Austin is one of the most attractive cities for residents of other States of the Union looking for a new home. It contributes to this perception that the Texas capital is home to large companies and companies that hire professionals from all over the country.
According to the 2020 Texas Real Estate Annual Review report, published by Texas Realtors, the Texas real estate market broke records for the sixth year in a row in home sales, while inventory levels historically hit critical lows.
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“The reason we have a market that favors sellers is because many companies have moved here, like Tesla and Oracle, and others, like Samsung and Apple, are successfully expanding; This attracts professionals who come with the money raised from the sale of their properties in other States, ready to acquire a new one here ”, he comments to The World Newspaper, Teresa Scott-Tibbs, representative of Texas Realtors.
In February 2020, the average cost of a home in Central Texas was $ 344,000, almost fifty thousand less than the current cost, which in February of this year registered $ 395,000 on average. In Austin, the current median price is $ 491,000, 24.9% more than in February of last year.
“Many of my first-time home buying clients can’t afford the cost of a property in Austin; then they decide to acquire one in nearby cities such as Round Rock, Pflugerville, Manor or Del Valle; but even in those places the prices are rising more and more. Property sellers register up to thirty offers in a couple of days. A house for sale doesn’t last more than five days on the market, ”says Scott-Tibbs.
The inventory of properties in this part of the State fell to 1.7 months, a decrease of 1.3 months compared to 2019. To give dimension to this data it is important to take into account that, according to the Texas Real Estate Research Center, a market with a demand and Balanced supply should have between six and six and a half months of inventory on hand.
Despite the pandemic, home sales across the state increased 9.5% last year (2020), with 393,615 properties sold. This growth is well above the 3.8% registered in 2019. “The lack of inventory and the incessant sales of homes are registered throughout the State, but not like in Austin. This is the best time to sell a property. And those who want to buy a property must prepare for a competitive market; they should keep in mind that they will need to have more money for the deposit and a lot of patience because they will compete with several ten offers for the property, ”advises Scott-Tibbs.
One final suggestion: “People who can make cash offers are a priority for sellers as they streamline the process of buying a property, ensuring a speedy transaction,” concludes Teresa Scott-Tibbs. The peak season for home sales occurs in summer. The expert expects inventory to increase during that season, offering more options to buyers; however, the specialist believes that the affordability of the homes will not change for another year or two.
THE DATA
According to the Redfin real estate company, people moving to Austin have more than $ 200,000 available to buy a home. Last January, about 45% of the home search was made by potential buyers
from other states.
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