Austin real estate prices

[Olga Daisel]

Where are we heading with Austin pricing?

Assuming Trump wins the elections wouldn't it unwind the prices that are already high and not much affordable?

[Bill B.]

It looks like the median price was $667k in May of 2022. They dropped to $600k in June of 2023. And they’re currently $585k. So prices have already dropped 15% in the last 2 years. Are you saying you think they will continue to drop under Trump like they have under Biden, or drop even faster?

I doubt the winner of the election will have 1/10th the effect of lower interest rates and whether supply continues to increase or demand decreases. I could see an argument for Austin booming if Biden wins as people continue to flee Democrat controlled cities. But I doubt it will be the deciding factor. Are you buying or selling?

I’ve considered Texas but I’m not a fan of the property taxes. You could look at Tennessee, Washington, NV, or even Florida. (Florida’s insurance scares me.) if your intent is to avoid state income taxes.  Good luck. 

[Peter Mckernan]

Quote from @Olga Daisel:

Where are we heading with Austin pricing?

Assuming Trump wins the elections wouldn't it unwind the prices that are already high and not much affordable?

I have not personally held weight on the president dropping prices or increasing the prices. The policy they put into place might have a small percentage change, but nothing large enough to be concerned. 

The biggest concerns are external factors from the president, the president did not have play in the S&L crisis back in the early 90s, and same for the 08 crash; the president did not effect that or have the ability to play a role in it to see the large down cycle. 

The factors of cities like Austin, Boise, and other pockets got a huge hit after 2020 due to as @Bill B. said fleeing the blue states, but now that it settled down a bit there is not this large influx of people.. The old saying goes, buying is where you make all the money, so if you are buying.. Be sure to buy it off numbers that make it a deal in any market. 

[Jordan Moorhead]

Interest rates are affecting things more than anything. Next up is inventory, tech job losses and property taxes.

My bet is that as rates go down buyers will jump back in the market in a big way. I talk to people every day that are "waiting to see what happens" and "waiting for rates to come down", too many to count.

People want to buy property but don't feel comfortable pulling the trigger now with so much uncertainty which has led us to having more inventory since 2010 in Austin. In my opinion this is making it a great time to be a buyer which is why I bought a new house this year and am trying to buy another mobile home park. It's a difficult time to sell so I'd caution against that unless you have a much better use for the equity.

[Jacob Sherman]

realtors are the best to talk to because they know specific neighbors 

[Ryan Kelly]

Quote from @Olga Daisel:

Where are we heading with Austin pricing?

Assuming Trump wins the elections wouldn't it unwind the prices that are already high and not much affordable?

The presidential election won't have any impact on a local level. Our median home price in May 2024 is nearly identical to May 2021 and May 2023. The big drop in values was between May 2022 and Q1 2023. Since then, we've been fairly flat as rates stabilized around 7%. As @Jordan Moorhead said, once rates soften a bit, buyer demand is ready to pick back up.

[V.G Jason]

Prices have dropped cause of inventory. Forget the election, inventory is high. BTRs are capping rent too. If you want to get in austin, and you're timing the market you'll be on the clock soon. 

[Jordan Moorhead]

Quote from @V.G Jason:

Prices have dropped cause of inventory. Forget the election, inventory is high. BTRs are capping rent too. If you want to get in austin, and you're timing the market you'll be on the clock soon. 

 Spot on!