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Austin, TX: Real Estate Market & Trends 2016

Published on Wednesday - October 19, 2016

Texas real estate is booming in 2016, but nowhere is it more apparent than the Austin real estate market. Investors and homeowners have been treated to a blend of rising home prices, expanding appreciation rates and home affordability in the first-half of 2016, as all three have outpaced the national average. Home prices for Austin real estate are up from a year ago, although price growth simmered during the second quarter. However, for Austin real estate investors and homeowners, gains in home prices for the last three years have extended the trend of positive price growth after the recession. All in all, the Austin real estate market continues to be one of the hottest markets this year.

Austin, TX Real Estate Market Statistics:

Austin real estate investments

The second quarter ushered in an influx of home prices and appreciation rates, all of which have made significant strides in the right direction. The beneficiary of that has been Austin real estate investing, which remains red-hot in 2016. The second quarter saw one-year appreciation rates of 6.7 percent, and three-year rates of 25.2 percent, compared to the national average of 4.9 percent and 17.8 percent. Those rates have produce massive returns in the form of total equity. In addition, price appreciation and principle payments in the last three years have also boosted total equity growth since the recession. For those considering Austin real estate investments, the following highlights appreciation rates in previous years:

  • Homes purchased in the Austin, TX housing market one year ago have appreciated, on average, by $22,672. The national average was $14,963 over the same period.
  • Homes purchased in the Austin, TX housing market three years ago have appreciated, on average, by $70,253. The national average was $46,878 over the same period.
  • Homes purchased in the Austin, TX housing market five years ago have appreciated, on average, by $105,496. The national average was $82,353 over the same period.
  • Homes purchased in the Austin, TX housing market seven years ago have appreciated, on average, by $116,406. The national average was $77,054 over the same period.
  • Homes purchased in the Austin, TX housing market nine years ago have appreciated, on average, by $125,729. The national average was $31,126 over the same period.

The Austin real estate market continues to be a hotbed for investor activity in 2016. With home prices and total equity gains achieved so far in the first-half, it’s no wonder Austin real estate investments have exploded in popularity. Total equity for Austin real estate remains far above the national average, and the trend is expected to continue in the second-half of 2016.

Another component to real estate investing is foreclosure and bank owned properties. According to RealtyTrac, the Austin real estate market had 711 properties in some stage of foreclosure during August. Compared to other markets, this number is lower than most. However, with a lower number of foreclosures and REO properties on the market, home prices and appreciation rates should be the recipient of positive returns.

Austin, TX: Real Estate Market Summary:

Austin real estate investors

  • Current Median Home Price: $289,100
  • 1-Year Appreciation Rate: 6.7%
  • 3-Year Appreciation Rate: 25.2%
  • Unemployment Rate: 3.4%
  • 1-Year Job Growth Rate: 3.9%
  • Population: 885,400
  • Median Household Income: $52,431

Austin, TX: Real Estate Market (2016) — Q2 Updates:

Austin housing market

The median home price for Austin real estate was $289,100 during the second quarter, compared to the national average of $239,167. The trend continues with appreciation rates, as total equity for Austin real estate outgrew the national average during the second quarter. In fact, total equity gains for Austin real estate have surpassed the national average for the last seven years.

Another positive for the Austin real estate market has been its local economy. Along with unemployment improving and now better than the national average, employment rates continue to rise. One-year job growth for Austin during Q2 was 3.9 percent, compared to the 1.9 percent exhibited by the rest of the country. That said, employment has held up and is on an upward trend. The unemployment rate in Austin during the second quarter was 3.4 percent, whereas the national average was 4.9 percent. These factors should bode well for Austin real estate investors and homeowners alike, as an improved economy should benefit the overall health of the Austin housing market.

Although home prices for the Austin real estate market far outpace the national average, home affordability remains among the lowest. The second quarter saw homeowners pay 12.3 percent of their income to mortgage payments, while the national average paid 15.8 percent. However, new housing construction in Austin remains lower than the rest of the nation. The current level of construction in Austin was 46.7 percent above the long-term average in the second quarter, while the number of single-family housing permits was 4.9 percent, in comparison to the national average of 10.6 percent.

It’s no surprise the Austin real estate market is forecasted to experience higher price growth in the next 12 months. According to the National Association of Realtors (NAR), price expectations for the Austin real estate market in the second-half of 2016 are expected to grow by 3.9 percent, compared to the national average of 3.6 percent. Moving forward, the Austin real estate market should continue to skyrocket in the second-half of 2016.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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