Beyond Bending Tell You How
Austin, Texas, is one of the fastest-growing cities in the United States. As more and more people move to this vibrant city, the real estate market has been booming. However, like any market, the Austin real estate market is subject to change. If you’re looking to buy or sell property in Austin in 2023, it’s important to understand the current state of the market and where it’s headed in the future.
In this blog post, we’ll provide a comprehensive forecast of the Austin real estate market in 2023. We’ll take a look at current trends, analyze data, and make predictions based on expert opinions. Whether you’re a homeowner, investor, or real estate agent, this post will provide valuable insights into the Austin real estate market in 2023.
Current State of the Austin Real Estate Market
Before we dive into the forecast for 2023, let’s take a look at the current state of the Austin real estate market. According to Zillow, the median home value in Austin is $510,000, up 19.6% from the previous year. The average price per square foot is $302, which is higher than the Austin-Round Rock metro average of $200.
Austin is a seller’s market, with homes selling quickly and often receiving multiple offers. In February 2021, homes in Austin spent an average of 22 days on the market, down from 44 days in February 2020. The inventory of homes for sale in Austin is low, which is driving up prices and making it difficult for buyers to find homes.
Population Growth and Housing Demand
Austin’s population has been growing rapidly, and this trend is expected to continue in the coming years. According to the U.S. Census Bureau, Austin’s population was 964,254 in 2020, up from 790,390 in 2010. By 2023, the population is projected to reach 1.2 million.
This population growth is driving up demand for housing in Austin. As more people move to the city, the demand for homes is increasing, which is putting upward pressure on prices. According to a report by the Austin Board of Realtors, the number of homes sold in Austin increased by 22.5% in 2020 compared to the previous year.
Impact of COVID-19
The COVID-19 pandemic has had a significant impact on the real estate market in Austin, as it has in many other cities. In the early months of the pandemic, the market slowed down as people were hesitant to buy or sell homes. However, the market quickly rebounded, and the pandemic has had a relatively small impact on the Austin real estate market overall.
One trend that has emerged as a result of the pandemic is an increase in demand for homes with more space. With more people working from home, there is a greater need for home offices and additional living space. This has contributed to an increase in demand for larger homes and homes with outdoor space.
Forecast for the Austin Real Estate Market in 2023
Based on current trends and expert opinions, here’s what we can expect from the Austin real estate market in 2023:
Continued Population Growth
The population of Austin is projected to continue growing in the coming years, which will drive up demand for housing. According to a report by the Urban Land Institute, Austin is expected to be the fastest-growing large city in the United States over the next five years. This population growth will put upward pressure on prices and make it more difficult for buyers to find homes.
Increasing Home Prices
The demand for housing in Austin is expected to continue to outpace supply, which will drive up prices. According to a report by Zillow, home values in Austin are expected to increase by 7.7% over the next year. This means that by 2023, the median home value in Austin could be over $550,000.
Low Inventory
The inventory of homes for sale in Austin is expected to remain low, which will make it difficult for buyers to find homes. According to a report by the Austin Board of Realtors, the inventory of homes for sale in Austin was down 55.8% in February 2021 compared to the previous year. This low inventory is expected to continue in the coming years, which will contribute to rising prices.
Increased Demand for Suburban and Rural Properties
As more people are able to work remotely, there is increasing demand for homes outside of the city. According to a report by Redfin, the demand for rural and suburban homes increased significantly in 2020. This trend is expected to continue in the coming years, which could lead to rising prices in these areas.
More New Construction
To meet the growing demand for housing in Austin, there will need to be more new construction. According to a report by the Urban Land Institute, there are currently over 37,000 housing units under construction in the Austin metro area. This new construction is expected to continue in the coming years, which could help alleviate the low inventory of homes for sale.
Increasing Interest Rates
Interest rates have been historically low in recent years, which has made it easier for buyers to afford homes. However, interest rates are expected to increase in the coming years. According to a report by Zillow, interest rates are expected to rise to 3.8% by the end of 2021 and could reach 4.2% by the end of 2022. This could make it more difficult for buyers to afford homes and could contribute to a slowdown in the market.
Conclusion
The Austin real estate market is currently booming, but there are indications that the market could slow down in the coming years. The population of Austin is growing rapidly, which is driving up demand for housing and putting upward pressure on prices. The inventory of homes for sale is low, which is making it difficult for buyers to find homes. However, more new construction is expected to help alleviate this issue. Interest rates are expected to rise in the coming years, which could make it more difficult for buyers to afford homes. Overall, the Austin real estate market is expected to remain strong in 2023, but buyers and sellers should be prepared for a changing market.
