As a real estate agent, one of your top priorities is staying on top of market trends. This is true for every area but especially Austin, TX, because Austin is undergoing many economic changes and fluctuations.
Austin was tagged as the top market to watch in 2020 based on overall prospects, such as development and investment opportunities. Let’s go over why Austin is a “top prospect” and what that means for you as a license holder.
Home values in Austin are expected to go up 4.5% in 2020. Home values in areas right outside of Austin, such as Round Rock and Pflugerville, are expected to go up more than 7%.
License holders should keep an eye on these surrounding neighborhoods and cities as many buyers will be looking in these areas.
Real estate experts are anticipating a shift in 2020 towards a buyer’s market. While there are no guarantees, this shift is significant because Austin has leaned towards a seller’s market for several years.
Investors will likely take advantage of the dip in home prices. Seller’s may need a little extra help. Read more about small, easy improvements that help homes sell.
The Apple Campus
Apple is building a $1 billion campus in Northern Austin. They plan to finish construction in 2022. The campus will bring in 5,000 employees right away but has the potential to hold 15,000 new employees.
The 5,000 employees will all need a place to live, as will their families, the construction workers building the campus, and campus staff.
The influx of new Austinites will drive home prices up. The campus will likely impact Round Rock, Pflugerville, and Hutto more so than central Austin. These areas have easy access to major highways that lead to the campus. License holders would be wise to keep a close watch on these areas.
House flipping in the neighborhoods closest to the campus, such as Avery Ranch and Brushy Creek, will likely become popular. Read more about house flipping:
To mitigate market fluctuations due to the Apple campus, many new constructions are already in the works.
Hopefully, these constructions will help regulate housing prices. However, many experts doubt the new constructions will be enough to accommodate the massive influx of homebuyers.
The investor demand in Austin is expected to be incredibly high. One study ranked Austin’s investor demand as #1 in the country.
Single-family homes are considered the best type of investment property in Austin. They comprise 77% of real estate listings. This is partially due to the fact that over half of Austin’s population rents rather than owns because of a lack of affordability.
Condos, townhouses, multi-family homes, and foreclosure properties are also popular investment choices. Those who invest in these types of residences will have no trouble finding renters to pay their mortgage and earn a return on their investment.
Buyers will want advice on where to look for their next home. Here are a few quick neighborhood stats to help guide you and your buyers.
Median Property Price: $478,600
Average Monthly Rental Income: $2,400
Median Property Price: $246,200
Average Monthly Rental Income: $1,680
Median Property Price: $340,600
Average Monthly Rental Income: $1,830
Know Your Client
Remember, what might be the “perfect” area for one client will be a poor fit for another client. Know your city, know the market, but most importantly know your client. They might be a better fit for the Hyde Park neighborhood or farther north in the Wells Branch area.
Your client will be coming to you for advice. Make sure you’re prepared to provide them with the information they need to be successful.