Housing prices going to plateau? (Austin, Round Rock: new home, neighborhood, buyers)

[llkltk]

Originally Posted by Spacepup

Less rosy interpretation: The high prices are predicated on low interest rates allowing people to afford the houses on their salary. Without a corresponding rise in income any increase in interest rates will kneecap the housing market. High housing/property costs and decaying infrastructure have the potential to choke off job growth as well.

Blah, rising interest rates, blah! They have gone lower. Everyone said ooh they are going up. I'll believe it when I see it!

[Sarah12345]

Thank you for all of your responses! I really appreciate your thoughts, statistics and opinions. I think the best thing to do is to probably buy now, but make sure we get a place that has space and a location where we could easily stay for 10+ years. A forever home if you will. That way if things go south we can just comfortably stick it out. The only thing is you never know what life will throw you, and you could need to move someday, but you just can't predict these things. There is always going to be some risk in real estate.

If anyone else has articles or thoughts, please keep posting! Thanks!

[llkltk]

What area are you looking in? I thought about it a little more and realize that further out suburbs might plateau sooner than close in areas like the city or SW Austin. Something to think about. I live in SW Austin, and I realize that the high price increases down here aren't the norm for all pockets outside of Austin.

[Sarah12345]

@llkltk

We rent in NW, Arboretum, right now. We want to stay north, but are considering a pretty wide range area. Anderson Mill, Millwood, Gracy Farms, Cedar Park, Round Rock, and maybe Pflugarville.

[cBach]

Originally Posted by Eastcoasting

New guy here!

Decaying infrastructure?

Spend some time in the North East.

Instead of "decaying infrastructure" replace with "inadequate infrastructure". Think 2 lane highways where there should be 8 lanes, expressways where there should be freeways, etc...

[llkltk]

I'm surprised at how much those areas have appreciated, specifically Milwood. I think CP, RR, and Pflugerville might level out sooner than the close in areas. But, I would buy now for the areas closer to the city. Homes in Milwood that sold for 185K 1.5 years ago are now selling for 220K. And that is without any renovation.

[cBach]

Prices will continue to rise as long as so many people keep moving here.

When the bottom falls out, places like Leander/Buda/Georgetown and other further out places will feel the effect first.

Central Austin will continue to boom.

[TexasHorseLady]

Originally Posted by FalconheadWest

Let me get out my crystal ball... If we all knew what was going to happen, don't you think we would all be preparing for it? If people knew prices would drop, don't you think they would not buy now and they would wait?

Builders are building as fast as they can, how much more do you want them to build? The majority of the building is in the burbs, so you have to be ok with that, along with people relocating here. The interior is already built. You have to go out to continue to build... unless you tear down and rebuild.

Better to leave it there and renovate an existing house, preserving the character of the neighborhood. Precious few builders have the knowledge or willingness to build something from scratch that fits.

[10scoachrick]

Originally Posted by TexasHorseLady

Better to leave it there and renovate an existing house, preserving the character of the neighborhood. Precious few builders have the knowledge or willingness to build something from scratch that fits.

Very true; but, all other factors aside, it's much much easier to find and afford a quality builder who prefers to work with a clean slate rather than refurb a fifty year-old house. We considered 'popping the top' on a 1500 sq ft rancher a few years back...virtually the same cost to completely raze and build from the ground up vs trying to retrofit the original. YMMV and all that

[pjoseph2]

Originally Posted by llkltk

Blah, rising interest rates, blah! They have gone lower. Everyone said ooh they are going up. I'll believe it when I see it!

Interest rates have been carefully managed and kept under the lid for the past 5+ years.

They will never be allowed to rise again or else this ponzi will dislocate in an American minute.

One of the Fed's stated goals is to prop up the coffers of the local taxing entities. That plan seems to be going well here in Austin.

The capital markets have disconnected from the real economy. We have crony capitalism, not free markets.

It must be nice to have the power to print unlimited amounts of money.