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As you've probably heard, the Austin real estate market is "on fire". You might be asking, will this continue through 2021? Or are we in a bubble, waiting for it to burst?
Welcome to Audrey Smith ATX, where I discuss all things real estate! I'm a Realtor based in Austin, Texas on a team at Twelve Rivers Realty, working alongside the city's top producing agents. Our brokerage is like a family where we are all here help each other and our client's be successful in real estate. tht includes sharing insider knowledge to make it happen, which we pass along to our sphere. I have helped many people find their next home in Austin and I would love to help you too. No budget is too large or too small for me - please contact me today for your real estate needs by texting "Agent" to 737-277-7964.
Now, let's get to the question you want to answer: How is the Austin real estate market looking for 2021, and are we in a bubble that's about to burst?
To be frank, we are not in a bubble. Many have speculated that Austin will crash for years now, yet; the market has been growing at a very consistent rate over the last decade, and continues to become more competitive with time. There is no reason to believe we are at a peak. Several foundational factors make Austin as well as other Texas cities a high demand market, regardless of what happens politically or pandemically in the USA. This is explained perfectly by A. William Stein, the CEO of Digital Realty, one of the recent multi-billion dollar companies that has decided to make the move to Texas: "The central location, affordable cost of living, highly educated workforce and supportive business climate have helped make Texas an epicenter for business activity and technology growth."
Just in November 2020, Austin was ranked #1 in tech cities in the USA, with Dallas right behind in second place. We all know a relevant indicator of a real estate market is the local job market, and as of January 2021 - we continue to see job creation in Austin. This comes from not just the big companies establishing their headquarters here - Apple, Tesla, and Digital Realty to name a few, but all the smaller companies that will come along to feed, clothe, and service the thousands of people moving here along with those large companies. There are several commercial projects in the works in Austin that -haven't even opened their doors yet, such as a 300+ acre shopping center coming to southeast Austin, known as Velocity.
Austin has been able to withstand times of disaster as a strong real estate market. Even in the 2008 housing crash, Austin remained fairly stable. And in the 2020 pandemic, Austin saw incredible growth. Because of the city's naturally high demand, it is a safe place to invest in and does not experience harsh recession.
Now that we know Austin is no where close to crashing, we might ask ourselves, "OK, so what is the market like? How does one get involved?"
We may be at a high point in time, but there is no reason to believe we are at a peak. In fact, we may still be scratching the surface. We are seeing a huge demand for home offices, sometimes two or more home office areas for working couples.
Please reach out if you would like to discuss these talking points or continue to conversation below. Note that this blog is an opinion piece based on the knowledge of several industry experts and factual statements.