Is Football Season Now a Buying Season for Austin, Georgetown Real Estate?
Just Sold - A Handsome Santa Rita Ranch Showstopper
My husband watched his first game of the season – last Thursday night’s thriller. As he explained, “On the game’s last play, one inch of end zone real estate proved the difference between winning and losing.”
Speaking of real estate (I didn’t just do that did I?), Austin, Georgetown looks lively – especially compared to last spring’s listless doldrums. One of my listings closed on Wednesday, another will close this coming Thursday, and on Friday, while previewing properties for an out-of-state investor, I encountered other agents showing the same house to their buyer.
Why the uptick? Three reasons.
Reason #1: Increased Inventory
Total housing inventory nationwide at the end of July was 1.33 million units, up 19.8% from June 2023. Housing inventory has improved every single month this year.
Lance Lambert, writing for Fast Company, explains. “Some regional housing markets in states such as Texas, Florida, Arizona, and Louisiana, where inventory has risen above pre-pandemic 2019 levels, are experiencing mild home price corrections. During the seasonally strong spring period, many of these markets in correction mode were showing very low or flat price increases. However, now that we’re past the seasonally strong period, some of those Southwest and Southeast markets are beginning to post outright month-over-month declines.
In the Austin-Round Rock- Georgetown market, inventory increased 30.7% year-over-year. Compared to 2019’s inventory, the five-year shift increased by 41.2%
Reason #2: Decreased Prices
Generally, markets that experience negative month-over-month price reductions in the seasonally strong April to July window typically see further declines from August to December. This year, Austin jumped the gun. Price reductions started in June. By how much? Year-over-year price reductions reached 4.6%.
As a result of increased inventory and decreased prices, buyers have gained the upper hand. How much so? According to this heat map, Austin moved from a hot seller’s market with a reading of 81 in July 2021 to a present-day cool seller’s market with a reading of 39.
Reason #3: Lower Mortgage Rates
Current Austin Mortgage Rates
30-Year Conventional – 6.125%; APR 6.144%
15-Year Conventional – 4.99%; APR 5.048%
FHA 30-Year – 6.125%; APR 7.08%
VA 30-Year – 5.5%; APR 5.768%
In context to the overall interest rate landscape, the number of homeowners who refinanced their mortgage increased 94% year-over-year. Rates are at a 16-month low.
“With mortgage rates expected to decline even further, more buyers are expected to enter the market in the coming months,” according to Realtor.com economist Jiayi Xu. Her conclusion? “The 2024 summer housing market is wrapping up by shifting to a more buyer-friendly environment. Lower prices, an increase in listings, and longer time on the market are giving buyers more time and flexibility to consider their options, setting the stage for a favorable fall.
How would I advise would-be buyers?
Work at increasing your credit score. The higher the score, the more favorable the standing you have with lending institutions.
Prioritize saving as much as possible. Bash Door Dash, skip Starbucks, meal prep for the week, carpool, utilize coupons, cancel old apps – slash as many cash drain habits as possible.
Start shopping around for lenders. It is a competitive environment – take advantage of it.
Meanwhile, if you’ve not set up a custom-crafted search identifying location, size, price point, and amenities, contact me. My state-of-the-art platform will select the “just right” options for you to consider.