Average home price now $500,000?

[pussycat]

I heard on NPR today that the average home price in Austin increased by 30 percent last year and went from $350,000 to $500,000.

So what's driving this? Is it all the people from Tesla, Facebook and Google being relocated here?

If so what will they think when they can't drink water from their taps because every time it ices we have no safe drinking like we were in Honduras or Mumbai or someplace.

What will they think when summer comes and they can't water their lawns, they have to pay tolls every time they use a freeway, and when their car is being broken into they are told to call later and leave a report on voicemail.

Eventually they will need a hospital and when they do they'll learn that except for St.David's (notorious Hospital Corporation of American) that every hospital in the city limits is operated by one owner. When their kids want to take art lessons they will have to drive to San Antonio because they support 17 different art and natural history museums while Austin supports only a statue of Stevie Ray Vaughn.

They might think about re-locating to Dallas or something.

[Precious_b]

But they'll be proud that their property reached American Dream status..

[Why_Yes_I_Do]

Ironically, even at $500K, many of those folks feel it's still a bargain. Some even go ahead and purchase 2 and rent one out.

[Passion2015]

47% of the homes sold for above list price.

In December 2021 home prices were up 17.4% compared to last year

The problem for these buyers that will eventually come into play is that trying to sell for the price they are paying now 5 years from now won’t happen.

1st time buyers are in a bad market trend right now,

Current homeowners that want to move will sell high and buy high, which is ok if you actually owe nothing or very little.

Tough market right now. Homes were selling over a weekend time period and now have slowed a bit but still selling.

[Latin_ATX]

I can’t think about this when my little head wants more soft wet pink stuff back to ASM and independent topics

[SpeedRacerXXX]

Home prices nationally in 2021 increased 21% compared to the 30% increase in Austin and the surrounding areas. The sales prices for equivalent homes in my area are ridiculous. The problem is that if one wants to move, the home prices in other areas are just as bad. Those that are really hurt are those who are looking to purchase their first homes.

[winn dixie]

Originally Posted by SpeedRacerXXX

Home prices nationally in 2021 increased 21% compared to the 30% increase in Austin and the surrounding areas. The sales prices for equivalent homes in my area are ridiculous. The problem is that if one wants to move, the home prices in other areas are just as bad. Those that are really hurt are those who are looking to purchase their first homes.

Those numbers could be slightly off? Do you have a link or graph to show the numbers?

[SpeedRacerXXX]

Originally Posted by winn dixie

Those numbers could be slightly off? Do you have a link or graph to show the numbers?

I can't find the source of the 21% so let's say the nationwide numbers were somewhere between 17% and 19% increase in 2021.

According to Zillow, Austin was the hottest housing market in the country in 2021 and will fall to #10 in 2022. 2022 estimates are in the 10-11% range for home value growth. A 10% increase after a 30% increase is fine with me.

[stikiwikit]

A new construction house in my 'hood, central Austin, just went for 3 million. What will that do the property values overall in my area? Are extreme prices thrown out in the calculations? Thanks.

[Passion2015]

And now new home builds are up an average over $18,000 with wood prices going back up.

Hate to say it, but interest rates need to be raised

[winn dixie]

Originally Posted by SpeedRacerXXX

I can't find the source of the 21% so let's say the nationwide numbers were somewhere between 17% and 19% increase in 2021.

According to Zillow, Austin was the hottest housing market in the country in 2021 and will fall to #10 in 2022. 2022 estimates are in the 10-11% range for home value growth. A 10% increase after a 30% increase is fine with me.

I was messing w/you speed. I would have to say those numbers might be conservative? Im in the construction field. Deal with realtors buyers sellers . Its crazy! Yes it has slacked off a bit from last year. But if we get some inflation relief it will go nuts again here! My house in N Austin has skyrocketed in value in id say 4/5 years. All the houses around me have generally sold on the first day for 25k-40k above asking price. Nutso..........

[SpeedRacerXXX]

Originally Posted by winn dixie

I was messing w/you speed. I would have to say those numbers might be conservative? Im in the construction field. Deal with realtors buyers sellers . Its crazy! Yes it has slacked off a bit from last year. But if we get some inflation relief it will go nuts again here! My house in N Austin has skyrocketed in value in id say 4/5 years. All the houses around me have generally sold on the first day for 25k-40k above asking price. Nutso..........

I agree. We might be moving to Sun City in the near future and that place is going crazy. I think the market has slowed a bit froml the craziness of a year ago but not by much.

[Aramis13]

there are more companies coming to Austin, Like Tic Tok. So I don’t think prices will be coming down anytime soon which is unfortunate. Especially for first time home buyers. I have a friend who had to beat like 7 bids for a house only to be beaten by some guy who right off the bat paid 40k above asking price in cash. If one grows in Austin, I mean the young population now graduating from university with loans as is, I don’t know how on earth could afford to buy a house.

[guy fawkes]

https://www.businessinsider.com/aust...in-data-2021-8


https://austin.culturemap.com/news/r...-in-2021-abor/

[CellarDweller]

For the Tech and EV employees moving here, $500k is still a bargain compared to where they live now (Calif). Remember the micro chip boom here in Austin arou d 1988-1990? These folks moving here from Bay Area and San Jose were scooping up those $700k homes up and down Lake Austin as a huge bargain vs where they came from. Now those homes are double that or more, lets see how it plays out...