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A new study from two Florida universities suggests that people in Austin should rent or invest rather than buy a home in the current market.
AUSTIN, Texas – The Austin real estate market is hot – and maybe a little too hot.
A new study ranked the Austin housing market as the second most overvalued market in the country, with homes selling an average of 50.72% more than they should. Boise, Idaho, is number 1 on this list.
The study was conducted by Florida Atlantic University and Florida International University. The two universities looked at historical price data, real estate data, and other publicly available information about Austin homes and real estate.
The Austin real estate market has had a record number of months, with prices rising above last year’s medians. In August, the average listing for a home in the Austin area rose 36% compared to the same period last year. The average list price for the Austin-Round Rock area is currently $ 536,000, according to the Austin Board of Realtors.
The Austin Board of Realtors previously said that current prices and growth in the Austin real estate market are unsustainable.
Meanwhile, Williamson County’s real estate market is hot and prices are rising rapidly.
This is a look at average house prices in the county in 2021. In January, the average price across the county was about $ 322,000 and rose to $ 445,000 by July. That’s a 37% increase in just seven months.
“With a steady influx of jobs in the pipeline, the housing market will continue to see strong numbers well into 2021,” said Mark Sprague of the Independence Title. “But since the Austin housing market is not slowing, we will continue to find that demand exceeds available inventory. This growth is not sustainable. The only variable that will hold the market back is the lack of inventory. “
Given the sky-high prices, the professors who led the study are suggesting potential buyers to rent or invest right away rather than buying a new home.
“In the top 10 markets, prospective buyers should consider renting and reinvesting money that they would otherwise have invested in home ownership. It has been shown that renting and reinvesting often outperform property in terms of wealth creation, “Ken H. Johnson, real estate economist and assistant dean of Florida Atlantic College of Business, said in a press release.
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