AUSTIN (KXAN) — Home construction continues to boom across Central Texas.
The latest nationwide numbers show that the rest of the country is selling homes near record speed; the highest since 2007. Analysts say people want to take advantage of a healthy economy and low mortgage rates, which are expected to rise next year.
Demand in Austin is high. For sellers, that’s good news.
“We bought our house in 2006,” said Paul Smith. “At that time we paid $110,000 for the property which seemed expensive, but all the stuff going on in that neighborhood with tech industry, apple being within walking distance.”
So when he put it on the market two weeks ago, he hit the jackpot.
“We received 5 offers in the first 3 days and 20 showings so it was kinda very effortless,” Smith said.
They sold their North Austin home for $10,000 over the asking price.
What does the future of Austin’s housing market look like?
Economists say 2017 will be another strong year for Austin. With at least 30,000 newcomers moving to the area every year and 100 every day, the growth is hitting the housing market.
New businesses are also attracted to Austin. According to economists, businesses are fueling the housing market, but not necessarily in home sales.
Austin’s future is more development of condos and apartments. The city has a reputation of being a magnet for younger, more educated people looking for an urban lifestyle.
“The young ‘next-gen’ generation who moves to Austin doesn’t necessarily want to own a car. Rarely do they own a car. They want to be in a workable neighborhood. They don’t want to be tied down to housing. A single family home,” said Angelos Angelou, CEO of Angelou Economics.
However, there is a catch. City living is expensive. The push to move into urban spaces is driving up the cost of homes in Austin. Economy experts say buyers should still find good options, especially in the $250,000 to $500,000 price range.
There are some developments in Austin to help counter all of the expensive homes you see popping up. The latest example is a project that’s been highly talked about. Developers with the Grove at Shoal Creek plan to build 1,500 new housing units. It will be a mix of homes and apartments with some being set aside under the city’s affordable plan.
This development also includes office and retail space, and a park. It took two years for the city to approve it because neighbors near Bull Creek and 45th Street are worried about the impact on traffic.