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1Q17 Market Watch
How’s that real estate market, you ask? 1Q17 single family units sold were 0.5% higher compared to 1Q16. This is a clear continuation of the market slowdown we noted previously, but make no mistake, we are still on pace to beat last year’s numbers. Even if it’s just by 0.5%What continues to raise my eyebrow is the interest rate increases over the last 9 months. Consider the graph above that shows the interest rate fluctuation for a 30-year fixed rate mortgage over the last 5 years. If you are considering a home purchase, think about this: A July 2016 homebuyer had an average interest rate of 3.41%, an average price of $353K, and a monthly principal and interest (PI) payment of $1,560. Today,…
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Looking Ahead To The 2017 Housing Market
Looking ahead to the 2017 Housing Market Blame it on the election cycle, the climbing interest rates or affordability, and I’ve heard it all, the central Texas housing rate of growth very clearly slowed in 2016 compared to previous years. The good news is that the Austin metro area had another record breaking year with home values and sales. Though the housing market traditionally slows every presidential election year, I wouldn’t blame the second half of last year being slower than the previous three years solely on the election. The normalization of our market in 2016, meaning a less aggressive rate of growth, will likely continue – though check out the…
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Reviewing the 2016 Housing Market
“Change in the Air”Reviewing the Housing Market 2016 proved to be another solid year for Texas home owners, sellers and buyers. Here in Central Texas, home values continued to climb to record numbers as did the total units and dollar volume sold. But with change hanging over heads all year long, it’s little surprise to see some rates of change slow to a more “normal” market, as yours truly projected last January. This time last year the Austin Board of Realtors reported that during 2015 the metro area saw 5% growth in terms of units closed and an appreciation rate of 8%, and citing it was “primarily due to our…
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2016 Economic Forecast
2016 Economic Forecast Last week we attended multiple economic forecast presentations. My personal takeaway: more of the same once again for the local housing market. Sound a little familiar to the past few years? The fundamentals for our local housing market remain strong as we enter 2016. We have strong employment and population growth, we have low inventory with affordable house prices relative to the rest of the country (see chart below) and we have pent up demand in multiple buyer sectors. This year we are primed to see: First time home buyers enter the market as rents continue to escalate Boomerang buyers reenter the market with new sense of market confidence (buyers sidelined from the market due to a…
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Forecasting 2014: “Nothing Much New Here”
After attending a series of panels and seminars focused on the economic forecast for the Austin metro area, it appears 2014 is shaping up to be more of the same. With every major stat tracking toward the positive other than inventory, it feels as if there’s “nothing much new here” to report. Still, let’s try! TRENDS 2013 finally brought a gentle rise in interest rates, something we’ve all been warned about for years. As the Fed just began tapering debt purchases within the past couple of weeks, it seems we’ve already seen the largest jump in interest rates. Though we will see continued increases in interest rates, often forecasted between…