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Hi Austin Texas, it is time for your housing market update for the week of January 2nd, 2022.
The Austin Real Estate Market in 2022: Everything New is Old Again
Austin’s Housing Market Update Topline
Here’s a quick glance at what’s happening in Austin this week:
Median family income for Travis County is $99,250 which is much higher than the national average which is closer to $55,000.
Currently, there are 8100 homes on the market in Austin (down from our high of 10,000 last year)
People buy and sell real estate year-round!
365 new listings came on the market in the last week of December
559 homes went under contract in the last week of the year
The Austin Luxury Market shows 1178 homes for sale in Austin priced at $1,000,000+. Most of these are under $5,000,000. This bodes well for luxury move-up Buyers as well as those who are moving from more expensive markets into Austin.
Housing Market Insights for Sellers and Buyers
Negotiations are taking longer and require more creativity in this current housing market.
Negotiations are rarely a quick back and forth process like they were during the Pandemic. Now, we’re experiencing space for Buyers and Sellers to come to an agreement. And. both parties are generally willing to get creative in order to find a home purchasing solution that works for everyone.
As a Seller, you want to make sure you’re attracting as much attention as possible in the first few weeks your home is listed in order to maximize your chances of a successful sale.
Understanding each neighborhood’s inventory of what homes for sale aka “the competition” is key to insuring you (Sellers) sell for top dollar and (Buyers) buy at the best possible price.
The Lowdown on a 2-1 Buy Down Mortgage
Federal Housing Finance Agency (FHFA) increases conforming loan limits each year. And, we’re in a new year!
The baseline conforming loan limit for 2023 is $726,200 which is up substantially from $647,200 in 2022.
A 2-1 buy down allows a Buyer to pay $1.5 million, but borrow as if they paid $1 million. This may be a good option for Buyers who want to move now and take advantage to lower their mortgage rate. We dive deeper into 2:1 Buy Down in other videos.
Tips for Sellers
You want to hire a Listing Agent, that understands today’s market – strong communications, pricing strategies and market values in a shifting market, Buyer psychology, marketing and negotiation skills.
- Effective Communication: As a Seller, it’s important that your REALTOR is hard at work – this means they’re in close communication with potential Buyers and their Agents. This includes following up with agents who have shown interest in your home, and reaching out to Buyers who may be waiting for a specific date to make a purchase. By staying in touch, you can ensure that your home stays top of mind for potential Buyers and increase the chances of a successful sale.
- Pricing Strategy: One way to attract more attention to your home is to list it just under market value. This can create a sense of urgency among buyers and encourage them to make an offer. However, it’s important to strike the right balance – pricing too low could result in leaving money on the table, while pricing too high could turn buyers away.
- Understanding Market Value: As a seller, it’s important to have a clear understanding of the value of your home in the current market. This includes considering factors such as the condition of the home, the local market, and the competition. A good real estate agent can provide valuable insights and help you determine the right price for your home.
- Expert Negotiation Skills: Working with an experienced Agent can be a huge advantage when it comes to negotiating the terms of a sale. An expert negotiator will be able to help you get the best possible deal and smooth out any bumps in the process.
Selling your home is personal. If you want to increase your chances of a successful sale and get the most out of your home in today’s market, then hiring a great Agent with strong communication and marketing skills is key.
Tips for Buyers
As a Buyer’s Agent, I am on top of the market for my Buyers so that you can make informed decisions about your purchase. This includes having a tracking home inventory levels, average home prices of what is for sale today and what has sold recently. And, because I’m on top of it, you’ll be better equipped to make decisions that are in your best interests. Buying a new home that you’re going to live your next chapter of life – it’s personal.
A couple of considerations:
- 2-1 Buy Down Mortgage: If it fits your budget, a 2-1 buy down can be a good option for buyers. This allows you to lower your monthly mortgage payments by paying a higher interest rate in the short term, which can be helpful if you are trying to save money or afford a higher-priced home.
- An Experienced Agent: When it comes to negotiations, an experienced Agent is your most valuable asset – they’re the leader of your home buying team. They can help you navigate the process and negotiate terms that are favorable to you. Finding the house, negotiating the best possible terms for you and getting you to the Closing Table – the day you get your keys – is a process that requires systems and support. That’s why I have a team to support you all the way through. Every. Single. Day.
- Don’t Succumb to Fear Mongering: Do not let national “news” or catchy clickbait titles designed to fear monger influences your decisions. Real estate is a hyper-local sale. What’s happening in another neighborhood, school zone, zipcode or elsewhere is not necessarily reflective of what we need to stay focused on to help you achieve your goals. Your buying and selling goals are YOURS and yours alone. There’s nothing cookie cutter.
New Home Construction in 2022 vs 2023
As 2022 drew to a close we saw Builders working to get inventory off their books. They offered incentives to Agents and their Buyers to make a move to new properties.
Buyers, consider that new construction communities may not be a short- term investment. The first thing to understand is value of the property in the current market. Other considerations are how many other phases are being built and how long that will take. What your family’s needs are for schools and timelines that may impact how long you wish to live in your home. 3-5 years will fly by before you know it. And, your home will still be relatively new if you start thinking about moving again.
Thinking about making your next best move? We’d love to chat. The Jennifer S. Goodman Group is just a call or text or email away. You can reach us HERE.
Mark Karetskiy is a Mortgage Lender at Movement Mortgage. You can find him at Mark10k.com.
Thanks so much for tuning in, we’ll catch you next time!