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Hi Austin Texas, it is time for your housing update for the week of July 27, 2022.
market stats Highlights Include:
- As of Monday there were 8830 homes for sale in Austin Texas which is our highest inventory number of the year. This is great news for those who either sat out of the insanity of the 30 people bidding wars or just plain were not able to purchase a home due to market conditions like other people outbidding you or builder lotteries or price gauging.
- There are 1266 new listings that came to the market up in the week prior (that’s 147 less homes than last week).
- There are 1774 home price decreases. (309 less houses had price decreases vs last week when there were 2083 decreases
- There are 146 home price increases up from 213 last week.
- There are 220 properties that fell out of contract now back to the market that is barely down / basically flat from the previous week
- There are 521 properties that went Under Contract (down from the week prior).
- There are 451 Pending properties for Sale (also down from last week).
- When we add up the “Under Contract” and “Pending” 772 homest are currently in the process of being purchased or at the very least in the Option Period
- We saw 740 homes Sold which is up from the previous week ().
- 196 were withdrawn which means they are no longer for sale (down from last week slightly).
- 38 homes had listings that expired (basically flat from last week when 35 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.
- 137 Homes are now on hold. (9 more homes on hold vs last week). “On hold” means that those homes will be back for sale at some point, they are currently on a break… Like Ross and Rachel. If you didn’t get that little joke, I feel for you.
So what does it all mean?
The 30,000 foot view is that people are moving to Austin every single day. Apple is spending a billion dollars building out their campus by 2025. Oracle is building until 2027, Google is still not finished with their build out. Do you have any idea how many people will be moving here in the next 5-10 years? People are moving to Austin Texas. People are buying and selling real estate every day. And, higher rental rates continue to be the story here and everywhere. My friend in Las Vegas is in luxury condo and they just asked him for a 25% increase.
What Does it mean if your a seller?
Given the inventory numbers hovering at almost 8900 homes , Sellers are finding more competition in most price points. 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 still very much a Seller’s market based on pent up Buyer demands.
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. I may sound like a broken record by year end with that line. Austin is relatively cheap compared to so many northern and west coast markets. Austin is a hot market… like it’s 108 degrees farencheit hot while I’m shooting right now. The good news Mr and Mrs Buyer is that we’re seeing an increase in inventory and some flexibility on contract terms.
The Build-to-Rent Market is Growning!
Developers who are 30-45 minutes out of town are looking at the money they can earn building build-to-rent. And, our city benefits from taxes one way or another. They get it from the builders from development and from us as homeowners on taxes. Rents are increasing so it makes sense that builders are getting away from building single family homes and moving towards multi-family and rent-to-own.
Waiting on Housing Prices to Come Down?
Price increases are slowing. And, while some listing prices are going down in Austin Texas, we are going to remain steady on our price increases according to the predictions of many. Listen, if you bought 2.5 years ago when people were panicked about the pandemic, you’ve seen upwards of a 50-100% increase in your home value. Never have more people been so happy as those who purchased a few years ago and locked in under around the 3% mortgage rate. And, here’s the thing, next year, do you really think lending rates and house values will be down? I think not. The Roman poet Virgil knew a thing when he said “Fortune favors the bold”.
So, let’s get our Home Purchasing and Selling Bonnets 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. And, our economy begins at home. With our wallets.
The big question many of us are asking is whether demand is slowing down because people believe the economy is getting worse. The media, aka the news aka how do we sell ratings and get people to keep coming back…. The media is helping to ensure a self-fulfilling prophecy shouting of health uncertainty for the past year and now economic uncertainty which results more economic uncertainty. And, to answer my own question, here’s the thing, we believe what we perceive. Gas prices dropped last week. Is that a sign of slow down already? I doubt it. I honestly expect prices will rise again… but who knows.
And, right now there is a shift in most people’s 401Ks and Crypto holdings which are down for most of us. The market volatility is affecting the housing market. I could have said that from the beginning. I know. However, I owe it to myself and to you to follow the global economy because it affects our micro economy buying and selling homes in Austin Texas.
Our Tax Rates Also Affect Our Purchasing Power.
Upcoming bond votes will affect purchasing power. Folks if our taxes stay the same as they were last year, given the value increases in our homes, our tax bills are going to be a lot higher even with a 10% homestead cap on how high taxes can go. And, don’t forget you can protest your taxes every single year.
That said, our house valuations were pulled on data from earlier this year. So, even if the value of your home is now less than it was in January or February, you’re going to see the rate hiked as high as possible – odds are you’ll be banging your head on that 10% tax increase if you’re a home owner.
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. The stories from the past 2.5 years are hard enough to swallow.
There is a shift with Builders, their prices and the housing inventory that they are currently listing for sale.
Let me end with this about the Austin Texas housing market There are opportunities for buying and selling in every market.
Interest rates will fluctuate daily. They have since time in memorium. Buying a home in Austin Texas will not be cheaper in 6 months if mortgage rates go up. If you think you’re waiting for a price reduction that’s fine. It’s the cost of borrowing that will make the difference. I know I’m a Realtor. 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. While our homes may be more expensive than they have been, every cycle we’ve seen has housing prices rise. Next week we’ll have another Austin housing market update for you. I’d love to hear your thoughts on this market, the economy and what you’re experiencing as you consider where you are living, loving, working and playing in Austin Texas. Please share your thoughts below. We’re not at the peak of any selling market. 5 years from now you won’t be able to buy the same home for today’s price.
I’m Jennifer S. Goodman Living in Austin Texas. We’d love to hear from you. Thanks 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