Already sizzling hot, the city of Austin’s housing market in 2020 will continue to remain a landing-place for those seeking to relocate to the Lone Star state. With a strong local economy and prosperous job market fueling the city’s population explosion, the demand for homes will continue to rise. For those currently living in the city limits the news barely raises an eyebrow. But it does provide challenges for homebuyers.
With a rapidly changing Austin housing market taking flight in 2020 keeping up-to-date can be a difficult. If the time to buy a home is right for you, there’s no doubt you’ll want to have the necessary facts and information to move forward with confidence. To help you sort it all out we searched the Internet and compiled a list of facts to keep you in the know. Here’s how the Austin housing market and other key factors will shape the 2020 housing market and what you can expect.
Facts to know
- For those that remember taking a crash course in economics Austin’s housing market can be summed up with the basic principle of supply and demand. Simply stated, the number of homebuyers exceeds the number of available homes. The result is an ongoing supply shortage of homes that increases competition among buyers. However, Austin isn’t alone. In fact, a robust economy, strong job market and low supply of homes are attributed to the rise in home prices nationwide.
- In a recent report published by Zillow the Austin area is expected to take the top spot for growth in the nation in 2020. The forecast was a result of a consensus from top investment strategists and economists that predicted the Austin housing market will outperform the national average. The cities of Atlanta and Charlotte were listed as the runners up.
- In 2019 the interest rate for a 30-year fixed mortgage started out the year at 4.68 percent. Steadily declining throughout the year it closed in 2019 at 3.93 percent, the fourth-lowest year on record. For 2020 mortgage guru Fannie Mae predicts mortgage rates to dip to 3.7 percent.
- The median price for a home within Austin’s city limits in November 2019 reached $405,000 making it 10.6% higher than in November 2018 and the highest median price for any November on record. Compare that to suburban areas such as the city of Leander where the average home price for a single family home is $301,000.
- For those looking for a home in the new year the good news is that industry experts are forecasting builders will increase production in 2020 and could start construction on approximately 19,000 new homes in the Austin metro area. Compare that to last year’s figure of 18,200.
Outward bound—more home for your money in the burbs
With home prices in the city of Austin making families and empty-nesters look elsewhere, there’s more than one reason to consider a home outside Austin. For many, suburban areas offer a multitude of home options in varying price ranges with floor plans to fit every lifestyle. Homebuyers looking outside Austin can expect more wide open spaces. And also find excellent school districts and master-planned communities with great amenities. An abundance of shopping areas, dining options, healthcare facilities, and entertainment and recreational venues abound.
Looking to buy a new home in 2020?
Travisso is a place to explore; a place to relax; a place to call home. Visit Travisso today and explore our world-class amenities in a natural Hill Country setting. Gorgeous views, new model homes, and a family-friendly neighborhood wait. While here discover our endless recreational possibilities for the entire family. And see why so many Austin area home seekers are choosing to call Travisso home.
Sources: Facts for this article were compiled from the Austin American Statesman, the Austin Board of Realtors, Zillow, the Austin Chamber of Commerce, and KVUE.