The effects of a the drought in Austin.
We had an amazing few weeks of rain here in May, it was the most rain we've had since 2007. It had been my intention to do as much research as possible and put together a newsletter, until I stumbled upon this video on KXAN. It basically explains the before, during and after the rain. In as little as 4 weeks, we have come out of the drought and an amazing summer forecast is expected to show a cooler-than-normal summer after 7 years of record breaking heat.
So what does this mean for the real estate market and the economy? I can tell you that the regions west of Austin such as Bee Caves, Lakeway and Steiner have been trailing Austin in terms of appreciation, days on market and probability of sales. If you look at this page, you'll see that some of the areas (8W, LS and LW) had an overall depreciation of median home price. This has to do with a lot of factors, such as traffic and the distance to downtown Austin, but I also believe that it has something to do with the fact that a lot of these homes are sitting next to a nearly dried up lake. The economy in these areas is bound to get a boost from boat sales and rentals, restaurants and entertainment spots. This will lead to a perception that these areas are close to a part of town that has a water attraction as vibrant as Lake Travis instead of a future shooting spot for the next Mad Max sequel.
And if, God willing, the rain continues and we don't see record heat and lack of rain, this could boost this section of the city.