Will the Austin Real Estate Market Crash in 2020? If the current trend continues, it’s highly likely. And, that’s something Austin has experienced since 1986.
Right now I’m seeing two big troubling concerns
- Last week the Texas Unemployment Rate hit 12.8%. Last year at this time the unemployment rate was a robust 2.3% and Austin was booming. The current rate is the worst ever for Texas. Consider that it was 6.9% during the Great Recession and Crash of 2009. The previous high was 9.2 during the oil bust in 1986.
Article: Texas unemployment rate hits worst on record
2. The current market trend in Austin looks troubling. Last week’s numbers compared to one year ago: Residential Sales were down 32.16%; New Listings were down 11.94%; Pending listing down 6.29%; and the average Sale Price was down 2.58%.
What does this mean for Austin Buyers and Sellers?
- For Buyers. What Buyers need to know is that it’s getting harder to buy a home. Inventory is down in a market where inventory was already low. This means there are fewer homes from which to choose. Also, lenders are taking a harder look at a Buyer’s qualifications. Guidelines are tightening which means it’s harder to get a loan. Many lenders are requiring more money down and requiring higher credit scores. On top of this the underwriting process is taking longer with checking and re-checking of the buyer’s qualifications.
2. For Sellers. Looking at the numbers sale prices are down 2.58% compared to the same week one year ago. But, last week this number was higher. The current trend is not yet determined but bears close watching.
Here’s how I’m responding to help my clients
- Cheerleader VS Truth-Teller. In this COVID-19 real estate market you’ll hear Cheerleaders and Truth-Tellers. The Cheerleader will tell you everything is fine and this economic crash is not like 2009 and all will be fine. I choose to be a Truth-Teller. This is an unprecedented event. We have never experienced anything at all like this. We are living through a Pandemic and what might be a very nasty recession. It’s too soon to tell. I don’t have a crystal ball. I will only tell you like it really is.
2. I’m working harder for Buyers. Finding the perfect home is more challenging. It’s not easy. But, I’m up for the task and relentless about helping Buyers.
3. I’m hyper-focused on helping Sellers protect their equity. I’ve created an 89 Point Marketing Plan to help Sellers get top dollar and a quick sale.
4. I’m prepared to help distressed property owners. When forbearance ends and people cannot pay their mortgage foreclosures are going to rise. For some, a Short-Sale may be their salvation, because the last thing you want is a Foreclosure on your credit report. (For more information about Short Sales go here AustinShortSaleHelp.com
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