Most folks know Austin area Real Estate is trending up, but to give you a better understanding of some of the dynamics currently in play, you have to examine what's going on with our public schools, commercial improvement and expansion and new residential development:
1st: Austin area Schools just received approval of nearly $1 Billion in new Bonds. That means more school facilities, improved classrooms, better tools for teachers and better quality of education for students. These new bonds will surely only be the start of what will be a continuing trend for several years as our communities continue to grow in the Northwest sector of Austin (which includes Round Rock, Cedar Park, Avery Ranch, Brushy Creek and Leander).
2nd: Austin schools are also getting media attention in the news for testing above the national average and having many more exemplary public schools compared to other regions of the country.
3rd: Residential homes prices are in an up cycle, making it a seller's market and paving the way for investors to capitalize on this opportunity, as available properties for lease are at an all time low. Â This is also good for buyers because with our housing market having fully rebounded (the lowest point being in 2010), home prices have climbed steadily in 2011 & 2012, and are already nudging prices up again in the 1st quarter of 2013. Â Why is this good for buyers? Â Many reasons! Â Equity will result from this surge in our economy. Â Additionally, Interest Rates are at a historic low (still hovering around 3.62%). Â With many available loan programs for first time buyers and even local lenders willing to work with investors, that makes it a great time to buy, because we know the interest rates will not stay this low for much longer. Â Analysts say 5% APR is expected in 2014 and up to 6.25% by summer of 2015. Â This means there is a window of opportunity for buyers to lock in a great prime rate.
4th: New inventory homes coming on the market this year from local Austin area builders, are predominantly showing new home prices of $300,000+ which means this new inventory will further push the equity of resale properties in the surrounding communities, providing a potential profit for sellers that have held their homes for four or more years.
5th: Austin commercial improvements like the large development underway on South Lamar Street will provide thousands of new square feet of retail and restaurant space, offering more modern urban enhancements to the downtown area. In addition to a new outdoor mall this project will add 443 (much needed) new apartments to the area, increase nightlife entertainment and bolster city tax revenues.
6th: Round Rock City alone has increased construction permits from approximately $7,000,000 in 2012 to over $77,000,000 in the first quarter of 2013. Â City Counsel members recently voted to re-vitalize Round Rock's aging business district to better accommodate the increase in commerce from residential community expansion.
The statistics all prove what many of us in Real Estate have estimated for some time, our city (and our local region) is growing by leaps and bounds. Whenever investors or potential home buyers ask me, "Is this a good time to get into the market?", I always say, "You have to analyze the data and look at what's happening locally." Just looking at the given statistics of trending home prices, development permits and projects underway vs. planned communities set to come on line between 2013 and 2014... it all means Austin is surely one of the best, if not THE BEST place to invest your money within the next 2 to 3 years!
As a Real Estate Professional in Austin, my goal as always is to serve my clients at the highest level. Â If I can be of any assistance to you, please don't hesitate to shoot me an email or give me a call. Â The housing market in Austin is growing... the question is, will you be one of the ones to take advantage of this opportunity?
Joe Casey Goldwasser Real Estate email@example.com 512-800-1316 cell