SCHMITZ & SMITH’S OFFICIAL ZIP REPORT TO AUSTIN
TARGETING THE ZIPS WITH THE MOST GROWTH
2016 AUSTIN HOUSING MARKET PREDICTIONS The numbers behind the shift:
Many areas in Austin that have shown dramatic appreciation over the last several years have continued to increase in 2015, but to a lesser degree, according to Schmitz and Smith. For example, 78704 in South Austin increased by 22 percent (in list price per square foot) in 2014, but only 7 percent in 2015. This trend holds true across most of the city, with a few notable exceptions. Schmitz and Smith are witnessing it with their own eyes: “We are seeing properties sit on the market – they are taking longer to sell,” said Smith, who focuses primarily on luxury properties in the urban areas of Austin. “That is our first indicator that there is a shift. It remains a seller’s market for sure. But buyers want the house to be special if they are going to pay a lot for it.”
The shift is more pronounced in West Austin:
Schmitz, who primarily deals with high-value properties in more far-flung areas of West Austin, said she is definitely seeing the shift in her realm. “Recently, there have been several instances where a house has gone on the market and we’ve said, ‘That will sell in a week,’ and then it doesn’t,” Schmitz said. “As you go west of Mopac, the further out you go, the less you can say it is a seller’s market for houses that are priced at $750k and up. It is definitely shifting toward a buyer’s market.”
A buyer backlash:
“I think what we are seeing means that buyers are being smart and they don’t want to overpay,” Smith said. “I think we’ve gone through a period where the market has just escalated so fast, and today’s buyer is saying, ‘I’ve had it. I’m just not paying that much for that house.’ So you’re seeing a bit of a buyer backlash. They will still pay top dollar, but the house has to be very special. I just don’t think we could have sustained that increase in the market going that fast forever.”
In some areas, prices are on the downturn:
For Schmitz, the issue is again more pronounced in areas west of the city – marking a tipping point, in fact. “In West Austin, I don’t think our prices are increasing, I think they are decreasing,” Schmitz said. “And I think that will continue. In Barton Creek, for example, we started to see a shift in July where the amount of showings dramatically decreased. Then we started seeing ‘price reduced, price reduced.’ There are houses that have been on the market for months, which is a long time.”
Austin home values have been increasing year after year, often dramatically. But even a surging market is susceptible to a dip or a correction. The latest local real estate numbers indicate that Austin is experiencing such a shift, according to Shannon Schmitz and Morgan Smith, luxury realtors and founding partners of Schmitz & Smith Group in Austin. Schmitz and Smith described what is happening in the Austin real estate market, and provided advice that every buyer, seller or investor needs to know during this time of change.
Some areas continue to surge:
A few zip codes have so far bucked the trend. For instance, 78756, 78758, 78731, 78737, 78733, and 78730 showed an increased appreciation percentage in 2015 over previous years. “These are hot areas,” Schmitz said. “Rosedale/Brentwood, Northwest Hills, the Domain … most of these areas are pretty close to town and are still unique, yet affordable. Sellers in these areas can still be aggressive.” Smith agreed. “Anything in the $200k-$400 price range will continue to be very strong – until they start outpricing, as well,” Smith said. “Until they get over $400k, they are going to be great. There are so many people who want that price range because of the affordability, especially when they can still be fairly close to downtown.”
Despite the shift, the future still looks bright: Even if the Austin market has slowed, Schmitz and Smith both see strong years ahead. “We went to an economic summit about 8 years ago, and at the time, the presenter said that he thought we were two years
into a 10 year upward swing,” Schmitz said. “He based it all on job growth (and projected job growth) in Austin. And Cedar Park has launched a huge initiative to bring in tech companies along the 183 corridor in an attempt to really drive growth in that direction.” Smith has an equally positive outlook. “The stock market is doing well, and unless/until something major happens with the economy, we’re going to be fine,” she said. “I don’t think we are going to be escalating as fast, but there are jobs here, people are still moving in, and I don’t think there is a huge economic crash looming (if there is, all bets are off). But I think we are going to be fine.”
About Schmitz & Smith at KW-Portfolio Austin Real Estate
Nationally recognized for their approach to marketing and branding, Schmitz & Smith at KW-Austin Portfolio Real Estate is a neighborhood-focused upscale real estate group that matches their clients’ lifestyles to ideal niche areas in Austin, Texas. These Realtors® leverage their extensive network to create a conciergestyle home buying or selling experience. Their quarterly magazine, LOCALE Austin, and yearly Schmitz & Smith’s Guide to Austin are available in many high-end Austin hotels. For more information, visit SchmitzandSmith.com or call 512-794-6700.
2016 ZIP GROWTH APPRECIATION BY AUSTIN ZIP CODES
78613
78645
78728
78729 183
620
O ER RIV
78759
2222
78734
360
AK
E
DR
78754
BL VD AR
78712 78722
PO AIR
1
RT VD BL
78702
78735 78704
LA
M
AR
BL VD
78736 S
78749 78739 45
N W
N E
W S
S
78721
78742 35
78741
78744
1
78719
78748
E
78652
35
78747
10-14% Increase Price per sq ft
78725
71
78745 78737
78724
78705
360
290
5-9% Increase Price per sq ft
290
78723
78751
NL AM
78703
78738
78752
78756
2244
290
78653
35
TL
78746
71
78753
78757
W
ES
1-4% Increase Price per sq ft
183
78731
78733
78660
1
78758
78730
78732
35
78727
78726
78750
620
78664
45
78641
COLORA D
78681
78717
78617
15%+ Increase Price per sq ft
CALL US TODAY FOR A FREE HOME EVALUATION
SHANNON T. SCHMITZ
MORGAN SMITH
SHANNON@SHANNONSCHMITZ.COM (512) 426-9069
MORGANSMITH@KW.COM (512) 466-5224
PARTNER/ REALTOR®
PARTNER/ REALTOR®
KYLE KOZORA
TRACY TREVINO-LOUGHREY
WADE SHOOP
KYLE@SHANNONSCHMITZ.COM (512) 794-6700
TRACY@SSGAUSTIN.COM (512) 784-6001
WADE@SSGAUSTIN.COM (512) 740-1399
OPERATIONS MANAGER
BUYER’S AGENT / REALTOR®
1611 W. FIFTH STREET, SUITE 100 | AUSTIN TEXAS 78703 WWW.SCHMITZANDSMITH.COM | (512) 794-6700 This magazine is not intended to solicit to those already working with a Realtor®
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