It may be the hottest August on record, temperature-wise. But it hasn’t been so hot for the Austin real estate market. For only the second time this year, Austin area homes sales failed to grow year-over-year.
While the pace of sales slowed 7.5 percent, the median price of homes in Austin and most of the nation, continues to grow. And many market researchers say Austin is well-poised to weather any downturn in the national market.
Meanwhile, technology is changing the way we view homes. While a year or two ago, a 360-degree photo viewed on an iPad may have impress almost anyone, the latest tech trend involves touring a home using a virtual reality headset.
Check out those stories and more in our August real estate news roundup.
Austin is in Short Supply of Sub-$250K Homes
Austin has a relatively strong supply of high-end homes. But the metro area’s supply of homes priced below $250,000 is shrinking, making it tricky for people seeking affordable properties, according to a new report by the Austin Board of Realtors. And, in a surprise, Austin area home sales fell significantly in July. The number of homes sold fell by 7.3 percent compared to July 2015, marking the second time this year that sales shrank compared to the year prior. Meanwhile, median home prices increased 4.6 percent, reaching $345,000.
Virtual Reality May Change How We Tour Homes
High-definition virtual reality home tours may soon replace the 360 degree photos that were once the Rolls Royce of image technology for showing homes. And it makes perfect sense. Imagine meeting with a realtor and getting an almost life-like walk through of a home without ever having to get into the car. It might not replace a walk through for serious buyers, but it may help buyers more quickly weed out homes that aren’t quite right.
By 2025, Goldman Saches estimates that VR software for real estate apps will be a $2.6 billion market, The Guardian reported. And, already there are VR home companies and a few high-end real estate agencies using the technology in hopes of bringing in and helping clients.
Brexit is Good News for Homebuyers
Great Britain’s vote to leave the European Union grabbed headlines and led many to fear wide-ranging impacts on the world economy, including the U.S. But, there might be a silver lining, at least for home buyers in the U.S. That vote led U.S. 10-year Treasury notes to fall to 1.45 percent in August, Fortune reported. And that brought mortgage rates down with it. The average 30-year fixed mortgage fell to 3.48 percent — that’s down from 4.08% a year ago. Even 15-year fixed mortgages fell slightly, making that potentially problematic vote of the pond a benefit for anyone buying a home or thinking about refinancing.
Rising Tides? It Could Be a Problem in Florida
If you’re imagining that perfect retirement home on a tiny slice of peninsula or island in Florida, you might want to think about the long-term prospects of the property. Rising sea levels could have a massive impact on homes in coastal areas, Bloomberg reports. A six-foot rise in sea levels could destroy a million homes in Florida and total up to $882 billion in losses nationwide, according to one report that’s based on where sea level are expected to be at the end of the century. Other areas impacted include New York, Boston and California.
Austin Housing Market Positioned Well, Even if National Market Tanks
Median home prices continue to rise, nationally, and that is viewed by some as a sign of potential problems in the housing market as buyers opt to rent because of rising costs and relatively flat wages. But the fast growth of the tech industry in Austin is helping fuel strong wages and the metro area remains affordable compared to many other attractive American cities. That’s leading many Austin real estate market researchers to project that Austin could largely weather a downturn in the national market, according the Austin American-Statesman.
Home Improvement Projects on the Rise
Americans aren’t building as many new homes as they were a decade ago. But homeowners are spending more than ever on renovation projects. A lot of that spending is happening in urban cores that many affluent owners abandoned more than a decade ago but are now returning to as downtown redevelopment initiatives makes city center’s more attractive. Spending on repairs and remodeling is likely to exceed $300 billion in 2016, according to a new study by the Harvard Joint Center of Housing studies and John Burns Real Estate Consulting. Rising housing costs, as we’ve seen over the past few years, often lead more homeowners to stay put and improve their homes as opposed to moving to a nicer, more expensive property.