This week more than 417,000 appraisal notices are being sent to Travis County homeowners for 2016 property tax purposes. Homeowners will notice that the appraised values contained within these notices have risen, a reflection of continued home price appreciation that is occurring within Travis County and the city of Austin.
According to the Travis Central Appraisal District, the average taxable home value in Austin rose year-over-year by 6.8 percent to $328,281.
In Travis County the average taxable value, which is the market value minus exemptions, rose by 8.7 percent to $285,335.
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When eyeing homes with a homestead exemption, the average market value of an Austin residence is appraised at $389,318, a year-over-year increase of roughly 9.5 percent. In Travis County this average value spiked by 9 percent, reaching $387,537.
Home sales up amid price increases
Year-over-year home value gains have done little to impact Austin’s existing sales market. According to the Austin Board of Realtors, the 572 existing sales that occurred in February equated to a 6 percent year-over-year rise. Additionally, pending sales activity was up 12 percent during the month.
Demand for existing homes is strong despite the city’s median home price rising to nearly $335,000 in February. This figure represents 14 percent year-over-year appreciation.
One market condition driving pricing is inventory. Entering March, the city had an existing home supply of only 1.6 months.
With sales activity up on a year-over-year basis and prices up by double digits its no surprise several sources rank Austin as a top city nationally for real estate agents.
Employment, more residents in Austin
The primary drivers of Austin’s housing market have been its job and population growth.
In the 12 months ending in February the city added nearly 40,000 new jobs, growth of 4.2 percent, according to the Texas Workforce Commission. These figures make Austin the third fastest growing major metro.
Leisure and hospitality added 8,600 jobs; however, the fastest growing industries were wholesale trade and construction and natural resources. In 2015, Austin saw employment growth of 3.4 percent within the tech sector, with average tech industry wage reaching $103,600, according to Computing Technology Industry Association.
Cited by Forbes as America’s fast growing city, Austin has seen its population expand by 110,000 residences spanning 2010 to 2015, adding on average nearly 20,000 people a year.
