#austinhousingmarket

Apple's Big Announcement and Its Impact on Austin

In early December, while all eyes were on Amazon’s HQ2 announcement, Apple made an important one of its own:  the decision to invest $1 billion in a new 133-acre Austin campus that will increase Apple to upwards of 15,000 employees in the coming years. With the completion of this campus, Apple will surpass other well-known names such as H-E-B and Dell to earn the title as the largest private employer in the city of Austin.

The Apple campus will be located right next to its counterpart just over the county line in Williamson County, placing it 12 miles from the city center. It will bring in a good mix of middle to upper range jobs in technology, research and customer call centers. In addition to catapulting Austin into the big leagues as a technology center, the incoming Apple campus will impact all sectors of life, such as housing, restaurants, traffic, and retail marketplaces.  Some estimate that the overall impact of the new Apple campus could result in over 30,000 new jobs across all sectors of real estate, construction, and the marketplace in Austin. 

What impact will this swell of jobs have on the Austin housing market? Prices will continue to rise if more supply is not created to meet these additional demands. As housing prices in the urban core of Austin continue to escalate, look for more incoming Apple employees to search for homes in the Round Rock, Pflugerville, and Hutto areas because of their close accessibility to the Robinson Ranch area (where Apple is located) via SH 45. Other communities that will likely see further development are Liberty Hill and Leader as I-35 will also become a main thoroughfare for Apple employees.

What might the arrival of Apple mean for your housing sale or purchase? If you are shopping in the housing market right now, the answer is simple.  The sooner you can buy, the better.  Competition and prices are only looking to increase. However, if you own a home in North Austin, you might want to hold onto it for a couple more years.  That is, if you can afford its increasing property taxes!

The addition of the new Apple campus will only contribute to Austin’s reputation as a knowledge and talent center and will continue to draw more people from the West Coast who are looking for solid tech jobs in more affordable housing markets.  However, the infrastructure will have to work hard to keep up with the demands of this brand new influx of people to make this a win for all Austinites.

2015-2018 ATX Urban Core Growth Trends

The final 2018 numbers are in, and the data confirms that the Austin real estate market continues to be on the rise in the urban core.

When comparing the numbers from 2017 to 2018, the median price, median price per square foot, overall dollar transactions in the urban core, highest price per square foot, and highest overall price all increased from 2017 to 2018. For example, the median price of a home in the urban core in 2017 was $434,000; in 2018, that same number increased to $450,000. The median price per square foot back in 2015 was $273.38. That number has increased almost $50 per square foot over the past 4 years, resulting in a median price per square foot in 2018 of $320.64.

Will prices continue to be on the rise for 2019? With Apple’s company announcement and the arrival of a major league soccer team in ATX, expansion and growth do not seem to be slowing down anytime in the real estate market of Austin, TX. Check out my urban core trends and market analysis below! For more market statistics and analysis in the downtown area specifically, click here!

Urban Core Stats 2015-2018.png

Are you considering purchasing a property in the urban core of Austin? Jump in now before prices continue to rise! Contact me today to help you find the home of your dreams!

Supply and Demand in the Austin Housing Market

Real estate is a business of supply and demand.  For the past four years in Austin, Texas, there has been less than four months’ worth of housing inventory available. Data shows that low supply in the housing market also drives up the median home price.   

In a relatively short period of time, there’s been a dramatic shift in home sales by price range. In 2011, 67 percent of houses that were sold were priced below $250,000, while 32 percent were priced from $250,000 to just under $1 million. By 2017, those percentages flipped: 63 percent of sales were above $250,000, and 35 percent were below.

The trends of low supply and high demand look to continue as Austin’s population is projected to increase from 1 million in 2014 to an estimated 2.3 million in 2020.  In 2017, Austin saw 151 net new people move to Austin every day. 

In the past 10 years, the median home price in the Austin area has soared as well. In 2018 so far, the Austin median home price is $319,000, up 66 percent from $192,000 in 2008, and median home prices in recent years have seen a year-over-year increase of 5.4%.  

What does all of this mean for the continued growth of the housing market?  There are some that think there will be an inevitable “normalization” of this strong market curve, while others that think the housing market will continue to boom as the city’s economy and job markets proper. 

What, if anything, could cause a downturn in the market in coming years?  Perhaps a 2020 U.S. presidential election? Other potential factors could be trade/tariff issues, labor shortages, increased traffic and potential water-supply developments as the city continues to expand. 

However, for now, we are enjoying a real estate market that continues to boom with demand significantly higher than supply in Austin, Texas. 

Are you wondering what the fair market price of your home is?  Contact me for a complimentary home evaluation today!

 

 

 

Articles sourced:

1. http://austin.culturemap.com/news/city-life/09-15-15-what-will-austin-look-like-in-2020-new-lawnstarter-report-confirms-rapid-growth/

2. https://www.statesman.com/business/20180627/expert-outlook-bright-for-austin-economy-housing-market

3. https://communityimpact.com/austin/central-austin/development-construction/2018/02/01/austin-housing-market-expected-to-continue-growth-despite-low-supply-and-increasing-interest-rates/

4. https://www.bizjournals.com/austin/news/2018/03/22/austins-population-keeps-popping-heres-how-many.html