It’s no secret that the real estate market across the country has had highs and lows over the last few years. If you’ve been looking to buy or sell, you’ve likely felt like you are on a wild rollercoaster with little idea of what dips or turns it will take next!
While no one can know for certain what will happen in the real estate market, many are predicting another swing as mortgage rates shift.
We work alongside new homeowners, land developers, and production builders in the Austin area on a regular basis, whether that be to prepare land for new commercial or residential builds or to prepare the land for improvements on existing builds.
If you’re considering a move to the Austin area, there are a few things you may want to know about the real estate market in this area:
#1: Housing prices are expected to drop.
You heard that right! The pricing shift that is expected to shift in favor of buyers across the country is also expected to hit Austin. Realtor.com predicts that we could see housing prices drop by 2% in 2024.
Brad Case, chief economist at real estate developer Middleburg Communities, shared with Newsweek a similar prediction: “If you are a homeowner in Austin, you were really happy when house prices were going up so sharply because of the added demand. …[now] the new supply came in, and now you’re looking at the possibility of having to take, not necessarily a lower price than you paid when you bought, but certainly a lower price than if you had sold a year ago. So, there is an oversupply problem in Austin.”
With this oversupply, buyers are expected to be able to negotiate a bit more and get a better price on an existing home than they may have been able to last year.
#2: You can make improvements.
Due to the decrease in price, you can consider purchasing a property or home and feel confident that you still have some budget to make improvements. This is a great way to make something your own by increasing the floor plan through an addition, introducing creative landscaping, or simply clearing land to provide more space for the kids to play.
Make sure to connect any potential contractor with Texas Rock Milling so we can work together to make sure the land is prepared correctly, obstacles are removed from the soil, and natural materials are effectively reused to save on cost.
#3: Know what barriers you face.
Texas is home to over 1,300 soil types (source). Whether you are planning to make your home in a new build or an existing house, it’s important to know what’s in your soil and what challenges you will have to overcome with landscaping, additions, and building.
Austin is located in what is considered Post Oak Belt soils where there can be a thin, sandy loam surface layer of soil over dense claypan subsoils. Water erosion can pose a serious issue on highly erosive claypan soils.
Our team at Texas Rock Milling has the expertise to help you tackle any barrier you may find in the soil. We believe it is important to consider how every action will affect the natural layout and environment of the landscape. This includes everything from the natural water drainage patterns to soil erosion. So you can rest assured that your home will stand on solid ground.
READ: Repurposing Raw Materials: What Difference Does it Make?
#4: Time to weigh out your options.
Trying to decide if buying an existing home or building is the better option? You often have some time. According to Texas Realtor’s quarterly report for the third quarter in 2023, homes had been on the market for an average of 61 days, which is nine days longer than the same quarter in 2022.
This will give you time to take a look at what the market has to offer and determine whether you’d prefer to buy an existing build or work with a developer.
#5: More homes on a lot.
Austin City Council passed the Home Options for Middle-Income Empowerment (HOME Initiative) which lowered the minimum lot size to 2,500 square feet. Previously the minimum amount of land required was 5,750 square feet, however, the average size lot was around 7,500 square feet.
Lawmakers are hoping this does several things from giving homeowners the ability to provide on-site housing options to family members, a caregiver, or to earn additional income. They are also hoping this will allow more “starter homes” to enter the market for homebuyers and even make it easier to install a tiny home!
#6: Be prepared to wait on a custom build.
If you decide to forego the existing housing market altogether and go for a custom build, you may have to be prepared to wait. It takes time to plan out exactly what you want in a custom build and then coordinate all the moving pieces between the contractors, architects, and those preparing the land.
Here at Texas Rock Milling, we have years of experience and the best equipment to streamline your project’s process, avoid delays, and reduce costs. Our state-of-the-art equipment allows us to complete with one machine what may take other contractors 3-4 machines or even 3-4 different contractors to do. (Which means the job is done quicker!)
It’s important to work with people who are familiar with Austin’s local permitting and zoning laws, and the unique obstacles present in the South Texas Hill Country, to be sure to prevent additional and unnecessary delays.
Whether we are working with individual home buyers, developers, or landowners, Texas Rock Milling can solve the challenges that Austin real estate presents while passing the savings of material recycling on to you.
If you are looking to make the move to this market, Texas Rock Milling is the go-to option for minimizing your expenses when it comes to a new build, addition, or even adding new dwellings on your existing home lot.
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