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Market Quick Hits = Opportunity
Market Quick Hits “We often miss opportunity because it’s dressed in overalls and looks like work” ― Thomas Edison Units closed in April 2017 decreased 3.8% compared to April 2016. Year to date we’re up 1%. The Austin MSA inventory is up 16.9%, 15.1% in Travis County and 14.6% in Austin City Limits. Year to date condo sales are up 13%. Condos currently represent 10% of the total sales in the Austin MSA and 20% of the total sales in Austin city limits. Current interest rates for a 30-year fixed are 4%; down 0.125% from the beginning of May. Builder incentives and seller concessions are on the rise once again. Percentage of sold price…
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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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A Note From Scott, October2016
A Note From Scott Howdy, y’all! The peak home sales season may have passed but our little team of Real Estate professionals hasn’t slowed in the least. To the contrary, our buyers, and many of our homeowners for that matter, are busier than ever. To me, the fall is the best time of year to consider all of your options as a homeowner or prospective homeowner. Regardless of your situation, we would love to visit with you to see if we can make your current situation even better! Considering a move-up or relocation? We should build that plan today! Ready to enter the marketplace as a first time home buyer? With today’s interest…
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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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Austin Market Watch
Once again, real estate sales in the Austin metro area are off to another fast start. While 2014 was a record breaking year, home sales are currently outpacing last year by at least 10% for single family dwellings with many listings still receiving multiple offers and selling over list price! And though early year projections for interest rates ranged from 4.0-4.2% with climbs throughout the year to between 5-5.4%, today the rates remain sub 4% for a 30 year fixed. WOW! I’ll never get tired of seeing rates in the 3’s though I’m afraid those days are numbered. With home values at historic highs and the cost of money still at historic lows home sellers and buyers are sure to be…
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Interest rates are up, but what does that mean?
Whether you’re in the industry, in the market to buy, or just watching the economical trends, you’re sure to know that interest rates are up over the past week, and they’re up significantly. January began around 3.25% and slowly rates crept up towards 4%. This week rates quickly spiked above 4.5%, after the fed announced it’s intentions to scale back on stimulus programs. From Frank E. Nothaft, Freddie Mac vice president, “Higher mortgage rates may dampen some housing market activity but the effect will be muted by the high level of buyer affordability, and home sales should remain strong,” That couldn’t be more true here locally where real GDP growth, population…