Austin home prices overwhelming predicted to grow in 2020, real estate experts say
Experts agree: Austin's red-hot housing market will continue in 2020. In a survey conducted by real estate marketplace Zillow and Pulsenomics, industry experts overwhelmingly predicted home values in the Capital City will outperform the rest of the nation this year.
To find the results, Zillow asked 110 U.S. economists and real estate experts to rate 25 American cities based on where they expected home values to grow. Unsurprisingly, Austin ranked No. 1 on a list dominated by cities in Texas and across the South.
Austin scored 76, the highest on the list and 17 points higher than the second-ranked Charlotte, which scored 59. Atlanta, Nashville, and Dallas round out the top five, with scores of 51, 49, and 34, respectively.
Zillow predicts home values to grow by 2.8 percent across the country this year. Based on that number, 83 percents of survey respondents expect Austin home values to outperform that baseline, the largest margin received by any of the cities on the list.
Just 10 percent expect the city's home values to stay the same, and only 7 percent expect them to under-perform — the second lowest city on the list. Charlotte was the only city where no expert polled expected a decline in home prices this year.
Interestingly, home values in the nation's bigger tech hubs — San Francisco, San Jose, and Los Angeles — were all predicted to fall in 2020.
"And panelists didn’t just expect those large California markets to underperform, but maybe still grow slightly — in many cases, they said they expected the typical home values in those places to outright fall, ending 2020 lower than where they began the year," Zillow says in a release. "Panelists, 42 total, who thought at least one major metro would see falling home values in 2020 generally agreed that California markets would make that list."
But this is Texas, so let's focus on that, shall we? Across the state, major cities will continue to see rising home values, Zillow predicts.
Earning that aforementioned score of 34, nearly half of the experts (49 percent) expect Dallas home values to out perform the national average. Thirty-six percent expect them to stay the same as 2019 while just 15 percent expect them to decline.
With its score of 32, San Antonio home values are predicted to be similar to Dallas. Forty-four percent of respondents expect San Antonio home values to outperform the national average while the exact same number expect them to stay the same. Just 12 percent expect the Alamo City to see a decline in home values this year.
Houston ranked the lowest of the Texas cities on the list, earning a score of 10 and just 32 percent of experts predicting that home values will outpace the rest of the country. The majority believe Houston home prices will either pace with the rest of the country (44 percent) or fall behind (22 percent).
By Katie Friel
Culture Map Austin