City of Austin June Housing Report

Many have wondered in these crazy CO-VID times how their industry is going to fare. Well, I’m happy to report that the Austin housing market is still alive and well, even during a global pandemic. The Austin Board of Realtors just released their monthly report, and the results are good. We see that the median sales price is up 3% in June while the average days on the market is down by 6. This means that it is still a seller’s market in Austin, Texas. If you have a property you would like to put on the market, believe it or not, now is still a good time!

Check out these other ABOR statistics below:

Interested in seeing what your home could be worth? Contact me below for your complimentary home evaluation!

Virtual Reality and Augmented Reality--the future of Real Estate

Photo Credit: Hackernoon

The future of buying and selling homes will be greatly impacted in the next 5 years by the ever increasing availability of virtual reality (VR) and augmented reality (AR) technologies in the real estate industry. But what is the difference between VR and AR, and how will each of them have an impact on the real estate industry in the years to come?

Virtual Reality immerses the user in a virtual world, one in which they were not already present in before. Instead of having to visit each property in person, a buyer will be able to put on a Virtual Reality Headset and immerse themselves in a three-dimensional tour of a property or properties. A more low-tech precursor to VR headsets is the 360 degree-tour, which is already available on many real estate platforms.

The advantages to Virtual Reality are several:

1. 24/7 Access: Properties remain “open,” so the client can tour properties according to his/her schedule.

2. A Time Saver-VR saves both clients and realtors time, helping to narrow the field of properties a client is serious about and needs to actually go visit in person.

3. Global Access-Clients purchasing homes in another city or country will have access to VR to “look” through properties themselves, versus having to buy sight unseen or require extensive travel.

4. Money Saver-As the expression goes, time is money. The time saved with VR will automatically save both the client and the realtor money. In addition, clients can save on expensive staging costs and any expenses they would incur to be out of the home for open houses, etc.

5. Emotional Connection & a Sense of Ownership-Having a space readily available to a client to access at any time helps the client build an emotional connection to the home as they begin to envision their life in that space.

In contrast to Virtual Reality, which is 100% “virtual,” Augmented Reality combines the virtual and physical worlds, overlaying virtual objects in a real world environment. Augmented reality offers a way for clients who can still get to a property in person to build a deeper impression of the property. Augmented reality allows clients to use picture overlays that appear on top of the physical space that a client is standing in.

As you can imagine, AR technology has many beneficial uses for the real estate market:

1. Complete Unfinished Spaces: AR applications will allow builders and architects to show clients who are standing in a space under construction visuals of what the finished exterior and interior will look like.

2. Instant Staging- Customers standing in a house trying to imagine what their furniture will look like in it will not only be able to use applications to “furnish” the house, but will get to choose finishes and styles as well.

3. Learn About Properties for Sale- As a client is walking down the street, AR will allow them to point their phone at a house for sale and get all the relevant property information on the device’s live camera feed.

4. Revolutionize Renovations- Clients walking through a home with a contractor will be able to overlay blueprints of floor and design plans over the physical space they are in.

5. Nail Down Property Lines-AR technology will allow a client walking the property lines of a house for sale to see exactly where the boundary lines fall for a property.

6. Envision in 3D- As you can see from both VR and AR, the future of real estate is in 3D visualization. 2D flat paper visualization will be a thing of the past. With virtual and augmented reality, clients viewing plans and blueprints can walk around and inspect a property from every angle.

A Goldman Sachs report predicts that the virtual reality and augmented reality market in real estate could top $2.6 billion by 2025. As these virtual and augmented reality technologies continue to be refined and tested, we will start to see them make their way into the real estate market and become an integral part of the buying & selling process.

What do you think of virtual or augmented reality? Would you feel comfortable purchasing a home you had only taken a virtual tour of? Will the technology be able to be developed at a price that all families can eventually afford a virtual reality headset? What do you think is the future of this technology in the real estate market? Let me know in the comments below!

And, in the meantime, to look at some houses the old-fashioned 2D way, click on the button below!

Virtual Reality is Not the Same as 360-Degree 2D Images

Let’s review the differences between a 360-degree 2D image versus virtual reality. A 360-degree video is a compilation of 2D images connected. A buyer consumes the 2D images that are put in front of them; they cannot take part in what is happening because they are limited to the photos provided. The buyers experience is always the same, as you can’t change the photo sequence, move to a different perspective (other than what is provided), or get a 3D spatial feel of the room.

Virtual Reality is an interactive experience. Buyers can walk around, explore the space and even change the space. Does your project have different finishes? The VR technology allows buyers to switch in and out finishes so they can see the difference.

