Annual Appreciation Report 2017
Circle C Homes Appreciate 4.7% Year over Year
February 6, 2017
Year over year, the average Circle C home saw a 4.7% increase in price per square foot… from $161/sf to $168/sf. Some neighborhoods fared better than others with the greatest rise in price per square foot coming from the Alta Mira and Circle C North areas respectively.
Overall, an increase in value is good news but that may also mean we could experience an increase in property taxes unless tax rates are adjusted down to offset the pricing gain.
View the annual appreciation report on the markets stats page, https://movetocirclec.com/homes/market-statistics/, be sure to select the Appreciation tab.
** Note – The annual appreciation report is really the annual ‘change’ in pricing… true appreciation would be the rate of change minus the inflation rate.
It should be noted the rate of increasing prices is ‘slowing’ down relative to our growth from five years ago… which was a time when we were still in recovery mode following the Great Recession. I don’t like to make predictions, but I expect pricing to continue a moderate growth rate of 3-5% annually if our economy continues to expand.
Similarly, Mark Spraque, State Director of Information Capital (aka Chief Economist) for Independence Title said the rate of change in home prices should ‘normalize’ at his presentation on January 16th at The Alamo Drafthouse / Slaughter Lane. Mark went on to say that while price increases will be moderate, we are expecting another good year (his words) for 2017. House prices are primarly influenced by an increasing population and job growth. Projected job growth for Austin is 28,200 new jobs in 2017, down from 32,100 in 2016.