Austin real estate - yes or no?

[Olga Daisel]

Folks, Austin RE went up in recent years. The prime areas didn't really drop in price. I am regularly investing in real estate and properties that I was supposed to sell didn't sell. Where are we heading? Is the price going to drop more? I see good deals on market, but should I wait more for more corrections?

[Ryan Kelly]

@Olga Daisel it all depends on your timeline. If you are looking for a quick buck, I wouldn't invest in any market. If you are a long-term investor, the fundamentals in Austin are still fantastic. We have 3 of the 4 fastest growing cities in the country (Georgetown, Leander, and Kyle), net migration is still a strong positive, and we have some of the lowest unemployment in the country. 

Why is Austin's price dropping currently? Because we were one of the top 2 highest appreciating markets during the pandemic and #1 in appreciation for the past 30-year timeframe. We NEEDED a correction from the pandemic craziness. Prices will likely continue to soften for the next 6-12 months while we find balance, but we're closer to the bottom than top based on market activity currently. 

Austin is not an easy cash flow market, but overall it has strong economic growth, population growth, and cultural strengths to power it for decades to come.