"Real Estate: A Rollercoaster Ride of White Elephants and White Lotuses"
Several years ago, when I served in the not-for-profit sector, we would host an annual white elephant exchange Christmas party. Attendees labored long to find the most hideous present: a regifted fruit cake – three years in a row, a belly-up goldfish floating in a plastic bag, etc.
In contrast, one year a team member attended a Christmas auction for charity. Quite a contrast. The most exquisite item? A week at the renowned Four Seasons Resort Maui at Wailea – which later served as the backdrop for HBO’s, "The White Lotus."
Watching this soon-to-be summer season in real estate, I’m not sure if I’m attending a white elephant gift exchange or viewing guests checking in at the Four Seasons. What do I mean?
Last week, I joined seven other local agents in touring our listings. I wanted them to view and critique two of mine. One received "Best on Tour." The other? Not so much. The time allowed for blunt, candid conversation. My observations about our current Austin market were confirmed. Enthusiasm generated by buyers seems to equal that of chipping a tooth from a three-year-old fruit cake.
Meanwhile, in other U.S. regions – like southern New Jersey – buyers are throwing money at houses – multiple offers accompanied by eye-popping truckloads of cash. Sellers are booking reservations at the White Lotus.
You might be asking, "Ivy, which one is more the national norm, Austin or South Jersey?" Neither.
On Tuesday, S&P CoreLogic Case-Shiller reported the following. "Steep competition in the housing market and low supply are heating up home prices again…March’s results suggest that the decline in home prices that began in June 2022 may have come to an end." The caveat found within the report? The sample size only included ten cities. More details can be found here.
Meanwhile, other developments catching my attention included:
Yesterday, June 3, MarketWatch reported the following. "As aspiring homeowners contend with high mortgage rates, rising home prices, and a low number of homes for sale, the construction of single-family homes built deliberately to be rented is forging full steam ahead as investors bet on rentals."
My take? It is both beneficial and baneful. Beneficial for those who want a yard for kids and pets; baneful for renters who will pay off the mortgage of their landlord instead of their own.
A major U.S. lender announced a new program to allow low-to-moderate-income home buyers to put down as little as 1%. Buyers will also "avoid paying mortgage insurance which reduces the overall cost of homeownership." More details can be found here.
This summer, what might we expect in Austin’s real estate market?
Greater inventory than what most U.S. cities enjoy.
Motivated sellers. Many are selling because they must.
Houses in the hottest zip codes selling first.
Ultra clean, reasonably priced, attractively staged houses selling next.
Homes offering updated, stellar amenities beating out basic models.
The leftovers languishing on the sidelines.
Competition. From sellers, not buyers.
I anticipate market conditions improving this fall – especially if the Federal Reserve decides to cut rates by December. Meanwhile, I noticed this weekend an uptick in listing appointments. Are my sellers planning a trip to Maui? Not to my knowledge. But at least their goldfish survived the winter.
Oh, if you have any questions or simply want to talk to someone who is not salesy, give me a call: 503-781-0206.