Tuesday, February 21 2006 @ 04:51 pm UTC
Contributed by: jron
While real estate slowed down nationally, in Austin, it's still red hot, a contrast from last year, which we've witnessed the skyrocketing of its market.
From the quality of life to the city being a great place to raise a family, it's attracting people from across the country, and whether you realize it or not, it affects you, and the top reason is that everyone wants to live in Austin.
Homes priced above a half a million bucks have increased by 152 percent in just the past year, as expected home construction continues to boom in Austin.
Peoples said "I have never seen this much competition for land in Austin as there is today. It's an extremely competitive market for entitled dirt."
In just the past two years, Meritage Homes has seen its business increase by $50 million. Again Peoples said, "We're seeing a lot of people moving in from Arizona, California, some from the East Coast as well."
Mark Sprague with Residential Strategies said, "They're moving from New York, from a condo that they sold for two or three million. They can move into a golf course community here for less than a million, putting money into the bank."
In all, 15,000 homes were started in 2005, and that affects everyone who owns a house, Sprague tracks the housing market and says that's one reason for the increase in high-end homes.
In Austin, that translates to less than 4 percent a year, which is the lowest in the state, more homes means a lower appreciation. Currently, that's the hot spot to buy, instead of living close to the city, many are having to move to areas like Hutto, Leander, and Kyle to find a home priced for the average income. That's especially the case for residents in East Austin.
Sprague said "It's good news, bad news for the people who have lived there for forever. They may sell the residences or being pushed out because of the cost," and added "Good news is that appreciation is happening there, so they can sell, with a knowledgeable realtor, they can sell their property for college funds or whatever their kids need."
The reason is that there's not as much land, as this year could be a different story for home construction, which could be good news for home appreciation. It's expected to go from 20 percent to less than 5 percent.