So you want to buy a house

I was pricing a house for a new listing this week and was encouraged when I discovered there were no active properties for sale. When I pulled the Austin real estate MLS data, everything was pending and many were on the market for less than 10 days. I have mentioned before that inventory is low and in some areas and even condo communities — it is nonexistent. The laws of supply and demand are going to translate to higher sales prices in the near future – due to the low inventory. I cannot stress enough the importance of talking to lender before you look at anything in person. You can be in great financial shape with no debt and a good job and still not get a loan these days. Most people have no idea what their credit score is or what is on their credit report.

It’s a great idea to talk to a lender even if you aren’t planning on purchasing a home for a year or two. Sometimes, things appear on a credit report that should not be on there, like a college loan that was paid off years ago. Understand, the challenge often with a credit report is not in releasing the lien — it’s about waiting for that line item to not appear on your credit report anymore which will raise your credit score. It can take 3 to 6 months at minimum for the debt to no longer appear on a credit report, so I encourage everyone to know your number even if you aren’t buying a house anytime soon.

Austin Real Estate Market

The Austin Texas Real Estate Market is strong and will remain strong with mortgage rates in record lows. If you are thinking of selling, I encourage you to talk to me about your local inventory, because after all markets are local. 2009 may not have been your year to sell, but 2012 may very well be.