This week I sat in on a presentation by Ted Jones, Chief Economist for Stuart Title. It was entitled 2019 Real Estate and Economic Outlook.
It’s good news, folks.
Jobs Are Everything
- 1.8% job growth across the United States in the last 12 months
- 3.39% job growth here in the Austin – Round Rock MSA during that same period.
Strong job growth is a positive sign for our economic outlook.
The Economy is Strong
- Is there a recession coming. No.
- Spending on Leisure and Hospitality is up 1.89% the last 12 months. People don’t spend money on vacations and fun if they think a recession is coming.
- The unemployment rate is at a 48 year low. Let that sink in. That’s a very good sign for our economic outlook.
Homes Prices are Going Up
- Austin home prices are up 4.6% over last year.
- Sales are strong. In fact, we are selling more homes now than at the height of subprime lending.
What’s the best month to buy a home. January! Because home prices will be higher in February, March, April, May, etc.
Again, this is another positive sign for our economic outlook.
Fed Likely to Raise Rates
- Ted predicts two more rate increases in 2019
- This will mean home price appreciation will slow down a bit
So, this is a negative for our economic outlook, even though the overall picture is positive.
Pent Up Demand for Homes
- There is still a limited amount of homes for the number of buyers in the market.
- This is what has been driving home prices higher and higher
- U-Haul just reported that they rented more trucks to people moving to Texas than any other state.
Where were these people moving? To the suburbs around Houston, Dallas-Fort Worth, and Austin.
So, the real estate and economic outlook looks good for Austin and the nation. Remember, there is no “national real estate market.” Real estate is local.
If you are thinking of buying or selling a home in 2019 it will benefit you to work with a knowledgeable agent…..LIKE ME.
