The Austin real estate market gets a lot of attention, and for good reason. It’s one of the most sought-after real estate markets in the country. Owning an Austin rental property can be a smart wealth-building strategy, especially with an experienced Austin property management company.
Below, we dive deeper into the current status of the Austin real estate market and a future forecast as well, providing you with insight about why the Austin, TX, market is so attractive for investors.
‘Cooling’ of 2023 Market Leads to Prime Time to Buy in 2024
The Austin real estate market experienced a bit of a “cooling off” period last year. For example, the Austin Board of Realtors reported that the median home price for the region was $424,450 in November. This represented a year-over-year drop of 5.7%.
The average days on market was also 18 longer at that point in 2023 than it was the year before.
Those stats aren’t far off from what the entire country experienced in 2023, though. Many factors contributed to last year being a “down” year in the real estate market than in previous years.
For one, home prices across the country had soared starting during the pandemic. In addition, mortgage interest rates surged quickly after years of historically-low rates.
Combined, these two factors made purchasing a home much more challenging than it had been in recent years. Buyers were much more careful overall about their purchasing decisions and, as a result, supply increased.
From an Austin real estate investing perspective, though, this actually creates a good opportunity.
Right now, the Austin real estate market is considered a buyer’s market. This means you could end up getting a good deal if you’re looking to purchase an Austin rental property. So, there might not be a better time to jump in on the fact that Austin, TX, was rated as the number one rental market in America.
A More Competitive 2024 Highlights Need to Act Fast
Thus far, 2024 is proving to be a more competitive year for the Austin real estate market.
The Austin Board of Realtors reported that, at the end of April, the median home price had increased to $469,998. This 1.1% month-over-month increase might not seem like a huge jump. However, it is a big turnaround from where things were in the fourth quarter of 2023.
Mortgage rates are still hovering in the 6% range, which is still high compared to pandemic-era years but is coming down. That, coupled with the excess supply, means that more buyers are continuing to enter the Austin real estate market this year.
In general, prices have come down throughout the market, but some of the “hot” neighborhoods such as North Austin are still holding steady.
How Does This Affect Rental Property Owners?
If you already own a home here, you’ll have a large group of prospective tenants. You just need to make sure that your property stands out from your competition. You can optimize the leasing process by following some simple steps that can increase your home’s rental price and overall value at the same time.
If you don’t already own a home in Austin, TX, now is a great time to jump into the market. In addition to some of the factors pointed out above, it’s often less expensive to own an Austin rental property than a home in another market, due to the comparatively cheaper cost to insure that home.
In fact, homeowners insurance is roughly 35% cheaper in Austin, TX, than the rest of the state, according to PolicyGenius. Rates here average $2,158 annually for $300,000 in dwelling coverage, compared to the national average of $2,919 for the rest of the state.
Partner with 1836 Property Management
The key to being successful in Austin real estate investing is finding a good property at a good price, and then partnering with an Austin property management company you can trust.
At 1836 Property Management, we built our business from the ground up treating all of our clients as partners. We have helped many real estate investors realize immense returns by investing in the Austin real estate market.
For more information, contact us today.
