Downtown Austin has undergone many changes in the past ten years. A fast growing downtown, really took off in 2005, when local icon Whole Foods, opened its 80,000 square foot flagship store in the heart of downtown Austin. Since then, restaurants and retail establishments have increased greatly. But the biggest change, is the number of live in downtown (approximately 9,000) and the number of residential buildings that have been constructed. An increase in downtown living was a goal of former mayors and city councils, and is now a reality.
The Current State Of The Downtown Housing Market
After a boom in building the previous seven years, the construction of downtown residences has slowed considerably. After hot sales, a cooling off period, and some price adjustments, the downtown market is becoming more consistent and less ambiguous. For the 4 fiscal quarter (June 1- September 30, 2011) there were 79 condominiums sold in downtown Austin, ranging from $105,000 to $830,000. Currently, that same number, 79 are available, as of this article. Those homes range from $103,000 to $8,300,000. 12 homes, ranging from asking prices of $132,000 to $3,100,000, are currently on the market.
So What Does This Mean?
It is our opinion, at Austin Real Estate Agency, the downtown housing market has stabilized for a number of reasons. The high cost of leasing has made owning downtown an attractive purchase. Moreover, what was once perceived as an overbuilt area of town, is going in the direction of buyer demand, and in our opinion, leading towards a shortage of inventory in the next few years. The development of retail to match the aforementioned Whole Foods grocery option has only helped. And the development of the 2nd Street area of downtown has brought an excitement to an already hot downtown.
Frankly, we're bullish about downtown Austin, with the increased sales, available fine real estate options, and buyer activity.
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