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Red Hot Austin Housing Market Not Cooling..

January 8, 2014
keyetv.com
By: Bettie Cross

The red hot Austin area housing market won't cool off in 2014. Last year proved to be the most successful year in almost a decade. More than 30,000 homes were sold last year, pushing the existing supply to its lowest level since 2000. That demand pushed up prices nearly ten percent. It was good for sellers and 2014 isn't expected to bring buyers much relief.

If you want to buy a home with 3,500 square feet for around $350,000 head almost any direction out of Austin.

"Inside the city limits of Austin to provide this type of space for a family is virtually impossible," said Natalie Roberts who markets homes from Buda to Cedar Park for Milestone Community Builders.

Buda and Cedar Park are two of the areas where Austin's high home prices are pushing many buyers. Roberts estimates the price difference between buying the model home in Scottsdale Crossing and a similar home closer to downtown Austin is $200,000 to the buyer.

This is why in 2014 Austin's sprawl is predicted to accelerate in Buda, Kyle, San Marcos, Manor, and Elgin.

Eldon Rude, principal of 360 Real Estate Analytics, on Wednesday presented the 2014 Housing Forecast to hundreds of real estate professionals. The Austin housing market analyst says that Cedar Park, Round Rock and Hutto will also benefit from lower land costs.

And, buyers need a break. Last year average home prices in Austin came close to a double digit increase.

"And I expect prices to continue to go up this year," said Rude.

But, not by as much. On the heels of a year that saw demand out pace supply, in 2014 the buyer might be able to get a little more for a little less.

The 2014 Housing Forecast ranks high prices, traffic and the drought as the three big challenges facing the real estate industry. If fixes aren't found, Austin is predicted to start losing some of its luster over the next few years.

 

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