"Is it a good time to buy a home in the Austin area? This is the question on every prospective homebuyer's mind. In my opinion, the answer is yes.Here are some of the reasons why I feel this way.
Austin is the fastest-growing major metropolitan area in the U.S., with the population surging by 34% since 2010. Over the past decade, Austin had a net gain of over 579,000 new residents, averaging 184 new residents each day. We are not building homes fast enough to keep up with the increasing population. This will lead to a continued supply/demand imbalance, driving prices upward over time. Companies are continuing to flee high-tax states for a more business-friendly Texas. This will only continue and will likely accelerate this inward migration.
The general consensus is mortgage rates will continue to increase to some degree for the foreseeable future. This will add an additional cost for waiting to purchase a home. A 1% increase in your interest rate for a 30-year mortgage will increase your monthly payment by 11%.
Below are some reasons why Austin will continue to outperform the rest of the country:
Forbes lists Austin as the 8th best place for business and careers, the 9th best place for job growth, and the 16th best place for education.
Austin receives an “A” grade from Niche.com with top-of-the-class grades for public schools, nightlife, and outdoor activities.
The music scene in Austin is second to none, earning the city the nickname “Live Music Capital of the World.
WalletHub lists Austin as one of the 5 best places in the U.S. to find a job.
In closing, no one knows what will happen with the economy or home prices over the next 6-12 months. Typically a homeowner is in their house for 5-7 years. I am comfortable saying that over that time period, you will see positive appreciation in owning a home in Austin. Waiting to purchase will most likely cost you more money in the future than it will today.