Cob
Senior Member
- Joined
- Mar 30, 2006
- Professional Status
- Certified Residential Appraiser
- State
- Texas
The Austin area market has seen inventory shortages and it is typical for listings to sell over the list price, however, there is not always comparable SALES to support the contract price.
While there is an inventory shortage, a large part of it is that there are TONS of out of state (see carpetbagger's) that have shown up in the past year or two, offer way more than list price, so that a typical buyer who wants to buy the house to live in can not afford to pay $10,000 to $20,000 or sometimes more over the asking price.
These "investors" then the majority of the time, turn right around and lease the property they just purchased, it is inflating the sales market and inflating the rental market. In a year or two when Austin isn't the new "IT" city, there is going to be a big real estate bubble. But none of the agents or mortgage people care, they all think this crazy market will just continue and never correct itself, they are in for a rude awakening as most have just started in the real estate industry and haven't been around long enough to see the ups AND downs of the Austin real estate market.
While there is an inventory shortage, a large part of it is that there are TONS of out of state (see carpetbagger's) that have shown up in the past year or two, offer way more than list price, so that a typical buyer who wants to buy the house to live in can not afford to pay $10,000 to $20,000 or sometimes more over the asking price.
These "investors" then the majority of the time, turn right around and lease the property they just purchased, it is inflating the sales market and inflating the rental market. In a year or two when Austin isn't the new "IT" city, there is going to be a big real estate bubble. But none of the agents or mortgage people care, they all think this crazy market will just continue and never correct itself, they are in for a rude awakening as most have just started in the real estate industry and haven't been around long enough to see the ups AND downs of the Austin real estate market.