Austin Real Estate Scene

Let’s take a look at the Austin real estate sales statistics for February 2008 to see how the Austin TX real estate market is looking:

Austin saw a dramatic 58% increase in new listings this February, when compared against February 2007.  Pending and sold listings, however, decreased by 12% and 27%, respectively.  The average sales price remained almost unchanged, increasing by a modest .33% to $233,015.

This shows us that Austin home sales are slowing down but the average price is still rising modestly. Most listings are getting A LOT of traffic if they are priced right as buyers are coming out of the woodworks.  We had personally had 5 listings get contracts on them in less then 4 weeks and tons of agents are talking about how the activity has been so hectic (in a good way) lately.  Even if we end up being a bit slower than 2007, which was a good year by the way, we still could have a very healthy real estate market as we currently do!!!  Most people would beg to be in our market right now. Just like when you are looking at the weather, look at what is going on locally to get the best indication of how our real estate market is doing.  

Our local economics look great and those are the #1 indicators to watch when figuring out our market of where we are at today.  We love this kind of market.  With about 5 months of inventory, that puts us still in a seller’s market, but 6 months or more of inventory puts us in a buyer’s market.  So since we are so close to that mid point, what that means is you can still sell your home at an okay price (depending on location of course) and you can still find a good deal to buy allowing you to take advantage on the selling and the buying side.  Normally you sell high, buy high or sell low and buy low.  

And even though interest rates are still good, and The Fed cut the Fed Funds Rate by another .75%. However, as we’ve seen following every Fed rate cut in the recent cycle, chances are very good that Bond pricing will worsen following the cut…which results in higher home loan rates. This happens because Fed rate cuts help to stimulate the economy, by making it less expensive to finance personal and business purchases…and this in turn fuels inflation, the arch-enemy of fixed return assets like Bonds, which home loan rates are based on.

So a word to the wise – if you or someone you know has been ready to move forward to buy or sell a home, there’s no time like the present. Be sure to get in touch with me or your preferred Realtor, so we can explain your options and help plan a great strategy to buy or sell your home.