What are the trends affecting the 2019 Austin real estate market? Jessica Lautz, vice president of demographics and behavioral insights for the National Association of REALTORS®, shared 11 real estate trends during the 2019 Broker Summit in Austin, Texas. I’ve selected the most important trends in my opinion.
1. Lack of Affordable Inventory trends
It’s becoming more and more difficult to find an affordable home. Whether it’s because of low wages, slow wage growth, or high student debt, many people just can’t afford a home.
This is becoming more and more of an issue here in Austin where the median sale prices is over $300,000.
2. Repeat buyers are older and unmarried buyers are increasing
The median age of the repeat buyer has risen to the highest ever at 55 years old. “A lot of people are shacking up but not necessarily walking down the aisle,” Lautz says.
Single female buyers represent 18 percent of sale, unmarried men 10 percent, and unmarried couples 16 percent.
3. Multi-Gen Homes are Popular
Last year one in six GenX purchasers bought a home that could share with their aging parents. Here in Austin one builder had a two year back log of buyers wanting a Multi-Gen home.
Not only is the being affected by people living longer, but also the affordability factor.
4. Tenure in a home is climbing
From 1987 to 2008 the average length of stay in a home was 6 years. That recently climbed to 10 years and in 2018 it was 9 years. People are staying in their home longer.
5. Buyer expectations are higher
The 2019 NAR Profile of Home Staging discovered that 10 percent of REALTORS® cite that buyers felt homes should look like the ones they see staged on TV. It’s being called the TV Affect.
Buyers want a home that is perfectly move-in ready. They do not want to have to deal with repairs or fix-ups.
6. Agent use is high
Buyers and sellers want to work with a real estate professional who can guide them through the process. Technology is great and makes finding a home easier, but it’s not replacing the agent.
Consider For Sale By Owners. In the 80’s and 1990’s 20 percent of sales were FSBOs. Today they represent only 7 percent of sales.
7. The American Dream is still home ownership
8 out of 10 people desire to own a home. The American Dream of home ownership is alive and well.
These are the trends affecting the 2019 real estate market here in Austin and across the nation.
It pays to work with a knowledgeable agent whether you’re thinking of buying or selling real estate. Feel welcome to give me a call. Dan Forbes 512-516-4666.
The trends in this post were cited in this article: 11 Real Estate Trends to Keep on Your Radar
