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
u 1,067 UP 73%
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.