First off, it’s king of a weird real estate market. With rates, inflation, and the job market all signs point to lowered home prices.
But we just aren’t seeing home prices come down much. The big price drops are coming from unrealistic sellers pricing too high. Which happens….quite a bit.
In fact, last week I submitted an offer on a property in North Austin for over $50,000 OVER asking price and we still lost! I still can’t believe it received 5 offers and went for about $71,000 over asking price.
People are still buying!
And to be transparent, I’m under contract for a home in Round Rock for an investment flip project.
So, I’m not just some real estate agent telling you that it’s a good time to buy a house, I sincerely believe it’s a good time to buy a house or investment property. The Austin metro area isn’t going to all of sudden lose population, job growth, and interest.
As long as you’re in it for the long haul (2+ years) I think you’ll be happy you purchased a house!
Inventory
Inventory is still historically low. While housing inventory did grow slightly week-over-week (shown in the blue bar), overall supply is still low (shown in the red bars). Compared to the same week last year, supply is down roughly 10% – and it was already considered low at that time. But, if you look further back, you’ll see inventory is down even more significantly.
More than 90% of homeowners with mortgages currently have a rate of 6% or lower, according to a recent Redfin study, meaning they are staying in their current home, not selling and trading up, which would come with higher borrowing costs. This is making the number of already built homes available to buy extraordinarily low — keeping prices elevated for those looking to buy.
Investment
Even with the weird market that seems to be all over the place and sometimes uncertain. It continues to be the #1 long-term investment.
According to a recent Gallup poll, real estate has been voted the best long-term investment for 11 years in a row, beating gold, stocks, bonds, and more. Owning real estate means more than just having a home-it’s an investment in vour future. That’s because it’s typically a stable and secure asset that tends to increase in value as time goes on.
If you’re thinking about buying…
Interest rates are high, but 2023 is a strong buying opportunity. If you decide to buy now, you will likely be very happy with the decision in 1-2 years. The strategy of “buy at a low price and refinance your mortgage at a later date” makes a lot of sense. You will likely be able to reduce your payments substantially in the coming years. Plus, if you’re shorter on cash, we can ask the seller to cover your lender fees and even buy down your interest rate!
Yes, homes are more expensive, but that’s mostly because of mortgage rates. If rates go down, prices will probably go up. Something to remember…
If you’re thinking about selling…
The market is moving and you can successfully sell your property, but it’s critical to be realistic about pricing. Most sellers are having to reduce their sales price in order to sell. If it’s not critical that you sell in 2023, you can certainly stay at your current list price and hope for the best.
Summer is over
If you’re like me, you’re ready for this heat to subside and start buying pumpkins! Ok, maybe it’s a little early for Halloween talk.
If you have your eye on a house, let’s set up a showing or if you’d like a market analysis on a property, just shoot me an email, text, or call!
NICK GARCIA | REDFIN | REAL ESTATE AGENT, REALTOR
Tel: 512-799-7950 |
Website: https://
Youtube: Austin Real Estate Channel
Reviews: Read My Reviews
