The National Association of Realtors ((NAR) compliled a home price analysis for 130 real estate markets across the U.S. as part of a study into whether or not a nationwide housing bubble exists. Their conclusion? – no bubble exists, and especially not in Austin.
About Austin, the report says:
“A thorough analysis of the Austin-Round Rock metro market, as detailed below, reveals that there is very little danger of this (housing bubble). In fact, the local housing market is in good shape with a potential for significant housing equity gains, particularly for homebuyers who plan to remain in their house for the long run.
The Austin market has very favorable home price-to-income ratio and even better mortgage servicing cost-to-income ratio. The latter ratio is currently below the local historical average. It implies no widespread financial overstretching to purchase a home in the region. Any respectable gains in the local job market will translate into substantial home price gains.”
Add this to the pile of material and evidence suggesting a very favorable outlook for Austin Real Estate in coming years.
Download the full report here or visit the NAR site to see all reports at http://www.realtor.org/research.nsf/pages/anti-bubblereports