July 2023 Market Update

Preliminary numbers from ABOR’s data are reflecting the slower market we have experienced over the summer. Not to say that homes are not selling – they are. Typical seasonality trends are still present, where sales slow during later summer months. With inflation showing a slight increase today (8/10/23), the Federal Reserve may want to do another federal funds rate increase in the fall, which could indirectly impact mortgage rates negatively. A seasonal lift that normally occurs during September and October could be impact affordability as well if we see mortgage rates increase again.

Even with under 4 months of inventory, many analysts are saying we still remain in a balanced market overall. You can zone in on zip codes and neighborhoods in the Austin area to find some differences as to whether a specific area is swaying more towards buyers or sellers; however, with over 9,000 active listings on the market, buyers do have choice. Homes are sitting on the market longer compared to last year. The median list to closed price ratio is around 98%, or a little lower (range of 95-98%). There have been a some instances of homes going under contract with multiple offers, but that is not a general statement for the market.

It takes a depth of analysis to understand the current value of a home in today’s market (not what it was at the height experienced 2 years ago). Price a home too low, and the seller could potentially lose out on equity. Price a home too high, and it will not sell. Pricing is key to getting a home sold, but not manipulatively low, making the market seem more active than it actually is. Pricing slightly under value is good if you are truly trying to incentivize buyers. Offering seller concessions to help a buyer lower interest rates can also increase eyes on your home.

As a buyer, if you can weather the current interest rates, or put money down to lower the rate, then it’s a good time to buy a home. (You have to calculate your break-even point to understand if it is worth it to buy down your rate). There are some great deals around town.

New construction is helping first-time buyers enter the market, but remember to take me with you when you go to visit new home communities. There is a lot involved in working with a builder that you may not understand. Yes, you can speak with the salespeople and the construction manager, but they all represent the builder. Make sure you have representation for yourself when you go.

If you have questions or want to know data for your specific neighborhood, contact me today!

If you are not needing to be active in the market right now, please pass my name along to family and friends who do need to buy or sell.

Things to know about these numbers:

• Counties – Travis, Williamson, Hays
• Properties – Single family homes, Townhomes, Condos
• All Price Points