At the end of 2019, the Austin area housing market was on track for yet another year of record-breaking home sales. Local real estate statistics from the Austin Board of REALTORS® (ABoR) show us that the Austin-Round Rock Metropolitan Statistical Area (MSA) is still experiencing sky-high demand for homes throughout the region. For 2020, housing demand and home sales are likely to continue to be strong. Austin is expected to lead the nation in sales growth this year.
According to Zillow, Inc., the Austin MSA will be the hottest housing market for 2020. The online real estate service conducted a survey of 110 economists and real estate experts. Of those surveyed, 83% expect home values in the Austin metro to grow faster than the expected national rate of 2.8%. Only 10% expect home values to grow at the national rate. The remaining 7% of those surveyed expect home values to grow slower than the national average.
Migration and Housing Growth
To develop the ranking, the panelists were asked to rate their expectations for home value growth in the 25 largest real estate markets compared with the nation as a whole. Real estate markets that ranked the highest are described as relatively affordable markets with attractive metros where businesses were confident to set up shop.
“What these top markets have in common is they still remain relatively affordable in terms of cost of living … and they are attractive metropolitan areas for businesses, especially technology companies looking to grow and expand, which is directly tied into where younger people that work for these companies want to live,” said Eldon Rude, principal of Austin-based 360 Real Estate Analytics.
He added: “That creates the continuation of strong demand for all kinds of housing whether it be apartments, new homes or resale homes.”
Sales Growth is Strong and Sustainable
Despite the sustained housing demand and low inventory levels that are pushing prices up, there’s nothing on the horizon that would indicate a bubble or downturn.
“I don’t expect that to be any different as we move into 2020,” Rude said.
2019 Austin Area Home Sales Statistics
- Single-family home sales in the Austin metro in November rose 14.3% year-over-year to 2,554
- Total sales dollar volume grew to $984.2 million
- The median price for single-family homes increased 1.7% to $305,000
- In the city of Austin, the median price for a single-family home jumped 10.6% year-over-year to $405,000 in November — the highest price on record for that particular month.
“It’s no surprise that Austin’s housing market leads the nation in terms of growth and overall performance predictions,” Romeo Manzanilla, 2020 president of ABOR said in an email. “The local economy continues to be fueled by companies relocating, expanding or establishing secondary headquarters in Austin. As a result, Austin enjoys an unemployment rate of 2.6% as compared to 3.6% nationwide and an extremely low mortgage delinquency rate of .4% as compared to the national value of 1.1%. Given the continued demand for housing caused by relocation and the overall affordability as compared to larger markets, Austin will continue to outperform U.S market expectations.”
The markets expected to perform the worst in 2020 are San Francisco, San Jose, Los Angeles, Cincinnati and Sacramento, according to Zillow.
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