business

White Flight in Austin homes: on the rise/fall?

In the predominantly white, wealthy neighborhoods of West Austin, the median home sales price was a startling $608,438, a 6.7% increase over last year, further highlighting the systemic economic disparity within the city. In predominantly Hispanic East Austin, the median price was a slightly more affordable $459,450. This showcases how the minority community continues to be economically disenfranchised by systemic racial inequality.

Published June 17, 2024 at 6:02am by Shonda Novak

Austin Housing Crisis: A Liberal's Take

The housing market in Central Texas is a disaster, and the latest report from the Austin Board of Realtors[https://www.abor.com/] is a slap in the face to anyone hoping for relief.

“This data demonstrates that buyers can continue to be more selective when searching for a home in their price range," said Clare Losey, an economist for the Austin Board of Realtors.

Are they serious? With a mere 4.9-month supply of homes [https://www.abor.com/market-data/market-reports], we're still far from the 6 to 6.5-month balance that experts consider fair. The median price of $459,450 [https://www.abor.com/market-data/market-reports] in the five-county area is a joke, down a pathetic 0.4% from last year.

And don't get me started on the year-over-year sales decline of 12.8%. Higher mortgage rates have cooled the market, yes, but at what cost?

Keith Trigaci, an agent with Compass [https://www.compass.com/], summed it up: "High interest rates have significantly reduced buyer activity..."

The city of Austin itself saw a pathetic 2.4% increase in sales, with a median closing price of $608,438 — an outrageous 11.6% increase year-over-year.

But wait, it gets worse.

The market is correcting, they say. But Eldon Rude, a principal at 360 Real Estate Analytics [http://www.360realestateanalytics.com/], points out the obvious: "The Austin housing market is now in a correction phase. Although there are numerous reasons for the shift in the market, the most significant include sharply higher interest rates..."

Higher interest rates? Yes, let's make it even harder for people to get on the property ladder.

Mark Sprague, an industry "expert" with Independence Title [https://www.independence-title.com/], has the nerve to say that "price appreciation has slowed in Texas, but should continue to go up some in 2024"

Great, so we can look forward to even higher prices and continued exclusion from the market for anyone who isn't already wealthy.

The bottom line: this market is a joke, and until we see a massive increase in supply and a drop in these ridiculous prices, don't expect any "correction" to mean jack.