With a continued red-hot market and soaring prices, there have been some questions and concerns lately about whether or not Austin is experiencing a housing bubble. But according to a recent article by the Austin Business Journal (ABJ), experts agree that this is NOT the case for Austin — and perhaps far from it.
ABJ interviewed more than a dozen economic and residential real estate experts and they all believe that “this is not a bubble that’s in danger of bursting.”
“A bubble bursting means demand will go away, and with job growth in Austin the way it is, it’s hard to see how that will happen,” said Kara McGregor, Title Company.
Furthermore, ABJ reported that several experts predict that Austin will see double-digit increases for at least the next two years, but this could also continue even further.
"When we analysts think about bubbles we think of annual market averages in the mid 40% for over a decade as the sand states — California, Nevada, Arizona and Florida — had prior to the financial meltdown," said Mark Sprague, state director of information capital at Independence Title. "Those markets did not have low rates, but they did have easy financing and high levels of speculation — 35% to 45%. Presently, the number of speculators is low — less than 10% — in this market because of the premiums being paid by homeowners.”
Check out the full Austin housing bubble coverage from ABJ here.
