If you’re looking for a booming real estate market, look no further than Austin. Whether you’re looking to buy or sell, you won’t find a better place to do so right now. According to the Austin Board of Realtors, the 3,135 homes that were sold in the area in July annihilated the previous record from June 2006, when 2,993 homes were sold in metropolitan Austin. Whether this record will be broken yet again remains to be seen, but there’s little doubt about the strong real estate market continuing for the foreseeable future.
Eye-Opening Real Estate Statistics
Home sales in Austin in July 2013 were 35% higher than they were during the same month the previous year. Things have improved dramatically in the last 12 months in many other areas too. There were 20% more pending sales in July 2013, and 22% more homes were placed on the market than in July 2012. All told, home sales in July 2013 totaled $933,242,475, which represents an increase of 43% over the same period last year. The median sales price rose by 8% to $228,250 as well.
Why is Austin’s Real Estate Market Booming?
Austin’s real estate market is on fire for a number of reasons. First, Austin’s job market is excellent and was ranked third in the nation by Forbes. The unemployment rate is 5.2%, and the five-year expected job-growth rate is 3.2%. A lot of the job growth is attributable to a huge spike in tech industry jobs as tech companies discover the more business friendly nature of Austin. The construction, education and government sectors are experiencing dramatic growth too.
Considering Austin’s robust job market, it comes as no surprise that its economy is thriving too. Austin reclaimed the number-one spot on the On Numbers Economic Index earlier this year; Provo had briefly taken it but slipped back to the number-two position. In the last five years, 65,600 private-sector jobs have been added in Austin, which represents an increase of 10.6%.
Another factor that’s positively impacting Austin’s real estate market is the rise in mortgage interest rates. Rates have already increased since last year. At their lowest, they dropped to 3.31% in November 2012. In May 2013, the average rate for a 30-year fixed mortgage skyrocketed to 4.51%. Many folks who were on the fence about buying are trying to avoid even higher rates by acting now.
Act Now for the Best Deals
In addition to the factors discussed above, new Austin homes are being built at a record pace, and this is increasing prices fairly quickly. A year ago, there was a 4.3-month inventory of single-family homes in the area. As of July 2013, the inventory had dropped to 2.8 months. If you’d like to buy a home in Austin, the time to act is now. If you need help navigating the available options, Buffington Homes can help.