Austin Business Journal July 9-15, 2021 pp 16-21|Statewide Report| What $1M Can Buy You In…|”$1 Million Isn’t What It Used To Be” “Right now, you’re really buying a $700,000-$800,000 home for a million bucks, ‘one expert said” By Michelle Pitcher firstname.lastname@example.org
Tarrytown home (Source RM2244.COM)
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Summary provided by 2244
It’s nearly impossible to find any home in Austin for $300,000, surprising when the median home price was $305,000 in 2019 but has risen to $567,000 now. In 2011 only 8% of homes went for $500K or more but that number is now 43%. The run-up fueled by resale inventory about half of normal, a steady influx of newcomers that has accelerated during the COVID pandemic, and the promise of more tech jobs from companies growing and or relocating to the Austin area. First time buyers, especially on the higher end are individuals and couples with well-paid and established careers who for some reason weren’t looking to buy until now. “52% of buyers nationwide between ages 30 and 39 were buying for their first home in 2020.”
A while ago $1M bought you an extraordinary home but now “a new type of home has graduated into the million dollar price bracket. “‘Shared lots, empty acreage and fixer uppers’ are all being listed for seven figures.” “In some parts of the city, $1 million may buy you a home on a back lot or a unit in a shared building.” In the big name neighborhoods “you’re either spending way more...or you’re sharing something you didn’t plan to.” As the adage says location, location, location and for Austin $1M “‘is almost like the entry ticket into the core of Austin’” according to Mark Strub (Strub Residential Group/Compass Real Estate).
The exurbs are continuing their pricey ways as well with the western part of Barton Creek having a median price of $2.5M up from $1M in 2018. Buyers in these areas are asking about schools and “some sort of supplementary living or working space.” In older neighborhoods, like Crestview and Hyde Park, heavy investment in remodeling is the norm before listing at a premium. Multiple bids continue but over bidding seemingly has ebbed some but still is the norm with 74% of homes selling for more than asking in April 2021.
This is not just an Austin phenomenon as prices have increased in Dallas (Median now $405K), Houston Harris County (Median $280K) and the City of San Antonio (Median now $248K). See the article for details on each locale.