Statistics say the property market in Austin, Texas continues to flourish. Realty Austin, one of the premier real estate companies in the United States, published average home prices and numbers in Austin City last month. The average price of residential units increased in October to $369, 973 up 1.8% compared to the previous year. Home sales declined 4% last month, but the seller's market remained unyielding with an inventory of 2.9 months. Year on year, prices of median home sales for October rose 2.8% but dropped 7.9% since the highest point last June. The statistics represent single-family houses across the counties of Travis, Hays, and Williamson. With the present market position, buyers can choose from several options while sellers maintain some flexibility. Stakeholders believe Austin will shift towards a more stable market within the next few months.
Austin with a population of more than 300, 000 emerged as the third-fastest developing metropolis in the country. The city attracts people from different income brackets and classes. Younger and educated families with small kids as well as college graduates find Austin more engaging. According to published articles, young professionals like the easy on the pocket lifestyle, excellent cuisine, multitude of leisure pursuits, and the music environment.
According to Harmon Team Real Estate (2015), Austin ranked ninth among the most progressive economies and receives a consistently high rating on the Forbes yearly List of the best cities regarding employment opportunities. The urban center also placed second in the US Markets to Watch: Overall Real Estate Prospects. On the other hand, Urban Land Institute (ULI) gave Austin a rating of 154.24 regarding affordability index rating. The city also got second place in the 2015 Emerging Trends in Real Estate Investment Report, number one for home construction, and number four for development.
Forbes.com mentioned the five most prominent technology centers in the USA which became known as central locations for real property investment:
Forbes also cited Austin taking the lead among these tech areas. Venture capitalists pick the city primarily because of 17 corporations included in the INC 5000 List for 2017. Mobile Apps developer, Plunware, one of the tech firms that show extreme potential ranked #82. Regarding employment growth, the Austin Technology Council forecasted that the current property boom would lead to the creation of around 9, 000 jobs this year. Job generation led the esteemed Forbes publication to grade Austin #2 on the Forbes List of Best United Cities for Future Job Growth.
The construction of luxurious residences as well as evolving preference of home buyers bother some original residents who fear Austin might leave behind its historic character. Posh domiciles surfaced signaling the transformation of the place from a slack university town to state-of-the-art or futuristic attraction promptly restructured the architectural terrain.
Contemporary homes surfaced fast with median or mean price for single-family units increasing 42.8% from a quarter of a million (USD) in April of 2012 to $370, 600 in April of the current year. City regulations formulated to regulate dimensions of new homes generated unintentional consequences. Property owners started to add more carports and screened verandas to evade limitations and qualify for higher exemptions.
The move resulted in out of the ordinary methods to overcome the problem adding to the distinct look of refurbished abodes. Spokespersons of certain architecture companies insist on the volatility of the situation in Austin. People can still find small and rundown shacks in old neighborhoods close to the central business district. On the other side, grand mansions lie sprawling across windswept beach cottages.
The latest report published in the Outlook for the Texas Economy by the Texas A and M University Real Estate Center pointed out the relation between the housing industry's rise to the burgeoning economy. The State of Texas leads the USA in real Gross Domestic Product (GDP) growth during the last three months with 3.9% two times more than the country's average increase of 1.45%.
All major cities in Texas posted a minimum of 3% growth rate with Austin soaring at 5.3%. The State produced an additional 40, 200 jobs in June while the unemployment rate plunged to 4.6%. A senior economic analyst and policy adviser from the Federal Reserve Bank (Dallas), Anil Kumar emphasized that the local economy expands faster compared to the entire nation.
Many industry analysts predicted the positive outcomes and developments this year. The United States Commercial Real Estate Services and Investment Firm (CBRE), the biggest in the world, projected steadier advance because of compelling economic rudiments in all of Texas' large cities. For instance, the progress of Dallas validates expansion and attracts more retailers. Housing developers developed full confidence in the sustained improvement of Austin. Houston demonstrated encouraging demographics together with excessive retail demand.
Prices of suburban houses went up higher in Austin than any other location in the USA. The only other urban center that came close is Denver, the capital city of Colorado. For the last decade, home value grew by an average of 65.5% based on a research study conducted by the American City Business Journal of federal housing statistics. Denver came in second with 45.5%.
Not withstanding the constant surge in prices, Texas remains a good buy compared to the rest of the country. Many industry experts say the pricing structure will eventually determine the long-term growth of residential homes in Texas. The State will still grow significantly in economic terms as a result of the progressing cities like Austin, Dallas, and Houston as well as the housing sector's continuing surge.