With high tech companies and businesses continuing to invest in the Austin metro area, real estate experts are predicting that the housing market will remain robust. According to Trulia.com Austin ranks #5 on its list of top 10 housing markets in the country for 2019. And, in part, because of three primary factors. First, the job growth rate is extremely strong at 2.5 percent. Second, the population is roughly made up of 24% of young adults under the age of 35 which represents a larger pool of potential first-time home buyers. And, lastly, Austin’s housing market will fare well in 2019 because of its low vacancy rate for both apartments and homes. With all three factors in Austin’s favor, it seems to be on target for another successful year.
Looking for a new home in 2019 but not sure what to expect? To save you some time we did some homework and gathered a list of housing market trends to watch in 2019. But, before we begin, below is a brief recap of what happened in 2018.
Austin’s Housing Market 2018 Recap
- In 2018 Austin’s housing market was on fire. The Austin Board of Realtors reports at year-end 2018 the Austin area had another recording breaking year. In fact, it was the eighth year in a row that the number of homes that were sold and the median sales price of the same homes set records.
- With home sales producing $11.9 billion it was the highest grossing year on record. Rising property values and increased demand for housing attributed to the stellar selling year. However, the downside is that affordability is diminishing. And, that means it is becoming more difficult for homebuyers to find homes in their price range in Central Texas. Making the point that more affordable housing is a necessity.
- The Austin-Round Rock metro area is one of the fastest-growing regions in the U.S. In 2018, within this area, half the homes sold for less than $310,400 and half sold for more. The result was a 3.6 percent increase in the median home price over the previous year.
Housing Market Trends to Watch in 2019
- The Austin metro area continues to be among the top housing markets to watch in 2019.
- As of January 2019 in the Austin-Round Rock metro area the median housing price for a single-family home has remained at $300,000 for 10 months in a row.
- Throughout the U.S. housing inventory will continue to be at low levels.
- Experts are predicting that more millennials will become first-time homebuyers in 2019. Yes, it’s that under 35 age group again. Even though mortgage rates will continue to rise, experts are predicting that millennials will dominate this year’s market by continuing to purchase homes. Mostly, in part, because a large portion of this population turns 30 this year, the prime home-buying age. Statistically, millennials will account for 45% of mortgages. In comparison to boomers at 17% and Gen Xers at 37%.
- The unpredictable nature of the housing market is just that—unpredictable. Consequently, in the last several months home price growth has been fluctuating. And, there’s more. The interest rate for a 30-year fixed rate mortgage is expected to rise to 5.8%. And, there appears to be a shift on the horizon from a seller’s market to a buyer’s market. Which is good news if you are thinking of buying a home this year. Housing market predictions aside, when purchasing a home there are other things to consider such as finances, timing, and lifestyle. Moving from an apartment to a home can be both a big step and commitment.
Outward bound—more house for your money in the burbs
With increased home prices in the city of Austin making families and empty-nesters look elsewhere, there’s more than one reason to consider a home in the burbs. Well, especially if urban living isn’t quite your thing. Suburban areas offer a multitude of home options in varying price ranges in great neighborhoods with floor plans to fit every lifestyle. Homebuyers looking in the burbs can expect more home for their money, wide open spaces, excellent school districts and picture perfect master-planned communities. In addition, you’ll also find an abundance of shopping areas, dining options, healthcare facilities, and quality of life.
Travisso—a master-planned community in the burbs
Travisso offers state-of-the-art floor plans from award-winning premier builders. Homebuyers can choose homes ranging in size from 1,900 to over 5,000 square feet with prices starting in the 300s. And, there’s much more including resort style amenities, over 10 miles of proposed walking and biking trails, and a future 58 acre on-site regional park perfect for your active lifestyle. Visit us in Leander today and explore our new model homes and neighborhoods. For additional information call us at 512-243-8583.