Austin real estate in bubble?

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jordan87

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jordan87
Mar 30, 2021 3 Comments

Just want to here thoughts from Austin folks. Listing price on homes in 2021 shot up by 25% compared to 2020. On top of that there are bidding wars on lots and resale homes. Every home is getting multiple offers with 10-20% over listing price. Are we in bubble, what’s gonna happen in 2021/2022?

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  • Berkshire Hathaway Home Services
    AustinTex

    Berkshire Hathaway Home Services

    AustinTex
    A bubble is when prices get way above fair value due to speculation and fomo. In this case price increase is due to lack of supply and increased demand. Yes there's lot of land as you move far away from the city, but it takes time to get the permits and build.

    A fundamental shift has happened in the Austin RE market. Prices have definitely got way ahead of current fair value, but it will stay in this price range and consolidate for the next few years. If interest rates go up then homes might stay on the market a little longer, but prices will not go down that much. That's my prediction.
    Mar 31, 2021 0
  • Bubble stay away so much land to build , just wait
    Mar 30, 2021 0
  • Workday
    realizm

    Go to company page Workday

    realizm
    No one knows my friend. Only time
    Will tell.
    Mar 30, 2021 0