Buyer demand in the first half of 2021 stretched Austin’s housing market very thin. Sales prices hit record highs, inventory plummeted and buyers went from competing with a few other offers to going up against dozens (think 50-60 at times!)
But how long could this possibly last?
With strong economic and population growth, the Austin market has always been one of the strongest in the United States. This will not change. What did change, however, was increased buyer demand due to the pandemic. Buyers were stuck at home with lots of disposable income. Some were wanting a 2nd home to escape to, others were wanting a bigger or nicer home, or one with a pool. A lot of buyers were able to work remotely so that opened up the geographic possibilities, and one of the top destinations was Austin, Texas. With the country beginning to open back up, we are seeing people spending time with family and friends vs. spending time on their real estate search.
We can make a case for the fierce competition that buyers have experienced in Austin starting to subside, a bit. Mortgage applications are down, and we are seeing homes get 3-10 offers vs. 50-60. Every week, we have a little bit more inventory than the week before, meaning more homes for people to buy. And with mortgage applications going down, there aren’t as many buyers flooding the marketplace as there were in months past. We should start to see a slowdown, but it’s relative, it’s still not slow at all. We’re still in the best real estate market Austin has ever seen. And it’s important to note that this may just be a temporary slow down as people want to take some time to focus on other things; but only time will tell.
We do not anticipate prices will go down. We predict prices will still increase, but not at the intense rate they have been jumping. Experts agree that we are not in a bubble, and you’ll only find higher prices if you hold off to buy a home.
How we can help!
As always, it’s important to note that the market is dynamic and real estate is hyperlocal. We’d love to talk with you about your specific situation, so please reach out if we can help with anything at all! We’re always available to help and strategize how to achieve your real estate goals!
The KVD Team was able to find homes for all of our clients, with only one buyer putting their search on hold until the market cools. This market was very painful for everyone, but we have sharply honed our skills at sourcing homes off-market as well as structuring our offers to have the best chance of acceptance in this highly competitive environment.
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