Ready for sticker shock? If you haven’t been following the Austin real estate market closely you may need to brace yourself when you see the median home price. The Austin Texas real estate market has been on a tear lately and it’s hard to know whether you’re getting a good deal on your home or overpaying. Let’s take a look at the numbers and see what is driving the valuations.
With a growth rate of close to 3%, Austin is one of the fastest growing cities in the country. In fact, it is the fastest growing metro area for the last 6 years straight. Students have been making the move for the universities for more than a hundred years, but more and more they are staying in Austin after they graduate. However, the big driver is the number of new companies moving to Austin each year. Major employers like ZOHO and Katerra have moved here in 2019. Other companies like Facebook and Apple continue to grow their presence. In fact, REX’s very own headquarters made the move to Austin earlier this year. All of this is making for some stiff competition in the housing market, and despite aggressive construction in almost every corner of the city, the housing demand continues to outstrip supply.
As a result of this growth in Austin, housing prices are experiencing record highs. As of May 2019, the median home price in the city of Austin is $407,400, an increase of 5.8% year over year. This is the first time we’ve seen this number rise above $400,000. In April of 2018, the median home price in Austin was $390,000.
While home prices are dramatically increasing, the number of active listings has been falling. As of May, there were 1,349 homes for sale in Austin TX. This is compared to 1,533 listings that were active in May of 2018.
This steep price increase in Austin real estate downtown is forcing more individuals to start their home search outside of the metro area. The Austin Board of Realtors reported that more homes were sold in Williamson and Hays counties than in Travis County and the city of Austin in March. This is an incredible statistic that shows Austin becoming a true metropolitan area. However, that doesn’t mean you will be finding a lot of bargains outside the city. While the median home price in Austin is over $400,000, the median price in the Austin-Round Rock DMA is still $305,000. That is still 26% above the national average.
While it may be difficult to find affordable housing in Austin, there are plenty of homes for sale near Austin TX. Although home listings in the Austin city limits had decreased to 1,349 this May, there were 6,881 active listings in the entirety of the Austin-Round Rock MSA.
If your job or personal endeavors are bringing you to Austin, you may be wondering where you can find more affordable housing. To give you an idea on the surrounding area, here are the median home prices in the neighboring counties:
- Travis County – $400,000
- Williamson County – $303,323
- Hays County – $275,969
- Bastrop County – $240,000
- Caldwell County – $209,500
Be sure to check out homes in these areas if you’re willing to have a slight commute and want to get more bang for your buck. But hurry, the migration to Austin won’t be stopping any time soon. It is estimated that about 500 people move to Texas every day. 105 of those are moving to the Austin metro area. The population of the county of Travis as a whole is expected to grow up about half a million from 2010 to 2030. This means we likely won’t see home prices slowing down anytime soon.
If you’re ready to take the next step in buying a home, REX offers a large inventory of Austin homes for sale. Be sure to check them out before they’re gone!