Austin Real Estate Market Remains Strong for 2016
January 12, 2016 by Laura Duggan · Leave a Comment
As we begin the new year, the Austin real estate market continues at a strong pace. The average sold price in our market is up 12.4% over the same time last year, and more homes sold in December than in any previous December. In fact, our holidays were filled with more buyer showings and closings than in recent memory. Take a look at all of the sales by zip code and price band in our January 2016 Real Estate Market Report.
Demand for homes is still high with the consistent growth in our city causing homes to continue to appreciate at sometimes double digit rates. Even in the first week of January our buyers have been competing for houses that have received multiple offers, a phenom that usually takes place during the spring and summer months. For the last 6 months, pendings have been at record levels.
Currently, there are just under 5000 homes on the market in the Austin MLS., a few more than in the previous two years but still way short of normal. That number translates to an average of 2.3 months of inventory, still a buyer’s market.
Dr. Ted Jones, Chief Economist at The Real Estate Center at Texas A&M, gave Austin a “full speed ahead” rating for Austin in 2016 today at his Outlook for Real Estate and the Economy because of our strong job growth. Jones reports that we have more jobs than ever before in our history and that our retail boom is just beginning. Income here went up 6.6% of last year and new companies are relocating their headquarters and regional offices here. To those coming in, our real estate is still a bargain compared to the places they are leaving. Jones also predicted that the Austin market won’t be affected by rising interest rates, that he said would reach 5.5% or by the oil industry because of our growth.
Real estate is local. If we can help you with an equity analysis of your current home or help you start building equity in another one, please call on us. We are all natives and happy to help you with all of your real estate needs. As Jones pointed out, real estate has proven time and again that it is the very best investment one can make. That certainly proves true for Austin, Texas.
Submitted by Laura Duggan, Broker, West Austin Properties, 3312 River Road, Austin, Texas 78703. 512-750-2425 and Laura@WestAustin.com
