Are Austin homes overpriced? What are buyers to do?
Researchers at Florida Atlantic University looked at the top 100 U. S. housing markets and pricing trends over the last 25 years. They concluded that Austin is the 2nd most overpriced housing market in the U.S.
In fact, they concluded the Austin homes are 65% overpriced.
It appears to me that the study may not tell the whole story. What the researchers did was create a trend line of housing prices over the years and came up with what a home would be priced today if that trend continued.
For example, they said today’s expected average price (according to the trend) was $347,775. But, instead the average price was $573,123.
Take a look at their graph below.
What the study DOESN’T account for is all the factors that have led to today’s prices: the pandemic, remote workers, low interest rates, population migration, job market strength, and supply versus demand. Those are the factors that affect price.
House price trends are interesting, but it doesn’t tell the whole story. Is Austin overpriced? It feels like it, but market value is determined by willing buyers and sellers.
Please watch the video for more insights.
Here’s a link to the article referenced in this post.
