Zillow: No housing market will be hotter than Austin's in 2021

7 Replies

@Bryan Noth based on recent activity in the past 4-6 weeks, every neighborhood and zip code will jump approximately $50k-$75k in list price by March once these sky-high sales start closing. The extremely low inventory and massive demand are creating median list price appreciation at warp speed levels. It should start to shift in the coming months as the market resets at new price points. I'll be interested to see where we land by the end of the summer.

@Nina Hayden I think it depends on your strategy.  As @Ryan Kelly said, prices are moving rapidly and missing out on a potential $50k in appreciation could be a painful regret.  Assuredly, appreciation is not a guarantee, but the current market trends indicate this pattern continuing.  

Originally posted by @Bryan Noth :

@Nina Hayden I think it depends on your strategy.  As @Ryan Kelly said, prices are moving rapidly and missing out on a potential $50k in appreciation could be a painful regret.  Assuredly, appreciation is not a guarantee, but the current market trends indicate this pattern continuing.  

 Her strategy might be to not get ripped off by Realtors getting people to overpay based on projections. 

We love to visit Austin and look forward to long weekends when the pandemic passes. As investors, we get so much more for our money in the DFW metroplex. Is the Austin market less expensive than California? Yes.

Rob

LOL I always enjoy what realtors have to say.  The market isn’t healthy.  At all.  Every contract is multiple offers with over asking price. Please point to me the investors that are doing that???? Idiotic move.  The market will eventually correct and you’re going to see so many people sitting on homes with no equity.  And many angry people blaming the realtors. One more time: as an investor I do NOT buy on future speculation and I certainly won’t be buying over asking price.  Go sell to wanna be investors. But to me, I hold my money until a great deal comes up. That’s how investors work.  And why it’s such a rare thing to actually hire a realtor that’s investor friendly.  

@Nina Hayden  I see what you're saying and respect that you're sticking to your strategy and staying grounded. Nobody wants to pay over asking price, investor or not. However, as @Bryan Noth very rightfully stated, "prices are moving rapidly and missing out on a potential $50k in appreciation could be a painful regret". 

I don't think realtors drive the prices up, I know many of them who are super ultra frustrated because of the ridiculous number of multiple offers (30, 40, even 90 in some cases). Prices are determined based on what people are willing to pay for a certain good, if people are consistently paying 20k, 30k over asking then that's the market price. 

I've been living in Austin for over 10 years and know this market well. Not a single year has gone by where appreciation wasn't -far better- than some further markets I'm in. Thanks to Amazon, Tesla, HP and Oracle ALL announcing to move their HQs to Austin, the ability for people to work from anywhere and a super low interest rates are all drivers behind the current craze. Sure, the market will be capped at some point but I doubt it's anytime soon and as Bryan stated, it will suck to realize I lost out on 50 or 60k appreciation because I was "playing it safe"

On a related note, I just made an offer on a house today with exactly 20k. In the last 2 months I lost 3 offers where I go 10k over. 

I've attached some stats to back up my analogy. Good luck to all!