Home Buying in Austin>Question Details

Eric Madeen, Home Buyer in Outside U.S.

Will the drought in Austin affect property prices, driving them lower?

Asked by Eric Madeen, Outside U.S. Mon May 27, 2013

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It depends. In central Austin, no. But outside the city, Lake Travis has been so low that it may be hard for some sellers to ask the premium prices that they otherwise would be able to. Lake Travis is also not the most photogenic place right now, so this could definitely be a negotiation point in a new home purchase.
0 votes Thank Flag Link Wed Oct 30, 2013
If there is a drought in Austin, its driving home prices up right now.

So, I don't believe a drought would drive prices down, even though an array of options could drive prices down, as proven several times over the past 100 years.

Oh, and driving back up prices has also happened. And down again. And up.

Right now we are upward moving.

I recommend buying a home asap, then keep an eye out for a definitive drought scare statement, sayyyy in 6 years, and THEN cash out and sell before the rest of us do!
Web Reference: http://shawnmon.com
0 votes Thank Flag Link Tue May 28, 2013
I don't think that happens any time soon. Maybe in some distant future as with Las Vegas, Phoenix, SoCal, and plenty of other places. Water might be an issue one day, but I don't think you'll hear any serious talk about it in the next year.

What you will hear about is how many people are moving to Austin and if anything that will drive short term pricing up and potentially way up. Texas dominates the best cities in the US for good jobs.

http://www.forbes.com/sites/danielfisher/2013/02/25/texas-do…
0 votes Thank Flag Link Mon May 27, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
In short, no. Weather patterns are cyclical and we have been in droughts like this before without direct adverse effects on property values. Austin is one of the healthiest real estate markets overall and the drought is not expected to have any adverse pricing effects.

Joe Jarusinsky, Realtor/Master Instructor, Keller Williams Realty, Austin's #1 Real Estate Company, Ranked #1 by Buyers and Sellers (JD Power & Assoc. 2012) Call 512-261-4415
0 votes Thank Flag Link Mon May 27, 2013
WELCOME to Texas - short answer NO . Many states besides Texas has the same issues and our real estate markets are one of the top here in USA

Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer
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http://www.lynn911.com 100's of Dallas homes listed for sale or lease

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0 votes Thank Flag Link Mon May 27, 2013
It is not likely, we are accustom to water conservation issues in this area and have dealt with drought conditions as a part of living in this area.

Austin has so much to offer people moving to the area and we have such a huge influx happening now that for the foreseeable future there are no indication that housing prices will be affected by this issue.


Beth Wood
The SeeBETHSellTeam
Keller Williams Realty, Inc.
512-761-5738
http://Www.seebethsell.com
0 votes Thank Flag Link Mon May 27, 2013
Not really. Drought conditions, like wet periods are cyclical and part of the enviornment of living in central Texas. We are fortunate in having the highland lake string to provide water to get us through drought periods and it shouldn't be a long term problem.

Ron Cullinan
Avalar Austin
GRI, CRS, ABR, CLHMS, e-Pro
512-799-3239
austin_realtor@earthlink.net
http://www.austinonlinehomes.com
0 votes Thank Flag Link Mon May 27, 2013
Water shortages in Central Texas are unfortunately somewhat of a recurring problem. Those shortages can force utility districts to enforce water restrictions or raise water prices in the long term. Water restrictions or prices could drive people to install zero maintenance lawns like you might see in Arizona or Nevada. That being said, drought could only affect home prices if those restrictions or prices actually made people decide NOT to move to Austin and therefore lowering demand. That scenario is highly unlikely.
0 votes Thank Flag Link Mon May 27, 2013
Eric,
Good question. While no one can predict the future we can all call on our experience to make educated guesses, if you will.
In a macro sense, it is doubtful that "drought conditions" alone have much of an impact on home prices. We are in a supply & demand curve that is escalating prices with no end in sight.
As with all homes, prices are determined by specific conditions. With that said, waterfront properties in many/most cases have been affected by the drought, some significantly. If you ever wanted to buy a waterfront home on lake Travis now would be a good time to do it. Prices are depressed and you'll know what the low water mark looks like.
Bill
0 votes Thank Flag Link Mon May 27, 2013
Hi Eric,

At this time, prices in Austin continue to rise and there are no indications that this trend will reverse itself anytime soon. Austin has had one of its wetter winters & springs this year than it has in many. While much more rainfall is needed to offset the current drought pattern, this is an encouraging sign. Many parts of the country and the world for that matter experience drought and wet patterns. We just happen to be in a drought pattern at this time.
0 votes Thank Flag Link Mon May 27, 2013
No, prices are going up fast!
0 votes Thank Flag Link Mon May 27, 2013
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