Subject: Navigating Austin’s Real Estate Spring Surge: What to Know
As we move into the 2024 Spring season, the Austin real estate market and broader economy are at a significant inflection point, presenting both challenges and opportunities for potential buyers, sellers, and investors.
Let’s dive into the current state of the Austin economy and the local real estate market:
Austin’s Economic Landscape in 2024:
Austin’s economy continues to thrive, thanks to the continued growth in the tech sector. According to the Austin Chamber of Commerce, tch jobs represent 16.7% of all jobs in the area, which is significantly higher than the national average of 9.2%. With that comes higher salaries and higher buying power when it comes to real estate, even while interest rates remain somewhat elevated.
That being said, despite the fact that experts are expecting we’re going to see several rate decreases this year, we are still seeing elevated interest rates, as compared to the past few years as a result of the feds increasing interest rates in order to put a freeze on the housing market.
Despite the media’s outlook over the past year on the Austin market, Zillow’s Senior Economist Orphe Divounguy, expects that home buyers and sellers will be well positioned for the 2024 housing market, and that the Austin metropolitan area appears healthier than other parts of the U.S and is “likely to rebound from an ‘ice cold’ state in 2023.”
In fact, you can see the chart below showing the steady increase in the list prices over the previous quarter along with the decrease in inventory. While we have a way to go before we reach inventory levels in the spring of 2022,
Financial analysts are predicting a less volatile year for 2024, many still predicting the feds will reduce interest rates 3-4+ times over the course of the year which will increase the demand further.
What This Means for You:
For sellers, the current market conditions suggest that Austin remains a seller’s market, with high demand for properties likely to continue driving competitive pricing, albeit moderated by the broader economic conditions. As many sellers found out the hard way, there’s just no way to predict the absolute top of the market and precisely the best time to sell your home!
For buyers, while the market remains competitive, the anticipated adjustment in interest rates later in the year will likely increase demand and pricing (you don’t want to get caught in another bidding war frenzy like we saw from the end of 2020 through mid 2022). As people get used to the higher interest rates, which are still quite low when you look back over time, and a shortage in inventory, if you’re considering a purchase in 2024, the timing might be at it’s best to balance a “deal” with rates.
TIP: Many lenders will offer you a free “refinance” and many sellers are still willing to contribute towards a temporary rate buy down!
For investors, the Austin market’s resilience and growth, particularly in the tech industry, suggest a continued potential for robust returns on investment, especially in sectors tied to the city’s economic drivers.
As we navigate through 2024, staying informed about both the broader economic indicators and specific real estate trends in Austin will be key to making informed decisions. The city’s economic robustness, coupled with its strong real estate market, presents unique opportunities amidst the challenges.
Whether you’re looking to buy, sell, or invest in Austin’s real estate market, understanding the interplay between the economy and real estate trends is crucial.
Considering the current economic and real estate landscape, it’s an opportune time to reach out for a consult to determine the best strategy for your real estate needs in 2024. By aligning your real estate decisions with the broader economic trends, you can navigate the Austin market with confidence, leveraging its opportunities to your advantage.
