HOW’S THE MARKET SO FAR?

By Eric Peterson

Since real estate is really a 10 month a year business, we are halfway through the year and I thought it would be good to give you a quick update.

As I write this, we have 7 homes listed for sale that are under contract. I’m optimistic, but things are not easy. More than ever when someone asks me “How’s the market?” My answer is DOTS…Depends On The Situation.

There are some neighborhoods and homes that are selling quickly while others don’t seem to have much activity at all.

There are also two types of buyers in the market right now. Buyers who want to buy and can buy and buyers who want to buy but can’t buy. This is why we are still seeing large turnouts at our open houses and a high number of online views for our listings including people who have saved a home as a favorite. But that doesn’t always translate to showings and offers because they can’t actually buy with the higher rates.

Mortgage News Daily indicates as of May 2024 so far, MBS prices are stronger which should result in lower mortgage rates for now.

We are also seeing more buyers trying to buy with a home sale contingency. Unfortunately, if they bought in the last couple years many times when they really crunch the numbers the potential buyers may not have as much equity as they thought and can’t move up to a larger home.

Something you need to be careful about is listening to advice from anyone who isn’t familiar with your area. When searching for a listing agent it’s tempting to hire someone who is going to be a cheerleader for your home. In reality I am doing you a disservice if I don’t explain the good and bad about the market and how it will impact your home sale.

On the interest rate side after the May Fed meeting Chairman Powell said it’s not likely they will be increasing rates which was good news. However, they didn’t indicate they will be cutting rates soon.

At my home selling seminar in January someone asked if they should sell now when rates were 6.5% or wait until later in the year. One of the attendees said they should wait because rates would be 5.5% by June. I can’t blame that person, many in the real estate business were predicting the same thing. I’m glad I said I didn’t know that rates would be lower because for the last 2 years interest rate projections have not been accurate at all.

Unfortunately, inflation has been more stubborn than expected and as a result mortgage rates are almost 1% higher than earlier in the year. Rates hitting 7.5% again caused many buyers to go back to sitting on the sideline.

Why real estate prices have gone down in the Austin area is a good question. There are probably 20 reasons for it but I thought this quote from the author of the ResiClub blog summed it up best when he said…

A quote from the author of the ResiClub blog that reads - In some pockets of Texas, particularly in Austin, home prices simply rose too far, too fast. Once the pandemic-era migration boom fizzled out, Austin home prices were simply too far beyond what locals could afford, so prices fell.

If you plan to sell your home, now is the best time to attend our Free Home Selling Seminars. If you want to attend a workshop, contact us, and we will notify you when they are scheduled. As always, you can check KopaWorkshop.com to see the dates and times of our in-person and online Free Home Selling Seminars. For years, home sellers have told me they benefited from attending our events. Sign up at KopaSeminar.com.