The Austin real estate market has been hot for the past couple of years, with home prices jumping nearly 20% each year.
While home prices will continue to increase in the Austin area in 2023, transactions will slow a bit. Austin home sales are forecasted to decline by 6.6%, while prices will continue to increase by 3%. High interest rates and higher prices will keep some people out of the market, but Austin continues to attract new residents at a record pace.
Continued Explosive Growth
Austin was tabbed as the second fastest-growing city in the U.S. in 2022. The area saw a 33% increase in population over the past decade. Newly transplanted workers in the tech industry for companies like Amazon, Oracle, Tesla, and Google are looking for new homes. Many are moving from Silicon Valley and other cities where home prices are even higher.
Couple that with Austin’s warm climate and vibrant culture and music scene, and it’s no wonder Austin continues to grow. So, even as prices in Austin continue to inflate, they're a bargain to incoming residents from California who can get bigger homes for less money.
It's not just the city of Austin that's growing either. Many of the surrounding suburbs are among the fastest-growing cities in Texas.
Increased Housing Inventory
With so many new people moving to the area, it’s been somewhat of a feeding frenzy for homes over the past two years. Low interest rates and low inventory has meant fast sales and commissions for agents. That’s expected to slow in 2023 as interest rates continue to rise and inventory normalizes.
During 2021 and into 2022, the number of homes on the market was at historic lows in Austin. However, starting in February 2022, the number of active listings has increased each month. This means homes will sit on the market a bit longer in 2023, and sellers may have to be a little more flexible on pricing.
Austin Is One of The Hottest Real Estate Markets in the Country: A Supernova
Still, Austin remains a hot spot for real estate. The Urban Land Institute (ULI) released its annual Emerging Trends in Real Estate report in October 2022 and picked Austin as the fourth hottest market in the U.S., behind only Nashville, Dallas-Fort Worth, and Atlanta.
The report called Austin a “supernova,” showing sustained population and job growth well above the national averages. With economic diversity and strong employment levels, ULI predicts Austin will be among the top spots in the U.S. for real estate sales for years to come. Austin has ranked in the top four nationally every year since 2020 and in the top ten every year since 2010.
Austin is also a favorite for real estate investors, with the highest demand of any city in the country. This is one of the reasons why many out-of-state real estate agents are also moving to Austin and transferring their real estate license.
Big Opportunities in Austin Real Estate
While other cities throughout the country may face significant declines in home prices and sales, Austin appears poised to be one of the best real estate markets in the country.
If you’re thinking about getting a job in the real estate industry in the Austin area, it’s a good time. Even as the market slows a bit, there are plenty of opportunities ahead. Taking Aceable’s TREC-approved pre-licensures course can help you pass your real estate license exam in Texas.
Sign up today and get started on a great career as a real estate agent.