In any housing market, homebuyers ultimately determine value. Home prices go up in a strong seller’s market because the demand is high.  In a buyer’s market prices come down when the supply is high and the demand is low. The Austin housing market is very value-driven right now. The exact formula factoring in how price, condition, and location are weighted is up to the buyer in any market. What’s different about now? The other factor you need is motivation and the lack of it presents a unique situation for buyers and sellers.

Sellers testing their asking prices are alone because they aren’t shifting with comparable properties. Buyers are finding options out there but with limited funds, are asking if the juice is worth the squeeze. This market isn’t just a story about interest rates.  It’s about how far the dollar is going to go because everything costs more.  New roofs, air conditioning, and even utilities cost more. Life outside the home costs more too. House hunting is no different than going to the store and spending twice as much time looking through the sale rack than on full-price items and still coming home with nothing. Comparison shopping takes time and buyers are carefully evaluating everything before making an offer.

Inventory growth drives the state of the Austin housing market

The Austin housing market is at a bit of a stalemate right now, with housing inventory being the only thing truly moving (and by that, I mean growing).

Is it a buyer’s market or a seller’s market?

Here’s the good news for both sides. It’s a slow seller’s market and an expensive buyer’s market.  It’s a market in limbo where both benefit in a way. Homebuyers have little competition right now. Don’t sleep on buying the house for sale you love. We move for love or money. Let’s write the offer and start the conversation. That seller has been waiting to meet you. Not every seller knows how motivated they are until an invitation falls in front of them.

Sellers need to adapt their strategies. Leveraging data to price their homes competitively, watching inventory growth in their specific market, and highlighting value that resonates with homebuyers is crucial. I’ve said it before and it bears repeating, money makes things go away. Be the head-turner in your market by motivating a buyer. Be on sale, not just for sale and you’ll be an exception, by being an exceptional value. It’s motivating. That’s all a buyer wants right now, is for a home to be worth it.