Austin Real Estate Market Steady

After a rather neutral start in 2008, the real estateyears. The area has not seen increases in property
market for residential homes in Austin has increasedvalue of 200% to 2000% as has been seen in some
its inventory of homes for sale, according toareas of California and Florida, for example. This,
statistics from the Austin MLS. This is happeningcoupled with an equally consistent growth in jobs and
despite a continuation of one of the highesta high rate of population increase, has worked to
metropolitan growth rates in the country and aprotect real estate from attaining overly inflated
strong and growing local economy.values which make it vulnerable to bubble bursting in
According to different Austin real estate agents, badtimes of economic difficulty.
economic news from other parts of the country areThe Texas Real Estate Market Report shows that
causing prospective buyers to hold off as they waitAustin/Round Rock led the state in population growth
and see what the economy might do. Some of thembetween 1997 and 2007. The area consistently ranks
may be hoping that prices will fall even more beforein national top 10 lists for growth. For example, from
they buy, even though buying prospects are strongJuly 1, 2006 to July 1, 2007, Austin was the 5th
right now. Current mortgage rates are the lowestfastest growing metropolitan area in the US,
they have been in 35 years. The last time rates wereaccording to Census Bureau population estimates.
this low during a buyer's market was in 1973.All these new people moving into the city and its
This wait-and-see approach has caused a slight dropoutlying areas(more than 65,000 of them from 2006
in prices in some areas, but most area properties areto 2007) need a place to live. Many will buy homes. It
holding steady in value. The market is slow right now,is this kind of growth that is helping to keep Austin
but is not depressed like it is in some other areas ofreal estate values from falling as much as they are in
the country.other parts of the country.
Statistics from the U.S. Census bureau and compiledHowever, ironically, it may be that Austin's tech
by the Texas A&M Real Estate Center andrecession in the early 2000's that is helping to bolster
published on July 3 this year in the Texas Real Estatethe market today. According to a report published by
Market Reports show that the population in thethe demographics department of the city of Austin,
Austin/Round Rock metropolitan area has increased"We never had a housing bubble here because of the
by about 43% since 1997. Almost 1,600,000 peoplelingering effects of the tech recession, and ironically it
now live in the area. The city of Austin expects thiswas the depth of our local recession that then gave
growth trend to continue as far ahead as 2020,us protection from the ruinous fallout from a bursting
according to the report.bubble in residential real estate that has dramatically
Experts also expect an increase in jobs and a lowaltered the economic landscapes of Florida, California,
unemployment rate to continue during the next tenArizona, New England and the Midwest."
years. Austin and the Texas Hill Country will continueOne thing seems certain; the Austin real estate
to be one of the fastest growing areas of the nationmarket remains one of the surest and safest in any
and is expected to enjoy one of the healthiestof the metropolitan areas in the country. That
economies as well.coupled with the nationally recognized quality of life
Some experts have pointed out that the rise in realthat the city offers makes Austin one of the
estate values in Austin has remained steady over the"sexiest" urban areas in the country.