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Hi Austin Texas, it is time for your housing market update for the week of January 30th, 2023.
The Austin, Texas Real Estate market is showing signs of stability and calmness as demonstrated by the number of homes for sale, price decreases, price increases, contracted homes, and sold homes have remained flat for the month.
Tune is as we break down the homes for sale (price points) and how it compares throughout the month.
December Median Sales Prices
Austin-Round Rock area median sales price is $457,000
The Austin MSA (Metropolitan Statistical Area) median home price is just over $500,000.
Mortgage Loan Limits – What It Means To Buyers
The maximum FHA loan for Austin is $571,000.
The maximum conventional loan limit is $730,000.
The increase in loan limits for both conventional and FHA has allowed for more affordability at every level of home purchase. With the building of more introductory-level homes, move-up Buyers may be in a better position to buy their new second or third home.
With the market sales and inventory showing stability this past month, it’s an easier time time for Buyers and Sellers to make informed decisions.
Goldman Sachs – Austin in the News
Goldman Sachs made an announcement that Austin is one of the top four markets in the US that will be hardest hit with price decreases.
The announcement has been sensationalized by the media (because it sells advertising).
Home prices are down in Austin Texas compared to last year. The fast-paced home appreciation numbers and cost of living increases over the past few years were unsustainable for Austin Texas and all other housing markets experiencing similar growth.
The same house you could have purchased last year at a higher price may actually cost more for monthly affordability based on mortgage rates.
Mortgage Rates: The 2:1 Buy Down or How to Buy at 2022 Rates
The two-year Buy Down provides a temporary reduction in payments for the first year based on 2% less than the fixed rate and 1% less for the second year. This Buy Down is a cost-effective option for Buyers.
NOTE: Sellers can offer concessions (cash) for a Buyer’s 2:1 Buy Down.
CAUTION: If you cannot afford the monthly mortgage without the 2:1 Buy Down, we urge you to consider purchasing a home with a less costly mortgage. If that mortgage rate is still at today’s rate in 2 years, then you’re going to find yourself wondering how to pay for that posted rate. We would hate to see you sell your house in 2 years based on that affordability sticking point. More life experiences and less house payments never hurt anyone.
Honestly, what is your worst-case scenario? Take into account property taxes, insurance, and other expenses and how to add extra breathing room and financial stability from month to month.
Elon Musk in The News – “Elonville”
In response to the limited inventory and need for more housing starts in Austin, a builder has partnered with Elon Musk. By providing housing for his workforce, Elon is effectively creating product that doesn’t otherwise exist, taking potential Buyers out of the competitive bidding process. This also allows him to control the price points of the homes being built and offered, making them more affordable for his employees.
Think about it: He owns thousands of acres. He needs thousands of workers. Those workers need a place to live and raise families. It only makes sense to build homes and schools and other infrastructure for his army.
I’m not kidding when I say “Elonville” could very well become the place that people live work and play like any other master-planned community.
He continues to be a disruptor in every industry he touches. Will this announcement to start building homes be any different?
For what it’s worth, I have been saying that Elon will start building houses for years. It was only a matter of time. I think it’s genius.
If you worked for Tesla, the Boring company, Space X or any other Elon-owned company, would you want him to pay your wages so you could pay his mortgage company to live in one of his homes that he offers you at a pre-determined price or perhaps for FREE as part of your wages?
THE AUSTIN HOUSING MARKET NUMBERS AT A GLANCE
Homes are selling in Austin, Texas.
- As of Monday there were 8094 homes for sale in Austin Texas which is our lowest inventory number of the year.
- There are 809 new listings that came to the market in the week prior (that’s 10 more homes than last week).
- There are 1065 home price decreases. 69 less houses had price decreases vs last week.
- There are 158 home price increases slightly down from 171 last week.
- There are 183 properties that fell out of contract now back to the market that is 23 homes more from the previous week.
- There are 422 properties that went Under Contract (slightly up from the week prior).
- There are 548 Pending properties for Sale (down by 49 homes from last week). Combined = 970 under contract
- We saw 473 homes Sold which is up by 24 from the previous week.
- 174 were withdrawn and taken off the market (flat from last week).
- 60 homes had listings that expired (slightly down from last week when 68 home listings expired).
- 79 Homes are now on hold. (also flat homes on hold vs last week)
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!
