New Braunfels Edition | July 2021

2 0 2 1 R E A L E S T A T E E D I T I O N

Surrounding cities’ median home price

hot Market April

In the Greater Austin area, a combination of relatively steady home sales and diminished days on market have strengthened the market for sellers.

Percentage increase

2016 median sales price

2021 median sales price, year-to-date as of May

2019

2020

2021

COMAL COUNTY Canyon Lake

$225,000

56.66%

100

3,000

$352,500

GUADALUPE COUNTY

80

2,250

Cibolo

$230,000

60

19.57%

1,500

40

$275,000

Schertz

750

$209,000

20

23.44%

$258,000

0

0

$0- $249,999

$250K- $499,999

$500K- $999,999

$1M+

$0- $249,999

$250K- $499,999

$500K- $999,999

$1M+

Seguin

$181,480

28.25%

May

$232,750

of entry-level households to purchase homes.” While Parolek agrees that single-family homes are the most abundant option for homebuyers, he said polling has shown that they are not necessar- ily the most popular option. He added that through his own research, national data show that 60% of all housing will need to be missing middle housing by 2040 in order to keep up with demand. “I think there will continue to be a demand for single-family detached [homes], but I think more and more, there is a growing demand that is not being met for these missing middle housing types,” he said. “I’m not saying there is not a demand for single-family, but historically that is all we’ve been delivering, and the industry is having a hard time sort of adjusting and shifting quickly enough to meet the demand.” Smaller cities see big growth When Robin Sheppard sold her home of 35 years in Austin in December 2020, she did not anticipate that she would still be searching for a house more than six months later. Increasing tax rates, heavy trac and rapid growthwithin Austin played a key role in Sheppard’s decision to leave the capital and move to San Mar- cos. She would still be close enough to visit friends but in a less crowded city, she said. “I had lived in Houston for many years, and I left there to come to Austin because Austin was a lot smaller and had a wonderful feel to it,” Sheppard said. “This is not the Austin I came to.” Within 2 1/2 days of listing her home, Sheppard received seven bids and accepted an oer that was $50,000 over asking and included a contingency that allowed her to live in her home rent-free for 30 days after closing. “I just thought, ‘Wow, this is great; now I can go and buy myself a house and have extra left over to travel,’ … but that wasn’t the way it was,” she said. By June, Sheppard had placed bids on more than six properties that met her requirement for an acces- sory dwelling unit she plans to rent for a low cost to

3,000

100

80

2,250

60

1,500

40

750

20

0

0

$0- $249,999

$0- $249,999

$250K- $499,999

$500K- $999,999

$1M+

$250K- $499,999

$500K- $999,999

$1M+

SOURCE: AUSTIN BOARD OF REALTORSCOMMUNITY IMPACT NEWSPAPER

a friend. Despite her multiple oers on several prop- erties, including one that clocked in at $42,000 over asking, she has been outbid every time. Many who plan to move to one of the smaller cit- ies along the I-35 corridor expect to nd more avail- ability at a lower price point than in larger metro areas, Fernandez said. However, skyrocketing demand and dwindling supply have made once aordable markets highly competitive. “You can pick any town in this corridor, and it’s the same story,” Fernandez said, adding buy- ers who qualied at one point for a house worth $350,000, for example, may have to place bids for homes listed in the high $200,000 range with the expectation of paying signicantly more. “That whole middle market [is] just now getting wiped out of the playing eld.” As the population growth of cities on I-35 continues to outpace supply and corporations such as Amazon and Tesla invest in Central Texas, Fernandez expects to see interest grow in towns east of the interstate. “[East] is the only direction you can go right now, because even as far as Waco it is the same exact mar- ket we are having,” Fernandez said. Some buyers looking to live in a specic city are opting to purchase a home that is not yet built and rent until their house is complete. Laurianne Rodriguez is originally from New Braunfels, and after her husband was assigned to

Randolph Air Force Base in San Antonio for his last assignment, her family contracted with a builder in February for a home under construction in her hometown. “We contracted early, and we are extremely grateful we did, because there’s a point at which we would have already been priced out of our house,” Rodriguez said. Due to climbing construction costs, the price to contract the same model in June has jumped by $125,000, according to Rodriguez. Until their home is complete, the family is rent- ing in New Braunfels so their children can begin school in the same school district as their new house. Finding a rental for a family of four was dif- cult, Rodriguez said, and she hopes to be able to move in within a year. If Sheppard, who is still trying to nd a house in SanMarcos, cannot purchase one in the next month, she said she would also search for a rental property. “I feel like I’m homeless, you know; it just doesn’t feel good,” Sheppard said. “At the end of this month if I don’t have [a house], then I will rent something. … I’m not looking forward to that, but that’s cer- tainly going to have to be the next step. I can’t indef- initely be staying in other people’s homes.”

For more information, visit communityimpact.com .

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NEW BRAUNFELS EDITION • JULY 2021

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