Grossman & Jones Real Estate Blog - housing

"15 Austin ZIP codes now dominated by renters not homeowners"

Austin Business Journal writes, "if you live in either the 78727 or 78744 ZIP code, odds are you’re renting.

That's according to an Oct. 24 study from RentCafe, which found that from 2010 to 2020, those two ZIPs transitioned from having a majority of homeowners to a majority of renters. There are now 15 ZIP codes in the Austin area with renting majorities, signifying how the evolution of Austin into a big city is changing its economic makeup.

North Austin’s 78727, which eats up a large part of town north of The Domain neighborhood, had a population consisting of about 51% renters in 2020. Its 2020 renter population of 16,285 was a 21% jump from the 13,413 who called the ZIP code home in 2011, RentCafe found. The rental search platform used data…

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"Mortgage Bankers Expect Rates To Drop to 5.4% in 2023. Here’s What That Means for Home Prices."

Realtor.com reports, "high mortgage rates and recession fears are hurting home prices, so expect growth to be flat this year, one expert says.

“Our forecast is for home-price growth moderation to continue,” Joel Kan, vice president and deputy chief economist at the Mortgage Bankers Association, said Sunday during the organization’s annual conference in Nashville, Tenn.

Home prices have already begun moderating. According to Case-Shiller, home prices fell month-over-month from June to July for the first time in 20 years. The latest numbers, which will be for August, will be reported on Tuesday morning.

With a recession likely in the cards, on top of mortgage rates near or above 7%, “we’ve already seen a pretty dramatic pullback in housing…

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"New 43-story tower breaks ground in Austin's Rainey Street district"

Austin American-Statesman reports, "a 43-story apartment tower is the latest high-rise to start construction in the booming Rainey Street area in downtown Austin.

High Street Residential, along with MSD Partners and River Street Partners, said started construction has bgun on the tower, which will rise 500 feet at River and Rainey streets on downtown's southeastern edge. It will have 377 upscale apartments, ranging from studios to three-bedroom units and penthouses.

Called 700 River (initially River Street Residences), the tower will include 3,400 square feet of retail space and more than 30,000 square feet of amenity space, according to the developers. The high-rise is due to be completed in late 2024.

The project is part of wave of growth…

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"Austin's economy among fastest-growing in the U.S., new report finds"

Austin American-Statesman writes, "Austin's boom is far from over, as a new report says the metro area has the second-fastest-growing economy in the country.

Austin's estimated regional gross domestic product — the total value of goods and services produced in one year — increased by 4.3% this year, second only to San Francisco's growth at 4.8%, according to the Kenan Institute of Private Enterprise at the University of North Carolina.

The report is the institute's first as a part of its American Growth Project, which aims to provide "up-to-the-minute" economic data for the microeconomies of towns, cities and counties across the country.

Hoping to help government officials and community leaders understand real-time industry trends, forecasts…

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"Austin homebuyers regain power as active listings reach decade-plus high"

Austin Business Journal reports, "there's more evidence that Austin's housing market is correcting itself after years of overheating.

The Austin Board of Realtors'latest housing market datafound that September saw 9,671 active listings on the market — the most since 9,909 in July 2011 — and total inventory hit 3.1 months for the first time since July 2017. Median home sales prices also dropped more than $25,000 from August, helping the city push back on what's widely considered the biggest threat to the economy: affordability.

Though 3.1 months of inventory isn’t enough to transform Austin into a buyer’s market, there are winds of change.

“Homebuyers have not had this much leverage and this many options in over a decade,” ABOR President Cord…

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"This Fall’s Latest Housing Stats Are Hiding a Surprising Upside for Homebuyers"

Realtor.com writes that, "Although the fall season is traditionally the best time of year to buy a house, homebuyers out there right now might not feel that way—and for good reason.

We looked at the latest real estate statistics in our column “How’s the Housing Market This Week?” We found that this year’s seasonal high point for buyers is up against some strong headwinds—including skyrocketing interest rates, soaring inflation, and overall economic volatility not seen since the Great Recession in 2008.

“Early fall is usually the best time to buy,” says Realtor.com® economist Jiayi Xu in her analysis, adding that the most optimal window of opportunity for homebuyers nationwide just passed last week.

However, she continues, “as inflation…

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"No longer ‘frantic’: Number of homes for sale in Austin metro highest in more than a decade"

AUSTIN (KXAN) — "The number of homes for sale in the Austin metro area is the highest in more than a decade.

A total of 9,671 homes were actively listed in September across the five-county area — the highest number since July 2011, according to the September housing report from the Austin Board of Realtors.

The number of active listings is up more than 160% over last September.

Meanwhile, home sales declined in September. Just less than 3,000 homes were sold last month, down 18.5% year-over-year.

“Homebuyers no longer need to move at a frantic pace to find a home,” said ABoR President Cord Shiflet. “There are more homes to choose from and more time to find a home that works for their needs and budget.”

The median home price across the…

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"Is the Rental Market Beginning To Normalize? Priced-Out Tenants Sure Hope So"

Realtor.com writes, "renters haven’t had much good news lately as landlords have jacked up monthly rents to previously unthinkable amounts across the country.

However, the rental market may be returning to something more seemingly normal. In September, the median monthly rent in the 50 largest U.S. metropolitan areas dropped for a second straight month, to $1,759, according to a recent report from Realtor.com®. That’s $12 lower than last month and a $22 drop from the peak in July.

Rents were still up 7.8% from September of last year. However, it’s the lowest year-over-year price increase since May 2021.

The report looked at apartments, condos, townhomes, and single-family homes advertised for rent in September on Realtor.com in the 50 largest…

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"Study makes case for investing in cheaper housing as Austin group buys more apartments for moderate-income rentals"

Austin Business Journal writes, "a new report challenges the idea that investing in more affordable housing developments yields lower returns than luxury apartments — bringing added weight to a local fund that aims to maintain cheaper housing.

The report from Southern Methodist University and the University of Texas at Austin finds that moderate-income rental housing is a viable and profitable investment for those seeking to support a fund that embraces environmental, social and governance principles, or ESG.

Supported by Affordable Central Texas Inc., which controls a low-cost housing fund in Austin that has raised tens of millions of dollars, and the Wells Fargo Foundation, the study aimed to define a profitable asset class called…

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"How High Can Mortgage Rates Possibly Go?"

Realtor.com writes, "higher mortgage interest rates have taken a battering ram to the housing market.

Since the start of the year, mortgage rates have more than doubled. They’ve blown past all expectations, nationally exceeding 7% by some estimates. The possibility that rates could continue to rise has struck fear into the hearts—and bank accounts—of many stressed-out homebuyers.

The simple, and dispiriting, math: Every time they tick up, fewer buyers can qualify for loans—and those that do often can afford to buy only much cheaper homes.

So how high could rates go? The answer depends largely on how the economy fares. If inflation persists, the U.S. Federal Reserve will keep raising its own interest rates and mortgage rates will likely follow…

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