If Austin real estate was a cocktail, it has been rattled around in a shaker in recent years. The mix of the jarring jump in home prices, the steady climb of interest rates, and now the gut-punch of tax valuations; it’s enough to make buyers, sellers, investors, and owners alike feel like they have just been battered by ice cubes in a beverage shaker.
Central Texas real estate is starting to simmer
It appears the Central Texas real estate market has been mixed enough that it is starting to show signs of settling down. These simmering signs are subtle and with school getting out soon, it is hard to tell if it is a blip or a trend. The data I am watching shows actual inventory ticking up, median closed prices leveling out in certain areas, and days on the market edging up.
Median days on market are currently about 1 day longer for the five-county Austin–Round Rock-Georgetown Metropolitan Statistical Area. The Central Texas Housing Report by the Austin Board of Realtors noted April’s biggest gain in housing inventory year-over-year since the summer of 2017. The number of people making a move is down over last year, as evidenced by sales units for resale homes dropping. While the average appreciation year-over-year is over 10%, it is not over 20% for every county.
The market is still increasing, but not at the rate it was last year
The Austin Real Estate market as a whole is appearing to settle out a bit. It doesn’t seem to be escalating at the rate it was a year ago. If you are an active player in this market, it doesn’t feel like it is slowing down. Many homes are still selling in multiple offers, selling over list and within days. This has been a trend in many parts of the country. Interest rates have been taking a step up almost weekly, which may be part of the simmer. Money is simply not as cheap to borrow as it was a year ago.
Overall, it’s hard to stay if the market is better than a year ago or if I am used to working within it. I am certainly better prepared to help people navigate through it as it no longer shakes me. Time brings wisdom. Markets can be extremely local, sometimes down to the street. Time will tell if this slow stir goes back to the shaker, or starts to settle out. Plan ahead if you are going to make a move, so you have time strategically navigate it, rather than being rattled.