Austin Texas 2014
The growth in central Texas continues at a fast pace. The 2013 stats are in and year over year sales price and volume are both up, while days on the market are down. Another year of overall improvement for sellers in this region.
The usual seasonal adjustment occurred in the October through December period, but 2014 has began with a significant uptick in activity. This is going to put a strain on the already low available housing inventories and continue the trend in property values in central Texas. Demand for newly constructed homes will continue to increase as there just aren’t enough developed lots to meet the demand.
As long as jobs remain steady and the energy business stays healthy central Texas will continue to see growth. Perhaps toward the end of 2014 the number of developed lots (or downtown condos) catch up with the demand and prices stabilize, but that’s not likely. As always there are locations that are in higher demand than other’s, but we are seeing demand spread to suburban areas.
Developers should be considering more full-on community “destinations” where people work, educate their kids, live, and play all in one township …i.e. Circle C, Steiner Ranch, Avery Ranch, Plum Creek and others. Some of these special markets are hot as a firecracker!
Increasing density is a short and long term priority as Austin continues to double in population about every 20 years. Affordability, proximity to important destinations, water and energy conservation, healthy living space, transportation alternatives and other sustainable features. All of these virtues are important to the future of Austin and the surrounding areas.
Many areas within the Austin market have less than 1 month of inventory, a ridiculously low amount. Buyers will need to continue to be on their toes to find that right home. And CLOSE-IN isn’t as close-in as it was a couple years ago. We’re seeing that inner market expand into the affordable homes particularly in the 78745, 78748 and 78749 south and 78727 north zip codes.
Having said all of this there are still some great bargains in Austin. If you believe that Lake Travis will re-fill in the future and this current drought is more of an anomaly than a continuing issue, then there are a number of very good options on currently dry coves along that area. It’s all a matter of perspective!
Although interest rates have jumped up recently, they are still historically low (below 5%).