The demand for housing in Austin was off the charts in 2020, and the market is gaining momentum again in 2021. While some people are selling their properties to cash in on the opportunity, the demand far outweighs the supply of available homes.
There are several reasons for the continuing high demand. First, Austin has been a growing city for a while, attracting people interested in technology, wealth, and innovation. Some say Austin is becoming a second Silicon Valley, and that’s not far from the truth.
Home sales and prices in Austin are rising
In November 2020, Austin saw a record-breaking month of home sales with 3,397 sales, which amounts to a 24% increase from November 2019. By November 2020, the median home price increased by 19% and rose to $365,000.
On the other hand, supply hasn’t been meeting the demand. The number of available homes in Austin dropped significantly to less than one months’ supply. In 2020, experts predicted the demand for housing in Austin would continue to exceed the supply in 2021, and they were right.
Don’t blame the coronavirus pandemic
While the coronavirus pandemic did influence the market as some people panic bought homes, that’s not what made Austin’s housing market so hot.
Austin has been growing for many years and is still expanding. In recent years, Austin has become a tech hub, which catapulted the massive growth we see happening now.
Austin is home to big tech companies
Employment is usually the biggest reason people move to any city. Austin happens to be home to giant tech corporations, including Apple and Oracle.
On December 11, 2020, Oracle moved its headquarters to Austin, causing a large number of employees to relocate. While Oracle’s move was huge, they’re not the only company establishing roots in the city.
Other popular tech companies including Cisco Systems, BigCommerce, Dell, eBay, Google, Hewlett-Packard, HostGator, IBM, Intel, Magento, PayPal, and Roku all have a presence in Austin.
There are rumors that Facebook might relocate its headquarters to Austin as well. According to the Austin Business Journal, Facebook is looking for roughly one million square feet for offices in Austin. Facebook already has offices in Austin, so if the rumors are true, their hunt for massive office spaces makes sense.
Texas is home to big tech icons
In addition to large tech companies moving their operations to Austin, plenty of big names in tech are also making the move.
- Elon Musk – CEO of Tesla. Elon Musk relocated to Texas and is building a Tesla manufacturing plant close to the Austin-Bergstrom International Airport.
- Drew Houston – Co-founder and CEO of Dropbox. Houston chose Austin as the second location for Dropbox and is now becoming a permanent resident.
- Douglas Merritt – President and CEO of Splunk. Splunk is a cloud-based big data solutions platform based in San Francisco. It could be a matter of time before Merritt moves his headquarters to Austin like the other big tech companies.
- Joe Lonsdale – Co-founder of Palantir and 8VC. After moving his family to Austin in 2020, Lonsdale recently moved his operational headquarters to Austin from San Francisco.
- Joe Rogan – a largely popular podcaster. After Spotify acquired his podcast for more than $100 million, Rogan moved into a 10,890 square foot lakefront Austin estate. It was an off-market purchase and he hasn’t revealed the details.
Californians are moving to Austin
There has been a mass exodus of Californians relocating to Austin, Texas, including many celebrities. In 2020, the following celebrities moved to Austin:
- James Van Der Beek
- Chris Harrison
- Debby Ryan and Joshua Dun
- Parker Posey
Other celebrities have lived in Austin for a while, including:
- Lance Armstrong
- Stone Cold Steve Austin
- Rich Beem
- Owen Wilson
- Sandra Bullock
- Ray Benson
- Ethan Hawke
- Matthew McConaughey
- Dan Rather
- Elijah Wood
California executive are looking for luxury homes in Austin
More recently, high-level executives from California have been moving to Austin, looking for luxury homes between $3 and $15 million.
The state tax of up to 13% could have something to do with the mass exit from California, but it seems like California has been a less-than-ideal place to live for quite some time and for other reasons. According to ABC News, 650,000 people left California in 2019, a year before the pandemic started.
Luxury homes in Austin are in high demand – sell now
If you own a luxury home as an investment property in Austin, now would be a great time to sell. The market is hot and you’ll probably get a premium for your property since the supply is low.
Even if you don’t have a luxury home, now is the perfect time to sell. If there’s any chance at all that the housing market will crash, it will likely be larger than the 2008 crash since this time it’s not the result of sub-prime mortgages, but a damaged economy and massive unemployment.
Once the CDC’s eviction moratoriums are lifted, the housing market may take a dive, and it will be a long road to recovery. During that time, there won’t be a hot market if people don’t have employment. If you want to ensure you get what your home is worth, the time to sell is now.
Green Residential will help you sell your Austin home
If you’re ready to sell your home, we’re ready to help. At Green Residential, our team of expert realtors can help you sell your home for what it’s worth. Right now, homes are being sold off the market because the demand is so high.
Although it happens sometimes, don’t wait for people to find your property and make an offer. Not every home buyer is willing to reach out to inquire about homes that aren’t on the market. If you put your home on the market while supply is low and in high demand, you’ll have a better chance at selling quickly and for the right price.
We know that selling a home can be expensive, and we can help ease that burden. With traditional realtors, you’ll pay 6% in fees just to sell your home. We do things differently so you can save money. The buyer’s agent will be paid a full 3% commission, however, we’ll charge a flat fee for our services.
Don’t wait until the market slows down. Contact us today to learn more about how we can help you sell your Austin home.