Is It a Good Time to Buy Real Estate in Austin?
The short answer…YES!! How do I know it’s a good time for buyer’s to jump into the market?
1. Price reductions
2. Builder’s bringing REALTOR bonuses & buyer incentives back!!
3. Seller’s offering to buy down their buyer’s interest rates and/or covering some closing costs.
So how’s the market doing?
A lot of buyers have been waiting for the market to simmer down. July has been pretty quiet and you can tell, a lot of price reductions in neighborhoods that would have previously been multiple offers.
Yes interest rates have gone up, we all knew they would eventually. The entire reason they were lowered so dramatically was to stimulate economic recovery in the housing market after the sub-prim crash in 2008. I for one can’t believe they stayed that low for so long!! But they are still lower than they were previous to ’08.
In 2009/10 I reached out to my clients urging them to buy as we had not seen housing prices that low in Austin in decades. Some jumped and some did not. The ones that did not tried to capture those prices in 2012/13 but it was too late, they had missed the boat.
In 2018/19 I reached out to my clients urging them to sell, we were nearing a critical inventory crisis and the multiple offers had become the norm. Once again some jumped, and some did not. And once again those sellers that have decided to jump into the market now are realizing they may have missed the peak of the seller’s market.
I just had a phone call this week from a seller who said they are kicking themselves for not listing earlier this year when I urged them to.
I am in the trenches – I see the in’s and out’s of what’s happening on both sides. I see the signs and I know what they mean. It means it’s time for buyer’s to get serious about this market!
Does this mean we have experienced another crash?
No, our inventory is still well below 3 months which actually means it’s still a seller’s market. But the prices are coming down, which is exactly what most pleaded for since 2017!
Does this mean we have a bunch of unrealistic sellers right now?
Well in some instances maybe, but in most instances we are dealing with pricing confusion.
The data we are using to price the homes is from earlier in the year when the buyer frenzy was still high. So often sellers and agents are doing their best to come up with the price they think they can sell at but then realize they aren’t getting the activity or offers they want, so the price reductions are implemented.
So what should I do if I am a buyer?
It’s ok to negotiate, don’t be afraid of those list prices anymore. In most instances they are no longer the starting price for a multiple offer situation. Multiple offers are still happening in some instances but it is no longer the NORM.
And if you are a cash buyer, then capture this moment – the moment that buyer’s are not capturing because their interest rates changed!
Contact me to put a plan in place for you to buy your new home or investment property!