Downtown Austin is growing in popularity as one of the best places to call home in the Lone Star State. The bustling heart of the city, Austin’s downtown core, is where great food meets a fantastic live music scene. Home to nearly one million residents, Austin has been a go-to destination for those seeking higher education at the University of Texas, a warm, welcoming community to be part of, or a more active, outdoor lifestyle. In 2021, Yahoo Finance named Austin the No. 1 hottest housing market
, and, so far, 2022 has been another strong year for the Texas capital. To top it all off, Austin’s job market has surpassed other major cities in Texas, particularly in fields like media, technology, finance, and medicine. With so much going for the city, owning Downtown Austin real estate can be a wise investment move. Whether you’re looking to buy your first home, invest in an additional property, or sell your current home, here’s what you need to know about the current market in Downtown Austin.
Home prices are still appreciating
Downtown Austin condos have skyrocketed in value in recent years, seeing up to 33 percent appreciation year over year, especially in peak months. This year is following in the same vein. As of April 2022, median home prices for Downtown Austin real estate are at $571,000
, up 21% from the year prior. 72.9% of homes sold above the asking price and were on the market an average of 11 days, a drastic 33.9% drop from April 2021. Investing in condos for sale in Downtown Austin while prices are lower means you’ll be able to take greater advantage of the appreciation that’s expected within the next few years. It also means you’ll secure a property before prices climb any higher. The trend of yearly appreciation is not expected to end anytime soon!
Mortgage rates are climbing
Across the country, mortgage rates have been on the rise. Downtown Austin has experienced this as well, with numbers climbing well above where they were when the pandemic first set in. Currently in Austin, a 30-year, fixed-rate loan comes with as high as a 5.25 percent interest rate
, and 15-year rates aren’t far behind. For those interested in buying, higher interest rates can be a deterrent, but finding the right lender is a key part of the process. Historically, mortgage rates in the United States have climbed as high as 16.63
percent, so though current rates are higher than in the last two years, they’re still fairly good when you consider the long-term potential of your investment. If you are looking to invest before rates climb any higher, see if you can find a lender who can provide a fixed-rate, 30-year mortgage in the high 4 percent range.
Demand is high
The key reason why the Downtown Austin real estate market is so strong, particularly for those looking to sell, is because demand is remaining high. Aside from Austin’s strong job market, Texas also has no income tax and beautiful year-round weather in Austin. Downtown Austin is in the middle of a vibrant metropolis with an incredible array of upscale restaurants like Jeffrey’s
, live music at the Elephant Room
, theater at the Paramount
, and at least 15 coffee shops for a morning pick-me-up. The town is alive with seasonal events and festivals and has an energy that’s welcoming and infectious. Those looking to sell their home in Downtown Austin should know that some homes are still receiving multiple offers and selling for above the listing price. Those looking to buy should work closely with an experienced real estate agent
who knows the Austin market in and out. Securing your favorite property can be a challenge without a Realtor’s expert insight and guidance.
Homes are selling quickly
With all that demand for Downtown Austin condos and townhomes, properties are selling quickly. In 2021, the average time a property spent on the market was around 16 days
. In April 2022, it dropped to 11. Part of the reason homes are selling so fast is the fact that there are so few on the market. With demand as high as it is, inventory is too low to keep properties on the market for long. If you’re hoping to secure a property in Downtown Austin this year, you’ll have to work with a realtor
who can keep up with new property listings and make sure you’re getting to showings and making competitive offers.
It’s a great time to sell
That being said, high demand and low inventory make it a great time to sell your Downtown Austin home. You’ll want to ensure you’re setting yourself up for maximum returns on your investment by partnering with the right Realtor and preparing your home for successful showings. An online listing platform is key, where you can highlight your home's best features and encourage potential buyers to attend a showing. Consider working with a professional stager prior to taking any listing photographs or videos to make sure your home is showcased in its best light.
Whether you’re hoping to buy or sell a home in Downtown Austin, working with a local real estate firm will make the difference between having an experience that’s stressful and overwhelming and having one that’s smooth and seamless. Prospect Real Estate has been serving the Austin community for more than 40 years, with a record of more than $460 million in sales. When you’re ready to take the first step in buying or selling your home, you can trust Prospect Real Estate with the process. Get in touch with Prospect Real Estate