This week I sat down with Realtor.com to discuss the current climate of the National and Local (Austin) residential real estate markets. While much of the national market is poised for rental rate balancing and depreciating values, Austin remains an outlier- remaining relatively insulated from present risk.
As we look into Austin’s future, reduced rates of appreciation (while still appreciating) appear to be most probable for the remainder of 2022. Current demand against inventory will continue to drive prices upward, while interest rate increases and greater economic factors should help to adjust appreciation to a healthier rate of growth.
Across the nation, there are more homes for sale today than at any time last year. So, if you tried to buy a home last year and were outbid or out priced, now may be your opportunity. The number of homes for sale in the U.S. has been growing over the past four months as rising mortgage rates help slow the frenzy the housing market saw during the pandemic.
“This is an opportunity for people with a secure job to jump into the market, when other people are a little hesitant because of a possible recession. . . They’ll have fewer buyers to compete with.”
More Homes for Sale
The first reason the market is seeing more homes available for sale is the number of sales happening each month has decreased. This slowdown has been caused by rising mortgage rates and rising home prices, leading many to postpone or put off buying. The graph below uses data from ABOR MLS to outline current market movements in depth.
There a a few statistics here worth highlighting- Both the decrease in both sales / pending contracts YOY and the increase in months of inventory. These decreases indicate a progressive shift towards a healthier pace of appreciation. Equally so, the adjustment from .5 months of inventory to 2.3 months indicates a increase of listings available on market. While these adjustments may be moving in the right direction, bear in mind a “healthy” market should maintain 5-6 months of inventory, which Austin is still rather distanced from.
Bottom Line
The number of homes for sale across the Greater Austin Metro is growing, and that means more options for those thinking about buying a home. This is the opportunity many have been waiting for who were outbid or out priced last year. Looking to buy, sell or invest? Reach out today to discuss how this new market impacts you.