Is the Austin real estate market shifting to a Buyers’ favor?
This is the question on many people’s mind in Austin, Texas. What I’m noticing is that our Austin market continues to see mixed signals. However, I am noticing the ever increasing signals that our market is shifting. It is softening.
There are three signs of a softening in our Austin market:
1) Inventory is increasing. The number of homes for sale is up 4.6% over this same time last year.
2) Days on market is increasing. DOM now stands at 57.01 days, up 5.77 days over this same point last year.
3) More price reductions. Every day in our MLS I am noticing more and more price reductions.
Across the nation this trend is even more pronounced. I use the word “trend” intentionally. In looking at real estate markets a trend is noticeable after 3-4 months of market changes. We are definitely seeing a trend now.
Look at the media. More and more you are seeing an increasing number of news articles pointing outa slowing market.
Two articles this week are headlined:
– Fall Brings Price Drops for 25% of homes
– Market shifting to buyers’ favor
Why is this shift happening?
Economists say it has to do with affordability. Mortgage rates are up over three quarters of 1 percent since this time last year. On a $300,000 home this represents a payment increase of $143 and a total of over $51,000 in payments over the life of a 30 years loan.
The fact is, Austin prices have risen so rapidly that many buyers are hitting the pause button.
Is the real estate market going to crash?
No one is saying that. Especially no one in Austin, Texas. But, the rate of home price appreciation is slowing done. That’s a fact.
What are you to do?
If you are a seller, be sure to hire an experienced agent, like me, who can help you get top dollar for your home in any market. Homes sell everyday in all kinds of markets. Homes also fail to sell. The agent you hire can make all the difference.
If you are a buyer, be sure to work with an experienced agent, like me, who can help you pay only a fair price. Should you be afraid? Not at all. Just be sure you don’t overpay by only working with an agent with a vast amount of market knowledge and experience.
