Austin’s housing market should keep booming in 2022, experts say – Austin American-Statesman

Austin’s housing market should keep booming in 2022, experts say – Austin American-Statesman


Low housing supply. High demand. Higher prices.

Sound familiar?

It’s the same formula that has fueled the Central Texas housing market for the past decade or so — and more of the same is ahead in 2022, local housing market experts and real estate agents say.

“You thought 2020 was crazy in the real estate market. Put that energy together with vaccinated citizens and a new outlook on work/life, and you’ve got a frenzy,” said Sarah Grimes, a real estate agent with JB Goodwin Realtors in Austin.

More: Slow sales, high prices continue as influx of new Austin residents enter the housing market

More: Austin-area housing market continues to break records, even as affordability concerns loom

Job and population growth are expected to continue in the five-county Austin region spanning from Georgetown to San Marcos. That population growth includes the continued trend of newcomers arriving from states with higher housing costs. 

Those and other factors probably signal a repeat of 2021’s housing market, industry analysts say. Expect sellers to remain in the driver’s seat — with multiple offers and bids above the asking price still common — and affordability to remain an ever-present concern, local and national experts say.

“The Austin area remains in a seller’s market because of historically low interest rates, a booming local economy, and the relocation opportunities that it brings,” the Realty Austin brokerage said. “When you mix high demand with low inventory — housing prices are likely to continue to rise.”

Price growth to slow a bit

On the upside for buyers, the pace of growth in home prices is expected to slow, although not by much, experts say. That’s due to factors that include the anticipated uptick in mortgage interest rates next year, which could marginally dampen demand for housing.

“The demand might fall off a little bit, and that may be because of interest rates going up. Then the rate of (home price) increase might slow down a little bit, but the key operative words are ‘a little bit,’” said Jim Gaines, an economist with the Texas A&M Real Estate Research Center.

Some experts predict mortgage interest rates will rise a quarter to half a point at most next year, settling somewhere in the 3.5% to 3.75% range by the end of 2022.

Continued demand for housing coupled with low inventory and supply-chain issues could slow home sales and push home values up, said Mark Sprague, an Austin-area housing market analyst. He expects home price appreciation in the Austin region to be “somewhere in the mid-teens” next year.

More: Builder buys more than 900 lots in 422-acre subdivision underway …….

Source: https://www.statesman.com/story/business/2021/12/29/experts-austins-housing-market-should-keep-booming-2022/6449701001/

Housing market