Everyone wants to live in Austin! Since 2012, the housing market has continued to boom year after year, thanks to consistently ranking as one of the best cities to live in the United States. 

 

Add to the mix that many large companies, like Apple, Dell, and eBay, are moving their headquarters to the area, it’s no wonder that the Austin market is getting more and more competitive. If you’re looking for a home in Austin, you need to be prepared about what to expect. 

 

To help you, let’s look at what the market was like in 2019 and what you can expect moving into 2020, and what credit score you’ll need to get the best mortgage interest rate to make your Austin dream home a reality!

 

Austin Housing Marketing in 2019

Stated by credit repair Austin analyst,  the Austin housing market has gained incredible steam since 2010, almost doubling home values within the city. This year was no different. 

 

As of November 2019, a press release from the Austin Board of REALTORS stated that the median price for a single-family home within city limits rose 10.6% over the previous year! 

 

That’s a massive jump for a single year-over-year comparison! The average home price was at $400,000+ and climbing, with a high demand for single-family homes, which make up 47% of the city’s units. 

 

The demand for homes was unmatched by the supply, and the market reflected that dramatically. The average number of days a home was on the market before it sold was only 15. 

 

People were outbidding each other left and right, trying to get into the Austin city limits! 

 

Austin Housing Market Predictions for 2020

In 2020, you should expect a continued climb in both pricing and competition when it comes to the Austin housing market. Between the growing population and the shortage of housing, Zillow predicts that home prices will rise by 2.8%. 

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A recent Zillow survey:

Indicated that 83% of participants believe that Austin will outperform the average U.S. home price growth over the next year. 

 

There is the possibility in 2020 that the Austin housing market will transition more towards a buyer’s market, but that will only happen if there is a significant increase in homebuilding efforts.

 

Austin will still have a substantial rental demand in 2020, with more than 55% of residents who rent rather than own, thanks to the rising housing prices. This poses an excellent opportunity for investors and homebuyers who want to purchase a property to rent it out. 

 

Rental income can make a massive difference to your pocket, and the way the Austin population and demand is booming, it’s an attractive investment.

 

What Credit Score Do You Need to Buy a Home in Austin?

If you’re looking to get in on the hot Austin housing market in 2020, you’ll need to make sure that your credit is in check. When you apply for a mortgage, your entire credit history will come under scrutiny, and your score will determine what interest rate you get for your loan. 

The higher your credit score, the better the rate. If your score is lower, you’ll have to deal with higher interest rates, and that’s even if you can get approved at all.

 

Knowing your credit score is one of the essential steps in preparing to purchase a home. Fortunately, if your credit score isn’t up in the 700’s, that doesn’t mean that you’re out of luck when it comes to getting a mortgage. The minimum score required depends on the type of mortgage you get. 

 

There are three common mortgage types:

 

Conventional

A conventional lender is typically a private bank or creditor, and while minimum credit scores will vary, they usually range between 620 to 640. 

 

USDA

The United States Department of Agriculture offers mortgages and loans to prospective homebuyers looking to purchase property in less industrialized areas. There is no set minimum credit score for these loans, but it’s recommended to have at least a 640.

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VA

If you’re a veteran, the Veteran Affairs department offers a variety of mortgage options and access to lenders to help you purchase your home. There are no set minimums, but lenders under this program typically require at least a 620.

 

FHA

The Federal Housing Administration offers loan and mortgage programs to help people with less than stellar credit purchase homes. With an FHA loan, you’ll need a minimum credit score of 580 and be able to put down a 3.5% down payment. 

 

You should also know that you’ll need to purchase mortgage insurance when you use an FHA loan to protect the lender if you are unable to make your mortgage payments.

 

With Austin still holding onto the top of the U.S. housing market, you should give some serious thought to purchasing an investment property. But to make it worth your while, you’ll need to make sure that you get the best interest rates possible with ensuring that your credit score is the best it can be. 

 

If:

You’re worried that your credit score will affect your ability to get a great interest rate on your mortgage, consider hiring a credit repair company. 

 

They are experts at helping folks repair their credit reports, and will help you understand your current situation, as well as put together a personalized, detailed plan to get your credit up to par. Don’t let your credit score affect you from realizing your dream of buying a home in Austin! 

 

 

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