A Record for the Month of August

Posted by Ashley Stucki on Wednesday, September 8th, 2021 at 1:21pm

We’ve all seen the headlines for years, “Best place to live! Austin’s No. 1 in Texas…” (KXAN), “New real estate report reveals jaw-dropping increase in Austin home prices” (CultureMap Austin), “Austin, Texas, is the No. 1 Best Place to Live, According to U.S. News & World Report” and 2021 is no different!

According to ABoR’s recent report, the median sales price jumped 34.7% from August 2020! Even with low inventory, there was an increase of 18.7% in sales dollar volumes and the Austin real estate market continues to be the hottest in the country.

According ABoR’s latest release, Mark Sprague (economist, and the state director of information capital for Independence Title), stated that Austin’s market is exactly where it should be based on demand.

“There have been reports of Austin’s housing market being overvalued, but from an economist’s perspective, my question is, ‘overvalued compared to what?’ The Austin market is robust, and sales activity and pricing have been driven by true demand. A combination of events, including increased job creation in the market, low interest rates, shifting priorities for perspective buyers, and in many cases, increased personal savings following stay at home orders during COVID, are why the Austin MSA is a top market in the country. When there is this much demand, it is difficult for an entire market to be considered overvalued.”

Sprague pointed to Austin’s economy outperforming most of the nation with job creation and single-family permit applications as key indicators:  “Austin’s economic resiliency has led the MSA to be a leading market in the nation in terms of single family permit applications for new construction. The national average for permit applications is down 31% compared to peak applications during 2002-2008, but the Austin area is up 28%. The bottom line is that Austin’s market can be challenging, there are still many opportunities to find the right home and build equity.”

So, what are you waiting for? There’s no real indicator that this market will slow down!

 

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