Dear friends and clients,
As we turn the page on summer and head into fall, it looks like our real estate market may be starting to cool. Our white-hot market has been driven by low supply and high demand, but more inventory entering the market has changed the picture.
The overall inventory of unsold homes increased 7.3% from June to July. Although we probably won’t see a buyer’s market anytime soon, Lawrence Yun, the National Association of Realtors chief economist, admits, “There has been a turn in the market from super heated to still very strong.” He went on to say, “We see inventory beginning to tick up, which will lessen the intensity of multiple offers.”
Despite increased inventory, prices continue to rise, although not at the same breakneck pace. The median price for an existing home in July was $359,900, up 17.8% from a year ago. This marks an incredible 113 months of straight year-over-year gains.
As more people become vaccinated, it could signal a return to a more normal market. We’ve already seen a decrease in the rate of price growth. Ian Shepherdson, the chief economist at Pantheon Macroeconomics, has suggested that many of the factors leading to high demand were caused by the pandemic. He recently said, “Already, the easing of the inventory squeeze has reduced the month-to-month pace of price gains,” and this trend will likely continue.
There is hope on the horizon for buyers. As supply continues to increase, and the rate of price growth continues to slow, mortgage rates remain low. Danielle Hale, the chief economist at Realtor.com, says, “Despite the ongoing challenges of today's housing market, including limited inventory, lightning-fast home sales and competition from investors with deep pockets, many buyers are finding ways to persist until they find and close on a home."
If you have been looking to buy but felt overwhelmed by the competition, your time may have arrived. The fall months usually indicate a slowing of the real estate market. Hale predicts, "Although we didn't see this sweet spot last fall as buyers were making up for time lost to lockdowns, there are signs that we'll see it this year."
Our market may be cooling, but home prices are still likely to appreciate. If you are looking to buy, our low mortgage rates might not be around for much longer. Take advantage of them while you can.
We suggest you get started by taking a look at the homes that are available in Austin right now:
If you’re considering buying a house or have any questions about real estate, feel free to reach out to us at 512-829-8000 or reply to this email. The seasonal change and market shift make now the perfect time to come off the sidelines.
Have a great day,
Looking to buy a home? Looking to sell a home?