What's on the Horizon for Austin in 2018?

By
Real Estate Agent with Coldwell Banker United Realtors® ~ 512.346.1799
http://activerain.com/droplet/59rh

The big news coming from the New York Times on January 18, 2018 is Amazon named the 20 finalists in the fierce contest for its second headquarters. Frankly I was surprised at our city making the cut. Why? Downtown Austin is ranked #3 on the list for the most expensive cities to live and our transit system leaves something to be desired! Many of our city council members are still resistant to growth. These are not desirable attributes for large corporations looking to open mega headquarters.

Don’t get me wrong I love Austin and enjoy the quality of life, however, I’m being realistic. Whether we like it or not others love our hill country landscape, warm weather (except for this January),  standard of living and are moving here for jobs, jobs, jobs! Sticking our heads in the sand is not going to make this mass influx of new residents go away!

Mark Sprague, a favorite economist of mine, spoke to our Coldwell Banker NW office in his annual assessment of where Austin is headed and what is on the horizon for 2018. I value his opinions as he tends to be conservative in nature and doesn’t give a pie in the sky forecast. Thank you Jen Clarke with Independence Title for setting up this very informative forecast on Austin.

Mark was right 2017 was a good year!

This is his summary on Austin real estate for 2018:

  • Home values will continue to improve, just not as aggressively.
  • Commercial will continue to be challenged to keep up with demand, but more cautious on rent values
  • 2017 inventories climbed to a 5+ month inventory, but have moved closer to a 2.5 month supply (seller’s market). Caution, certain price points and neighborhoods will be challenged with buyer’s market due to values.
  • Regional psychology remains positive but cautious in 2018.
  • Home sales will be a tad slower in 2018 than 2017, due to increase in values. Inventories below $500,000 will remain tight.
  • Due to one of longest expansive price growth in Austin has some people concerned
  • Local growth/development issues, becomes more pressing, causing larger cost impacts and escalating values across the board. 

2013 was the year that Austin felt and saw the recovery. It stumbled locally at the end of 2016. The 2017/2018 regional psychology remains positive but in a cautious mode. Mark feels the Austin economy continues in a watchful expansion mode.

I agree with his philosophy “There is not a better time to buy!”

Yes, buyers should have bought several years ago but the chances of seeing those rates or values, is slim!

Time will tell if a host of fresh inventory hits the market and if buyers continue to find homes to their liking in the Austin real estate market.

Although conditions favor sellers (2.5+ months of available inventory), homeowners must ensure their house is ready for visits, updated as needed, and priced according to the current market conditions.

Whether you are thinking of buying, selling or just curious about our current market, let’s discuss what is important to you.  I can be reached at 512-346-1799.

Remember …..Hiring the RIGHT Austin Realtor® is critical to your home buying and selling success!

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Rainmaker
2,353,609
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Hi Dorie... I get why you might be mystified by Amazon's decision. Charlotte was just cut off the list and we offer a ton of what they said they were looking for. Raleigh remains on the list and doesn't have half of what Charlotte offers. Personally, I was happy we were cut... I believe the burden Amazon would have put on our infrastructure and home affodability would have been terrible.

Jan 23, 2018 05:41 AM #1
Rainmaker
2,617,160
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

That is a fantastic opportunity for any city. It will be a big boost. Our area put in a bid, although very strong, with no subway or commuter train, it didnt fit what they sought. 

Jan 23, 2018 06:06 AM #2
Rainmaker
1,467,887
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Maybe Amazon is just taken with the quality of life that everyone loves in Austin! 

Jan 23, 2018 06:39 AM #3
Rainmaker
1,929,366
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

If I am not mistaken, isn't the headquarters currently in Phoenix?  I don't really pay attention to that stuff much, but I thought I heard that.

Jan 23, 2018 07:48 AM #4
Rainmaker
448,593
Ricki Eichler McCallum
CastNet Realty - Corpus Christi, TX
Broker,GRI,ABR, - Your Coastal Bend Home Source

Hi Dorie,  A lot of big companies are probably eyeing Austin at this time.  It is a very nice place to live.  I personally hope it is never super big like LA.  I would hate to see a city like that come to Texas.

Jan 23, 2018 09:20 AM #5
Ambassador
3,271,557
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Dorie- what wonderful information!  And there's no one who knows Austin better than you!!!! Keep on Keeping Austin Weird!!!!!

Jan 23, 2018 01:34 PM #6
Rainmaker
149,324
Corey Martin
Martin Presence Group - Ruston, LA
Real Estate and Management Solutions

I will be glad for any city that gets the influx of jobs from Amazon setting up another headquarters. And I hope that the year will be as Mark predicts. Thank you for sharing. 

Jan 23, 2018 05:34 PM #7
Ambassador
3,453,775
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Dorie I have to ask, how tall is the tallest building in the first picture???

Jan 23, 2018 05:34 PM #8
Rainmaker
1,307,232
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Dorie, this is such an informative post. I can't figure Amazon out but, am really intrigued as they narrow their list. Definitely think there are pros and cons wherever they go. Your insight and pulse on the Austin market along with your impeccable service makes you the Realtor of choice. You're the local expert!

Jan 23, 2018 05:56 PM #9
Rainmaker
2,437,747
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

You've made a great case for why Amazon should choose Dallas Dorie Dillard 

Jan 23, 2018 08:29 PM #10
Rainmaker
2,411,440
James Dray
Fathom Realty AR LLC - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Dorie.

Regardless of where they decide to land, the agents in that area are going to be very busy

Jan 24, 2018 01:03 AM #11
Rainmaker
2,329,951
Rebecca Gaujot, Realtor®
Perry Wellington Realty, Adam Conrad, Broker - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Dorie, I understand how some people would resist Amazon moving to Austin. I think it would be great for Austin, and agents definitely would be busy.

Jan 24, 2018 01:36 AM #12
Rainmaker
4,559,272
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

This is great information to share with families moving to the area.

Jan 24, 2018 05:10 AM #13
Rainmaker
3,488,495
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Dorie, Amazon is creating some frenzy in some towns.  Denver is still on the list, and our traffic is so bad already!  

Jan 25, 2018 04:38 AM #14
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Dorie Dillard

Serving Buyers & Sellers in NW Austin Real Estate
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