Is Austin Real Estate Overpriced?

The Austin real estate has always been robust. Historically, Austin has appreciated at 5-6% per year. Austin has boomed post-COVID and it's natural to be concerned that our pricing has become inflated. The easiest way to see if our pricing makes sense is to compare Austin to other metro areas in the US. When you compare Austin to other metro areas, it becomes relatively clear that we're still a bargain.

 

Why is it important to compare MSA pricing?

America's workforce has always been somewhat transient. Tech workers, in particular, frequently change employment for better salaries. Beyond tech, almost every employee weighs both the salary and cost of living when deciding to accept a new position. It's important to understand how Austin's home pricing compares to other metro areas. Consider the following questions?

What if Austin were close in price to San Francisco or San Diego?

Few would argue that San Diego and San Francisco are amazing cities with great quality of life. If Austin's home prices were close to San Diego or San Francisco, it would indicate that we're overheated and prices likely need to correct down.

What if Austin's home prices were close to less desirable cities?

In the past, Austin's home prices have been comparable to objectively less desirable cities (we won't name names.) Cities with much cooler job markets, much fewer activities, airports without great connections, etc... When this was the case, it was indicative that Austin's homes were mispriced and they did adjust upwards.

What about Denver and Portland?

Internally, we watch Austin's comparative home prices to Denver and Portland are both really similar to Austin. Portland's job market isn't as attractive as Austin's, but Denver is very close. While we could all probably argue and campaign for one city over the other, when there are comparable job opportunities, it's really preference as to which city is the best for any particular person.  

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I really enjoyed working with Laura. She was incredibly organized and really took the time to meet with us, learn what was important to us, and then facilitate the whole process so things could move smoothly and quickly. She is always available when we needed her and I’d absolutely recommend her to anyone looking for a home.

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Laura is an exceptional communicator. Laura performed her duties as a realtor with great efficiency and consideration for my needs as a future tenant. While representing the interests of the property owner, Laura’s excellent customer service skills made me feel like I was her own private client. I would not hesitate to utilize her services in the future and I have already recommended her to friends and family as a trusted relator and someone I would even feel comfortable calling a new friend! Thank you for making my move into my new home such a joyful experience Laura!

Laura has been an absolute pleasure to work with. As first-time homebuyers in the challenging, fast-paced Austin market, my partner and I knew we needed someone knowledgeable, detail-oriented, with a patient but firm style – and that’s exactly who Laura is. She has an incredible understanding of the market and is willing to learn just as much about your preferences in order to find the right home for you. She’s quick to respond to emails and help with paperwork in every single stage of this process, and her negotiation abilities helped us find a home that was not only a perfect fit, but well within our comfort zone in terms of price, location and contract! Purchasing a home in Austin can be very tough, but Laura made our experience as enjoyable as possible. We’re exceedingly grateful to her for keeping us focused, positive, and consistently well-informed. Laura’s skills and compassion will be an asset to any homebuyer, and we can’t recommend her enough.

I am convinced that no other realtor could have sold my unique home under the current market conditions. Laura is highly informed, intelligent, resourceful, creative, persistent, attentive, and personable. We experienced extreme head winds in the sales process due to market conditions-and each time she was immediately responsive with a solution. Her guidance was critical and spot on. I would never consider another realtor for any future real estate transactions, nor would I ever recommend any other agent. I am so fortunate to have had her as my agent!!I am convinced that no other realtor could have sold my unique home under the current market conditions. Laura is highly informed, intelligent, resourceful, creative, persistent, attentive, and personable. We experienced extreme head winds in the sales process due to market conditions-and each time she was immediately responsive with a solution. Her guidance was critical and spot on. I would never consider another realtor for any future real estate transactions, nor would I ever recommend any other agent. I am so fortunate to have had her as my agent!!

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