While Austin, Texas was the exemplary image of housing market growth during the pandemic—a period when home prices, sales, and new residents were at an all-time high—it’s hard to ignore the fact that activity has slowed in recent months. Paired with the fact that interest rates are now at a 40-year high, many potential homebuyers are beginning to wonder whether now is the best time to buy.
In this informative post, learn about what we know about the current market so that you have a better understanding of what’s happening, and what to do next.
How the Housing Market in Austin is Changing
There’s been a lot of analysis about the current housing market in Austin, and everyone has their own theory about what to expect next.
Here’s what we know so far:
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Inventory is up, giving buyers more negotiating power and less competition
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While we’re still in a “sellers market”, there are more homes to choose from and more time to find one as compared to last year
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Homes are now selling at 95% their original listing price, meaning that sellers need to reset their expectations. Getting dozens of offers well above asking price is a thing of the past.
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Interest rates are rising, so buyers can benefit from working with a Realtor who can help them secure a home at the best price.
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While supply and demand are slowly stabilizing, home prices are continuing to increase.
Austin Housing Market Predictions for 2023
Depending on who you ask, you can find a range of opinions about what to expect in 2023. While some believe that the housing market will continue to outperform compared to pre-pandemic times, others fear that housing prices will inevitably drop precipitously. Most experts agree that home prices may fall slightly, but not as drastically as they did in 2008. Moreover, despite fears of a pending recession, more people have more equity now than they did then, so you can expect any regression not to be so bad.
We predict that prices will continue to rise over the long term, making now as good a time as ever to buy a home in Austin. Not only that, but if you want to buy a home as soon as possible, you can do so and still get a great deal, if only to refinance to a lower rate later.
Get Professional Help Buying Your Next Home in Austin
Still on the fence about buying a home in Austin?
Take it from us: Austin’s thriving job market, attractive area schools, stunning outdoor spaces, and charismatic culture make it an unbeatable place to call home. And with its extraordinary home appreciation rates, you can rest assured that buying a home in Austin isn’t just a safe investment, but a smart one.
Whether you need help finding a home or selling one, you can count on the team at Pauly Presley Realty to be there for you at every step of the way. Contact us today for expert assistance securing your next home, or check out our Austin home buyers guide for more information!