Buying a Home in Austin
The city of Austin has been hot for years, and continues to be in high demand for home buyers. A booming housing market is representative of a healthy, diverse economy, a balance of demographics and culture, and a thriving quality of life – all of which is to be found in the city of Austin.
It’s no surprise that the housing market has dramatically changed in recent years as individuals and families transition to new cities in search of more space, lower taxes, and a great place to exercise their flexibility to work remotely. Since 2020, we’ve all witnessed this transition on a national level, but let’s narrow it down to the local Austin level and see what the housing market looks like for the coming year. Of course, the big question on everyone’s mind is: Is the market starting to level off and normalize? Well, let’s take a look.
A Snapshot of the Austin Housing Market
The housing market is a constant battle of supply and demand. Unfortunately, that battle has been one-sided in recent years as demand has outweighed the supply. On the local level, Austin has experienced a similar struggle with low inventory numbers as large tech companies have migrated headquarters to the city and families transition from the city to an urban lifestyle. However, despite the low housing inventory, the local economy positively reflects the high demand, with Austin ranking as the 2nd best performing job market.
Companies and developers recognize the current lack of inventory and are working hard to meet the demand head-on. There is still plenty of opportunity for first-time homebuyers or families looking to find their dream home within the fast-paced Austin market. According to Redfin, the median home price for Austin saw incredible growth throughout 2020 and the majority of 2021. However, starting in July of 2021, there began a gradual downward trajectory, and it has continued on this course since.
2022 Austin Housing Market Predictions
Homebuyers, sellers, and realtors are eagerly anticipating what the housing market will bring this year. Fortunately, some small beacons of hope are already starting to shine through in the Austin housing market. While the immediate location surrounding downtown central Austin isn’t showing any signs of slowing down, realtors are witnessing signs of leveling off in some surrounding Austin suburbs. The only caveat here is that it is contingent on select suburbs and price ranges. Suburbs North of Austin such as Round Rock, Leander, and the surrounding area have begun to show slight leveling off with homes as they sit on the market longer, and prices are listed and sold moderately.
At Lakeside at Tessera, our builders have been planning out new lots like crazy to help more families move to our Lake Travis community and find their dream home near Austin. Lakeside is located in the suburb of Lago Vista, just a quick 45-minute drive from downtown Austin, and we’re thrilled to work with a great group of builders who make it easy for families to navigate the Austin housing market and customize their new homes.
Another hopeful sign in the recent month was the release of Zillow’s updated list of 2022 hottest housing markets. Austin has held a firm spot on the top of the list for hottest housing markets in the United States in recent years. However, with the release of the new list, Austin is now ranked at #10. That’s quite the drop! Tampa has now taken the number one spot on the list. That decrease in competition is a promising sign for anyone aspiring to move to Austin this year.
With these small changes in recent months, we’re starting to see the housing market normalize in select areas. Real estate professionals are also keeping an eye on interest rates. While interest rates have been at a historic low, there has been a slow uptick recently, but it is estimated that the rates won’t exceed 4% throughout 2022. There are a lot of factors at play regarding interest rates, but it’s something to keep an eye on.
So, When Should You Buy A Home In Austin?
Keep a watchful eye on the Austin housing market this upcoming spring, as it is anticipated that there will be an influx of homes on the market and increased opportunities to purchase your dream home. In addition, we expect the housing market to remain competitive throughout the majority of 2022, so if you spot a home that checks all of your boxes, don’t hesitate to put in an offer.
If you’re looking for your dream home outside of the immediate city, then check out Lakeside at Tessera and chat with us about our Lake Travis homes for sale.