Austin Area Housing Market Cooling!

Real Estate Agent with Keller Williams Realty Lake Travis TREC# 755139

The housing market in the Austin metropolitan area is really cooling!  We are rapidly moving away from a strong Seller's market and are closely approaching a balanced market.  

As per the August 2022 Statistics published by the Austin Board of Realtors (ABOR), almost 3 months of inventory has accumulated with over 9000 Active listings compared to the April statistics (featured at the bottom of this article) that reported roughly 2700 Active listings and less than one month's inventory for single-family homes, condos and townhouses.  

This is a rapid, 4 month housing market shift!

Other relevant housing market indicators demonstrating a shift AWAY from the Seller's market are the number of Closed and Pending sales AND the Total Sales Dollar Volume.  In April we saw 3,280 Closed sales and 3,630 Pending sales... just 4 months later we are seeing 356 LESS Closed sales and 753 LESS Pending sales.

There was a whopping $390 Million reduction in the Total Sales Dollar Volume when we compare August to April and more than a $50,000 reduction in the Median Sales Price for a home in this area.

Prices have begun to drop, inventory has risen and there are now plenty of homes for buyers to choose!

Seller advice:

All of last year I'd been telling my prospective seller-clients that it's a great time to sell... and that the market is probably near its peak.  As inflation got out of control, the Federal Reserve's solution to raise interest rates to banks inevitably raised mortgage interest rates to consumers needing loans, reducing buying power.  Remember, MOST people use a loan to purchase a home.  If money becomes scarce or too expensive to borrow home-seekers find alternatives to purchasing.  This has greatly impacted the current housing market.

However, according to the statistics provided here, the price of housing hasn't fallen too far from its peak.  It's still a great time to sell your home however you will need to price it aggressively so it sells quickly and doesn't sit...  typically the longer a property sits on the market the less you get for it!

Buyer advice:

If you must buy, make sure that you lock in a rate that you can afford.  Mortgage rates fluctuate by day... and "at the end of the day" you want to be sure that you can comfortably pay all debts and support yourself (and family).  Right now, the sellers who need to sell may be negotiable in terms and price.  Work with a Realtor to help you to get the best terms and price!  This is what we do!  We advocate for you and work in your best interest as your fiduciary.

If you feel that current mortgage interest rates are too high there are other options that will still enable you to buy without having 100% in cash.  One great option that most people don't know about is an assumable loan.  If the seller has a mortgage that can be assumed you may be able to take over their mortgage at the rate that they are paying!  Mortgage interest rates were around 3% approximately 1 year ago... now they are hovering around 6%.  Imagine if you could take over the seller's mortgage at that low rate?!!  There are other options as well.  A good Realtor should know these options!

Looking to buy or sell a property in Texas?!  Please reach out to me... I'm right here!

Cary Nemeroff, Realtor
(512) 409-4047
Keller Williams Realty Lake Travis
Austin, Texas

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