I read an article today in CNN about affordable homes and how many markets the median price is more than what a family at the median income can afford. In the past 12 years since I have been selling homes in Austin Texas I have seen prices rise significantly, yet when compared to the other “popular markets” like California, Florida, Nevada etc Austin homes are still priced very low comparatively.
You are reading it here first, Mike’s crystal ball prediction (I do not really have a crystal ball so this is all a guess) is that values in the Austin market will rise significantly in the next 3-7 years making it harder and harder for people of the median income to afford a home. Why? Here are my reasons:
1) Austin is ranked in the top 10 places to live on more categories and articles than I could site in the next 2 months. Forbes magazine top 10 places to live, best place to get a job, best places for young people, best places for active life style, and on and on.
2) Our prices are lower than everyone of the other top 10 in each category.
3) people are moving here faster than we can count them.
As a result the rental market in Austin has gotten out of control, with apartments at 98% occupancy (+/-) the cost to rent has gone way up (see my blog about renting vs buying to see the savings are tremendous to buy). Long story short people are starting to buy again and my guess is next year it will be stronger than this year. We have broken our top sales record set back in 2007 twice this year!! We have been selling homes with multiple offers again. I just sold a home in Shady Hollow in SW Austin, we had 4 offers and sold the house for $7500 over list price!! The storm is coming and buying now you will buying at the base of upturn is my prediction.
As for affordable homes…well get em while you can. I think in the near future we will see people of median income forced to buying homes further outside of town, perhaps, Kyle, Round Rock, Buda, Cedar Park (but already getting expensive), Leander and other surrounding areas.
To read the full article by CNN click this link: http://cnnmon.ie/OfWhrZ