Real estate reflections: How much your home can earn you each month
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Paul Reddam
Paul leverages his 25 years of experience in the Austin market to provide individuals with an unparalleled level of personal attention and responsive ...
Paul leverages his 25 years of experience in the Austin market to provide individuals with an unparalleled level of personal attention and responsive ...
I’ve mentioned before that there is a seasonality to the Austin real estate market, and this year is no different. We are beginning to see the normal seasonal slow down as we leave summer and head into fall. And that means prices start to be more favorable for buyers, investors included.
Whether you are new to investing or an experienced pro, we always want to think about what makes more money -- appreciation or cash flow?
How much your Austin home earns each month
Numbers are up across the board in Austin, making real estate a solid investment. But how solid? Take a look at how much an Austin home earns each month on average in some of Austin’s more popular neighborhoods over the last five years:
| Neighborhood | Appreciation gain | Avg sales price 5 years ago | Avg sales price August 2019 | Avg value of appreciation earned each month |
|---|---|---|---|---|
Allandale | 35% | $591,000 | $789,000 | $3,450 / month |
Anderson Mill | 43% | $222,000 | $317,000 | $1,580 / month |
Barton Hills | 53% | $613,000 | $939,000 | $5,430 / month |
Bouldin | 54% | $614,000 | $946,000 | $5,530 / month |
Bryker Woods | 9% | $698,000 | $760,000 | $1,030 / month |
Clarksville | 29% | $775,000 | $1,000,000 | $3,750 / month |
Cherrywood / Delwood | 37% | $374,000 | $513,000 | $2,316 / month |
Crestview / Brentwood | 39% | $371,000 | $514,000 | $2,380 / month |
Highland Park West | 42% | $668,000 | $948,000 | $4,670 / month |
Hyde Park | 49% | $463,000 | $691,000 | $3,800 / month |
Millwood/ Lamplight | 44% | $275,000 | $395,000 | $2,000 / month |
Mueller | 27% | $488,000 | $620,000 | $2,200 / month |
North Loop / Ridgetop | 32% | $387,000 | $511,000 | $2,070 / month |
Northwest Hills | 29% | $677,000 | $876,000 | $3,320 / month |
Rosedale | 34% | $554,000 | $743,000 | $3,150 / month |
Spicewood/Balcones | 30% | $475,000 | $619,000 | $2,400 / month |
Tarrytown / Pemberton | 27% | $1,100,000 | $1,400,000 | $5,000 / month |
Travis Heights | 46% | $613,000 | $895,000 | $4,700 / month |
Westlake | 17% | $1,200,000 | $1,400,000 | $3,330 / month |
Zilker | 51% | $574,000 | $870,000 | $4,930 / month |
What do these real estate statistics tell us?
These statistics provide a few notable takeaways. First off, neighborhoods in the 78704 zip code are extremely popular, and they are stealing sales from Westlake, Tarrytown, Clarksville, and Bryker Woods. Also, relatively affordable homes in areas with strong elementary schools are performing very well. And last, Austin continues to show very strong rates of real estate appreciation.
Advice for Austin sellers
With appreciation rates like these you can see why I often encourage sellers to hold on to their property. Today is no different. That said, we know there are special circumstances that justify selling. In that case, give me a call. I’d like to discuss what you can do to sell for the most money, including discussing the pros and cons of using the MLS or selling off market.
Advice for Austin buyers
If you are a buyer, the fall is a good time to make a move as prices tend to be around 6-8% lower. Also, don’t overlook the vast number of homes available off market (not through the MLS). I recently went through all of the platforms where Realtors search for off market properties in Austin. There were a whopping 415 homes being sold outside of the MLS. That’s a lot of inventory you could be overlooking. Let’s talk about how we can connect you with your full range of options.
But what about a recession?
There has been talk of a recession on the horizon, and that tends to generate uncertainty about real estate. While a recession is likely at some point, no one knows for sure when it will happen. Because the Austin economy is strong, I feel comfortable saying we have at least one more year of boom town.
Even if we see a recession, it’s very unlikely to be as rough on the housing market as the 2007-2009 recession. We may see things slow a little more over time, but the Austin job growth keeps our market healthy and thriving. Plus, smart investors know that a market slow down is the best time to get in and invest so that you can really reap the rewards of appreciation.
You know I love talking real estate, so please reach out if you have any questions or want to share a different viewpoint.
PS: Did I miss your neighborhood? Just let me know and I’ll run some numbers for you.
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