August Market Update, 2023

Tiffany here to provide you with the latest market trends and insights for August of 2023.

Please reflect on statements from July’s market update since there has not been much change, though we may see some slight activity increase due to seasonality from the early autumn market. Interest rates are averaging in the low to mid 7% range these days.

The graphic shows that Hays, Travis, and Williamson Counties combined have just under 4 months of inventory. This means that based on the current rate of sales, it would take about 4 months to sell all existing active listings, without adding any new properties. If we drill down into the single counties, those numbers can show which counties have more activity. Before Cv, everyone considered six months of inventory to be a balanced market; some may say that has adjusted slightly. You can see that Hays County is approaching a very balanced position over Williamson and Travis. You can keep drilling down to city or zip code to get even more detailed information.

August Months of Inventory by County –

• Travis Co: 4.85 months
• Hays Co: 5.04 months
  • (Buda alone has about 3.7 months of inventory, whereas Kyle has 4.87)
• Williamson Co: 3.72 months

Many sellers of resale homes are not wanting to sell because they either do not have to or do not want to leave their low interest rate with their current mortgage. The three counties mentioned still do have a considerable amount of inventory overall. However, drilling down to specific areas will show you that some areas or homes are getting more activity than others. Some homes are experiencing multiple offers, while other homes sit on the market with limited to no showings. Houses that are sitting on the market are overpriced, and buyers will avoid any listings they think are not priced according to their perception of value. Plus, there is new construction happening across the Austin area, with all the latest design trends included.

New construction builders are being very competitive with their prices and incentives. If you want to remain competitive as a seller, I can discuss options with you to help you get your home sold, especially if you have new construction communities near or in your neighborhood.

Buyers, the predictions from many experts in the field is that once the economy picks back up, looking into 2025 most likely, then the problem with low inventory will rear its ugly head. Prices will increase, and this will put a lot of pressure on any buyers wanting to enter the market. You may be able to sell your home for a higher price then, but you will have to buy homes at higher prices. If you sell today, maybe the money is not as high as you had hoped after the market shifted, but you will be able to purchase a home in a less competitive environment and at a lower price than what you may see coming in the next few years.

If you can manage the payments on a purchase today and you are thinking about moving, it is best to accept the market the way it is and take action. Once prices go up, they still do not predict interest rates to decrease significantly in the long term. Some have said that mortgage applications increased when interest rates were below 6.3%, so it will not take much to see increased activity in the market. Most people do not expect to see interest rates in the 5% range anytime soon.

Having access to reliable market data is key. I am a dedicated real estate advisor, providing the expertise and guidance you need. Contact me today to discuss your specific goals, and let’s make your real estate dreams a reality.

I appreciate the referrals everyone has sent my way this year.

Things to know about these numbers:

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