us for more information or a consultation to learn how Friedman Real Estate is creating real value in property and places.