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Austin Real Estate, Buying Real Estate, Selling Real Estate

Buying vs Selling a House in this Market

I’ve been getting 2 questions about this market.

Is it a good time to sell? and
Is it a good time to buy?

And interestingly enough, the answer to both is: YES!

How can that be, you ask, since buyers’ market and sellers’ market are often quite different?

Let’s start with buyers: Should I Buy or Hold Off?

We’ve seen appreciation in the double digits for well beyond the past year. Some people are hoping if they wait it out, they’ll see a drop or a foreclosure event reminiscent of 2008/2009.

There doesn’t appear to be an end in sight. In some areas, we’re seeing the appreciation of 20% plus inside of just a couple of months. So, you can either get in NOW and ride that appreciation wave up OR you can choose to wait and let the prices get even higher.

To give you some insight… The Austin area experienced a 29.8% population growth from 2010-2019. The national average was 6.3%.

The Texas Demographic Center is predicting a further 27.6% increase between 2020 and 2030.

Companies are still coming… Google just announced expansion along with Tesla, Oracle, and still others are expanding (Samsung is in talks for another $17B factory and 1800 jobs). But that’s not the whole story… We are seeing corporations coming in from other states and countries coming in as well in record numbers AND small biz startups and solopreneurs diving in.

https://www.bizjournals.com/austin/news/2021/02/08/these-headquarters-have-moved-to-austin-in-2021.html

So, while it may be frustrating to put in several offers before getting one accepted… or having to come in a good bit over the appraised value, it’s definitely worth getting in NOW!

Sellers: Should I Stay Put For A While Longer?

So, you’re thinking of selling a house in this market. Then, it would make sense for all of the sellers out there to sit tight and ride the wave up, right?

Not so fast! And here’s why…

Here’s a BIG reason: IRS Publication 523!

Provided you have lived in the home as a primary residence for 2 out of the past 5 years, you can exclude the first $250,000 of gain on sale if you’re single. For married couples filing jointly, this increases to $500,000.

Here’s the best part… You can do this over and over and over again.

So, if you cash your equity out NOW, then you can start the clock over again while we ride the next wave (Remember, the Texas Demographic Center is predicting a population increase of nearly 28% between now and 2030).

This means you can potentially cash out A MILLION DOLLARS tax-free.

In other words, if you’re in the 40% tax bracket, that’s the equivalent of earning ~ $1.74M! (Of course, consult your tax professional for your personal situation)

Additionally, as interest rates rise, we will see lesser demand for buyers and once prices get to a certain point, buyers won’t be able to afford the “new” price ceiling. When this happens, prices will flatten and homes will sit on the market longer. There will be more competition and you probably won’t be looking at multiple offers in a weekend. No, I don’t have a crystal ball to predict when this will happen, but it’s a matter of time for sure.

OK, so you’re sold on selling? (no pun intended

But you’re wondering where you will go? Trust me… I get it! It’s probably the best question and requires some creative strategies, but we’ve got you covered there!

From seller-leasebacks so you have time AND cash to direct mail marketing and more… we can find you a new home so you can get the best of both worlds!

Blog

Buying vs Selling a House in this Market

Let’s start with buyers: Should I Buy or Hold Off?

Sellers: Should I Stay Put For A While Longer?

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