Despite lower sales than expected in December, Austin real estate finished 2013 with a bang! The fact that December was not as stellar as hoped is not a surprise being that it was definitely colder than usual and the holidays always make the month a challenge.
The great news is that new home sales in 2013 were up overall by 16.4 percent from the previous year. Additionally, 2013 new homes sales were the best since 2008 and existing home sales were at the highest they had been since 2006.
According to a presentation by 360 Real Estate Analytics, the market drivers for the Austin area are continued strong job and population growth, pent up demand, a tight apartment market, more communities to choose from, a builder’s growth mentality and more builders.
They cited the challenges that Austin might face include home price increases versus lower income levels, rising interest rates and the fact that Austin’s luster may lessen.
No one knows what the future may hold. However, the Austin area has several things going for it that will continue to allure newcomers, visitors and students.
Future attractions of the Austin area include:
- New film studios in the Bee Cave area
- The Dell Medical School
- A new teaching hospital to be connected with the new medical school
- Google Fiber implementation
- X-Games to be held in Austin from 2014-2017
- JW Marriot Hotel
- Westin Hotel
- Whole Foods Resort
- New water park in Pflugerville
And those are just the planned benefits that make Austin enticing! We shouldn’t forget that we already have the only Formula One track in the U.S., SXSW, ACL Festival, University of Texas and the capital of Texas!!
All of these values give the Austin real estate market a great forecast for the future!!
The Gibbs Team and I invite you to visit our lovely city and see why we are expected to double in size by 2040! We would be honored to help you in all of your real estate needs!