Austin Market / Suggestions on Primary Residence in Austin

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Austin Market / Suggestions on Primary Residence in Austin

Christopher Thompson
Real Estate Agent · CO · Member since 2016 · 28 posts · 7 votes

I'm a newer real estate investor. Bought a nightly rental in Park City, UT back in 2012 and sold it at what I deem as the top of the market in September 2016. I'm now in the process of purchasing around 5-6 SFR investments in Birmingham, Memphis and maybe St. Louis. Starting with two right now and purchasing more in the next couple months.

With that said, my wife and I are moving to Austin, TX in April (or sooner) and we'd also like to buy a primary residence there - I'm really only looking at it for an appreciation gain, but not counting on too much. 

Market

  • Could someone give me a sense of the current market in Austin?  Is it hot and getting hotter?  Stabilizing? Cooling Down slightly? 

Areas to Look

  • In terms of general areas we're looking at, I don't know a ton about Austin, but I'd like to be relatively closer to restaurants, parks, any hiking trails, etc (i.e. walking/biking to them if we can).  It seems like East Austin is a good place to start but if anyone else has some other areas I should check out, that would be great.

Any insight/advice would be amazing.  thanks a ton

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Mark Seale
Austin, TX · Member since 2016 · 1 post · 3 votes
9y

In terms of hot areas, the Burnet Corridor, which encompasses neighborhoods: Allandale, Rosedale, Brentwood, Crestview is incredibly hot.  There are many different options in terms of housing as these are older established neighborhoods that still have quite a bit of inventory in terms of older houses but have been under heavy development for the last 5 years or so.  This is also an area that features larger lots (for in the city) that will easily sub-divide and allow for dual development.   

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  • Jason Hirko
    Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    @Christopher Thompson Austin continues to be a hot market, though many will tell you it is just about to fall off (true with any continually rising market that bucks historic trends). DOM continues to be relatively low until you get in the $750k+ range where it is seeming to slow down. East Austin would have been the investment of your life 10 years ago - today, it's no one's secret, but if you're like me, you believe there is plenty of appreciation still to ride.

    0Reply
  • Christopher Thompson
    OP
    Real Estate Agent · CO · Member since 2016 · 28 posts · 7 votes
    9y

    Thanks @Jason Hirko.

    Any other areas outside of East Austin that you think are on the rise/have more to gain?

    0Reply
  • Aaron Gordy
    Real Estate Broker · Austin, TX · Member since 2012 · 1k+ posts · 1k+ votes
    9y

    @Christopher Thompson

    It depends upon price points. 78746 is good. 78758 is hot. Kyle is great! Cedar Park is good. Round Rock is doing well. It depends upon the area within the east side though. For example, 78702 appreciated by 7.9% in December. There are other areas that did not do as well. Its a big area. Also, it depends upon the holding time frame. If you are wanting to hold for a decade then I would suggest quality neighborhoods like Zilker Park/Barton Hills area. That area is always in high demand. Developers have been wanting to develop there in the primo areas for a very long time since the 70's or even earlier and they are always restrained from the city. 

    I can send you the latest December or many months of stats from the Austin board of Realtors so that you can see it, if interested

    2Reply
  • Chris Harkins
    Residential Real Estate Broker · Memphis, TN · Member since 2015 · 84 posts · 60 votes
    9y

    @Christopher Thompson -- Congratulations on the successful exit in Utah! 

    I'm not the guy for advise on Austin, but I consistently have great off market properties here in Memphis. Do you have specific zip code(s) you're looking for here?

    1Reply
  • Dan BurstainBusiness Member
    Real Estate Agent · Austin, TX · Member since 2014 · 360 posts · 331 votes
    9y

    @Christopher Thompson

    • The market is hot and it is not slowing.  In fact, January was a monster month already.  The fact of the matter is we have a months of inventor of 2.1 and that number is 1.6 in side the city.  We are trying to keep up with commercial space and any slow down in jobs or anything else is coming from the fact that we cannot build fast enough.  We are the 11th largest city in the nation and they are projecting us to double in size in 20 years.  So Austin is hot and to add gas to the fire, we just took the #1 spot for best city to live in the US.  
    • If you like to be relatively closer to restaurants, parks, any hiking trails, etc (i.e. walking/biking to them if we can) Austin is the spot for you and there are many places around Austin that fit that bill.  Even Cedar Park is an option.  NW Austin near the Domain is definitely an option.  You are really not limited in area when it comes to parks, restaurants, etc.  Not sure if you are retired or work from home but your commute will be a deciding factor on where you live.  

    Welcome to Austin and if you have any more questions, fire away.

