Austin Market Report Week of January 9th, 2023

Back in Black - as we move towards

Hi Austin Texas, it is time for your housing market update for the week of January 2nd, 2022.

Today we discuss the current state of the Austin real estate market, including new listings, mortgage lending, working with builders, and property values.

Austin Housing Market update Top Line

The new year has kicked off with a bang in Austin, with 681 new listings coming to the market in the last week, and 571 homes selling this past week. However, there is a lack of inventory.

Despite this, the market is showing a sense of calm and normalization, which is great news for buyers.

Mortgage Lending: Wondering  the differences between working with a builder’s loan officer and a professional? The current state of mortgage lending and how it is changing as the market shifts?

Property Values: Home values have remained stable, and that there is less pressure on buyers to make quick decisions. The current property values in Austin and what’s happening in various price points.

New Builds and Exciting Announcements: Santa Rita Ranch was named the #1 master-planned community in Texas a third year in a row.  And, also remains a top 5 master planned community national award  winner.

Challenges with Inventory

One of the biggest challenges facing the real estate market in Austin is a lack of inventory. This has been a problem for a while and is unlikely to change anytime soon. However, for those who are already qualified to buy a home, this presents a great opportunity. Knowing the parameters of what your money can buy, whether it’s a resale home or a new construction home, is key to finding the perfect dream home.

Mortgage Lending and Buying a New Construction Home

When it comes to buying a new construction home, it’s important to understand the differences between working with a mortgage lender and a builder’s lender. A builder’s lender is a salesperson working on behalf of the builder, while a mortgage professional works for the buyer. This means that a mortgage professional can provide a more personalized and tailored solution that is truly in the buyer’s best interest.

It’s worth noting that buying a home is not only a buyer’s biggest asset but also their biggest liability. The beauty of real estate and mortgages is that they allow you to leverage your money. However, it’s important to talk to someone who can provide the best solution, rather than just taking orders.

In conclusion, while there may be challenges and hurdles to overcome in the real estate market in Austin, there are also opportunities for those who are ready and willing to invest. Whether you’re looking to buy a resale or new construction home, working with a mortgage professional can help you navigate the market and find the perfect home.

Challenges for Buyers and Sellers

The Challenges Faced by Sellers

The market in Austin, Texas, is currently a seller’s market. This means that there is a high demand for property, but a limited supply of homes available for sale. As a result, sellers may have an easier time selling their homes, but they may also have to deal with multiple offers and bidding wars.

The Challenges Faced by Buyers

On the other hand, buyers may be facing more challenges in the current market. With limited inventory and high demand, buyers may find it difficult to find a home that meets their needs and budget. Additionally, buyers may be hesitant to purchase property when the stock market is uncertain, even if it is a better price than it was before.

The Role of Investors in the Market

Despite the challenges faced by buyers, investors are out in force, purchasing homes in Austin, Texas. This indicates that the market is still strong and that there may be opportunities for those who are willing to invest in property.

Inventory and the State of Home Purchasing in Austin, Texas

The lack of inventory in Austin is a long-standing issue that has been present in the industry. This shortage of homes for sale means that buyers need to be well-informed about their options and understand what their money can get them. Understanding the parameters of buying a home, whether it is a resale home or a new construction home, is crucial to successfully finding a home in today’s market.

Why Work with a Mortgage Lender vs the Builder’s Lender?

By comparing the terms of different Mortgage Lenders and working with someone who has no bias in the decision, you can make an informed decision that will benefit you in the long run.

A mortgage lender works for the Buyer. Period.

A Builder’s Lender is a salesperson working on behalf of the Builder.

This means that most of the time, the Mortgage Lender provides the best solution for the Buyer and unlike a Builder’s Mortgage Lender who takes more conversations to really understand what is in the best interest for the Buyer.

The Challenges and Costs of Buying New Construction

Buying new construction comes with its own set of challenges and costs. Builders are 100% for profit businesses and their job is to make a profit. 

Due to various factors such as supply chain issues and the pandemic, Builders have been forced to find ways to increase their profits. This can include owning a mortgage company or a title company, and passing on the costs to the consumer in one way or another.

Preferred Lenders and Trusted Advisors

From the bottom of my heart, it’s important for Buyers to compare the terms of the in-house Lender and a preferred Mortgage Lender who works independently in the best interest of the Buyer only  – with no agenda other than the best rate and terms. 

In the end, the most important thing is to find a trusted Advisor who will work with you and help you make the best decision for your specific situation.

Buying new construction can be a complex process. It’s crucial to understand the costs and challenges involved in the process and to find a mortgage lender who is working for you and is a trusted advisor.

In The News:

Santa Rita Ranch Named Top Selling Master Planned Community.

Santa Rita Ranch a master planned community in Liberty Hill, Texas,  has been named the top-selling community in the city for the third consecutive year, according to the Austin Business Journal. It’s also one of the top three building communities in the entire nation.

What sets Santa Rita Ranch apart is their commitment to building a strong community through the quick development of their amenities center, which currently totals $40 million worth of amenities and more to come. The community has another 8-10 years to build out, has new schools within Santa Rita and the Liberty and Leander school districts and is a desirable location for Buyers.

I’m personally excited to showcase properties in Santa Rita Ranch to potential Buyers in the future. Stay tuned for more on our YouTube channel and “all the socials”.

Apple
Has broken ground on its new $1 billion, 133-acre campus in Austin. Initially planned to house 5,000 employees, the campus was announced in 2018, with construction beginning in 2019. The continued construction announcements is a positive sign for our Austin real estate market.

Apple’s focus on Austin is not surprising because of the talent pool in the area, and that they have proven to be resilient with their ability to innovate and bring in the right talent despite being challenged by the market. 

The continued growth in Austin with Tesla and Samsung, as well as an increasing interest in commuting from neighboring towns such as Dripping Springs, Hutto, Taylor, San Marcos and so on is increases our Austin MSA as we continue to gain momentum and be in demand as a place to live for those in the tech sector, automotive and healthcare.

That’s all for now.

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!

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Jennifer S. Goodman
Jennifer S. Goodman
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