subject: 2009 Austin, Tx Real Estate Market Summary [print this page] Now that the data is all in from 2009 it's possible to look back and assess how Austin has performed in relation to the rest of the country. More importantly, we can now look at Austin specifically and examine what really happened over the past year and what it might mean for buyers and sellers as 2010 continues.
Looking at the data summary for the Austin real estate market for last year, a few key trends emerge. First, it's important to note that in a climate of national housing crisis and in which loans tend to be more difficult to get than at any time in recent memory, Austin has weathered the storm. The average and median list home prices and sold home prices are down by only a small margin (1.3-3%). Taken on its own this might seem like a troublesome figure, but considering that the number of sold listings dropped by about 7%, it's actually a rather positive sign: even though fewer people are buying homes, the prices have remained surprisingly strong despite the drop in demand. Even in a time when many people are choosing to rent or can't qualify for loans, Austin homes are desirable enough that the home prices saw now substantial decline. Second, the time on the market for homes in Austin offers two key lessons: inexpensive homes in the Austin area are in huge demand, and even more expensive homes are selling far faster in Austin (and for a higher percentage of their original listing price) than in most places in the country. Austin's income has grown by about 35% in the past decade, and beyond that, the jobs and local economic picture seem to suggest nothing but additional growth in Austin's future. Lastly, these numbers must be viewed in the context of a difficult loan climate. To see only minor drops in the listing and sales prices, and virtually no change whatsoever in the percent of the list price obtained at sale, is all the more significant when considering the tight credit markets last year. But this year, with the $8K tax credit having been extended through April and many attractive FHA financing programs available, the market is set to rally: interest rates are currently in the 5% range, with many buyers obtaining 30-year fixed loans as low as 4.8% or 4.9%, even with less than 20% down.
Another interesting point: It's no secret that Austin has one of the most resilient local economies in the country and that Texas in general has experienced far less of the national economic downtown than other states such as California, Nevada, or Florida. But what may surprise even the biggest fans of Austin, TX is just how well the numbers bear out the notion that Austin is among the best places to own property in the US. The most recent Brookings Institution report details the fact that austin has the TOP Gross Metropolitan Product (GMP) in the United States. The average US metro area saw a 2.4% decline in their GMP from the end of fiscal 2008 until now, but Austin expanded by 2%.
