Call us now:
Hi Austin Texas, it is time for your housing update for the week of August 1, 2022.
Before diving into this week’s number – the true value of understanding what these numbers mean to those of us living in Austin Texas and for those who are thinking about moving to or within Austin Texas, let me say this… Prices and interest rates go up and down. Yep. I said it. Prices and interest rates go up and down. And, while our thoughts and emotions may fluctuate with the market it’s our thoughts that create our feelings and our feelings that create our actions – are we staying put, buying, selling, leasing in Austin Texas? Now, the cyclical nature of real estate and stocks are just that – a cycle that continues from one point to another.
My perspective of the Austin Texas housing market is not spun by national media. I interpret the market – the hyper-local Austin Texas housing market based on what homes are listing and selling for, I preview them, I understand the condition of the homes and the neighborhoods and amenities centers, and how long the homes are on market for, and so forth. And, I tell you what it all means. And, more importantly, I offer strategies for my Buyers, strategies for my Sellers and strategies for tenants in an always changing market. No market can continue to go up on the trajectory we were on nationally. Not even the Austin Texas market! Right now our market is stabilizing. Want to know more? Let’s dive into this weeks numbers!
market stats Highlights Include:
- As of Monday there were 9034 homes for sale in Austin Texas which is our highest inventory number of the year. This is great news for Buyers if you chose not to participate in in the market conditions of the past 18 months and the market is still healthy for Sellers as we continue to see home values up well above 2021. Let’s get in the numbers and the housing market conditions because the media around the globe is having a field day creating story and boosting their ad revenues.
- There are 1186 new listings that came to the market up in the week prior (that’s 147 less homes than last week).
- There are 1935 home price decreases. (161 more houses had price decreases vs last week when there were 1774 decreases
- There are 100 home price increases
upfrom 146 last week.
- There are 224 properties that fell out of contract now back to the market that is barely up (from 220 to 224)) / basically flat from the previous week
- There are 499 properties that went Under Contract
- There are 469 Pending properties for Sale
- When we add up the “Under Contract” and “Pending” 968 homes are currently in the process of being purchased
- We saw 889 homes Sold which is up from the previous week (149 more).
- 226 were withdrawn which means they are no longer for sale (up from last week slightly).
- 148 homes had listings that expired ( up from last week when 38 home listing expired). Expired means that the house was for sale for a specific period and that it did not sell. It is currently off the MLS. This tells us that Sellers and their Agents who are not following the market closely did not adjust for the market.
- 110 Homes are now on hold. (27 less homes on hold vs last week).
What Does This Market Mean for Austin Texas Real Estate Housing Market if You’re Living Here vs Relocating?
Whether you’re living here now and your home value has increased substantially just by waking up in if you’re moving here from places like California, New York, Toronto or Colorado where you’re used to higher home prices, Austin is in demand for Buyers. And, Sellers continue to sell at home prices high above 2021, 2020 and any previous year. People are moving to Austin Texas and the housing market remains highly valued vs a year ago. People are buying and selling real estate every day.
How has The Fed Raising Rates by 0.75 Percent Impacted Mortgage Rates?
In an effort to fight inflation, The Fed raised their rate by 0.75% last week. This affects short rates for lending at the bank level. Not the long-term lending rates.
We knew The Fed rate hike was coming courtesy of ‘’the leak”. Jerome Powell didn’t really surprise us. The Eurpoean’s have now raised their rates which was seen as positive.
Mortgage rates are in the 5.25% range. Some people are buying down points by placing large cash sums up front. The jist of it is that most of us want to sit on our cash for now and be liquid vs buying down a lower rate and tying up cash in our homes. Cash in the bank is always a strong position in any housing market.
What Does This Mean If You’re A Seller?
Given the inventory numbers hovering at around 9035 homes, Sellers are finding more homes for sale in most price points. There’s no sign of a housing market crash in Austin Texas. Our market is becoming more balanced. A well priced move-in ready house will sell for more. Bidding wars are still a thing if you price your home to sell.
Sellers, how your home is marketed to Buyers is more important now than ever! Marketing is not about putting a sign in the yard, putting it in MLS and praying for multiple offers or even one decent offer. You want to work with an incredible marketer who knows how to market YOUR home. Nothing cookie cutter about marketing. Anyone who tells you as much, run.
Austin is remains a Seller’s market based on pent up Buyer demands.
What Does This Market Mean If You’re a Buyer?
If you are buying a home in Austin Texas then you need to know that we continue to be in a hot Sellers market. Buyer’s there’s no housing market crash in Austin Texas. There aren’t enough homes for sale or being built to keep up with Buyer demands. The good news Mr and Mrs Buyer is that we’re seeing an increase in inventory and some flexibility on contract terms.
We never know when a market has peaked in home prices. We never know when a market has bottomed out. Translation: you cannot time the market. If you’re planning on living in your home for the next 5-10 years consider that. You’re looking for a home that meets your needs and it’s a long game, this game of life. Winning is sleeping in your own home.
Waiting on Housing Prices to Come Down?
Consider first 1. How much house you choose to afford each month and 2. A locked in rate today is better than an unknown future rate months from now. If rates come down between now and closing on a new home, you’re going to get that lower rate. If you buy a home today and rates come down in a year, then you can refinance. In the meantime, if you’re renting, all of your hard earned money has been going to pay someone elses mortgage instead of your own. Waiting does not equal saving in any market.
So, let’s get our Home Purchasing hats on.
This is where my knowledge, skill and strength truly are when it comes to navigating the waters. I can’t and won’t stick my head in the sand and pretend that our economy isn’t at the forefront of your mind. Do you need to sell before you buy? There are strategies for that.
Whether You’re a Buyer or Seller Your Most Valuable Asset is a great Real Estate Agent.
They’re the one who will negotiate great terms for YOU. Remember, Listing Agent represent the Seller. And, they cannot represent you if you’re thinking about going direct..
Builders represent their own best interest
If you want the best negotiations with them then you need someone in your corner. You’re going to leave tens of thousands of dollars on the table I promise you if you go it alone. For the past month, Builders have been listing inventory that will be ready in a few months to capture Buyer attention.
Let us end with this about the Austin Texas housing market. There are opportunities for buying and selling in every market.
I’m here to serve and answer questions you may have. You can wait. We have pent up Buyer demand that is not going away. Next week we’ll have another Austin housing market update for you.
We’d love to hear your thoughts on this Austin Texas housing market, the economy and what you’re experiencing as you consider where you are living, loving, working and playing in Austin Texas. Are you staying put? If you’re making a move or considering moving, there are strategies.
I’m Jennifer S. Goodman Living in Austin Texas. And, whether you’re thinking about moving in 7 days, 7 weeks or 7 months, I’d love the opportunity to help you make your next best move.
Thanks so much for tuning in, we’ll catch you next time.
Want to talk about real estate? Please feel free to call or text at 512.548.4568