As reported in the Austin American Statesman at the end of 2011, housing and real estate industry experts and analysts are predicting 2012 to be a healthier year in comparison to the last three. If you are thinking about building custom homes in Austin, we have some information that you might find interesting.
On average, the real estate market does not look too strong nationally, especially if you refer to industry indices. Take the S&P/Case-Shiller Index for example. This index shows the monthly trend of home prices in the US. The index takes into account the trends in home price among 20 different cities from around the country. Sounds great, right? Well, actually Melinda Carroll of Independence Title disagrees. Recently she pointed out that you can’t just focus on national averages since all real estate prices are locally driven. National indices, like Case-Shiller, factor in poor growth markets like Detroit, Los Angeles, and Las Vegas. They leave out many of the larger cities in the US, like Houston, Philadelphia and San Antonio, don’t even factor in a majority of home sales throughout the country, much less the Austin area.
Austin is experiencing economic growth with a decrease in unemployment and upswing in the tech industry. Despite economic downturn on a national level in 2011, Central Texas was one of the best-performing housing markets in the nation. Gary Newman, manager at Trio Investments says, “Austin has been a quality business environment during national recession, and the job formation in 2011 bodes well for continued upswing in the homebuilding market in 2012.” President of the Austin-based real estate consulting firm, Capitol Market Research, Charles Heimsath is projecting that home starts and sales will at least remain stable across the region, but they could rise by more than 5 percent “in the most desirable areas.” Veteran real estate analyst, Mark Sprague suggests that the local real estate market turned from the bottom about 18 months ago though the turn has been slow.
On top of all this, Travis County has seen fair appreciation rates in comparison to national rates. In the last 20 years, we have seen 152 percent appreciation, 31 percent in the last 10, 10 percent in the last 5, and 1.6 percent last year. In the last quarter alone, Travis County has experienced an appreciation rate of .86 percent.
With the projected rise in the real estate industry, 2012 looks very promising. To take advantage of these good economic conditions of Austin, you may want to consider expediting the planning process for your Sterling Custom Home. If you have begun the building process for your home in the past 18 months you made an excellent economic decision. As demand for lots goes up, and lot inventory goes down, home prices will increase, as will the prices for material and labor. Time is of the essence to revisit your postponed planning process for your Austin custom homes and get the best price, too.