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!
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.
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
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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.
Keller Williams Realty, Inc.
GRI, CRS, ABR, CLHMS, e-Pro
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.
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.