Early indications are the Austin area housing market is heating up again for the spring.
Each week we get a slightly better view of the 2023. Of course, in between when I am writing this on February 2nd and when it hits your mailbox things may have changed so get in touch with us to find out exactly what’s happening at that time.
Here are some of the early signs of a stronger real estate market this spring.
Open Houses And Showing Activity
We had 24 guests at our first Open House of the year which is much higher than I expected. The owners asked for buyers to remove their shoes. Here’s a picture I took of outside the home that shows how many people were inside at that time.
That home went under contract in only 6 days. With the right strategy homes are still selling every day.
All of our listings have had strong showing activity since January 1st. There is some seasonality to our market so it isn’t surprising to see buyers be more motivated at the beginning of the year, but this activity is also greater than typical for our listings in the area we have had over the years. Mortgage applications for people buying homes has been up since the beginning of the year and that is typically a forward looking indicator of what will happen in 60-90 days.
Real Estate And Tech Stock Rally
Our real estate market is heavily influenced by tech employees. Since the beginning of the year the stock market has been rallying, in particular, tech stocks have been on a tear with the Nasdaq up 10.7% in January. It’s not only good for my 401K but good for our real estate market as many buyers receive some part of their compensation from tech company stock.
Real Estate Stock Performance February 2nd
It’s also been interesting to see the real estate stocks performance. Despite what Fed Chairman Powell has said Wall Street appears to pricing in that the Fed will cut rates later in the year. Only time will tell if they are right.
Increased Inventory Has Not Happened…Yet
We haven’t seen the increase in homes on the market so far this year. That means if you are planning to sell you have less competition right now. Here is a chart that shows the number of homes on the market has been trending down over the last several weeks.
Cedar Park Inventory
78717 Area Code Inventory
Lower Mortgage Interest Rates
Interest rates went down to a 4 month low on February 2nd with some lenders even quoting rates below 6% for 30 year fixed mortgages.
Buyer demand is strong, it’s affordability that is holding back the real estate market. Lower rates will help make your home more affordable to potential buyers.
What Are The Dangers?
I am more optimistic about the market today than I was 3 weeks ago. But there are dangers out there in the market.
If we see interest rates go up and a spike in the inventory of homes for sale this spring that will not be good for home values. Sellers who waiting to contact me too far into the year sold for less money and that may happen again this year.
If you're planning to sell in 2023, now is the best time to attend our Free Home Selling Workshops. If you want to attend a workshop, get in touch with us and we will notify you when they are scheduled. As always you can check KopaWorkshop.com to see dates and times of our in-person and online Free Home Selling Workshops. For years home sellers have told me they benefited from attending our events. Sign up at KopaSeminar.com.
The information on this page may have changed since we first published it. We give great real estate advice, but this page (and the rest of our site) is for informational use only and is no substitute for actual real estate, legal and financial advice. If you’d like to establish a Broker-client relationship, reach out to us and we’ll tell you how we can make it official. Sending us an email or reading this page alone doesn’t mean we represent you.
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Posted by Eric Peterson on