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What You Need to Know

The cost of living in Austin is about 3% below the national average. That, combined with a strong economy, is helping drive an extremely competitive real estate market. Freddie Mac has announced interest rates at lower than 3% - these historically low rates give home buyers a boost. The most in-demand price point for houses is under $600,000 and is attracting many out-of-state buyers.

Home Sales Performance

 

When reviewing data from all five counties within the Austin metro area - Travis, Williamson, Bastrop, Hays, and Caldwell - a 9.3% increase in residential sales is seen year over year as of June. This comes after a 5.2% decrease in overall home sales in the Austin-Round Rock area within the first half of 2020, mostly because of the COVID-19 pandemic. In spite of this decrease, the median home price in Austin increased 9.7% to $406,000. A 7% increase in median home prices was seen in Travis County bringing that number up to $385,000.

Further from Austin, home sales have also increased. Hays County saw a jump of 12.2% in sales year over year and 38.6% in June. Bastrop county saw an increase of 2.7% while Caldwell County increased by 5% in the first six months of 2020. 

 

Zillow has reported that for the week ending June 13, the median timeframe for a home in the Austin area to go from ‘available’ to ‘pending’ was 12 days - the fastest pace seen in more than two years.

Company Expansion Hot Spot

 

The influx of desirable companies that have already opened campuses, or have announced plans to do so, in Austin has also increased the number of people looking to buy here. 

Those moving here from out-of-state, especially those coming from more expensive real estate markets might expect to easily land a dream home at a matching dream of a price. However, there is no room to haggle in this market as many homes are receiving multiple offers and for over-asking price.

 

Facebook, Apple, Tesla, VRBO have committed to adding thousands of jobs across the Austin area. Homes in zip codes near these campuses have seen a large increase in interest. Houses near Apple’s forthcoming campus are selling once they hit the market. In that zip code, 78729, inventory has dropped from 0.9 months to an unheard of low 0.3 months.

New Builds, Must-Have Features

Due to the pandemic with corporate workers working from home more, many may be looking for homes that have home offices and pools, or room to add those.

Some new construction options to help alleviate critically low inventory:

  • Over 300 residential units for a subdivision in Leander is currently under review after a recent rezoning ordinance was passed. 

  • New homes and townhomes available along South First Street

  • Modern farmhouse community in South Austin, Clementine, by home builder developer StoryBuilt is accepting pre-sales

Land on a Loan

 

Think about the loan type that is the best fit for your situation. Depending upon your budget, down payment amount, and credit score, you may consider:

  • Traditional, 30-year fixed mortgage

  • A 15-year mortgage 

  • FHA loan

  • VA loan