AUSTIN NEIGHBORHOOD INFORMATION
Even though some people don't want to believe it, the Austin Real Estate market has softened a little with the national mortgage crunch. This actually might be a great buying opportunity. Austin did not experience the same massive run up in housing prices from 2001 through 2005 that East & West coast cities did. The Austin market finally really got hot in 2005 and 2006, but mainly in central Austin. A little downturn is healthy though and long term the Austin market looks strong.
If you are thinking about investing in rental property, the timing is great. The tax benefits of owning rental property are fantastic, and with property prices dropping slightly, but rents still rising, opportunities are everywhere.
The Austin Real Estate market is really 2 separate markets. The central city is extremely expensive, while the suburbs are extremely cheap in comparison to much of the nation. Central Austin though is very small and central neighborhoods are generally less than 5 minutes to downtown. To get less expensive options in houses, lofts & condos, all you have to do is get more than 5 minutes from downtown. The biggest misconception people make about the Austin market is that they see that the average home is still under $200,000 and they think they can find that in central Austin. The reason the average home is under $200,000 is that the suburbs are still very inexpensive. The average home in central Austin now close to $400,000, and most fixer uppers are long gone. Again though, all you have to do to get less expensive homes is to get 5 minutes from downtown. An example would be south central Austin, all you have to do is get south of Oltorf Street for prices to come way down. Oltorf is only 3 to 4 minutes to downtown. South central between Oltorf and Ben White Blvd. will probably see some huge increases in value over the next few years, and it is still possible to find fixer uppers. Southeast Austin is also close to downtown and has not seen a lot of the price increases over the last few years. Values in southeast Austin could rise tremendously over the next few years, and we are already seeing luxury loft projects planned along Town lake in southeast Austin. This should start lifting the prices of the whole area.
If using our search engine, the Central Austin neighborhoods are:
Barton Hills/Zilker Park- 78704
Bouldin Creek- 78704
Travis Heights- 78704
Downtown- 78701 (We are very knowledgeable about all downtown loft options, either existing lofts or projects under construction. Downtown is changing rapidly, just look at the construction cranes in the above downtown picture, these are all loft projects under way)
Clarksville- 78703
Hyde park- 78751
Tarrytown- 78703
Enfield- 78703
Rollingwood, Westlake- 78746
University of Texas area- 78705
The areas above are expensive, but are close to everything, heavily wooded, and will appreciate in value over the next few years.
78702, 78722 - These areas just east of downtown have probably had the greatest percentage price increases over the last few years, so there is risk involved if the market turns down. An example would be a house that sold for $86,000 in 1999 is currently on the market for $299,000. These areas are changing rapidly and there is a huge redevelopment at the old Mueller Airport site.
Neighborhoods cheaper and close in, but more than 5 minutes to downtown:
South Central, south of Oltorf- 78704
South of Ben White- 78745
Southeast of Downtown- 78741
Northwest- 78730, 78731, 78750, 78758, 78759
North Central, north of Koenig- 78752, 78756, 78757
These above areas have a strong potential for big price increases over the next few years as Austin continues to grow and these areas become more of central Austin.
If you are looking for the hilly wooded areas west of town: 78735, 78736, 78737, 78739, 78749 - note these areas are more expensive again. There is limited land to build homes in these areas, so values should remain high. There is a lot of preserve land in west Austin, so much of west Austin will remain wooded.
The Lake Travis areas are listed as Northwest Travis County. There are many stunning homes built on the high cliffs of Lake Travis. The south side of the lake is a much closer drive into downtown, so more expensive. The north side can be a hour drive into downtown during rush hour, the south side- half that.
You will get the most for your money in the suburbs, and it is possible to buy a brand new home for under $150,000. Some of the new home builders are currently offering stunning deals on new homes. If you work in the suburbs or don't mind a commute, the Austin suburbs have some of the best value in homes in the United States. The southern suburbs will probably go up in value faster than the northern suburbs over the next few years because of being closer to downtown and the fact that thousands of new homes are being planned in the northern suburbs, (especially along Texas 130), holding down prices.
Please contact us with any questions, or to see any property listed for sale. We have been in Real Estate over 10 years in Austin and know the market very well.
512-693-7231
Jim@AustinCool.com
