Are you or your clients thinking about moving to the Austin, Texas metropolitan area including suburbs?
The market statistics that I've provided here tell it all!
The Federal Reserve is trying to slow inflation and "cool" the housing market with interest rate increases. See this Reuters article published this morning https://www.reuters.com/world/us/fed-wants-cool-us-housing-market-heres-what-that-feels-like-2022-05-02/
Here is a snapshot of today's, May 2, 2022, current rates from Mortgage News Daily at www.mortagenewsdaily.com
Yikes! It was just last summer that it would have been possible to get a 30 Year Fixed Mortgage with an Interest Rate BELOW 3%. I'm now seeing 5.55%... do I need a new prescription for my glasses?!
It's not my eyesight that's regressing...
Mortgage Rates have been steadily rising since the end of 2021, turning off many homebuyers needing a loan... in fact, applications for new loans have plummeted! HOWEVER, looking at the March 2022 Austin-Round Rock Market Housing Statistics (published by the Austin Board of Realtors, ABOR), we are not seeing a significant impact from this yet.
The Median Sales Price in Austin and its suburbs has not only risen 22% compared to last year at this time, it reached an all-time record in March rising to $521,100. Also, the average time it took to sell a home here dropped 6 days to 21 days. These 2 statistics reflect a continued Seller's Market strength in this area... NOT a market that's "cooling."
March's housing data might be indicating small signs of impact from rising interest rates. The number of closed sales decreased by 5% and pending sales decreased by 11%. This might have created the increase of MUCH NEEDED inventory that has risen to about 1/2 of a month of inventory (from 1/5 of a month).
High prices and a low supply of homes has been a real problem for buyers here. Realtors continue to be frustrated with "nothing to show," overpriced homes and far too many multiple bid situations that takes the fun out of the home buying process for clients..
Here's my take of the situation...
Considering that the median sales price continues to rise notwithstanding less closed and pending sales, this indicates to me that the higher priced homes are the ones that are selling. I suspect that the majority of people who are purchasing these homes are the more well-to-do. The average American isn't purchasing here in this high priced environment. I suspect that homes priced below $500,000 will increase in supply due to rising interest rates. I'm not sure that all-cash buyers will "sweep them up" until they feel prices have fallen enough to make them viable investments. All in all, I continue to think that the Austin Metropolitan area and Suburbs are a good long term investment. It will be interesting to see how things continue to gradually change over the course of the next few months.
Looking forward to reporting next month's statistics!
Looking to buy or sell?!
Let me be your guide... or your go-to Realtor for you to refer your clients (if you are an agent like me). I love referrals!
Cary Nemeroff, Austin Lakeway ASL Realtor
(512) 409-4047
austinlakewayrealtor@gmail.com
www.austinlakewayrealtor.com
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