Average home price in Austin area hit a new high
February 7, 2017 | FPA Realty Team
The average home price in Austin area hit a new high today
As more people move to Austin, Tx, home prices keep going up. A new report shows homes are more expensive now than before this time last year. Why is the average home price in Austin still on the rise?
According to the Austin Board of Realtors, the median price of a home in Travis County is 335k. Williamson County is slightly lower at 260k, and Hays County is around 240k. From June to July, all the median home costs went up. Some are worried that Central Texas is running out of lower priced homes.
Average home price in Austin
In the Austin Board of Realtor’s market report for July, president Aaron Farmer said, “The city of Austin’s high development costs make it virtually impossible for homes under 250k to be built within the city limits. In return, the demand on affordable housing is driving home prices up in the surrounding ares in where lower-priced housing stock can be built. The result is a catch-22 of housing development, where the homes that can be developed are largely in price classes where both prices and inventory are higher, while the much-needed housing stock under 250k goes un-replenished.”
Recent home owners who purchased their home in the Mueller development area back in 2007 had this to say.
“There’s benefits to that if we do ever decide to move, there’s money to be made there but on the other hand, if we want a larger house or something different we won’t be able to buy in the same neighborhood,” they said. “It’s challenging from a property tax standpoint because we’ve seen such dramatic increases.”
“We have hit all-time highs here from even before the housing crash of 2007,” said Michael Oakley from Renter’s Warehouse. He says in Texas, home values typically increase 2 to 7 percent a year. That’s on the high end.
Austin Homes are easily 7 to 10 % up in value
“In Austin, were easily seeing 7 to 10 percent – on average – going up in home values,” Oakley said.
Average home prices in Austin are set to continue rising. He says he isn’t concerned about that trend shifting and people losing value on their home.
“I’m not worried about it, No. Will there be a pullback, absolutely. Does that mean you’re going to lose money – no, it doesn’t,” Oakley said. “Job growth is incredible here. The economy is great here. So even if there was a bubble here and even if the bubble crashed on a national scale, I think we’d be sheltered here.”
When asked where he’s currently seeing the largest growth in the housing market. He immediately pointed south, to Buda and Kyle.
“I see that big boom heading down that way. Yes, we’re seeing it in Manor too and up in Round Rock, but i thinking it’s really going to grow down that way,” Oakley said.
The average time a house spends on the market in Austin is just under 50 days. That’s actually four days faster than the same time last year.