in this issue…
Putting a Face on Real Estate since 1995™
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FEBRUARY 2019 • VOLUME 23 • ISSUE 10
• Highland Homes Pop Those Prizes REALTOR Incentive Kickoff • Trinity Title of Texas Agent Class • AYREP Monthly Happy Hour • Stewart Title Market Forecast • HBA Housing Forecast • WCR Austin VA Boot Camp • JB Goodwin REALTORS Mentoring • AMBA Monthly Luncheon • HBA Million Dollar Club Awards • Instagram Workshop • KW Georgetown Office Grand Opening and Ribbon Cutting & much, much more!
2019 promises strong home sales and market growth for Austin area, experts say By Riki Markowitz
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ver the past several years, the economy has been a boon far increasing numbers of home sales, specifically in Central Texas. But things may be evening out by the end of the year, or perhaps slowing, according to Eldon Rude from 360 Real Estate Analytics. Based on sober calculations presented by Rude last month at the Home Builders Association’s annual housing forecast, home prices
in Central Texas are 3.5 times higher than the median family income in the Austin metropolitan area. While this figure has been growing year after year, past measurements show that the difference between home prices versus income between now and 2010 is far greater than the previous five-year period. In 2005, the cost to purchase a home was 2.4 times higher than median family income while in 2010, the difference only increased by a tenth of a point. According to Rude, during periods of recession, cities with the largest gap between home prices and income are most at risk for experiencing declines in residential real estate prices. Some see this as a sign that personal financial confidence may have taken a hit here. But the main message for real estate professionals to take away here is that demand for housing is still going very strong. The overall positive economic outlook in the Austin area for 2019 is a result of low unemployment, as well as a continuing influx of new high-paying jobs, a number of large companies moving here, or those expressing an interest in moving here. Austin may not be the future home to a new Amazon HQ, but the city
received a lot of positive press for making the finals in Jeff Bezos’ search. It’s almost certain other promising companies noticed the advantages of opening or moving offices to Austin. As a result, all of the commotion is attracting more high earners that want to buy a home. At Supreme Lending’s annual market update, John McClellan discussed mortgage trends for 2019. McClellan also suggested that demand for homes will remain strong in the coming year. The downside is that agents have expressed frustration in identifying potential homebuyers: mainly millennials. This generation is entering the real estate market in new ways and many agents, specifically those who have been in the industry for decades, don’t always know the right way to find and approach such a techsavvy generation. Millennials in the Austin area are in a more
advantageous position to afford today’s home prices, as well as qualifying for loans, because they’re in higher paying jobs and a very secure job market. There are no projected slowdowns for this trend in the coming year, in part, because the tech sector is still growing and adding new jobs every year. In a December press release, for example, Apple reported a $1 billion investment in a new, 133-acre campus in North Austin. After opening, the company anticipates employing about 5,000 people and
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Putting a Face on Real Estate since 1995
Front Page: Continued on page 26
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Features of the Month
Thursday, Feb. 28 ABoR: TREPAC Wine Tasting
Column: ABoR — Shaking Things Up in 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg. 4 Column: WCREALTORS — What Does the Future Hold?. . . . . . . . . . . . . . . . . . . . . . . . . . . pg. 7 Column: HBA — Population and Job Growth to Fuel Local Real Estate Market in 2019 . . . . . . . pg. 14 Column: RRC — More Demand Than Supply will be the Talking Point of 2019 . . . . . . . . . . . . pg. 18 Expert Commentary: Opportunity or Distraction? . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg. 20 Column: Women's Council of REALTORS —Forecast: Sunny with a Chance of.... . . . . . . . . . . . pg. 22 Associates in Progress: Mark Hairston, Barton Creek Lending . . . . . . . . . . . . . . . . . . . . . pg. 25 Associates in Progress: Texas National Title. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg. 27 Upcoming Events & Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg. 30