Here are three things we predict will happen in our market this year.
Want to buy a home? Search all homes for sale
We’re still in the first quarter of 2021 and spring is at our doorstep. What can we expect to see in our market as the year shapes up? Here are our top three predictions:
1. Condos and townhomes will see an increase in popularity. With prices going up significantly over the last couple of years (and especially during these last few months), a lot of the market is being cut out. Whereas you may have been able to find single-family homes under $300,000 in the recent past, such a segment hardly exists these days. So for people looking in that price range, alternatives to single-family homes will be essential. Also, with land values being what they are, it only makes sense that developers would try to fit more people onto the same amount of land that they would have normally allocated for single-family homes.
2. The amount buyers have to offer over list price will start to come down. Right now, we’re seeing buyers throw in bids that are 10%, 20%, and 30% over list price. However, with more inventory primed to the market this spring and summer, buyers will get a smidge of relief. Buyers won’t have to make such leaps over asking price just to get their offers accepted, though competition will still be fierce. The main caveat is that a lot of the homes they’ll be bidding on will start at a higher price point.
Whereas you may have been able to find single-family homes under $300,000 in the recent past, such a segment hardly exists these days.
3. Prices will continue to rise. Austin has one of the strongest job markets in the country, as a lot of companies from both coasts are moving here. Every time we welcome a new employer, the new employees follow suit. Many of them will need to purchase a house as soon as possible, and there’s no way our supply will be able to keep up. With an inventory shortage like that, there’s only one way for prices to go.
As always, if you have questions about this or any other real estate topic, don’t hesitate to reach out to us. We’d love to help you.