    @Christopher Thompson

    [email protected]512-588-3260
    Dan Burstain, Investment Realtor51 Review
    WebsiteView Page
    1Reply
  • Kris Wong
    Rental Property Investor · Austin, TX · Member since 2016 · 361 posts · 394 votes
    9y

    @Christopher Thompson we are currently building our new primary in this community: http://www.davidweekleyhomes.com/new-homes/tx/austin/austin/east-shore. It is a block or two from the river and surrounded by tons of new development, with a lot more in the pipeline. It's also right across the street from the new Oracle Cloud Campus. I am expecting a lot of appreciation from this property.

    1Reply
  • Mark Seale
    Austin, TX · Member since 2016 · 1 post · 3 votes
    9y

    In terms of hot areas, the Burnet Corridor, which encompasses neighborhoods: Allandale, Rosedale, Brentwood, Crestview is incredibly hot.  There are many different options in terms of housing as these are older established neighborhoods that still have quite a bit of inventory in terms of older houses but have been under heavy development for the last 5 years or so.  This is also an area that features larger lots (for in the city) that will easily sub-divide and allow for dual development.   

    3Reply
  • Caroling Lee
    Austin, TX · Member since 2016 · 25 posts · 6 votes
    9y
    Christopher Thompson I live in Windsor Park near the new Mueller development which is chock full of new restaurants, bars, and an Alamo Drafthouse. There's a weekly farmers market and miles of hike and bike trail that isn't crowded (yet)... Appreciation in this area has been great over the last few years. Possibly due to it's easy access to 35, 290 and 183 (where a tech corridor seems to be growing). I think you can still find a decent deal in this neighborhood. It will likely need updating but I've found that the homes and lots are larger than the ones found on the east side or even in established neighborhoods like Hyde park or Zilker. It's worth checking out. Search in 78723. I actually just bought a SFH in a 28 unit community on Manor by the edge of the park in a development called Franklin Grove. Not sure what you're looking for but you can check it out online. Happy to talk more about my area if you have questions, just shoot me a PM. Best of luck and welcome to Austin!!!
    1Reply
  • Jacob Pereira
    Real Estate Agent · Austin, TX · Member since 2014 · 636 posts · 486 votes
    9y

    I just met with @Kris Wong last week for lunch (thanks for the taco, Kris!), and I absolutely agree with his assessment. I'm working on one just down the street from his, and I'm already seeing massive appreciation in just the last few months. I expect The Domain area to still appreciate for the next few years, but it's already seen a lot of appreciation.

    Personally, I like investing in the under-served parts of Austin, because as prices go up, they tend to quickly get a better tenant class, but it's not for everyone. I'm currently living in 78724, where I own a couple of fourplexes.

    3Reply
  • Christopher Thompson
    OP
    Real Estate Agent · CO · Member since 2016 · 28 posts · 7 votes
    9y

    Thanks @Jacob Pereira,  @Kris Wong , @Caroling Lee , @Mark Seale , @Dan Burstain , @Chris Harkins , @Aaron Gordy

    This is all immensely helpful and I will more than likely be reaching out to some of you personally as I check out these areas

    0Reply
  • Kris Wong
    Rental Property Investor · Austin, TX · Member since 2016 · 361 posts · 394 votes
    9y

    Key takeaway - there's a lot of hot areas in Austin. You have a lot of options. Mueller, the Domain, South/East Austin near the river, South Congress, South Lamar... many others. You really need to explore each area and decide what offers the vibe you're looking for at the price you can afford.

    0Reply
  • David Shapiro
    Real Estate Broker · Austin, TX · Member since 2014 · 75 posts · 18 votes
    9y

    @Christopher Thompson as you can see there are many neighborhoods in town that people love living in and are bullish on. East Side is hip and constantly changing.

    Zilker, Barton Hills, Bouldin, and Spyglass are some of the most desirable neighborhoods in town. They are all in the same general area. You can walk/bike to the greenbelt (hiking and swimming), barton springs, downtown, and tons of restaurants. If are willing to afford to be in that location it's hard to beat the lifestyle. They have seen great appreciation and I think because they are so desirable will continue to appreciate, especially as people DT want to start families, get a house, but still be a bike-ride away from their old stomping grounds.

    Let me know if you have any questions on that or if I can be of service.

    0Reply
  • David IvyPro Member
    Real Estate Broker · Austin, TX · Member since 2016 · 352 posts · 699 votes
    9y

    @Christopher Thompson

    The overall Austin market is in an extreme seller's market with around 2.5 months of inventory. However, the story can be different depending on home price. Take a look at this (source):

    Here it is broken down by Zip Code (source):

    The Austin overall market began tilting toward an extreme seller's market in 2012 and has been holding there ever since (source):

    As far as areas to consider, it's hard to say without knowing your price range. There are lots of great areas and neighborhoods at a number of price points, as others have already mentioned on the thread. I would recommend not discounting suburbs, especially Cedar Park, if you're in the market for single family.

    Feel free to reach out with anything you need!

    0Reply
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