The capital city of Texas and a thriving hub of music and art, Austin is the most populous city in Travis County. Austin consistently tops lists as one of the fastest-growing cities in the United States, with new residents eager to experience the charm and conviviality of the community. From crystal-clear lakes and quiet suburban areas to hopping between bars and nightclubs nestled along legendary Sixth Street, Austin has something for everyone.
Although Austin regularly welcomes new homebuyers, the COVID-19 pandemic made an impact on the real estate market. Only in 2023, has the Austin real estate market returned to relative normalcy.
2023 Austin housing market forecast
Throughout most of 2022, Austin could barely keep up with the demand for homes, with eager buyers snapping up everything on the market almost instantly. According to U.S. News and World Reports, while the housing market went into overdrive following the COVID-19 pandemic, with bidding wars and a serious lack of inventory becoming the norm, 2023 saw the market taking a bit of a breather. Experts predict that the rest of 2023 will remain a buyer's market, with buyers likely able to buy the home they want in Austin without having to go well over the asking price.
Home values remain relatively steady
Austin is still a hot market, but the slow normalization of the housing market over the past six months means that home values have become relatively steady. According to KXAN, the market has become less of a seller's market in recent months, making it a perfect time for buyers to start looking in earnest.
Rising interest rates
The National Association of Realtors points out that interest rates nearly doubled in Austin in late 2022 and remain high as 2023 rolls on. Considering this steady growth, there's no reason to think they will be going down by a significant margin for the remainder of 2023. In fact, interest rates will probably keep rising through early 2024.
Positive net population migration
People love Austin for its lively music scene, the variety of locally owned restaurants and boutiques, and historic monuments and attractions. There's always something going on in Austin. Still, Austin remains a prime residential location, perfect for families with children. Great schools, a strong community spirit, and a welcoming attitude define Austin. It is growing steadily, with the U.S. Census Bureau reporting that the population in 2022 was 974,447, up from 964,177 in 2021. Since 2020, Austin has shown 1.3% growth and will probably continue to grow as new jobs are created and tech giants plant roots in the city.
How COVID-19 affected Austin's real estate market
The COVID-19 pandemic changed nearly every industry, including real estate. It had a substantial impact on Austin's real estate market, causing home prices to increase. The increase could have resulted from many things, including higher demand, lack of inventory, and more savings in buyers' bank accounts. Whatever the reason, real estate in Travis County became almost prohibitively expensive throughout 2020 and much of 2021 until it started to normalize in 2022.
Austin foreclosure statistics for 2023
Texas remains a top state for foreclosure starts, with ATTOM reporting that the state had 2,114 foreclosure starts in 2022. In general, foreclosures are up, with some speculating that it could be due to the decrease in financial aid after COVID-19. ATTOM reports that Houston had more foreclosures than Austin in 2022, but Austin isn't too far behind.
2023 Austin median home prices
Austin is notorious for homes that cost well over the market average for the rest of Texas. According to data from the National Association of Realtors, the median price for a single-family home in the Austin–Round Rock area is $540,700. In contrast, the median home price in Houston, Texas, is $330,800, and the median home price is $365,400 for a single-family residence in Dallas. However, the buyer's market in 2023 means that those searching for property in Austin might be able to snag the home they want without paying well over the list price, a marked change from years past.
Austin real estate market: Should you invest?
Austin has benefited from population growth, a robust local economy, and steady job growth. For these reasons, it is an excellent investment opportunity for those looking to enter the real estate market. Massive businesses like Amazon and Tesla have headquarters in Austin, and multiple manufacturing facilities thrive in the city. All of these factors are driving demand for housing in both Austin and the surrounding communities.
Expert tips for buying and selling property in Austin
Austin's hot market makes it ideal for families, young professionals, and anyone looking to live in a dynamic, busy area. Whether you're looking to buy or sell property in Austin, keep these tips in mind:
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Work with a local realtor. A realtor can give you hyper-local insights into the area, including various neighborhoods and subdivisions that might be perfect for your unique needs. If you're selling, a realtor will work with you to highlight your property to attract more interest and make the most of every marketing opportunity.
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Get to know the area. Whether you are buying or selling, a solid understanding of the city and its residents will help you be more successful in your efforts. For buyers, this can help narrow down the ideal location for your new home. For sellers, it can enhance understanding of the local economy and what potential buyers to target with marketing outreach.
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Act fast. It's a buyer's market, but it might not be for long. The one constant in the real estate industry is that things change regularly, and if you're looking to buy real estate in Austin, now is the perfect time.
Jamie Novak Group provides skilled Austin real estate services
For a deep understanding of real estate in Austin and how you can take advantage of emerging opportunities, the Jamie Novak Group is here for you. We have bought and sold countless high-value properties in and around Travis County and have the expertise you need to understand the local landscape fully.
Whether you are trying to find your dream home in Austin or looking to sell one property and move into another, the Jamie Novak Group can assist. Contact us today to learn more about our real estate services in Austin!
