New signs that the housing market in Austin is improving have emerged in the data for new home starts. Builders began construction on 1,794 housing units in the second quarter of 2011, a 36% increase over Q1. According to a story in the Austin American-Statesman, our region has now recovered from the dramatic drop in activity following the expiration of last year’s Federal Housing Tax Credit. In the story, Mark Sprague, Director of Business Development for Mission Mortgage, is quoted heavily regarding the increase in demand and how that will impact the local housing market.
Sprague is quoted as saying, “barring a catastrophic event, it is going to be a very tight market within a year.” Looking at the amount of new construction, the dwindling supply of quality lots, and the predicted increase in our population, Sprague says, “We have more demand moving here than supply. There is no way that the house or apartment you look at today won’t be more expensive this time next year, I guarantee it, because of demand.”
For those who have heard Sprague speak recently, you know that his focus is on the increase in demand and the limited availability of lots. In the article, Sprague says, “The basketball of demand is coming down that hose, and there’s far too little supply.” The projected increases in population alone will lead to a squeeze on existing housing, which will lead to further building and development.
To read the complete article in the Statesman, please click here.
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