The market is on the move with no signs of slowing down as we settle into 2016 and look at Austin home sales. The Fed did raise interest rates as expected. With the economy well on the mend, additional upticks are on the horizon as interest rates slowly drift to normal levels. The interest rate always affects the housing market because it taps into buying power. Interest is part of the monthly mortgage payment. Higher rates mean a higher payment, which affects debt-to-income ratio.
Austin Home Sales Predictions 2016 and Housing Demand
Historically, rising interest rates generally decrease home prices because buyers can afford less; but it can also create an immediate demand. Buyers want to lock into mortgages when they know rates will be increasing.
In Austin, the demand for housing was already high without the rate increase. I expect increasing rates will only create more motivation to buy a home.
Realtor.com says Austin-Round Rock will be the fifth most sought out city for 25- to 34-year-olds looking to purchase a home.
As long as the demand is high and inventory is low, housing prices in Austin will continue to rise. There is currently about 2.6 months of single-family home inventory in Austin for sale.
As we say goodbye to November, the 
It’s that time of year again when homeowners start to question whether to sell now or wait. The answer lies in the advantage for each individual seller. If the goal is to sell for the highest price, that number is determined by what the market will bare. Remember the 
Fall is one of the most diverse seasons in Austin for entertainment. Lovers of art, music, books, food, beer and even fast cars will find an event happening now and in the weeks to come.
