Forecast for Austin Housing Market in 2013
2013 is in full swing, and things are already looking up for Austin. After a strong 2012, the area is poised to have another year of growth. Many agree that the local housing market is a direct reflection of the overall health of the economy. If so, Austin is well on its way to prosperous times. The 2013 Housing Forecast, which was held on January 8, emphasized what many people are already thinking: Austin's housing market is on a definite upswing. The year is already off to a strong start, which has helped to set aside worries that 2012 was an anomaly.
Housing Starts Up for 2013
Nothing reflects growth in the housing industry like robust housing starts, which refer to new residential construction projects. These projects are tracked from one year to the next. When times are bad, they grind to a screeching halt. When times are good, an abundance of new homes become available. It is already being estimated that anywhere from 9,500 to 10,000 single-family housing starts can be expected in Austin in 2013. Many of these projects will involve Austin luxury homes in prestigious communities like Spanish Oaks, which is sure to drive up home values across the area.
Factors that are Boosting Austin's Housing Market
Much of the country continues to struggle with lackluster real estate markets. What sets Austin apart from the crowd? A perfect storm of positive factors contribute to Austin's robust housing market. A prime example is job growth. Austin continues to create new jobs at a remarkable pace. New jobs draw newcomers, and those new arrivals need places to live. The jobs that are being created in Austin tend to be of the white-collar variety, and many of them are centered around the tech industry. High salaries go along with such jobs, so many transplants to the area are in the market for Austin luxury homes.
From November 2011 to November 2012, more than 35,000 new jobs came to Austin. That figure alone clearly demonstrates that things are on an upswing in central Texas. The trend is expected to continue as companies seek out more business friendly environments. Silicon Valley still reigns supreme in the tech world, but California doesn't offer the best tax breaks for businesses. Furthermore, the cost of living in places like Silicon Valley is astronomical. In Austin, the cost of living is a lot more reasonable. Employers want to set up shop here, and people want to move here.
Renters are Becoming Buyers
After holding off for many years while the economy and real estate market recovered, many long-time renters are ready to take the plunge into homeownership. Historically low mortgage interest rates are a definite draw. Rates continue to fall in the 3-to-4-percent range, which is highly attractive to first-time home buyers. Home prices in the greater Austin area remain relatively low, but they are steadily climbing. Those who want to get the best deals on gorgeous homes in places like Spanish Oaks need to act quickly. Prices are going up, but interest rates are expected to stay low for the foreseeable future.
Consumer Confidence is Up
As the economy in the local area improves, consumer confidence continues to rise. This is another factor that is prompting many people to buy homes in the area for the first time. As home inventories drop, the demand for new construction will only grow stronger. Luxury home builders in Austin can expect to be busy for a long time to come. As more jobs are created in the area and salaries increase too, more people will be able to afford to buy higher priced homes. All of this is excellent news for the residents of Austin, who can expect the value of their homes to increase accordingly.
Austin has Moved Past the Recession
Austin was dealt plenty of blows during the recession, but most people agree that the worst is behind us. The upbeat mood at the 2013 Housing Forecast, which was hosted by the Home Builders Association of Greater Austin and the Austin Board of Realtors, reflected the fact that confidence is up across the board. Austin has always been a great place to work and raise a family, and the things that have always drawn people to it are helping it recover from the recession quickly and gracefully.
Things are looking up in every conceivable way for Austin. Luxury home builders in Austin will be doing a brisk trade in 2013 and beyond. A variety of beautiful homes will be available, but they will fly off the market as more eligible buyers start actively looking for places to live. This is the time for anyone who is thinking about buying a home in Austin to act. Prices are sure to go up from this point forward, so buying now is a smart move in a number of ways. Before too long, the dark, gloomy days of the recession will be little more than a faint memory, and homeowners in Austin will be celebrating their good fortune. If you're thinking about buying an Austin luxury home, 2013 is the year to do it.
