In the world of Texas Real Estate nothing is ever random and there is no such thing as a vacuum. Take Austin for example. The city itself was, until recently, just another folksy American town complete with gun-racks in pick up trucks and townsfolk wearing Stetsons and cowboy boots. There is still that there but the town is changing fast and it is fuelling a Texas Hill Country property price boom as high-flying executives and hi-tech company chiefs look for the idyllic life outside the town limits.
Austin’s sudden growth spurt, the elevation of its status in the world of Real Estate (Austin Realtors are making much of the hills, rivers and lakes of the Texas Hill Country) is having a chain reaction effect in property prices in the surrounding area.
As I write this the US and the UK, two global players in the real estate market, are in the midst of a crisis of confidence brought about by over-exposure to the sub-prime mortgage market. While both countries are looking at ways to address this and restore lender and borrower confidence Texas Real Estate, Texas Lake Properties and Texas farms and ranches are backing the trend and performing against expectation.
The reasons for this are clear: The Lone Star State, as a whole, has experienced less of the boom and bust cycle of traditional real estate growth spurts. Instead, in Texas the growth of real estate has been steady and slow. Prices have dipped a little as nervous out of State investors have hesitated and are now waiting to see what is going to happen to the mortgage market, but in cities like Austin investment by hi-tech companies and the growth of the University are fuelling a demand for land, farms and ranches that is being met by a steady supply.
It is this smooth and, dare I say, so far, steady link in the supply-and-demand cycle that has kept Texas land prices growing at a steady rather than sharp rate that has made Texas real estate less of a chance and Texas Realtors sleep a little easier than their counterparts throughout the country and indeed (if the UK is anything to go by) throughout the world.
So the halo effect goes a little like this: growth in Austin fuels Austin commercial property demand which in turn fuels Austin residential property demand which then leads to a rise in demand for land in Texas as those who live in Austin cast around for recreational properties, recreational land, land with hunting and fishing rights and land that is either near a river (for fishing and river sports) or land that is near a lake (which means Texas Lake Properties are again in high demand).
The Texas Hill Country has so much of that and it proximity to major cities like Austin makes it perfect for a getaway that gets rid of the stress of city life without cutting you off so completely that you cannot get back there if you need to.
It looks like the trend will continue with other major cities experiencing a growth similar to Austin’s in which case Texas land will continue to increase in price as demand grows and the supply adjusts accordingly to meet it.
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