Did you see today’s headline? Central Texas home sales up despite limited inventory in first month of 2018. But what does that mean for you?
It means that we are still in a seller’s market. Think about this concept: Prices are up because inventory is down. It’s about supply and demand.
And, this is a typical seller’s market, but the untold story is that the number of listings on the market today is 7.5% higher than it was a year ago! So we’re actually starting to see our market soften a little bit.
But it looks like in 2018 this seller’s market is going to continue. That’s great news if you’re thinking about selling your home, not so great news if you’re buying because prices are going up.
However, the silver lining for buyers is that mortgage rates are still attractive.
The driver of housing prices is supply and demand. It looks like this:
When demand is low and supply is high (more sellers than buyers) prices are driven down. This can range from a pointed of stagnated prices to an actual decrease in housing prices. The real estate crash of 2007-2008 was not a supply and demand issue as much as it was a market built on a house of cards with faulty loan schemes.
When demand is high and supply is low (more buyers than sellers) prices are driven up. This is what we’ve been experiencing nation wide in recent years. This is especially our problem here in Austin, Texas.
Austin has a strong economy. People want to live here. We have no state income tax. The weather is good. The culture is attractive. 150+ people are moving to Austin every day. This creates a strain on available housing. Prices are rising.
Want to talk to a knowledgeable real estate professional? Give me a call at 512-516-4666.
