Anyone who has navigated Austin's topsy-turvy real estate market in recent years will know that making confident predictions can often be a fool's errand.
Few could have predicted the record-breaking boom of the Covid years, with real estate prices skyrocketing as big tech and wealthy professionals poured into the city. Since then, the curveballs have kept coming.
At the start of the year, real estate trends were predicting that Austin would have one of the worst housing crashes in America. Since then, things have been revised. While house prices are down and demand is muted, the outlook is no longer as severe.
So, where do sellers and buyers in Austin stand in 2024? While the future is difficult to predict, we can tell you what the state of play is right now. Read on to find out more.
Downtown is Back
If the first quarter of the year has told us anything, it's that urban Austin is well and truly back. We saw much of the house price growth concentrated in the leafy suburbs during Covid, as those looking to buy a home prioritized space and a WFH lifestyle.
However, Austin's workers are back in the office, and downtown is booming. It's not just young professionals.
Families, older residents, and students are drawn to downtown's culture, nightlife, and dining. This is now a major real estate industry driver not just in Austin, but in thriving metropolises all over America.
Affordability is Not
Austin has long suffered a reputation as being unaffordable, and this is unlikely to change. Right now, those looking to invest in real estate should know that the median house price stands at $534,500.
This is significantly higher than the average for both Texas and the US, and way out of proportion with average salaries in the city, which are much lower than those in many other similarly-priced markets such as Boston or Seattle. Basically, while house prices have come down, they have a long way to go before they can be classed as affordable.
A Spring in Austin's Step
Despite these challenges, one thing any local real estate investor should be aware of is the unexpected uptick in activity this spring. Despite the doom and gloom headlines, the Austin Board of Realtors has been taken aback by a sudden surge in activity this spring.
Especially at the "lower" end of the market (<$500,000) and in the urban core, transaction volumes have been jumping up, despite high-interest rates. This could mean that the recovery is finally underway, something that investors of all stripes should be paying attention to in the coming weeks and months.
Beyond the Real Estate Trends
While predicting real estate trends in Austin is easier said than done, the right data and expertise can help any investor make sound, informed decisions about their own portfolio. This is where we can help.
Whether you want to buy, sell, or rent it out, our team of dedicated experts at PMI Austin is on hand to help you make the best decision for your returns. In fact, you can even consult our Austin-specific Rent vs Sell Calculator to see where you stand to make the most money.
