What’s Next in the Market for Buyers

We are officially in a transitional market! We’re seeing more inventory week over week and we’re seeing fewer competing offers on homes.

So what’s going on?

Well, the obvious is certainly at play…

• Inflation / Potential recession
• Rising interest rates
• A volatile stock market
• Rising cost of homes over the past 2 years
• Property Taxes
• And more!

Factor in all of the items mentioned above and we’re starting to see some relief for buyers, and a shift in mindset and strategy for sellers.

So what does this mean for you?

NOTE: It’s important to note that we are still in a very competitive market in Austin. We are a strong seller’s market, closing in on 1 month of inventory (We’d been below half of that for much of the year) 

• You probably don’t need to go crazy over list price assuming the home is priced based on current comparable sales (and not super low to encourage bidding wars OR extra high where the seller is pushing the envelope to get as much as possible).

• I’m seeing about 50/50 on who is paying title, which can be several thousands of dollars in closing costs. Just a month ago, you almost HAD to include title fees to be in the running.

• Review your situation with your lender. This is STILL a great time to buy and Austin’s housing market still seems to be pretty well insulated with the job market and equity in homes. But you’ll want to take into account interest rates, taxes, and current prices to make sure you’re comfortable (and within your budget).

• Focus on “wishlist” and “must have” items. In some areas, it’s still difficult to find homes that check all the boxes so you do still want to be real clear on where you’re willing to budge and where you’re not. It’s still relatively tight inventory in the most desirable locations and the best homes.

While we don’t know what the future holds, we’re not seeing any sign of decline of values and predictions are still that we are going to see appreciation for the foreseeable future. PLUS, we do have some options to buy down rates and get creative with our lender!