Austin Texas Real Estate: Can Austin Home Prices Continue to Rise in 2008?

With 2008 half over, Austin Realtors have the benefit of several months’ worth of data to analyze, and we can now draw some solid conclusions about patterns this year in Austin Texas real estate.

It’s clear by now that there have been significant declines in the overall number of homes sold since last year. We know that the number of homes that have been withdrawn from the Austin real estate market has risen. We also see that foreclosures in central Texas are up sharply.

Yet we’ve also seen numerous analysts point out that despite these worrisome signs, Austin has remained largely immune from the real estate slump that has impacted most of the rest of the nation. The major pattern here bucking national trends: on the average, home prices continue to gradually rise. In neighborhoods where prices have dropped, it hasn’t been by much.

That’s a positive piece of news for a homeowner considering selling soon. But will it continue?

Another way to ask that is: Is there anything on the horizon that will cause Austin TX real estate prices to take a dive? Will the bottom fall out?

It would appear that there is no such threat looming. To begin, home prices here have risen gradually and were not inflated, as in other parts of the country. So it’s probably not necessary to lie awake at night waiting for a "correction".

There appear to be no forces at work that would cause prices to turn downward. Attractively priced new home construction, which typically competes fiercely with resale homes for the attention of buyers, is not much of a factor at present. Many builders suspended or curtailed building in the last several months. There is no excess inventory being churned out by the builders, which keeps the focus - and the demand - on existing homes.

Further, the economic fundamentals that tend to bolster a solid real estate market are all in place. Unemployment is low, in a more diversified local economy that still has a good number of high tech employers. Austin office space is filling and Austin commercial real estate is strong, with lots of new retail and business development occurring. Population continues to steadily grow. This is an area where people are still moving to live, work and play - and those people will need places to call home.

A recent Forbes magazine analysis cited Austin as one of the top sellers markets. The message seems to be that although real estate in Austin has seen better days, it’s still in pretty good shape compared to the rest of the country.

If you’re thinking about selling your home, there’s no time like the present, with prices still rising. By selling now you can hedge any potential losses if prices do eventually drop, but it seems reasonable at this point to be optimistic that this won’t happen.

Brian Talley of Regent Property Group is an Austin Real Estate specialist & an Austin Realtor, helping professionals secure Austin Office Space, and helping clients buy and sell Austin Homes for Sale.