Shuffler predicts a strong finish to 2019 with continued job growth across Texas.
AUSTIN, TX—The Texas median home price increased for the third consecutive month, surpassing $241,400 for an annual growth rate of 4.3%. Austin led the state with a record-breaking median price of $315,500, followed by Dallas at $293,600, according to a recent report by the Real Estate Center at Texas A&M University.
Echoing that strong performance, Terry Shuffler, vice president and general manager with Trendmaker Homes, discussed his housing outlook for Austin in this exclusive.
GlobeSt.com: What are your predictions for the Texas housing market for the remainder of 2019?
Shuffler: We see a strong finish to 2019. Continued job growth across Texas continues to lead to strong sales despite some national and global challenges starting to hit the news cycle. Ranking based on affordability, job prospects and quality of life, US News & World Report named Austin number one on its 2019 Best Places to Live list for the third year in a row (Dallas and Houston both made the top 30). Obviously, those factors are integral to a healthy housing market, with lower mortgage rates further boosting affordability.
GlobeSt.com: How are the lower interest rates impacting the Austin housing market?
Shuffler: Lower interest rates help buyers with the total cost of ownership. That kind of movement, when expectations early in the year were for rising rates, has gotten buyers' attention even more, bringing more people into the market. First-time buyers can take advantage of the lower rates, while others use that greater buying power to move up.
GlobeSt.com: What are the biggest challenges facing home builders in Texas?
Shuffler: The labor side of the business is extremely challenging right now along with escalating land prices. Those factors mean that housing is more expensive, which further adds to the overall housing shortage situation across the country. An economist for the National Association of Realtors estimated at mid-year that the national market was short 5 million or 6 million housing units.
GlobeSt.com: What trends in design and architecture do you think we'll see?
Shuffler: We continue to see a move toward open, more efficient floor plans, where you get a similar room count in a smaller home than in the past. We have found success in offering plan options and interior finishes that allow buyers to personalize their homes in a manner that suits their tastes and fits their budgets.
GlobeSt.com: What types of projects is Trendmaker Homes working on for the remainder of the year?
Shuffler: We just kicked off sales at a brand-new master-planned community in 6 Creeks in Kyle, a South Austin metro submarket where Trendmaker has not previously built. We're offering a new lineup on 50- and 60-foot lots that have open floor plans in a variety of designs and start from the mid $200,000s. The exteriors offer buyers both traditional and contemporary Texas Hill Country architecture.
Trendmaker's third residential phase at Rancho Sienna, a 500-acre master-planned community located in the North Austin metro city of Georgetown, kicked off in September and will feature its first 50-foot lot offerings, catering to families and empty nester/retiree homebuyers. The newest homes will offer eight open floor plans with three to five bedrooms and two to 3.5 baths, and start from the $290,000s.
Additionally, we will be starting construction in Meyer Ranch in New Braunfels, with model homes anticipated to open in Spring 2020.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
