AUSTIN (KXAN) — New numbers provide further proof, Austin is the hottest real estate market in the country.
The capital city is now No. 1 in the country for fast home sales, with 40 percent of homes selling within seven days. The average is 10.
Average sale prices are cresting too, running about $60,000 more than Texas cities like Dallas, Houston and San Antonio with no significant slowdown in sight.
“In some areas we saw 10 percent price increases,” said Bradley Pounds, sales manager at Watters International Reality. “The double digit increases may not continue, however, there will be a significant price increase in 2015.”
GOING IN-DEPTH // Sizzling Market
A big reason the housing market remains strong is because of the consistent growth Austin is seeing.
Earlier this year the city demographer said 110 people move to the capital city every day on average, and that takes into account all of the people who leave.
As of this April, the city demographer said Austin’s population is more than 865,000.
The entire metro area has a population of nearly 2 million people.
Austin country musician Ricky Calmbach has a third child and a fourth album on the way, so he is selling his north side home for more room. His home went on the market Friday afternoon and within a few hours he was bombarded with calls for appointments.
“Since it went live I’ve had texts and calls from realtors constantly wanting to show the home,” Calmbach said. “Pretty amazing to me.”
But he’s not complaining. “I’ve got the chum bucket out,” he exclaimed, ready to reel in hungry buyers.
He also knows he will quickly have to transition from seller to buyer and prices are steep. He wonders, even with an appreciation profit, if his family will be able to find a larger home in the same area.
Realtors say the market will remain strong if interest rates and inventory remain low, and if the job market, local rent rates and Texas transplant demands remain high. Any severe bubble burst is unlikely.
Experts suggest checking comparable prices in the last 30 days. The market is changing so fast that going back the traditional six months is irrelevant. Listen to your appraiser and lead with your head, not your heart.
If you offer above asking price because of multiple bidders, remember the market could slow down some. Condos and outlying areas are likely to cool off first.
“Central Austin is nearly bulletproof,” said Bradley Pounds. “They don’t make Central Austin anymore.”
The map below shows where out-of-towners are moving. Areas in purple show where the most people are moving.
Article Courtesy OF KXAN News