Independence Title recently sponsored a lively Central Texas Economic & Real Estate Forecast. Thank you Jen Clark for the invite, I appreciate you! Dr. Jim Gaines, Chief Economist for Real Estate Center at Texas A & M University was the speaker and one of my favorites. I look to Dr. Gaines, Mark Sprague and Neal Spelce for insight into what direction the wind is blowing when it comes to real estate!
Dr. Gaines said Austin is blowing and going! He told us he was going to tell us what will happen but not whenJ. Our economy has been in motion for 11 years and the positive momentum continues strong. Unless something catastrophic happens, 2018 real estate will be better than 2017 and the same will go for 2019 and beyond!
Our annual job growth leads the country so far in 2018 at 3.7%. Our home sales, year to date are up 6.5% and prices up 5%. We are steadily growing and Austin keeps getting bigger and bigger. We are now larger than Cleveland Ohio! Texas is the largest home building state in the U.S. Inventory is definitely inhibiting sales growth.
Texas is #6 in oil production in the world, hard to believe. Austin is much more resilient due to our diversification than in the 80’s when we sunk into a depression. High tech companies moved to Austin and now we do not depend on Government employees as in the past even they still make up over 17% of the work force in Austin. The private sector is outshining the government jobs in the metro and we aren’t tied to oil production.
The Austin area added 33,900 net new jobs in the 12 months ending May 2018. This was due mainly to the private sector. What a difference from the area’s historical past of state government and state university making up the bulk of our job base. Many feel jobs in the government sector need to pick up the pace.
In May, Austin’s unemployment was 2.8% which many economists will say is “Full” employment! If you’re looking for a job you can find one. It might not be exactly what you’re looking for but you can’t say there aren’t jobs offered.
Austin offers one of the most energetic economics around! I’m thrilled to be a part of our thriving economy and know at some time we will start to slow but its apparent it won’t be any time soon. The world is changing and we are changing with it. The only constant is change.
As always, what’s going on in Austin and real estate information is brought to you as a courtesy by Dorie Dillard Coldwell Banker United, your NW Austin Real Estate Consultant.
If you're thinking of selling your NW Austin home...Let's Talk! As with everything in life, preparation is the key, and I will equip you with what you'll need to get you as seamlessly as possible through the home selling process.