Understanding Austin Real Estate Market Trends

Austin's real estate market is among the hottest in the country, and if you want to keep up, you need the real estate closing professionals at CertSimple to help you get there.

Understanding Austin Real Estate Market Trends

The Austin housing market is one of the hottest in the country, and has been on an upward trend for the last decade. Prices have gone up significantly, which makes it a seller’s market. This is due to solid in-migration, low-interest rates, and a booming economy.

According to KXAN, the median home price in the Austin-Round Rock market was $499,995 as of February 2022, a new record and a 28% increase over prices from 12 months prior. The median home price in Travis County was $541,000, while in Austin proper it was $565,000. With supply low and demand high, housing prices keep rising – which makes it an excellent market for the right investor.

A vital part of all Austin real estate investments is the tax certificate, which contains important information about the assessed value of the property, the taxes imposed on it. Contact CertSimple today to learn more about how we improve efficiency and reduce uncertainty when it comes to tax certificates in Austin.

Austin Real Estate Trends

The current value of Austin Texas real estate is due to a number of factors, including:

  • High demand, as more people move to the region
  • Lack of inventory, as construction lags population growth
  • Increased average savings in bank accounts
  • Lower interest rates
  • Covid-19, which accelerated home purchases as more white-collar workers with savings decided to invest

The combination of these factors has boosted competition in the real estate market. As a result, sellers increased the prices of their homes by over 40% in the last twelve months.

View on popular buildings according to Austin real estate trends

Of course, buyers have also felt the impact of the Austin, Texas, real estate market. With fewer people able to afford homes, the Austin rental market also became tight, with rental prices increasing with demand as well.

Williamson County

Williamson County is at the northern boundary of the Austin market. The median sales price increased by 32.6% there in the last year. The average home spends around 33 days on the market and sells for $430,000.

Hays County

In Hays County, on the southwestern side of the Austin metro areas,, the median sale price is approximately $400,000. This is 30% higher than last year. Additionally, home sales occurred 42.5% faster this year than the year before.

Bastrop County

Within the last year, the median sales price in Bastrop County, southeast of Austin, climbed by 33% to $375,000. The number of days homes spend on the market decreased to 34 days, a 32.7% drop.

Caldwell County

Caldwell County is between San Antonio and Austin. The proximity to these growing cities contributed to a 21.2% increase in sales prices in the last year. Homes lasted an average of 11 days on the market.

Median Home Price Austin TX

The low point in the recent Austin housing market came in 2012, when the price of property plummeted during the first quarter of that year. The median value was $225,000 in January of that year. However, the market has been on a constant upward trend since then due to a strong regional economy and consequent population growth.

The median value of homes in Austin has appreciated 178.1% over the last decade. Now the median value of a home is $625,905.

Why You Should Invest in the Austin Housing Market

Are you considering investing in Austin real estate? Some would-be investors may worry about an overheated Austin housing market that will cool as supply improves to meet demand. However, there are several factors at play and supporting statistics that suggest the Austin rental market in particular may remain hot for some time to come, making the purchase of a home a potentially attractive investment.

Population Growth

Austin proper added more than 171,000 people between 2010 and 2020, according to the US Census. The metro population increased by 3.0% per year in that time, for a total population growth of 34%. The metro area’s population is estimated to double in the next 20 years to 4.5 million. Those numbers reinforce the fact that many feel that Austin is the place to be. 

Job Market

The city had the second best performing job market in the country in 2021, adding nearly 50,000 jobs in that time. This trend serves as a reasonable forecast for job growth to continue hand in glove with population growth.

Real Estate Market

As detailed above, the Austin real estate market has been red hot for more than a decade now, with little reason to think that the trend will suddenly end. The Austin Board of Realtors recently found that housing prices increased by 29% over the course of 2021, while the average days on the market declined by 13.

Renter’s Market

As the purchase price of homes increases, the number of people locked out of the market does as well. One estimate holds that 61% of Austinites are renters. It’s little surprise, then, that the rental market has exploded alongside the general real estate market, with the average rent price of a three-bedroom house increasing by almost a third in the last three years.

Newly built homes popular on Austin rental market

Austin Housing Market Predictions

The combination of a hot market, rising inflation, and an ongoing pandemic have created general investment uncertainty. But while it’s hard to say for sure what the coming months hold, the following trends seem likely to continue in 2022.

House Costs Will Get Expensive

The median price of a home in Austin skyrocketed in the last year. The factors contributing to the increase could influence prices over the coming year, especially with more people wanting to buy before interest rates go up.

Foreclosures Will Increase

Foreclosures in Austin are at a historic low. However, government assistance programs recently expired, which may cause an influx of filings, particularly if demand remains high.

Rental Will Be a Viable Investment Strategy

The average rental price increased by 21.1% in the last year, well below the roughly 30% increase in housing prices. That suggests there’s room to make up in the rental market, which will attract more investment property Austin buyers. Furthermore, as rehabbing and flipping properties has become less profitable, that money will look for new outlets in the booming market.

Contact the Austin Real Estate Pros at CertSimple Today

At CertSimple, we offer effective real estate closing solutions to homebuyers, underwriters, realtors, and other individuals throughout Texas and beyond. Our team of researchers can procure and review the tax certificate for a particular property on your behalf, ensuring that the information is accurate and there are no hidden surprises. Contact us today, online or by phone, to find out we can help you make a smart investment in the Austin real estate market. In addition to servicing Austin, TX, we also serve all 254 counties in Texas, including:

  • Dallas, TX 
  • Houston, TX 
  • San Antonio, TX 
  • Fort Worth, TX 

Get in touch with our team of professionals if you have any questions or requests.