How does Austin real estate compare to the national market?
Austin is continually ranked one of the fastest growing cities in the country, so it’s exceeding the national market. The average sales price in Austin has grown 7.2 percent this past year, whereas the national market sales price growth is 6.8 percent.
What trends have you seen in the Austin housing market lately?
Many of the outlying areas of Austin, such as Round Rock, Pflugerville and Georgetown, are growing faster than Central Austin. Those cities are more affordable and investors are interested in those areas because there’s a better rent ratio to what you’re buying.
Another trend is, because of such low inventory, there are more new home starts. We have a greater percentage of clients who are buying new builds over the past two years than in the past.
What’s one piece of advice you would give to those selling their home?
Make sure you spend the time to get the house prepared and staged properly before you list it. Professional photography is a must. The first things people see, when looking on the internet, are the photos.
Advice for buying a home
First, map out a plan. We meet with all of our clients to discuss what they are looking for. We define the budget and neighborhoods of interest and their “must haves.” We then set up a search where we get quick notifications about new listings. Because Austin is such a hot market, it’s important we be in the position to move quickly if we find the right property. By mapping out the plan, it saves a lot of time and effort when it comes to looking at actual houses.
It seems like there are a lot of investors in this market now. Where are the hot spots to invest?
For a lot of our investor clients who are looking to buy and hold properties, we’re looking in the Round Rock and Pflugerville area. We can obtain properties for under $250K and then turn around and rent them out for $1500 to $1700 a month. The average median price increase for Austin has been 7 to 9 percent over the past two years, whereas Round Rock, for example, has had an increase of 9 to 10 percent. We also have clients who are looking to flip properties. Right now there’s a trend to buy properties to turn into condo regimes and sell off each property individually. There’s a lot of this going on in East Austin.
Sum up Austin in three words
Tacos, Music, Home