Austin has become one of the hottest real estate markets in the country. Last year the city broke records for housing prices, demand, and growth. Will we see the same Austin real estate market trends in 2022?
Whether you're a buyer or investor, it's important to stay up to date to make smart real estate decisions. We're here to help! Keep reading to learn all about this year's Austin real estate market predictions.
Record-Breaking Median Prices
Due to high demand and low supply, it is predicted that Austin will see a continual rise in the median market price of homes in 2022. Last year, the median sale price increased by more than 30%.
Homes in Austin are some of the most overvalued in the country. Currently, the median listing price is $560,000, but many Austin buyers are paying well over the listing price. Because of the imbalance of supply and demand, people are willing to pay more for less. Last year, at least 1,500 homes sold for $100,000 more than the asking price.
Even though interest rates are expected to increase in 2022, the demand is predicted to remain high. So, experts expect home buyers will continue to overvalue and overpay for Austin homes. As a result, home prices will continue to rise and 2022 will continue to be a seller's market in Austin.
As an example, Zillow predicts a 20% increase in the median home prices in the highly sought-after Austin-Round Rock Metro neighborhood in 2022.
A Highly Competitive Market
The Austin real estate market will be competitive with so little inventory. Delays in materials continue to be a problem and the construction market can't keep up with the increasing population. Especially with large companies like Tesla moving to the city.
Recently, Austin homes were on the market for an average of only 22 days.
The competitive market will be great for sellers. However, it will be tough for buyers, particularly those who can't afford to pay more than the listing price.
Growing Job Opportunities Will Create Even More Demand
Tesla is moving its headquarters to Austin this year, and Oracle has recently done the same. In addition, Google is setting up a large base in Austin.
Austin's growing tech and business sectors are creating new job opportunities and drawing more and more young adults to the city. The growing population will further increase demand for housing, and with it- higher prices.
However, the rising interests rates and low supply will likely have a great impact on the rental market than the home-buying market.
With a growing younger population, environmental issues are likely to be a key concern within the Austin real estate market trends. Thus, the market for more environmentally-friendly homes and apartments is likely to rise-- something investors should keep in mind.
Rising Rental Market
For investors, 2022 is a great opportunity to purchase properties to rent. Because home prices are high in Austin, the demand for rental properties is projected to rise in 2022. Millennials and Gen Z will make up the majority of renters, especially as tech jobs bring more young adults to the city.
Rental prices will likely stay stable, even with the growing job market, because of the ongoing pandemic and inflation. Check out our tips for investing in rental properties this year.
Property Management Can Help You Keep Up With the Austin Real Estate Market
While there are clear predictions and expectations for the Austin real estate market in 2022, there is always unpredictability. That's why investors choose to use property management services that stay up to date with the market and help manage changing trends.
At Home River Group, we provide property management services in Austin. We pride ourselves on maximizing investments for owners while providing exceptional customer service to renters.
Check out our services for investors and contact us today to get a free rental analysis.
