The real estate market is something that many people are paying attention to. People investing in real estate for rental properties are normally looking at the market each day.
The same can be said for those who are either buying or selling their homes.
This write-up will go over the projections for the real estate market in 2023. This will specifically include the Austin, Texas area. If you are looking for a real estate agent in the area, Teifke Real Estate will be able to help.
You can visit their website here: teifkerealestate.com. Let’s take a look now at the projections that we expect might happen in 2023 for the Austin real estate market.
It will become a buyer’s market
A buyer’s market will mean that home prices will be favorable. Which means people will be searching for the best deal possible. For those selling their home, they might find themselves on the short-end.
Meaning it will be difficult for them to sell their home at prices above the market value. Sellers may even settle for an amount that may be less than the original listing price. A buyer’s market will be favorable for those looking for a place to live when they move to the Austin area.
Median price for homes will rise
According to one real estate expert, the median home prices will rise by the summer of 2023. Specifically, the price will be just south of $600,000 by July. This will be a near 16 percent increase compared to this year.
This means that buyers may need to get in while the gettin’ is good. Especially for those looking to purchase homes for the purpose of turning it into a rental property. With more people flocking to Austin thanks to the tech industry making its presence known, the property values are beginning to increase.
We’re not talking about single family homes but also rental rates as well. A real estate investor will have an excellent opportunity with rising home values. This may mean they can command higher rent prices.
A growing supply of available homes
The supply of available homes in Austin will be growing. A good number of people will be selling and others may be newly constructed. Even though it will take longer for sellers to finally let go of their home, there will be plenty that are available for interested buyers.
In 2021, Austin and the surrounding area had a one-month supply of homes that were on the market. However, that supply increased to a three-month supply by this past summer. This is an excellent sign for those hoping to make Austin home for the long-term.
While buyers and sellers will be playing games of tug-of-war regarding the closing price, it seems that the real estate landscape in Austin is looking good for the time being.
Home prices will fall
Even though the median home price is predicted to increase, the price of homes being sold will fall. As expected, sellers will end up settling on a price that is lower than the original listed price. It happens all the time in a buyer’s market.
For this reason, sellers may hold off until the time is right. However, sellers may be in a rush to sell their homes and settle for a lower price. Otherwise, they are not too keen on selling just yet.
The real estate market may be a chess match for both buyers and sellers. They may rely on timing in terms of buying or selling. In a buyer’s market, it’s a good time for buyers and a not so good time for sellers.
In a seller’s market, it’s vice versa. It’s the real estate market. It’s a pendulum that will swing one way and go the other in the future.
Rental prices will increase
This is music to the ears of landlords. Especially those who are new to the game. If you are a new real estate investor looking to purchase an apartment building, you’re getting in at the right time. So the average rent will increase as well.
A one-bedroom apartment in Austin, rent will be around $1700 a month. You may want to consider settling on that price if possible. For additional bedrooms, you may charge anywhere from $1900 to $2100.
However, this will be dependent on the location, the nearby amenities, and other factors. You want the rental rates to be fair for the tenant. Sure, they might be working good paying jobs.
But that doesn’t mean they can afford rental rates that may be ridiculously high. When it comes to choosing apartment buildings that are for sale, choose wisely and consider what you want to get back in terms of your ROI.
It’s becoming competitive
A competitive housing market may mean more people will be purchasing townhomes or condos. If you are looking for properties to acquire, these two types may be worth looking into. Apartments may still be a good option for those looking for something more ‘budget-friendly’.
Single family homes may also be desirable for a handful of people looking for a place to rent or buy. Regardless, there are plenty of available options for people who want to reside or rent out a place. Once again, the remainder of 2022 seems like the perfect time to get going with the property acquisition.
The Austin housing market is looking strong for 2023. Some experts believe that the seller’s market will cool down and will swing in favor of the buyers. For those planning to sell their homes, they should consider doing so now before it may be too late for a while.
Prospective buyers may need to wait a bit before they find a home that is a steal of a deal. For real estate investors, timing is everything. You can take advantage of purchasing properties now just in time for the property values and rental rates to increase.