Luxe Austin Homes - demand

"Austin home prices jumped 87 percent in 10 years, report reveals"

CultureMap Austin shares, "A new real estate report confirms something that Austinites pretty much already knew: The city of Austin saw a significant increase in housing prices among U.S. cities within the last decade, with median home prices skyrocketing up to 87 percent.

The report by online real estate database PropertyShark analyzed median home sale prices in 41 of the most populous U.S. cities and locales in 2014 and 2023. According to the study, the median sale price of a home in Austin in 2014 was $287,000. A decade later, median housing prices in the city nearly doubled, landing at $538,000 in 2023.

Demand for housing increased dramatically due to the COVID-19 pandemic, when "millions of office employees suddenly shifted to working from…

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"Home prices begin to come down in pandemic boomtowns like Austin, Tampa"

Yahoo! Finance writes, "Real estate prices surged nationwide when the pandemic hit. Bidding wars, all-cash offers, and contingency removals became commonplace.

Now, the tide has turned in some markets.

Home prices in some large US cities declined in April, according to mortgage data company ICE Mortgage (ICE). San Antonio and Austin in Texas, and Tampa, Florida — among the most popular cities during the pandemic — saw the biggest monthly price declines.

The shift comes as these markets recalibrate: Homesellers and house builders are adding more listings, just as fewer Americans are relocating there.

“The key differentiator we're seeing in terms of growing inventory levels in Florida and Texas is a rise in sellers' willingness to list their…

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"A key housing metric just fell to its lowest point ever"

Austin Business Journal writes, "The Fannie Mae Home Purchase Sentiment — a gauge of how good buyers feel about the housing market — fell to its lowest number since the agency began measuring it in 2010.

In May, just 14% of consumers surveyed by the agency said it was a good time to buy a home, down from 20% in April. Those who said it was a bad time to buy increased to 86%. 

Even seller optimism slipped, dropping from 67% who believed it was a good time to sell in April to 64% in May. The growing pessimism comes even as about 20% of those surveyed said their household income was higher than it was a year ago. 

The declining sentiments are yet another factor weighing on the housing market, which is fueling an affordability crisis in many…

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"Affluent House Hunters in Austin, Texas, Are Finding an Opportunity—and ‘Even a Deal’"

Mansion Global writes, "Once the poster child for the pandemic housing boom, Austin, Texas, is seeing some of the nation’s steepest price declines for luxury homes, coupled with a growing supply of listings.

Luxury house hunters are now facing less competition and far more choice than even a year ago, marking an opportunity to buy before demand overwhelms supply again. There were 20% more luxury listings on the market in the greater metro area in the first quarter than a year ago, according to data from Realtor.com, which defines luxury as the top 10% of the market by listing price. 

“I have not seen this much great inventory in Austin in a long time, even since before the pandemic,” said luxury real estate agent Kumara Wilcoxon of Kuper…

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"Why reducing the minimum lot size for single-family homes could create a more attainable Austin"

Austin Business Journal writes, "Austin has a housing crisis with a lack of housing considered affordable to the majority of its residents. Professionals including teachers, EMS workers, firefighters and recent college graduates are being priced out of the communities they serve. Increasing mortgage rates, elevated home prices and limited inventory of affordable homes are some of the barriers to homeownership in Austin, particularly for would-be first-time buyers. To afford a $540,000 home, Austin’s median sales price in 2023, a household must make $180,000. This makes it extremely difficult for many to purchase a home here, driving them out of Austin and into the suburbs. The bottom line is that homeownership is unaffordable and unattainable to many…

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"Room to grow: Why Austin needs more homes"

Austin Business Journal shares, "It’s no secret that the Austin region has flourished over the past two decades, producing one of the greatest economic development success stories of the past half-century. Texas has consistently been named one of the best states to do business – with Austin helping to lead the way – and three of the top four fastest-growing cities in the country are located in Central Texas. Austin’s economy consistently outperforms national averages except for one glaring exception – housing.*

Austin desperately needs more housing. Our housing market’s severe undersupply of homes, specifically for low- and middle-income buyers, is a challenge our city must overcome not just for our regional economy, but for the people who live and…

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"Is Austin’s hot housing market flipping in favor of buyers?"

Yahoo Finance writes, "The frenzied homebuying days in Austin, Texas, that saw some buyers offer six figures over asking price are gone.

The Texas capital, where the average home price soared by $170,000 during the COVID pandemic, is now seeing major price corrections: The median price per square foot is down 9.5% from its pandemic peak two years ago, according to Realtor.com. As of April, the median list price stood at $557,000.

Austin’s real estate boom was driven by a sudden influx of workers, who were newly remote and suddenly more mobile thanks to early COVID office closures. They encountered a waning supply of inventory, and home prices subsequently spiked, dealing a blow to the city’s affordability.

However, as mortgage rates increase,…

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"Five questions with Austin's top multifamily developer"

Austin Business Journal writes, "Multifamily development in Austin has slowed dramatically.

In April, 29,669 multifamily units were under construction across 104 communities in the metro, compared to 50,393 units under construction in 178 communities during the same month last year, according to ApartmentData.com.

The Journeyman Group ranked at the top of ABJ's latest list of multifamily real estate developers, with 3,944 units in the works or delivered in the Austin area last year. Journeyman Group has an additional 1,613 units planned for the area.

Alliance Residential ranked second on the list with 3,089 units in 2023, while The NRP Group took the No. 3 spot with 2,442 units. Wilson Capital ranked fourth with 2,135 units and Endeavor…

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"Home prices have reached a milestone. Here's why it's a double-edged sword."

Austin Business Journal shares, "The median sale price for U.S. homes hit a record $383,725 during the four weeks ending April 21, up more than 5% from a year earlier, according to newly available data from real estate firm Redfin Corp.

The increase comes even as the supply of homes also has gone up, with 10.2% more new listings compared to the same time last year.

The record-high sale price is double what the median price was 10 years ago and up about 50% over the past five years, according to Redfin (Nasdaq: RDFN).

High interest rates have kept mortgage rates above 7%, and there's little indication from the Federal Reserve that interest rates will be measurably declining in the near term. That combination has helped push the median monthly…

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"Home Prices Soared Higher in February, Despite Increasing Mortgage Rates"

Realtor.com reports, "Home prices continue to march higher this year, despite pressure from increasing mortgage rates.

National home prices rose 6.4% annually in February, according to data from the S&P CoreLogic Case-Shiller Home Price Index released Tuesday. That was the largest year-over-year rise since November 2022.

Among the 20 cities tracked, San Diego had the highest year-over-year price jump in February, at 11.4%, followed by Chicago and Detroit, both with increases of 8.9%.

The report tracks single-family home prices across December, January, and February, when mortgage rates dipped to 6.6%. More recently, average rates for 30-year fixed mortgages jumped to 7.17% for the week ending April 25, according to Freddie Mac.

In a note,…

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