Here are a few reasons why Austin real estate is not in a bubble right now.
As Austin real estate has been appreciating rapidly, I’ve been hearing the same question over and over: “Are we in a bubble?”
Economists describe bubbles as markets where prices appreciate much more than the fundamentals. Let’s look at the facts:
Austin has been experiencing a great deal of population growth and expanded job opportunities over the past few months. We’ve also seen lower and lower levels of available homes. Part of this is due to sellers being reluctant to list their homes during a pandemic. Additionally, home builders have been drastically underestimating the surge in demand and new home construction is behind.
"Only about 10% of our buyers in this market are investors."
More and more people are wanting larger homes after spending the better part of the past year living and working in that space. According to local analysts, only about 10% of buyers in our market are investors. The vast majority are homeowners who are in it for the long haul.
In conclusion, I believe that we’re not in a real estate bubble. I think what we’re seeing now is major population growth in Austin and the need for more housing will continue for the foreseeable future. I don’t foresee a huge drop in demand or a huge bump in inventory.
If you have any questions for me about the Austin market or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.