This is the latest headline from Realtor.com, “Never in history has there been fewer homes for sale.” That’s the situation across America and certainly true here in Austin, TX.
We are seeing this trend continue to affect both the national market and our local Austin market. We call it “low inventory”. There’s just not enough homes for sale for the numbers of buyers in the market.
The result is that buyers have fewer choices. They may only be able to shop among a handful of listings. Often a buyer may have to give up a few desirable features and settle on what’s on the market. Or, the home search may take longer.
When it comes to negotiating, Sellers are pretty much in the driver’s seat. Multiple offers are still not uncommon and Sellers are reluctant to concede to buyer demands.
Now, keep in mind, that’s not always the case. Here in the Austin market there are some neighborhoods that are experiencing a slow down. In areas where builders are competing for buyers, resales are much slower.
The low supply of homes for sale continues to drive prices up. Across the nation there are more homes listed above $350,000 than ever before. These prices favor higher-income buyers.
It’s a tough market for first time home buyers with homes under $200,000 almost non-existent. Of the 36 hottest markets across the U.S. Austin is no longer in the group. However, Central Texas is still in high demand.
One trend that’s developing here in Austin is that it’s taking longer to sell. It’s now taking an average of 70 days to sell a home whereas, about 18 months ago it was only taking 45 days.
We are also seeing our inventory rise just a little bit.
It’s still a Seller’s market, but keep in mind that the market always moves in cycles.
Does these mean that buyers should wait. No. Here’s why. Mortgage rates. We expect to see mortgage rates surpass 5 percent in 2018. This means buyers should enter the market sooner rather than later.
