Austin Metro Homes for Sale Blog

Friday, June 7, 2024   /   by Sarah Thompson

Mid-Year Market Update for 2024: What Buyers and Sellers Need to Know

Last December, when the Federal Reserve projected a series of benchmark rate cuts in the coming year, some analysts speculated that mortgage rates—which had recently peaked near 8%—would fall closer to 6% by mid-2024.1,2,3 Unfortunately, persistent inflation has delayed the central bank’s timeline and kept the average 30-year mortgage rate hovering around 7% so far this year.2


While elevated mortgage rates have continued to dampen the pace of home sales and affordability, there have been some positive developments for frustrated homebuyers. Nationwide, the inventory shortage is starting to ease, and an uptick in starter homes coming on the market has helped to slow the median home price growth rate, presenting some relief to cash-strapped buyers.4


There are also signs that sellers are adjusting to the higher rate environment, as a growing number list their properties for sale.4 Still, economists say a persistent housing deficit—combined with tigh ...

Sunday, January 29, 2023   /   by Sarah Thompson

Three Factors That Affect Affordability

If you’ve been following the housing market over the last couple of years, you’ve likely heard about growing affordability challenges. But according to experts, the key factors that determine housing affordability are projected to improve this year.
The three measures used to establish home affordability are mortgage rates, home prices and wages. Here’s a closer look at each one.
1. Mortgage Rates
Mortgage rates shot up to over 7% last year, causing many buyers to put their plans on hold. But things are looking different today as rates are starting to come down.
Even a small change in rates can impact your purchasing power. Nadia Evangelou, Director of Forecasting for the National Association of Realtors (NAR), gives this context:
“With a 6% rate instead of 7%, buyers pay about $2,700 less every year on their mortgage. As a result, owning a home becomes affordable to about 1.4 million more renters and 4.3 million more homeowners.”
If 7% rates paused ...

Wednesday, December 28, 2022   /   by Sarah Thompson

Applying for a Mortgage in the New Year? Here's What to Avoid When You Do.

While it’s exciting to start thinking about moving in and decorating after you’ve applied for your mortgage, there are some key things to keep in mind before you close. Here’s a list of things you may not realize you need to avoid after applying for your home loan.
Don’t Deposit Large Sums of Cash
Lenders need to source your money, and cash isn’t easily traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.
Don’t Make Any Large Purchases
It’s not just home-related purchases that could disqualify you from your loan. Any large purchases can be red flags for lenders. People with new debt have higher debt-to-income ratios (how much debt you have compared to your monthly income). Since higher ratios make for riskier loans, borrowers may no longer qualify for their mortgage. Resist the temptation to make any large purchases, ; ...

Friday, December 16, 2022   /   by Sarah Thompson

Reasons to Sell This Season

Supply is Still Low
 
While the number of homes on the market has increased, inventory is still low overall. The Real Estate Center at Texas A&M has established that a balanced market is when inventory reaches 6.5 months. The data provided by The Austin Board Of REALTORS® is compiled in the graphic below from 2020-November 2022. As can be seen, the Austin-Round Rock service area has just over 3 months of inventory. What does this mean? It means that if no other homes were to come on the market, there would be no more available homes after 3.1 months (based on November numbers). This is less than half of number that The Real Estate Center indicates would lead to a balanced market.
 
Serious Buyers Are Out Looking
 
While buyer demand has moderated from the high levels we saw in 2021 and earlier in 2022, there are still buyers searching for their first/next home. Many are hoping to avoid falling into the rental trap for another year as rental rates have risen ...
1210 Cottonwood Creek Trail, Ste 530
Cedar Park, TX 78613

Based on information from the Austin Board of REALTORS (alternatively, from ACTRIS) for the period through 2024.® IDX information is provided exclusively for consumers' personal, non-commercial use. It may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. All information provided is deemed reliable but is not guaranteed and should be independently verified. The Austin Board of REALTORS®, ACTRIS and their affiliates provide the MLS and all content therein "AS IS" and without any warranty, express or implied. Data last updated: June 13, 2024
Based on information from the Austin Board of REALTORS (alternatively, from ACTRIS) for the period through 2024.® IDX information is provided exclusively for consumers' personal, non-commercial use. It may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. All information provided is deemed reliable but is not guaranteed and should be independently verified. The Austin Board of REALTORS®, ACTRIS and their affiliates provide the MLS and all content therein "AS IS" and without any warranty, express or implied. Data last updated: June 13, 2024
This site powered by CINC: www.cincpro.com