Homebuyers in the Austin area are rightfully complaining about the continuing ascent of home prices. Home sellers, however, are cheering.
In the Austin area, the typical home sale in the third quarter of 2021 generated a 70.9 percent profit for the seller — the 12th highest profit margin among U.S. metro areas. In dollar terms, the typical area home sold for $192,656 more in the third quarter than it was purchased for. The typical sale price was $465,000.
ATTOM Data Solutions collected the profit data, which was reported by the 24/7 Wall St. website.
“Surging home values are partially a product of growing demand, which is fueled in part by low mortgage rates. These conditions have created a seller’s market unlike anything seen in recent memory,” 24/7 Wall St. says.
In Austin, much of the housing demand is spiking around the future Apple campus in Northwest Austin, the current Oracle campus in East Austin, the Tesla factory under construction just east of Austin, and the Samsung factory set to be built just outside Taylor.
Residential real estate platform Orchard looked at the median home price in a 10-mile radius of each of those four sites to get a sense of how home prices have been affected.
Near the future Apple campus, the median sale price of a home jumped from $336,750 in the third quarter of 2020 to $489,000 in the third quarter of 2021, a difference of 45 percent, according to Orchard.
In the area surrounding the Tesla plant, the median sale price during the same period went from $437,050 to $534,502, an increase of 22.3 percent.
Near the Oracle campus, the median sale price rose from $416,000 to $585,000, or 40.6 percent.
Among the four high-tech hubs studied by Orchard, the 10-mile area around the future Samsung plant saw the biggest price increase from the third quarter of 2020 to the third quarter of 2021. In that pocket of the Austin area, the median sale price shot up by 48.9 percent — from $271,906 to $405,000.
“You’d be hard-pressed to find an area of Austin that isn’t more difficult to buy a house in compared to last year,” Orchard observes. “But as the city continues to build out its roster of tech giants and attracts even more workers, look for home values near these hot spots to climb even higher — especially in emerging satellite towns like Taylor.”
The ATTOM Data Solutions figures cover all U.S. metro areas with populations of at least 200,000 and at least 1,000 single-family home and condo sales in the third quarter of this year.
Nationwide, the profit margin — the gap between purchase and resale prices — of a typical single-family home sold in the third quarter of this year was 47.6 percent, equivalent to a profit of $100,178, according to the ATTOM numbers.
The Boise, Idaho, metro area led the profit pack. In the third quarter, the typical home sale produced a 130.3 percent profit for the seller. In dollar terms, the typical area home sold for $251,989 more than it was purchased for. The typical sale price was $445,313.