By working with a design-build company in Austin, you can ensure that your house will be in perfect shape for selling. And, right now, the Austin area housing market is booming. As of November 2021, it was found to be moving at a record-breaking pace. With the introduction of the pandemic, where remote life became so important, buyer demand rose across the country. Even so, buyers should know not to purchase a property if they haven’t conducted research on the market. Here are some current details and trends for you to be aware of.
Property Taxes
When an individual owns a property, many county and city officials levy taxes. The revenue that comes from them is used to maintain community infrastructure. This includes roads, schools, and fire protection. For those performing a design-build in Austin, understand that Texas doesn’t have a state property tax. However, the Texas Constitution authorizes local governments to set the rates. This means that every property is appraised according to the full market value, with taxes being assessed solely on that value. While Austin’s property tax isn’t the highest in the state, it is certainly among the highest. Keep in mind, though, that your property tax is dependent on where in Austin you are. Williamson County and Travis County differ, so you need to look into your appraisal district.
Migration to Suburbia
The pandemic has led to a mass movement of urban residents to the more cost-effective suburbs. One reason for this is the push toward remote options for work. Many people don’t currently have to be in Austin where the big businesses are located. Instead, they have shifted into Cedar Park, Leander, and other Greater Austin Area cities. Another is that families are prioritizing having more space, both indoors and outdoors. This gives kids and pets more room to run around and play. While some believe that this trend will reverse once we are past the pandemic, many housing market industry experts believe that it will persist for years to come. After all, the suburbs boast lower housing and rent prices, as well as lower taxes.
Luxury Homes
If you are constructing a design-build in Austin, now is the time to consider a luxury home. Otherwise known as high-end homes, these are expensive properties that are in a prime location, use premium materials, and implement unique designs. The market for luxury homes is projected to expand more than it already has as we move through 2022. In fact, The Wall Street Journal reported that Austin’s luxury housing market is thriving, with homes that previously took four months to sell now going into contract in less than two. This is on account of the high inventory level of these properties. For investors, this can be a great way to earn some money. So, it turns out that, despite so many people being interested in saving money, they are also willing to snag a house that comes complete with prestige.
Renting vs Buying
Austin is largely made up of rented properties. This is on account of the high population of students. There are 16 colleges in the area, including The University of Texas at Austin which hosts over 51,000 of them. Students rent properties near campus so that they have to deal with less of a commute. Today, more people are seen renting, despite the year-over-year increase. When looking at investment potential, gross costs, and equity, you will find that buying an Austin home is better than renting one in the long term. After all, renting downtown is costly, even when it comes to apartments. Your monthly dues could end up being more than a mortgage on a bigger house.
Mortgage Rates
At the beginning of 2021, mortgage rates reached a record low. On account of the pandemic’s economic impacts, the Federal Reserve kept interest rates as close as possible to zero. Of course, this meant that there was a spike in mortgage applications. Right now, however, we are seeing forecasts by experts that this rate will rise in the coming months. This makes sense considering we are already in the process of experiencing a growth spurt from the end of the year. For a design-build in Austin, a traditional mortgage won’t actually help you. When you are building a house, you would need to take out a construction loan instead. It won’t be until the end of the construction process that it is converted into a mortgage.
Inventory Availability
As we previously discussed, there are a lot of luxury homes on the market. But what about other properties? The increased demand for single-family homes has developed shortages. These houses are highly coveted, with online searches for them continuing to rise as their inventory shrinks. This demand has been driven by a combination of the priorly mentioned low interest rates and the growing importance of staying at home with your relatives. If you haven’t been able to find your perfect house in the ones that are currently out there, a design-build construction project is your best bet.
Come do some design-build work in Austin with Bat City Builders! Our award-winning team provides all the necessary permits and insurance, and can promise a home that you will fulfill your expectations. Protect your investment with industry professionals that care. We would love to discuss with you whether now is the right time for you to buy or build a home in Austin.
Photos, in order of appearance, by:
- Blake Wheeler on Unsplash
- Pixabay on Pexels