Austin Housing Market in 2018: Where we are and where we are going
Austin Housing Market Forecastby Dr. James Gaines, chief economist at the Real Estate Center at Texas A&M University
According to Real Estate Center at Texas A&M University’s chief economist, Dr. James Gaines, Austin’s housing market is expected to have another record-breaking year in 2018. He predicts that Austin’s growth is going “to be phenomenal, more than doubling in the next 40 years,” with majority of the growth in Williamson and Hays counties.
Austin is currently averaging a net increase of 150 people per day and they will need a place to live. With only 2.1 months of inventory, the supply of homes is not meeting demand and driving prices up.
In a recent report by Austin Board of REALTORS, home prices increased 5.4 percent to $299,900 in 2017. However, rising home prices hasn’t slowed down the Austin real estate market which hit an all-time high in home sales last year.
In his presentation delivered to Realty Austin’s top-producing agents, Dr. Gaines addresses his predictions and the rising concerns Austin will face in the years to come. Watch the complete webinar or enjoy the abridged version below.
Austin Housing Market Predictions for 2018
- Austin’s population, now the 31st largest in the U.S., is predicted to surpass San Antonio’s by late 2020s
- Population will continue to grow and outpace infrastructure generating more demand for schools, transportation, and utilities
- Job growth will increase but at a slower pace which will help Austin focus on overgrowth challenges
- Home prices will continue to supercede income growth rate pushing more buyers into the suburbs
- Affordability will be the main challenge, but still favorable compared to other states
- Mortgage interest rates might moderately rise by end of year pricing first-time homebuyers into the suburbs or out of the market
- Shortage of inventory will hike up prices as new home construction won’t keep up with demand
Now Is A Great Time to Buy Too!
While home prices continue to rise, they’re rising at a slower pace indicating a trend towards a more stable market. In addition, the cost of owning a home will only go up as mortgage rates increase later this year. If you’re considering a move, now is the time to enter the market to take advantage of the low mortgage rates and appreciation.
Ready to Make the Move in 2018?
If you are considering a move this year, don’t hesitate to reach out for help with navigating this tight market. We’d love to help you make the move in 2018.
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