September 2024
One thing you can count on from me is direct communication and honesty, even when the truth hurts. My team often quotes me as saying "No sugar, EVER!" We believe in telling the truth attractively, but never sugar coating what needs to be said.
Mortgage interest rates dipped last week and the entire industry was hopeful this would spur buyer activity. That didn't happen! Rates are back up approximately 50% of where they were, and I predict we won't see SIGNIFICANT movement in interest rates for a few years, based on the overall history of mortgage rates and trends. It was a good run, but the days of 3% mortgages are over.
Trust me, this is not what I want to hear. The year hasn't been pretty for most of us in the trenches day to day. I have listings on the market that are priced well, professionally photographed, videoed, and beautifully marketed in print and on social media. We have reduced prices, hosted open houses, offered adult beverages and charcuterie boards, and still the buyers snub their noses, traffic is slow, and inventory continues to stack.
There is a wide gap between what sellers want and what buyers want these days, and it is our job, as professionals, to close the gap and get everyone to the closing table in a happy and excited mood. I believe I can speak for most everyone in our industry, that this is a difficult task in our current market. Buyers are very picky due to the high monthly costs of a mortgage, and sellers are competing with new construction in many areas.
As essential expenses like groceries, gas, utilities, insurance, health costs, and childcare continue to rise, we will need to see wages increase to balance household necessities before we see much improvement in the housing market, and overall spending.
The tech industry in Austin has been good to us for several years. There are over 50 Fortune 500 Company Headquarters located in Central Texas, however, many of them have announced waves of layoffs, leaving those still employed waiting for the other shoe to drop.
Is it ALL doom and gloom? No, there are buyers and sellers in every market, and we are experiencing a "normalizing" that we haven't seen since 2012-2013. I'm fortunate (and old) enough to have lived through the ups and downs of the market since 2005, and I experienced and survived the downturn of 2008. Texas is the 8th largest economy in the WORLD! We are in a good place, we are a highly educated population with a strong workforce, and our home values have held a steady increase in appreciation over the years. This too shall pass.
If you are interested in more information on buying and taking advantage of this slower market, or for sales data in your specific area or neighborhood, we would love to guide you through the planning process, whether short or long term.
If you are faced with some financial decisions that may require you to pull equity from your real estate owned, please reach out for a private and always complimentary consultation.