If you're in the market for a new home, it's important to stay informed of the trends. As the number one hottest housing market, per Yahoo Finance's review in 2021, Austin's real estate market is booming. Beyond being recognized as the hottest housing market, another study noted there is currently no possibility of a 5% drop in home value from the date of purchase to 10 years later. As such, buyers can expect their purchase of condos for sale in downtown Austin or downtown Austin homes for sale to retain their value over the next decade.
Condos for sale in downtown Austin will continue to be popular among buyers. The combination of a central location and luxurious amenities makes downtown Austin condos some of the most desirable properties in the city. In addition to condos, downtown Austin homes for sale will also be in high demand. Downtown Austin is home to many of the city's best restaurants, bars, and entertainment venues, making it the perfect place to call home. It is also a great place to work, especially in tech, with businesses like Amazon, PayPal, and Apple.
Buy or sell
Those interested in buying or selling condos for sale in downtown Austin or downtown Austin homes for sale should note that median listing prices are on the rise from the recent two-year low of $559,500 in November 2021. The median listing price has not exceeded the two-year high of $750,000 since October 2020, but prices are on the rise after falling for much of 2021.
While there are currently nearly 3,000 Austin properties for sale, the market still favors sellers since demand far exceeds supply. There are more homes on the market than seen in the past two years, with the previous high being1,897 in May 2020.
Homes are not staying on the market long, with the current median days on the market at 44. This is down from November 2021's high of 300 days, the highest peak in the past two years. The peak usually stays below 150 median days, which is equivalent to about five months from listing to close; however, the median days on the market have been at 60 or below since January 2022, so closing is happening in two months or less after the property has been listed.
Rent
Whether you are aiming to rent yourself or are interested in purchasing investment properties, it is helpful to know how the rental market has changed over the past year.
For studios, the median monthly rent is currently $1,257, which is up 25% (approximately $250) from this time last year. As of the end of April, there were over 350 rentals available in this size. Based on the current median monthly rent, real estate investors can expect to earn, and renters can expect to pay $15,084 annually.
Condos for sale in downtown Austin with one bedroom had an increase of 33% in median monthly rent, comparing the current median of $1,567 to the median at this time last year. This is a change of nearly $400 a month! As of the end of April, there are nearly 2,300 rentals in this size, so renters have more options to choose from. Looking at the current median of $1,567, real estate investors can expect to earn, and renters can expect to pay $18,804 annually.
As for two bedrooms, the monthly median rent increased to $1,941, which is a change of 27% from last year. As such, the median rent is over $400 higher than this time last year. There were approximately 1,760 rentals of this size available at the end of April 2022, which gives renters many options to explore. Based on the current median monthly rent, real estate investors can expect to earn, and renters can expect to pay $23,292 annually.
Three-bedroom homes and condos for sale in downtown Austin saw an increase of 19% over the past year for monthly median rent, which is almost $400 higher per month. As of the end of April, there were over 390 rentals available in this size, so while renters have options at this size, the competition is more fierce. Looking at the current median of $2,400, real estate investors can expect to earn, and renters can expect to pay $28,800 annually.
Finally, for four bedrooms, the monthly median rent increased to $2,900, which is up 20% from this time last year. The 20% increase equates to nearly $500 more monthly than this time last year. With less than 125 rentals available in this size at the end of April 2022, renters have far more competition for rentals of this size. Based on the current median monthly rent, real estate investors can expect to earn, and renters can expect to pay $34,800 annually.
For real estate investors who plan to offer their purchase of condos for sale in downtown Austin or downtown Austin homes for sale as a temporary rental with a service like Airbnb, the current average cost-per-person per night is $291. If you are able to host a guest every night of the year, or at least 365 guests annually, you can generate $106,215 annually with a temporary rental in downtown Austin.
Look for Austin luxury real estate
If you're thinking of buying a luxury property in Austin, now is the time to start your search. With interest rates low and prices on the rise, 2022 is shaping up to be a great year for luxury Austin real estate. Contact local real estate agent Leslie Gossett today to start looking for your new dream home. Downtown homes and condos, in particular, will be a hot commodity in the coming year, so don't wait too long to start your search!