New construction on the rise in Austin
Several housing figures show that Austin's economy is booming, which could be good news for current property owners and those searching for houses in the area. In fact, people who are interested in some of the homes for sale in Austin may need to act fast due to the increasing popularity of the region's properties.
According to KUT News, recent data shows that home prices, number of sales, rental occupancy rates and rental costs are up in Austin. Additionally, there appear to be more homebuyers than sellers in this city.
"We're operating on about a four-month inventory," a local real estate expert told the news source. "Markets typically show a six-month inventory...It would take about six months for all of them to be off the market."
What does a limited real estate inventory mean for Austin?
Heavy interest in Austin real estate has led to increased construction activity in the area. The news outlet points out that new houses are being built in residential areas surrounding downtown Austin, including Elgin, Hutto and Taylor.
People could also be more inclined to buy homes than to rent apartments in Austin. A limited real estate inventory may attract more people to temporary housing units, which could result in higher-than-average costs for rental properties in the near future.
"We have an apartment market that is 95 percent occupied. Rent is going up briskly," a local real estate expert told the news source, "so people are beginning to look to alternatives for their housing besides increasing rent."
However, the current housing market is favorable to homebuyers, especially those who are operating on strict budgets.
For example, Freddie Mac reports that the national average for interest rates on 30-year fixed-term mortgages is 3.39 percent. Those searching for shorter loan periods can also take advantage of 15-year allowances, and the country's average for these allowances is 2.70 percent.
In a seller's market like Austin, homebuyers will seek any financial advantages they can to save money. With fixed-term mortgages, these property buyers can develop budgets that will allow them to make monthly payments for the lives of the allowances. Meanwhile, they can also enjoy the amenities, attractions and entertainment that come with living in Austin.
Check out the properties for sale in Austin for a chance to join this booming city.