Episode 75, Part 1: Is The Austin Real Estate Market Shifting?
John Schutze and Andrew Thurston welcome guest Keller Williams agent Chadwin Barley to the show to discuss the possible Austin real estate market shifts. Listen to the podcast or read more below!
What's the word on the street as far as the market shifting?
Gary Keller recently spoke about this topic, and his intention is to encourage his agents under his umbrella to treat their job as a profession and not as a hobby, so he's there to encourage us to be doing what it takes to stay on top of things. So nationwide, we are looking at a little bit of a slowdown, but fortunately in Austin, those numbers are different.
"There are still over 100 people moving here every day, and we might see a little bit of a slowdown compared to recent years, but the the home market is definitely not going to take a dump," Chadwin says.
"So would a seller be more worried about this?" Andrew asks.
"Sellers are worried, of course, because they want to know that their home will sell and they won't have to worry about two mortgages at one time," Chadwin says.
"I work all areas of Austin, but West Austin and Lake Travis are my main stomping ground and things are always a little bit slower compared to the rest of Austin," Chadwin continues.
"West Austin is typically a higher price point than the rest of Austin," Andrew adds.
"The truth is, the luxury market tends to slow down before anything else does, however it has been protected in Austin. Our employment in Austin and in Texas is higher than the national average - a common indicator of things slowing down is unemployment rate and Austin is way below the national average at an unemployment rate of 3.6%. So, you have to bear in mind that all statistics show that we're going to continue to expect growth here in Austin," Chadwin explains.
"There are so many renters out there that want to buy, so there's no shortage of demand here," John adds. "This is nothing like a bubble."
"The demand is real," Andrew says. "We're at 50-year lows for home-ownership rates - so there are less people owning homes now than there have been historically. I think there has been a lingering effect from the recession and there's still a little bit of fear in some people about home buying, especially from younger folks, but all signs point to a stronger market next year than this year. Now is a good time to buy!"
"Newer people to Austin from out of state want to familiarize themselves with the area before they buy, so the lease market is incredibly strong," Chadwin says.