I’ve had a lot of people ask me my opinion about the state of the Austin real estate market and what I “think” 2021 is going to bring… and into 2022 and beyond.
First things first, if you are into “data”, check out this Facebook Live that I did yesterday with Nick Gerli, founder of REVentures.com. Nick does a deep dive into the data that’s driving the Austin real estate market, how we got here, and predictions into 2021 and beyond.
People want to know things like:
- Is now a good time to buy?
- Is now a good time to SELL?
- Is Austin in a housing bubble (about to crash)?
- Should I wait to buy a new home?
- Have I missed the boat?
- Etc.
So I wanted to cover a few of those today as we get ready to enter a new year. Can you believe 2020 is about to finally be over?
Is Now A Good Time to Buy?
The short answer is YES! Nothing indicates that we are on pace for any sort of slow down whatsoever. On the contrary, we expect to see continued appreciation over the coming years. If you’d bought your home just 12 months ago, you’d already have ~10%+ additional value!
So, yes… this is a great time to cash out on some of your equity and upgrade OR simply make the move to Austin… OR pick up a couple of rental units.
Is Now A Good Time to Sell?
This depends… But, the short answer to this is yes too! You can take your equity and buy a bigger home or even downsize and pay it off. If you’ve been wanting to get some additional amenities or you’ve realized that your home doesn’t quite fit your family’s “new” needs, then it’s a great time to sell. There’s a specific strategy, however, based on what you’re looking to maximize your sale and position yourself in the best purchase scenario.
Is Austin In A Housing Bubble (about to crash)?
metro home value.pngI could go on about this for a couple of pages because there are completely different underlying factors this time around (Trust me… I was smack dab in the middle of ground zero in South Florida when the housing floor was yanked out). But, in a nutshell, nothing indicates any sort of housing bubble, ESPECIALLY in the Austin area.
On the contrary, home prices are expected to continue to increase due to lack of inventory and buyer demand. Oracle just announced they are moving their headquarters to Austin on the heels of Tesla. And in my opinion, we are just seeing the tip of the iceberg.
Also, if you watch that video, Nick pulled up some graphs from the “crash” a decade ago and you’ll see that Austin pretty much flatlined… It was very mildly impacted despite what was going on in other parts of the country.
Should I Wait to Buy A New Home?
This sort of goes to #1 and #2. With interest rates as low as they are and home prices soaring, it’s definitely a great time to get into your next home… Whether it’s your forever home or your next 5-10 year home, you can get in and take advantage of the market dynamics.
At the end of the day, what we are seeing is:
- A housing shortage (which equals appreciation);
- Large numbers of people moving TO Austin (nothing indicates this is going to slow down);
- Median incomes continuing to rise;
- More new business starts than anywhere else in the country
- And much, much more.
You see, the fundamentals are strong and there are no indicators that these factors are going to slow. In fact, quite the opposite!
Until next time… keep smiling… be kind… and stay safe out there 🙂
