Shined my Crystal Ball for 2017 in Austin, TX ... My Forecast

By
Real Estate Agent with Coldwell Banker United Realtors® ~ 512.346.1799
https://activerain.com/droplet/4YKx

There’s so many predictions flying around on Austin’s economy: rising interest rates, will the increased rates scare off buyers ? what effect will the new administration have on real estate ? how will the stock market be affected ?…the list goes on and on!

After reading many forms of news on and off line….I shined up my crystal ball. One premise keeps running through my mind sitting here in Austin, Texas…. we are job creators! Whether we want our population to increase at its current rate or not, we don’t have a choice or a way to stop it. As long as people move here to fill these positions they will need housing. We are certainly not immune to a downward in the real estate market but some common sense needs to prevail in interpreting the data.

I subscribe to the Austin Letter written by Neal Spelce, retired from TV news and award winning journalist. He is an authority on Austin and I look forward to reading what he has to say. In his recent letter he asked some interesting questions and I feel comfortable in chiming in with my own answers:

Will interest rates move downward again? Not probable!

How high will interest rates move upward? 4-5% range.

Will buyers purchase in Austin? Yes they will buy…… incentivized due to predicted rising interest rates. They will want to buy sooner than later. The problem in Austin is low inventory (only 3 months) so they may have to settle and take what they can get, if they want a home.

What will sellers do in Austin? Not as likely to move because they have a good interest rate on their home. They will think hard before giving up their comfortable payment. One of the reasons for our low inventory..sellers don’t know where they will go.

Will the hot market in Austin continue at its current rate? There will be a slight dampening for first time home buyers. I don’t see it affecting repeat or higher end buyers, at least not in 2017.

Will homes prices continue to rise in Austin? Absolutely..high demand and low inventory. However they probably will not rise as quickly as in the past and we will see more controlled price increases.

Will the % of increase in Austin home prices begin to level off? Absolutely as long as the affordability differential from where buyers are moving continue to decrease. Right now many moving to Austin find it more affordable than where they are living so are willing to take the plunge and purchase a home, if they can.

Many expect the wage growth to increase in 2017. Even with the increase in interest rates everyone needs a place to live and will try to find a home within their means. Austin’s real estate market will flourish at a more controlled pace but will continue to flourish! There is no better time to buy in Austin! That’s a wrap folks!!

 

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Topic:
Real Estate Market Trends
Location:
Texas Travis County Austin
Groups:
Realtors®
All Thing's Texas
Addicted to Active Rain
All Real Estate - Today and Tomorrow
ActiveRain Contests
Tags:
austin tx
austin letter
neal spelce
dorie dillard
neal spelce letter

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Rainmaker
1,997,916
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Your crystal ball looks so fancy, I am thinking that means it is likely pretty accurate!

Jan 12, 2017 06:07 AM #12
Rainmaker
3,445,716
Dorie Dillard
Coldwell Banker United Realtors® ~ 512.346.1799 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Hi Wayne Martin : Good observations.

Hi Charita Cadenhead : I look forward to his Austin letter..great information!

Hi Gabe Sanders : I feel it is on track and a reasonable prediction.

Hi Brian England : I'm not sure fancy has anything to do with it but common sense. Thanks for stopping by appreciate your comments.

Jan 12, 2017 06:13 AM #13
Rainmaker
2,896,111
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Good morning, Dorie -- you combine your vast experience and local knowledge of Austin while culling the insight of others in your common sense answer to "what's going to happen with real estate in 2017?".   Nicely done.  

Jan 12, 2017 06:32 AM #14
Rainmaker
3,035,572
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Dorie. I don't know anyone whose sense of things in Austin I would rely upon more than you. Well done.

Jan 12, 2017 07:05 AM #15
Ambassador
1,748,342
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

I am in agreement with you Dorie. I think you have excellent predictions here and it will be interesting to look back and see what happens.

Jan 12, 2017 07:52 AM #16
Rainmaker
2,627,192
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Dorie Dillard,  Love to hear what everyone is forecasting in there area, I have to agree with you on most of it.  Make your day!

 

Jan 12, 2017 08:26 AM #17
Rainmaker
1,160,172
Raymond E. Camp
Howard Hanna Real Estate Services - Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

Good afternoon Dorie,

Hopefully it will be just like: "The Little Train That Could' and keep the market plugging along.

Malke yourself an astonishing day.

Jan 12, 2017 09:46 AM #18
Rainmaker
3,771,738
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Dorie,

The best part of your post is that jobs are being created, which helps the economy and translates into future sales. A

Jan 12, 2017 10:16 AM #19
Rainmaker
1,383,600
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Hi Dorie, one thing for sure, Austin TX will continue to attract many who will be relocating to other states. With increasing jobs, housing market will do fine.

Jan 12, 2017 12:33 PM #20
Rainmaker
1,131,258
Jane Peters
Home Jane Realty - Los Angeles, CA
Connecting you to the L.A. real estate market

Some of this relates to our market, the biggest thing being that sellers do not know where to move because of the prices and low inventory.  This is a great overview of the Austin market.

Jan 12, 2017 12:46 PM #21
Rainmaker
2,595,760
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Dorie,  You shined your crystal ball nicely.  Knowing our local markets well help us in making predictions.  

Jan 12, 2017 02:41 PM #22
Rainmaker
3,236,017
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Dorie

The Austin Texas real estate market will enjoy an active 2017.

Good luck and success.

Lou Ludwig

Jan 12, 2017 05:31 PM #23
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Dorie Dillard - was not aware that Austin, TX is a job creator.

Love the approach you have in your predictions - Question and answer! Right on target.

I do see a challenge when the sellers are less likely to move because of the interest rates - which means the demand will be more than supply most of the time. And that should fuel the real estate market in seller's favor for a while I guess. Just my prediction based on yours.

Jan 12, 2017 06:48 PM #24
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

And yes, thanks for sharing your thoughts on Austin, TX market Dorie Dillard. Appreciate your participation in this contest.

Jan 12, 2017 06:49 PM #25
Rainmaker
1,084,390
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Dorie Dillard - Great predictions and thoughts for the Austin, TX area!

Jan 12, 2017 09:47 PM #26
Rainmaker
2,463,259
James Dray
Fathom Realty AR LLC - Bentonville, AR
Exceptional Agents, Outstanding Results

Good morning Dorie.  Regardless of the interest rates people will be looking for housing.  If the new administration continues on the journey there will be a lot of jobs opening up around the States.  Time will tell, we'll see

Jan 13, 2017 02:08 AM #27
Rainmaker
3,236,017
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Dorie

The Austin Texas has strong forward going into 2017.

Good luck and success.

Lou Ludwig

Jan 13, 2017 07:08 PM #28
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2,582,217
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Very impressive, as always, Dorie Dillard!  I feel the same exact way you do and I do hope that our low inventory turns around a bit - we need inventory desperately!  Hopefully then we will make the turn to a more stable economy.

I hope you have a wonderful weekend, Dorie!

Jan 13, 2017 08:44 PM #29
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

After a decade with a market flooded with inventory I would welcome that problem.  And I hope you are right about the rates staying below 6

Jan 14, 2017 09:57 AM #30
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Robert Vegas Bob Swetz
Realty ONE Group - Las Vegas, NV
Las Vegas Henderson Homes for Sale

Hello Dorie

Wonderful post and prediction for Austin and your post has been featured to the group:

All Real Estate - Today and Tomorrow

 

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Jan 17, 2017 07:43 PM #31
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Dorie Dillard

Serving Buyers & Sellers in NW Austin Real Estate
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