In VR, buyers are also not limited to a predefined sequence as they can access every aspect and area of the property. A buyer’s decision to interact with a certain area will change their experience. Every buyer is unique; so, during the VR walk through, buyers can focus on what is important to them (i.e. spend more time in the kitchen, master bathroom, or admiring the views from the bedroom). And this is what makes VR technology so engaging and attractive to a buyer.

http://www.360homephoto.com/ Example of a 360 Degree 2D image Home Tour

Virtual Reality tour—envision the project before it is even completed

Why Virtual Reality Works For Real Estate

By embracing the VR transformations, a sales team or real estate professional can shorten the buying journey and help buyers and sellers navigate a purchase of a property while under construction. The main advantages to adopting VR in real estate include:

• Accelerates The Sales Process : While 2D renderings were a technology advancement in sales tools, many buyers have trouble visualizing the property until construction is complete. With VR technology, buyers can virtually “walk-through” the non-existent property, see the finishes, and understand the spacial layout for the property. Buyers don’t need to visualize the property as the technology displays the property as if it was built.

• Cost Effectiveness : VR will eliminate traditional marketing initiatives and provides a cost-effective solution. How many model properties were built for the sales team? What was that cost? Access to VR technology, which gives buyers a similar “walk-through” experience plus the ability to display all finish options, is a cost-effective solution. Alternatively there may not be a model home; the VR walk through would provide a cost-effective marketing solution while the property is under construction.

• Global Reach : Customers can virtually view properties from anywhere in the world, opening up the target market. Is your target market limited to the local audience or throughout the world? Provide access to the VR walk through and anyone can virtually view the property.

• Enhanced Customer Experience : Buyers have freedom to explore the property as they wish. Each buyer is unique and will focus on what is important to them. One buyer may focus on the kitchen while others may focus on the master bathroom, pool, library, media room, etc. Every VR walk through allows buyers to personalize their tour of the property.

• Customer Feedback : With every buyer VR walk-through, sales team members receive key insights into the buyers behavior and preferences, allowing them to improve future interactions with that buyer.

Austin Real Estate Boomed in 2019. What's Next in 2020?

An astounding view from the balcony of Shore Condominiums, Austin, TX.

According to the Austin Business Journal and Mark Sprague, who is the state director of information capital at Independence Title, the Austin market continues to thrive beyond everyone’s projections. At the end of 2019, Mark Sprague pointed out two encouraging economic developments for Austin that demonstrate just how phenomenal the economy and housing market have been. First, Austin is one of only eight cities in the nation that has seen its home prices FULLY bounce back since the 2008 recession. Second, over the past 20 years, Austin’s GDP, or gross domestic product, has seen more growth than any other major city in the United States! In other words, its a great time to own a home and earn a living in Austin, Texas.

None of this should be too surprising from the city that has added more people to its population this past ten years than any other city in the United States! Austin’s population has climbed from 1.7 million in 2010 to 2.2 million in 2018. That’s a growth percentage of 26%! And, according to Austin Business Journal, the median price of a single-family home in Austin has increased 64% from 193,520 in 2010 to 318,000 in 2019. Median family income has not kept up with the increase in home prices, however. Most families only saw a 35% increase in their income during the same time frame, causing many home buying procrastinators to get priced out of their desired markets.

If those statistics are not encouraging enough, here are some more astounding findings from the Statesman about Austin’s home market: 9,572 single-family homes sold in the city of Austin last year, totaling almost $13.2 billion total dollars in sales. This is a major increase from 2018 and a brand new record for Austin in both number of homes and total dollar amount in homes sold. In addition, this is the ninth year in a row that the sales volume and the median price both topped the previous years numbers!

And, the good news (if you’re a seller!) is that the housing market seems projected to continue its rise in 2020. With housing inventory in the city limits of Austin down to just 0.9 months in December 2019, we will soon face a housing shortage in this city without new construction and more sellers on the market!

With numbers like these, it’s easy to see why so many buyers consider a home in Austin such a good investment. If you are interested in getting in on the “growing edge” of Austin and finding an affordable home for you at the right price, contact me below! Don’t miss out on this opportunity to capitalize on Austin’s phenomenal growth phase, which will continue into 2020.

Or, if you have a home you need to sell, now is a GREAT time to get it on the market. You will most likely see high competition and multiple offers on your home, especially if you are in a favorable school district or trending area of town.

Whatever your home need, I am available to help you capitalize on this unprecedented time in Austin’s real estate history. Contact me today and let’s realize together your real estate dreams for 2020!