The numbers for September look extremely promising. Active listings are down by 10.5%, median & average prices are both up marginally, & sold volume is up by 6%! The Austin Business Journal reported that Austin officially moved out of the recession in August 2009, so we might be seeing the start of a gradual increase in the real estate market.
Other factors to consider include the first time homebuyer credit, and the fact that September 2008 was pretty horrific. In September 2008, the sky had just started falling, and we were in the middle of a heated election.
Which markets do you see growing post-recession in Austin? Do you think the downtown condo market will continue to be oversaturated or viewed in hindsight as a forward thinking move for the future of Austin?
Good to see homes are moving again!
Austin’s sort of a boom town, so I think all markets will grow when you look at it on a 3-5 year time frame. Short term, I think that the median price has room to appreciate within the next 1-2 years. The closer to central Austin you are, the better you’ll do, in my opinion.
There are sub-markets with a lot of inventory that needs to be absorbed. Downtown condos definitely fall into that category. The Lakeway area also has quite a bit of inventory. I think these markets both have room to depreciate over the next 1-3 years. 3+ years and on, I think they’ll be fine. These are really long projections, and are pure speculation.
September and early October are looking promising locally. The Tax credit is stirring conversations if nothing else. Hopefully we will continue to see this tread over the next year. Best Wishes.
We continue to see multiple offers in South Austin in the sub $200K price ranges. Inventory is lower than it was during the 2006/2007 hot market. The further out stuff and the higher price ranges remain slow.
In two years I think we’ll have a shortage of inventory up into the higher price ranges due to the builders cutting back too far on current construction.
Steve
Eric,
It’s not a big surprise considering Texas’s fiscal responsibility and also motivating businesses into your state. You are in a very good spot my friend. I won’t be surprised with continued positive trends. Maybe the rest of the nation will decide to jump on the bandwagon and follow Texas!