The Sky is NOT Falling!

By
Real Estate Agent with Coldwell Banker Realty ~ 512.750.6899

Real estate is cyclical. The sky is not falling! There is a cyclical change/shift going on that is necessary. The time of free money was bound to come to an end and interest rates eventually would go up!

Market Report - City of Austin | May 2022

New Listings

u 1,067              UP          73%      

Sold Listings    

u 1,121            DOWN 10%         

Days on Market

u 12                  Down      5 Days           

Median Sales Price

u $667,000      UP         18%        

Inventory was bound to increase as sellers decide to cash in on their appreciation. 20% year over year appreciation could not last forever.

If you look back at 2008, procedures of securing a mortgage were very lax....if you were breathing you could qualify for a loan. In 2022 the guidelines are more stringent and we are seeing large down payments and most programs requiring large cash reserves after closing. No possibility of zero down and rolling your closing costs in your loan. Not going to happen in today’s lending environment.

We have been looking at inventory in terms of weeks, sometimes days. Now it’s doubling, but think about it, that means 1.5 - 2 months of inventory, still way below the rule of thumb of 6 months as a balanced market.

In Austin and Central Texas we are experiencing many companies bringing jobs, relocating people, and small to medium size companies following.  It’s not slowing down; they are fleeing non-friendly business climates and we are on the receiving end. The next 2-5-10 years look very promising.

I’m not discounting the indicators/data but we have to look at the whole picture and be rational and practice some critical thinking.

If you are contemplating selling, call me so we can have a conversation on how the balancing in our market might impact your decision.

Posted by

Austin TX Canyon Creek Real Estate Agent

(512) 750-6899
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ReloAustin.com
Austin Real Estate Website

CanyonCreekNews.com
Canyon Creek Neighborhood

I specialize in Listing and Selling homes in the NW Austin Area. I use my experience to guide clients through the process, whether selling or buying. It’s a beautiful thing when your career and a passion come together. I love what I do!

Comments (16)

Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Dorie - some people just panic and new organization feed that.  The is such thing as the business cycle and real estate is part of that.  I tell people make your long term plan in all financial areas and stick to it.

Jun 25, 2022 04:46 AM
Dorie Dillard Austin TX

Exactly Grant Schneider 

Jun 25, 2022 05:18 AM
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

We have too many chicken little's in the world today that will always have a negative attitude, haha.

Jun 25, 2022 04:49 AM
Dorie Dillard Austin TX

Unfortunately that is the way the so called journalists operate.. negative news instills fear and negativity!

Jun 25, 2022 05:19 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Dorie... perfect way to put that the sky is not falling. People fall prey to headlines and panic. Nothing to panic about right now.

Jun 25, 2022 04:55 AM
Dorie Dillard Austin TX

Absolutely Nina Hollander, Broker !

Jun 25, 2022 05:20 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Dorie. Not the time to panic. Not the time to listen to pundits full of hot air. Time to take a deep breath and count to 5 or 10 while others panic. Business as usual! Enjoy your day.

Jun 25, 2022 04:57 AM
Dorie Dillard Austin TX

Amen Wayne Martin !

Jun 25, 2022 05:21 AM
Roy Kelley
Retired - Gaithersburg, MD

This is very good information to share with area residents. It is still a very good time for home sellers.

Jun 25, 2022 05:12 AM
Dorie Dillard Austin TX

Definitely is Roy Kelley 

Jun 25, 2022 05:21 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Dorie, we have been wanting more inventory and now are seeing it.   Our market is shifting a bit also.

Jun 25, 2022 05:42 AM
Dorie Dillard Austin TX

More inventory is a good thing....we still don't have enough but helps Joan Cox 

Jun 25, 2022 06:16 AM
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo and Home Specialists

Dorie, We have had several calls during the past week of how bad the market must be now with the Fed raising rates. Actually, many of our buyers are Cash Buyers and they are not feeling the pinch at all!

Jun 25, 2022 07:24 AM
Dorie Dillard Austin TX

It puts them in a great position Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400 

Jun 25, 2022 07:45 PM
Bill Salvatore - East Valley
Arizona Elite Properties - Chandler, AZ
Realtor - 602-999-0952 / em: golfArizona@cox.net

Thank you for sharing the information. Buyers and sellers in your area will benefit from your expertise. Wishing you continued success.  Have a wonderful day and sell a house.  bill

Jun 25, 2022 09:24 AM
Dorie Dillard Austin TX

Will do Bill Salvatore - East Valley 

Jun 25, 2022 07:45 PM
Kathy Streib
Cypress, TX
Retired Home Stager/Redesign

Hi Dorie- excellent post. So many are tuned in to the news on tv. Their goal is to create headlines and not tell it like it is. 

Jun 25, 2022 11:45 AM
Dorie Dillard Austin TX

BINGO Kathy Streib 

Jun 25, 2022 07:46 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Dorie the title got my attention, great logical explanation, I am finding those who missed out due to the  feeding frenzy of multiple offers now will have the opportunity to negotiate a fair price for their next home. Endre

Jun 25, 2022 12:35 PM
Dorie Dillard Austin TX

Absolutely Endre Barath, Jr. a true statement!

Jun 25, 2022 07:47 PM
Jim Paulson
Progressive Realty (Boise Idaho) www.Progressive-Realty.info - Boise, ID
Owner,Broker

Now more than ever, Realtors need to watch the stats and keep track of their local trends while ignoring comments on Facebook and most of the national media.

Jun 25, 2022 02:20 PM
Dorie Dillard Austin TX

You have that right Jim Paulson 

Jun 25, 2022 07:47 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Dorie I like the way you presented the numbers in this market report.  That is a simple and easy way to see the data.

Jun 25, 2022 03:33 PM
Dorie Dillard Austin TX

Thank you George Souto 

Jun 25, 2022 07:47 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Austin home buyers and sellers are sure to value your real estate market report, Dorie.

Jun 25, 2022 08:46 PM
Dorie Dillard Austin TX

Thank you Myrl Jeffcoat 

Jun 26, 2022 10:05 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

Critical thinking and open eyes can provide "a-ha's". Thought for the morning!

Enjoy your Sunday!

Jun 26, 2022 05:09 AM
Dorie Dillard Austin TX

You are so right Kat Palmiotti 

Jun 26, 2022 10:05 AM
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
Relocation to NW AZ with elbow room & more freedom

Yes this is not the time to be "Chicken Little."  As the old saying goes "as much as things change they remain the same."

Jun 26, 2022 07:38 AM
Dorie Dillard Austin TX

Very true Leanne Smith 

Jun 26, 2022 10:06 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Hi Dorie:

This is such a well-done and thoughtful analysis, and a great reality check about what is happening, versus what we continue to read in the headlines! We are certainly seeing a shift but not a correction at this time.

Jeff

Jun 26, 2022 10:44 AM
Dorie Dillard Austin TX

I always have to remind my clients don't read the headlines..they are not reporting the facts..just scare tactics!! What ever happened to our journalists? Oh.......I forgot.....they have gone by the wayside for sensationalism!!

Jun 26, 2022 05:12 PM