There are many great Austin area homes for sale. Click here to perform a full home search, or if you’re thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today’s market. You may also call me at (512) 616-4100 for a FREE home buying or selling consultation to answer any of your real estate questions.
I get questions all the time about new construction in the Austin area. Questions like, “Is it a good time to buy?”, “Does it make sense to invest?“, or “Where should I look for purchasing a newly built home?”
I have answers to these questions and more, and I would like to share them with you. In the Austin area, there has been a recent boom in the number of homes being built. While there is an increase in available homes, this also gives rise to an increase of problems with these homes. One such problem you may run into is that in some neighborhoods, there is only one company building homes. This creates a monopoly for these companies in certain areas and allows them to determine their own prices instead of basing them off of the market.
On the other end of the spectrum, builders like David Weekley and Scott Felder are building homes in the same areas as each other and other competitors. This has many advantages including lower prices, more diversity between homes, and overall more competition between sellers, which is good for buyers.
There are some things to be wary of with new construction, however. If you go too far outside of Austin, you may see a good value for a home now but it will take much longer for that home to appreciate in value than it would for a home inside the Austin city limits.
New homes in Austin are currently appreciating at 11% per year and rising. Even if the asking price may be a bit of a premium, the appreciation values will more than make up for it in terms of a long-term investment.
Another advantage of new construction is that you aren’t competing with other buyers as much and that can make the negotitaiton process that much easier. Your equity can get built up rapidly in this market, so now is the time to make your move. If you have any questions, feel free to contact us at (512) 616-4100 or e-mail me directly at bob@bobguest.com.