Austin was poised for growth, but covid-19 only accelerated the process, as people moved from densely populated metropolitan areas, like San Francisco, Los Angeles and even NYC. “Austin is the nation’s fastest growing major metro, with an average of 184 people moving here daily”, cited the Austin Business Journal, “this is largely as a result of tech employers moving to the Austin area, including IBM, Amazon, Tesla.”
Here’s brief snapshot of market stats:
Data Source: Abor.com
The data above also mirrors Austin’s surrounding areas. The median home price has increased to $482,364, a record setting number. These increased prices seem to have little effect on the amount of homes being purchased, seeing that more homes were sold this past June than any June before, for a total of 4,369. Inventory levels are incredibly low, dropping from 1.1 months to 0.6 months, and homes are only on the market for an average of 13 days, compared to a previous 33 days.
The price of properties around Austin are seeing hockey-stick growth:
Image Source: Zillow.com
One simple answer for the boom in prices is the lack of supply, paired with a surplus demand is causing house prices to increase. While home construction is certainly increasing in Austin, it still isn’t fast enough to keep up with the surging demand. “The months of supply is just 0.6 months, which means at the current pace of sales it would take only 5 weeks for the supply to dwindle to zero.” – Norada.
“Our market has established its own new normal, as median prices climb while inventory remains low. With the unprecedented growth our region continues to experience, we can expect these trends to continue.” – ABoR President Susan Horton.
Looking into 2022, Austin’s demand is not projected to slow down anytime soon. So what does that mean for you as an agent?
- Capitalize on this seller’s market
Sellers are looking to jump on this market high and sell their homes at incredibly high prices. Since the beginning of 2021, about 1,500 houses in Austin sold for $100,000 above asking price. Compare that to this time last year, where only 22 homes sold for that much more than the asking price. Now is the perfect opportunity for you to take advantage of this seller’s market, and help your clients sell their homes at record high prices.
We understand that leasing properties is labor intensive, and you would much rather spend your time focused on selling homes right now. That’s where we step in. From start to finish, Sunroom will take care of the entire leasing process (listings, photography, marketing, applications, showings, yard-signs, security deposits, lease documents, etc.), giving you the opportunity to generate passive income on rentals, and make record high commissions on sales.
- Help the new coming buyers who don’t know Austin as well as you do
With almost 200 new people moving to Austin everyday, now is a great time to position yourself as “The Austin Expert”. Many of these new movers don’t know much about Austin–the neighborhoods, the market, the surrounding areas–and will need a real estate professional, like yourself, to help them make these decisions.
On top of that, many of these individuals are buying homes sight unseen, which means they are completely trusting you to educate them on everything they need to know in order to make the right decision. This is an opportunity for you to lean into that responsibility: conduct market research, create informative blog content, put together neighborhood guides, predict future market trends, and anything else that would create trust and confidence around you as an agent.
- Assist real estate investors in the markets outside of downtown
Most people can’t afford to live in the center of Austin, but there are many surrounding areas that are in their early stages of development. These are newly forming, booming cities where individuals still have the opportunity to get in on the ground floor as a real estate investor. Some of these cities include:
- Pflugerville, TX
- Cedar Park, TX
- Georgetown, TX
- Manor, TX
- Hutto, TX
- Leander, TX
Large institutional investors are buying up properties in these areas that are built for long-term hold strategies. This is an opportunity for smaller real estate investors to also get in while it’s still early, purchase property at a low price, and ride the wave and grow with the market. Similarly to how you should lean into the responsibility of being the trusted agent for newcomers to Austin, you should be the trusted agent for real estate investors looking to expand into areas they don’t have as much knowledge about.
There is speculation on whether or not interest rates are going to increase… will that cause this boom to flatten as mortgages begin to rise as a result? Or will this boom of people migrating to Austin continue? No one really knows, but signs are pointing to Austin continuing to be a rising star in the country.