I read an interesting article Chicken or the Egg Conundrum in Forbes Magazine which totally relates to the Austin Housing market! They asked which came first the house or the homebuyer? In Austin it's definitely the homebuyer. The good news is the Federal Reserve kept a lid on interest rates. Good thing for the buyers if only they could find a home to fit their needs at a price they can afford!
The supply of resale homes is increasing but still doesn’t meet the demand for housing. Our builders want to produce inventory on the ground but the constraints placed on them by the permitting process and obtaining construction loans keep the number of units from gaining any steam!
So many people are moving to Austin every day because there are jobs. From the fast food restaurants to every service company in Austin you see signs “Hiring!” Companies like Google, Apple, Dell, National Instruments, Medical facilities…..every industry is in need of workers. Austin learned years ago the importance of diversification. All sectors are on an upward growth pattern but it takes a workforce to maintain the momentum.
We are still hearing the same message ..…."Austin is growing and people are moving here"! We are all observing simple economics 101 - supply and demand at work! The bad news is household incomes are not escalating as fast as the rising cost of living.
Barb Cooper (an agent in our NW Austin Coldwell Banker United office) is the 2015 President of the Austin Board of Realtors and explained “As Austin Realtors ®" We’ve seen our city expand in ways we never could have imagined, but household incomes have not been expanding at the same rate as the cost of living in Austin. The latest report from the Labor of Statics provides further evidence of the affordability issue in Central Texas. The growing disparity between rising home prices and what Austin residents can afford, combined with low inventory levels, will continue to drive residents outside of Austin’s city limits to buy a home, putting further strain on our region’s infrastructure and resources.”
The Austin Board of Realtors® released the real estate statistics for August 2015 and say Austin area home prices set an August record outpacing household income growth in August 2015.
Selling or buying a NW Austin home is a complex process and you want to work with a Realtor ® that understands the process and the ever changing dynamics of the Austin housing market. I have systems in place, references and am a good listener and communicator. It would be my pleasure to schedule time to see if we are a good match. Reach out to me at 512.346.1799 or email at dillard@reloaustin.com.
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