What drives home prices in Austin?

Homes prices in any local market are driven up or down by a myriad of factors and in Austin we have a few area features that tend to be consistent in keeping certain area home prices heading up and to the right. Consider these "rules of thumb" and remember that every home, every seller, and every community stand on their own for specific negotiations.

Three big factors that drive homes prices up in Austin are Spectacular Views, Outstanding Schools, and Proximity to the downtown area.

The View. Having a lake view or lake access will drive a premium in Austin home values. The bigger the view, the more you should expect to pay for the property. Partial lake views may begin in the $400's and quickly move to the $MM price points. And direct lake access may cost you $700,000 to $MM. South side of the lake is more expensive than the north side due to its close proximity to downtown. Views of the city, greenbelt or a nature preserve will also drive the property price up. If you want to wake up to our natural hill country beauty, you will likely pay a premium for it.

Our Schools. Austin has some of the best schools in the nation. Ask anyone and you will find that our schools are one of the big reasons why families move into the area. Certain communities have better schools than others and the very best school communities have their own price premiums built into their price and value. It is very simple Real Estate supply and demand. More people want to live where the schools are great. So it costs more to live in these areas. But be careful who you listen to about school districts--there are MANY communities in Austin that have outstanding schools. Not just one great school district.

Downtown--The price of dirt. The downtown Austin area brings its own unique attraction to our market. Jobs, music, parks, events, running trails, Convention Center, Whole Foods, high rises, the lake, UT and wonderful restaurants. Our downtown has many compelling features and they all drive the price of real estate up. In general, the closer you are to downtown--the more expensive the dirt.

Put them all together. Adding these real estate features together, best schools, great views and proximity to downtown are a recipe for a wonderful home value--at a robust Austin price. Understanding how the math works as you start your search will save you a lot of time and energy. If you are moving to the Austin and looking for one or more of these area features and hoping to pay median home value prices...well, it is probably not going to happen. We have great value in Real Estate--but Austin is not free.

When you are ready to start thinking about your Austin home purchase, and where you want to invest in your Austin future, focus on the things that are most important to you and your family's needs, and give me a call--Let's talk.

Comments

  1. Perhaps, people could also contact those individual persons like you that have either an experience on real estate or taken a good back ground or professionalism in the said industry.

    But good job in clearing a handful of questions that most people ask about when it comes to this topic. I might be recommending this to other individual wnating to learn about the simple FAQs.

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  2. Yes. This is only the starting place for Austin area home prices--not the last word in how to figure out what one should offer on a home--for sure. And yes, one should always be in relationship with a strong Realtor to work through this whole process. (Thanks for your comments).

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