Isolated, Not Immune
Originally uploaded by thenelsonproject
I have this conversation every week with buyers and sellers to talk about the realities of the Austin market and, more specifically, THEIR market. The inventory in Round Rock is certainly not the inventory under $170k in south Austin which is certainly not the inventory over $500k in 78704. There are some segments that are feeling some pain in Austin and many sections that are quite healthy. I have been in 3 multiple offer situations (or almost) in the past 3 weeks. Surprised? One was a $125k in Wells Branch, one was a $200k in 10N and one was a competitively-priced attractive $500k property in 04.
One thing we are experiencing right now related to the national trends has mostly to do with mortgages. All buyers right now are having to jump through more hoops, more stringent underwriting, lenders are working 3x as hard on their files right now than they did 6 months ago. So prepare to jump a few extra hoops for your lender cause it’s what it takes to finalize a loan right now.
Real Estate Center Chief Economist Dr. Mark Dotzour during a series of speaking engagements yesterday in the nation’s capital … “The difficulties in the mortgage market are impacting buyers in all 50 states, including Texas,” said Dotzour, speaking at the Economic Policy Conference of the National Association of Business Economics. The economist was serving on a panel discussing the regional differences in the housing markets across the country.
Dotzour noted that home prices are still increasing in most Texas metro areas, foreclosure rates are much lower than the national trends, and the inventory of unsold homes in Texas is currently at 5.7 months, well below the national average of 10.1 months.
If your home is on the market or about to be on the market, make sure you know the numbers inside and out and upside and down for your neighborhood. Not just the averages but what has sold so far this year, how many pending right now? Is there a particular price range that is selling in your zip code and a price range that is not selling? What is the inventory? How many homes in your price range are selling per month right now and how do you plan to be one of them in the next couple months?
Be a smart seller by paying very close attention to what is selling in your neighborhood right now (not last fall) and how many homes you’re competing with. We’re not immune.
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