August Real Estate Market Report Shows Early Slowdown in Austin
As temperatures in Austin start to broil, the real estate market typically starts to cool this time of the year. This year, sales began to slow a little earlier than normal causing real estate agents to wonder a little earlier than usual why their listings aren’t flying off the market like they were a few months ago. Part of the answer is that seasonally, we always have a build up in sales during the late winter and early spring months then a crest generally around mid July. This year that peak came at the beginning of June.
Do you think buyers are just worn out? Rising prices, multiple offers on multiple properties, investors with cash and the sheer number of buyers competing for homes can wear a buyer out. Buyers may be waiting for the market to cool slightly, prices to level off and for fewer buyers to be competing for the fall inventory. We’ve had more pending home sales in July than in the past 8 years, but there is also a higher inventory, almost 12% more homes for sale than last year at this time. More inventory, fewer buyers. In most price ranges, we are moving from an extreme seller’s market (under $500,000) to a more normal seller’s market. ($500,000 to $1M). Over $1M we go to a normal to an extreme buyer’s market.
It’s hard to believe that there are 139 homes in the MLS, and a number more that are on the silent market, above $3,000,000. Luxury home sales have been slower this year than last and I expect that trend to continue at least into next year. Falling oil prices, market instability, the economic woes overseas and an unpredictable election year are causing luxury home buyers to sit on the sidelines. Even in Austin where our economy is fed by many different sources and our outlook remains good, housing at the luxury end will see increased days on market and prices falling as they go up price band.
Real estate is local, and as always, we invite you to contact us directly for specific data in your areas of interest. We are here to serve you! For a copy of our latest Market Report, visit our website.
Submitted by Laura Duggan, REALTOR, 512-750-2425, email@example.com
West Austin Properties, 3312 River Road, Austin, TX 78703.