The three sources I consult and depend on to stay in the know on Austin TX real estate market are Mark Sprague, Neal Spelce and the Austin Board of Realtors®. It’s amazing they are all in agreement in their latest reports; “Austin Residential Appreciation has slowed NOT declined!”
Mark Sprague a long time observer of the real estate market in Austin in his latest post November 30, 2017 stated “Austin real estate has been traveling at light speed with over 60% appreciation on residential real estate in the last 10 years. Recently we have seen sales slow, not much, but a little. Residential appreciation has slowed not declined.”
As Mark states “The important takeaway is that Texas metros real estate values continue to appreciate.” I love his statement (which he personally told me to use): “Sellers need to travel farther to meet buyer’s expectations.” He points out in some price points inventory is up, particularly luxury above $2 million. Luxury is in a “buyers market”.
Buyers will not over pay, they are looking at multiple properties and will choose the one that best fits their needs and budget.
In Neal Spelce’s December 15, 2017 letter he agrees and quotes many of what Mark Sprague offered about the Austin real estate market. He is right, “real estate is an important underpinning of the Austin economy and the economic barometer affecting our bottom line.” We are a 5 county area and generally homes are less expensive outside Austin/Travis County and that is where the markets are hot!
Our Austin Board of Realtors® president Brandy Guthrie stated: "Homes sales are the strongest where price points are the lowest and where development options are available, such as parts of Williamson and Hays counties.”
The November 2017 single family housing market statistics in the Austin-Round Rock MSA were released on December 15 comparing figures to November 2016. Drum roll please:
3.7% (2,196) more single story homes sold. Median average was 2.9% more ($296,500). Days on market were 61 days up 6 more days. Active homes on the market are 13.7% more (6,391). Pending Sales are up 14.9 % more (2,340) and total sales dollar volume is up 3.7% more ($803,851,183.
When discussing the 5 county Austin real estate markets I feel confident in saying we are experiencing strong markets. Clarifiing which market place is a must in determining the most up to date realistic answer. Looking at current listings and pending sales in any market place are factors that must be considered to sensibly evaluate performance. I agree with Mark, Neal and ABOR I don’t see values softening anytime soon, baring a catastrophic economic event. With interest rates and values rising, why would you wait to buy?