Resales vs new builds, home selling decisions, interest rates, home buying decisions, and builder incentives, the spring real estate market is just about over as we start to dip our toes into summer. You can see the market light up with the increase in listed homes and pending sales. Inventory is hovering at about 3 months in most counties in Central Texas. While it is still a seller’s market, it is also a bit of a make-it-work market with everyone feeling a bit like a squirrel in the middle of the road.
Home buyers and sellers have decisions to make
Home buyers and sellers have choices and decisions to weigh. Sellers have to weigh what to upgrade before listing versus what to make concessions for. They can’t make plans because time on the market is a little wonky right now. Meanwhile, some buyers are watching interest rates like a tennis match, and others are deciding whether to buy a resale home or a new build.
Resales vs New Builds
Money makes things go away. Sellers are lowering their asking prices to turn some heads. Buyers are getting builder incentives instead of being 10 minutes from downtown. Real estate is always about looking in the rearview mirror and often costs more the longer you wait. For those feeling indecisive, don’t be the squirrel. Get out of the road. This isn’t your market and that is okay. Your market will appear and with it, will come confidence in making the best decision for you.
The impact of low inventory on the market
Inventory is going to stay low because buyers who purchased in the last three years and took advantage of the low-interest rates aren’t going to be so quick to turn around and sell. I don’t think the inventory is going to change that much to push us into a buyer’s market. The sky does not appear to be falling in Austin, if anything it is rising.
The cost of waiting in Austin real estate (historically speaking)
Five-year trends for the Austin – Round Rock MSA Central Texas counties of Travis, Williamson, and Hays.
- Inventory is bigger than it’s ever been in years and yet there is only 3 month supply in the market.
- The lack of housing inventory is keeping prices high, even though the market has slowed.
- It’s a unique time for buyers to be richer with housing choices than they’ve had in years. Affordability has slowed the market down, but not enough to create a surplus. It is still a seller’s market. Housing demand may be slower than last year, but it is strong enough to return to a more ‘normal’ rate of appreciation in Central Texas as a whole.
This data was compiled by Texas National Title using market data provided by the Texas REALTOR® Data Relevance Project, a partnership amount Texas REALTORs® and their MLSs, the Real Estate Center at Texas A&M, and Texas Realtors.
Home buyers / Home selling decisions
Everything, Everywhere, all at Once
When it comes to real estate, there are many factors that buyers and sellers need to consider. When it comes to this particular market, those factors are doubling down and adding to the options to weigh. Give seller concessions or do upgrades, rate buy-down offers, look at resale homes vs new builds, lowering asking prices, and builder incentives. It is everything, everywhere all at once. It is a make-it-work market of opportunity for those who can find a way, not unlike the squirrel who recently moved into my vacant birdhouse.