Three factors affecting the Austin housing market
Many of the homes for sale in Austin provide opportunities to those who are interested in moving to an area of Texas that is constantly improving. In fact, there are several factors currently impacting the prices and sales of properties in Austin that could also influence the city's long-term growth.
1. New construction projects
According to the Austin Business Journal, a recent study showed that there was a 37 percent increase in the number of houses built in Austin between the third quarters of 2011 and 2012. There were 2,369 houses started between August 1, 2012, and October 31, 2012, and this figure could continue to rise due to the shrinking housing inventory in the area.
Eldon Rude, an Austin housing market expert, points out that inventory is quickly diminishing in the city, which could lead to an increase in the prices for properties in the area. The city's current housing inventory was 3,854 housing units at the end of October 2012, and there was a 14 percent increase in home sales closings from the third quarter of 2011 to the same period in 2012.
If interest in Austin homes continues to rise, more construction companies could consider projects in the area and bring new employment opportunities for local residents.
2. The job market
Austin is one of the top cities for people who want to find jobs in the technology sector. The Austin Business Journal notes that Austin boasts 2,591 tech companies that have added nearly 50,000 positions to the job market.
Many people are exploring opportunities in Austin's tech sector, which is reflected in recent data. A report from a team of commercial real estate experts recently showed that there was an 8.1 percent annual growth rate in this industry.
However, jobs in the technology sector represent just some of the opportunities available to local employment seekers. The Austin American-Statesman reports that Austin had a jobless rate of 5.3 percent in September 2012, which was 2.6 percent lower than the national rate.
Companies continue to be attracted to opportunities in the area. For example, the Austin Business Journal states that Cirrus Logic, a company that provides precision analog and digital signal processing devices for clients across the globe, intends to relocate 20 of its Arizona workers to Austin by the end of the year. The business presently employs 375 staff members at its Austin location, and its recent announcement shows that it is interested in bolstering its operations in the city.
3. Local entertainment and events
When people check out events and entertainment in Austin, they contribute to the local economy and help drive interest in the city.
Austin attracts newcomers for its wide range of attractions and entertainment opportunities, and city officials are exploring innovative options to attract even more people.
For instance, from November 15 to November 18, 2012, Austin will host its first-ever Formula 1 race. Austin administrators expect that the event will bring roughly 300,000 visitors to the area, and these guests could help local businesses increase their profits.
Austin is home to a number of festivals that are enjoyable for residents and visitors alike. The Texas State Art Festival in March, Texas Greek Festival in June and the Austin Chocolate Festival in October are just a few of the events that many Austin residents look forward to every year.
Many people also appreciate Austin for its rich, colorful history. The city features several museums, including the Elisabet Ney Museum and Harry Ransom Center, that provide insight into the city's culture. Guests of all ages can explore the materials available at these institutions to learn more about the Austin area.