Why are luxury home sales increasing in Austin?
The Austin housing market presents opportunities for homebuyers with big and small budgets. In fact, several property buyers are discovering the benefits of investing in some of the luxury homes for sale in Austin.
Recent data from a team of local real estate experts show that Austin is on track to record 260 luxury home sales in 2012, which is a 365 percent increase since 1999. The rising number of luxury home purchases reflects the interest in the city and its thriving, expanding economy.
"While Austin residents love living in 'a small town within a big city,' the truth is, we've grown up, and that is evident in the growing number of high-dollar real estate transactions," a local real estate expert told the San Francisco Chronicle. "Austin luxury real estate now comprises a sizeable segment of Austin home sales, and, these days, that 'Average Joe' or 'Average Jane' we see at the coffee shop just might be a multi-millionaire startup mogul, an entrepreneurial genius, or even a celebrity."
The local real estate specialist noted that there have been 225 luxury homes sold in Austin this year as of October 12, 2012. This figure represents an 18.4 percent increase from the same time period in 2011, and further reflects the increasing interest in Austin's real estate market.
Property sales increasing in multiple sectors
Many property buyers are paying attention to the entire housing market, which is displayed in various real estate statistics.
The Austin American-Statesman notes that the total number of homes sold in the city increased between October 2011 and October 2012 - from 1,427 to 1,960, respectively. Additionally, the Austin area had a job growth rate of 3.5 percent last month - the fourth consecutive month it has expanded at a rate of 3 percent or greater, and another positive sign for the region's economy.
D'Ann Petersen, an economist with the Federal Reserve Bank of Dallas, notes that the growth of the local housing market shows that many homebuyers feel good about the city's economy. She noted that historically low interest rates on mortgages also are driving more people to pursue homes in Austin.
Freddie Mac reports that the average interest rate on a 30-year fixed-term mortgage was 3.31 percent as of November 21, 2012. Homebuyers who are eligible for these loans have the opportunity to acquire quality residences in Austin, and could play a role in the ongoing success of the city's real estate market.