Is there a Real Estate Recovery going on in Austin TX? As I've said many times, Austin never saw a big boom like other parts of the country. Because of this, there wasn't/isn't much to recover from. Currently, Austin TX is seeing very low inventory, but there are hundreds, if not thousands, of buyers out there wanting to buy a house. To an extent, in many communities throughout Austin and its suburbs, there is a supply and demand issue going on.
And what happens with Supply and Demand? As supply goes down, and demand goes up, prices go up. Prices aren't necessarily going up, however, sellers are able to sell pretty darn close to their asking prices. In many neighborhoods where I do regular market reports, houses are selling at 97-98% of asking price. That means, sellers price their homes competitively with the comparable sales, and it leaves very little room for a buyer to come in and offer a lower price.
Here is a Nationwide graphic provided by ActiveRain that tells a little more.
As you can see, it says that Austin is ranked #2 in the Top Ten Real Estate Markets, based on consumer confidence. However, if you look below, you'll see that Austin is actually tied for #1 with Ft Myers-Naples. Austin should have been listed first for alphabetical reasons, but maybe as the decimal point goes out, Ft Myers might have had the edge.
With looking at the map, you can see that Texas as a whole is doing quite nicely. 4 of the top 10 cities are all in Texas, including Dallas, San Antonio, and Houston. Again, none of these areas had a "bubble". Texas is known for it's steady market. Most neighborhoods see 1-3% appreciation year over year. That also means that you can't buy a house and sell it two years later and except to "make a profit". On average, with typical closing costs on the sale of a home, it takes living in a house four years before breaking even. Some neighborhoods don't fair as well as others and it could take 6-7 years to break even. It all depends on the type of neighborhood and the area of town as there are always higher sought-after areas no matter where you move.
To summarize, the Austin Texas Real Estate Market is doing very well, and it's holding its own compared to significantly larger metro-areas across the country. We are seeing record amounts of relocation into the area, and we're just trying to keep up with the demand. For the question of "Real Estate Recovery or Not", I would say it's definitely a Real Estate Recovery!
**Further analysis of the Real Estate Recovery or Not.
**Are You Packed Yet?**
Austin TX Real Estate and the surrounding areas of Lakeway, Bee Cave, West Lake Hills, CedarPark, Round Rock, Spicewood, Circle-C, Steiner Ranch, and everywhere in between... Hill Country Austin TX Real Estate and beyond. Whether you're buying or selling an Austin home, I'll be with you every step of the way.
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Copyright© 2012 By Donna Harris, All Rights Reserved. You may re-blog with links back to this post.
* Is Austin TX Going Through a Real Estate Recovery or Not? * was first published on donnahomesblog.com.