Austin House Prices (Orange, San Diego: real estate market, 2015, apartments)

[llkltk]

So, how long does everyone expect them to increase? My neighborhood keeps going up, up and up! As long as people keep moving here in such large numbers, I can't see it decreasing.

[RoadWarrior12]

Totally neighborhood dependent. That said:

16 months. September/October of 2015 will see the plateau on the total DMA. You're already starting to see it on some of the exurb fringes, resale is slowing down by about a week, price per square foot is starting to stabilize. This will creep inward as interest rates and taxable values creep up.

Can't fight buying power.

[llkltk]

What fringes? I'm sure you aren't talking about SW Austin which is on fire! Houses in my area go within days! I'm kind of tired of the whole when interest rates go up. People have been saying that for two years!

[Trainwreck20]

SW Austin is probably the hottest market right now, so not the best example of the city as a whole.

[Newbe10]

Originally Posted by llkltk

What fringes? I'm sure you aren't talking about SW Austin which is on fire! Houses in my area go within days! I'm kind of tired of the whole when interest rates go up. People have been saying that for two years!

The only reason SW Austin is "on fire" as you say, is because it is the most recent area of the city to experience a developing boom. That doesn't necessarily mean that homes in SW Austin are worth what they cost.

I don't care how "hot" an area of a city is, if the cost of living are not reasonable for the majority of people looking to re-locate, then it really isn't a "hot" real estate market (such as the markets in Orange County and in San Diego during the decade of 2000-2010).

[meowkitty27]

Probably soon. I have noticed people are asking for higher amounts than comparable homes listed just a week or two before but they aren't selling quite as fast. I've seen sellers go up on the price after a buyer backs out. I looked at one property right in the South of Austin and the second floor was TERRIBLE. The house was nice from the outside but inside it was built like a dumpy apartment with dirty walls and cheap mobile home doors. It went pending the day after I looked at it. 200k for rubbish.

[scm53]

Originally Posted by Newbe10

The only reason SW Austin is "on fire" as you say, is because it is the most recent area of the city to experience a developing boom. That doesn't necessarily mean that homes in SW Austin are worth what they cost.

The reasons are: VERY desirable developments with great amenities, solid schools, easier access to downtown than other similarly priced homes, and a restricted supply (due to various city ordinances).

We are very close to build out on new lots SW. After Avaña and Grey Rock, there won't be another - and both of those are limited. SW will lead the metro in appreciation for years.

[usernamenottaken]

Just posted this response on another thread...

I know in the neighborhoods I've been monitoring since I first started looking last year this time, homes are being listed $30-50k more. And the ones that are priced well, sell the first day on the market. Don't know what the others are selling for, but it's a little scary. Not sure we will ever be able to buy here now. Don't want to chase the market and get burned.

[atxcio]

A leveling off would be a good thing right now, IMO. But for that to happen, we'd need a drop in demand or increased supply.. and I don't see that happening, at least not in the near future and not for the city itself. The suburbs certainly should be able to catch up on supply so we'll probably see softening there.

I'd prefer if more of the new building in the city was condos vs. apartments... I think when supply is so limited, the existence of a step-up condo market will help support the higher single family home prices in the city itself. That way, folks can still get a starter home in the central area, it will just be a condo. As it is right now, to buy anything is getting astronomical in the city. It's becoming an area of have and have-nots, and that's not healthy.

[brattpowered]

Probably as long as big time investors keep snatching up properties at an amazing clip, and the housing stock is kept artificially low due to city policies against development. Oh, and for as long as the tech boom lasts.

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