Almost 10 years ago now, our family made the move from California to Texas. Since then, we’ve worked with countless clients relocating to Austin from the golden state. While real estate in California and Austin has a number of similarities, understanding the differences, and what they can mean for your transaction, can be the key to a stress-free real estate experience. In our latest blog series, we unpack the 10 biggest differences between the California and Texas real estate process and how you can use them to your advantage.
Texas vs California Real Estate: Inventory Turnover
One of the first things our relocation clients notice about Texas is that there seems to be lots of inventory on the market and rapid turnover in homes here compared to California. This is without a doubt true. Here’s why:
In Texas, there is still lots of buildable land near the city centers. This means that developers are constantly creating new inventory at various price points. New inventory means that there is always something just a little bit better coming onto the market, which can motivate people to trade-up more frequently.
In California, there is almost no buildable land near major markets. This keeps the inventory at a set level. And as we learned from economics class, when supply is flat and demand is increasing, prices go up. This also forces people who want “new construction” to buy and remodel, increasing the value of their home significantly and again increasing prices. The sharp increase in prices means that many people literally can’t afford to move and stay in the same location. Because while they might be able to sell their home at a high price, they can’t afford anything better. This makes people generally reluctant to sell their home unless something compels them to sell and move away.
What are the Benefits to Inventory Turnover?
Increased options and flexibility means that you can see your home as an investment that can be used to your advantage. Without the pressure of having to pick your forever home as your first home, we see a lot of buyers able to find the house that affords them their best lifestyle. Many of our clients pick starter homes with short commutes and access to recreation, only to trade up a few years later to a larger home with great schools. It’s all about being able to choose what’s right for you today vs. what you can make work forever.
Considering a Move to Austin?
Check out our Austin Relocation Blog, our Guide to Relocating to Austin and our Tips for a Successful Relocation Experience for more tips. Then check out our Austin Home Buyers page to learn why we are the best Realtors to help you relocate to Austin. When you’re ready to reach out, fill out our Relocation Survey, send us an email or call us at (512) 827-8323 to schedule a no obligation consultation.