The world's largest real estate franchise by agent count
In recent posting I compressed the data from the Austin home sales data charts to more clearly see the changes that have occurred in 2021 YTD. I thought it might help to do the same thing for the past decade so you can see changes year by year (below). What stands out to me it just how many green categories we’ve had and the ones that are light red (ie-less than 10% negative change) are mostly small negative changes like 0-2%. We’ve only had 2 solid red (10%+ negative) and they had to do with the number of listings and inventory. The averages for the 10-year period are also all-green, half in light green and half in dark green. Our average and median prices came in at 8% and 9% respectively...nearly in the solid green category, too.
I bring this all up because there are those who are concerned about a housing bubble that is about to burst, even in Austin. Below are 2 charts showing Austin single-family home sales from 1979 thru Jul/2021. You will notice that over the past 41 years, Austin has experienced only 2 times where home prices dropped...during the late 1980’s and for 2 years during the Great Recession. Texas got hammered worse than most of the country in the late 80’s due to the 1986 Tax Reform act which raised the capital gains tax from 20% to 28% and reduced the amount of accelerated depreciation an investor could take each year. Both of these affected the real estate and oil business more than others and Texas’ economy was more heavily dependent on oil revenue in the 80’s than most states so Texas felt this tax reform burden heavily. The other time was the Great Recession when Austin experienced a small decrease in home prices of less than 2% in 2009 and a .50% drop in median prices in 2011 (average prices went up 1%). Think back on all that has happened in our country the past 41 years and I believe you will agree that Austin’s economy and real estate market is one of the best, if not the best at weathering any upcoming storm.