The New Rules of Austin Real Estate: Austin Realtor Predicts Home Prices Will Drop

Not since the oil and gas bust of the 1980s has Austin seen such a wonderful opportunity for Austin real estate buyers and investors," Carter says. "For sellers, this is only going to get worse." Carter disagrees with many prominent local Austin real estate agents who are suggesting that home prices will keep rising. "They absolutely won't," says Carter, who has already spotted several listings across Austin where sellers have had to significantly cut their asking price. "The rules of Austin real estate are changing right before our eyes." Carter predicts further price declines and more foreclosures to occur well into 2009. "The real estate stock market will keep falling over the next several months and you'll also start to notice average real estate prices falling in Austin either this winter or early next year." The current median price of a home in Austin is $182,600 according to the Austin Board of Realtors. "In economic cycles like this, everyone - from homeowners to hedge fund managers - will want to get out of debt and accumulate cash. This will lead to big discounts on cars, boats, furniture and even real estate," Carter says. "You're about to see this happen more and more."