A new study by financial news network 24/7 Wall Street has reported price increases since the financial recession of 2008 to be rising at an alarming rate. Taking a look at the recession lows vs the current home prices across the US, the increase has been documented at nearly 70% through the first quarter in 2019. Although steady increases are typically seen as a positive sign, the trajectory of this growth has been accumulated through spikes and lows that are not sustainable in the long-term. With the outcomes putting the cost and value of homes in today’s market much higher than just a few years ago, the news network suggests the potential for a market collapse is becoming a reality.
One market that has experienced significant growth in home values since the recession is that of Austin, Texas. The report’s data found that the Texas metro saw home prices rise 62% from the going market rate in its pre-recession peak. The median home prices are now coming in over $300,000 compared to the $185,000 they were right before the 2008 recession. This growth has not been steady however and is predicted to continue according to other real estate networks such as Zillow and the Austin Board of Realtors reporting the popular Texas city’s median home values have grown 6% since June of 2018 and is expected to continue growing in the near future.
“The city of Austin, Texas has experienced a boom in recent years with a population that now exceeds 2 million and growing. It’s popular position in the national economy has been established through the city’s ability to attract both businesses and residents from across the US and even the world.” shares Texas-based property developer and entrepreneur Marcus Hiles.
This progress is not just post-recession and has been part of the metro’s history. Austin city officials pride themselves on the area’s ability to sustain growth even during times when the country found itself in economic despair. In fact, Austin was the last city in America to fall into the economic recession that occurred in the late years of the 2000s and was one of the first that found its way out – even before some of the most thriving cities of the time.
“With this track record of success, the value of its industries and commercial investment at an all-time high, home prices are going beyond what many expected for a central Texas location,” shares Marcus Hiles who has established properties in Austin, Texas and helped create rental housing options for over 300,000 residents statewide.
With the sustainability of this growth in question it does appear Austin fell into its economic prime coincidentally around the time of the recession and has been increasing in value primarily for its ability to support the tech industry boom. Although the popularity of the city continues to increase it will be important for its home prices to level soon so it is not saturated with inflated home costs that will damage the now thriving market in the future.
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