cynthiamattiza-blog

[cynthiamattiza-blog]

[cynthiamattiza-blog]

Future of Austin's housing market

As we settle into the new year, many set resolutions and hope that the new year brings a more prosperous future. We believe that 2012 has a lot in store and the future looks bright for Austinites.  This year begins with many new projects around the city, the rate of unemployment declining, and our population booming. These are all signs that the real estate market is looking healthier and more prosperous.

Downtown Austin will see construction projects along Red River, transforming the area into a storm water bypass tunnel that will capture and redirect water to Lady Bird Lake.  Other projects include at least eleven road transformations to accommodate the increase in traffic.  The Second Street District is expecting seven new merchants to open this year. Although there has been much debate about the new Formula 1 track, I believe the impact of this project will be of global proportions, really putting Austin on the international scene.  I think the new Formula 1 track has been highly underestimated by all and this is the one project that will drastically change Austin and its economic playing field.

But what most people are asking, Where is the Real Estate market headed?  Consumer confidence has risen over the past six months, with the increased number of buyers, and low supply of inventory.  Compared to last year, we saw supply of inventory down 19%.  With recent accreditations, like Austin ranking #8 of US cities favored by international investors and #1 city for job creation and growth.  And, with more and more people moving to the area, there is no surprise that our rental market will still continue to soar. This past summer many new residents moved to Central Texas and experienced difficulties selling their homes in other parts of the country.  As a result, they turned to leasing instead of buying in Austin.  We predict that those residents will buy in 2012.  Overall, higher prices will be vital to the growth in our real estate market.

Although we don’t have a crystal ball, we can expect that, based upon the outcome of 2011, this year will rebound Central Texas back and continue to upswing.