Are you considering buying a home in Austin, Texas? Let’s break down the current market and the latest changes that could impact your home search.
Current Market Overview
According to the latest stats from the Austin Board of Realtors for July, home prices in Travis County have remained steady. Prices didn’t change much from June to July, but it’s important to note that they peaked in May and have been tapering off since. This trend is typical; prices usually rise in the spring, peak around June or July, and then start to decline.
Interest rates are a major factor in this trend. Many buyers are waiting for the Federal Reserve to lower rates, which is expected to happen in September. While it’s uncertain exactly how much rates will drop, it’s possible we could see a reduction more than once this year.
Opportunities in the Market
Despite the higher interest rates, there are some great opportunities for buyers right now. For instance, new construction homes are offering significant incentives. I recently helped a client secure a new home with $60,000 off the price, a waiver on the lot premium, a discount on design selections, a fixed 30-year rate of 4.99%, and all closing costs covered. Deals like this are possible because buyers currently have strong negotiating power.
If you’re looking to buy now, you might be able to secure favorable terms and a better price. However, once interest rates drop, more buyers are likely to enter the market, which could increase competition and drive up prices.
Inventory and Market Pace
Currently, there is ample inventory in the Austin market, with almost six months’ worth of homes available. This gives buyers time to carefully consider their options. Homes are taking about 60 days to sell, so you have time to revisit properties and make informed decisions. Once interest rates drop and more buyers re-enter the market, the number of available homes may decrease, and the pace of sales could pick up.
Recent Changes and the NAR Settlement
You might have heard about recent changes following the National Association of Realtors (NAR) settlement. Some headlines suggest buyers will have to pay their agents directly or that only listing agents will benefit. However, this isn’t entirely accurate.
The settlement introduced more transparency in how agent fees are handled. Sellers are still able to offer compensation to buying agents, but it will now be more clearly outlined in listing agreements. This means that most sellers will continue to cover these costs because they want to attract buyers and are aware that most buyers work with agents.
In Texas, buyer representation agreements have been standard practice for a long time, so these changes won’t drastically affect how you work with your agent. If you have concerns or questions about how these changes might impact you, feel free to reach out. I’m here to help clarify any confusion and ensure you have the most accurate information.
Buying a home in Austin right now comes with both challenges and opportunities. With current high inventory levels and the potential for better deals on new construction, now could be a great time to buy. Keep an eye on interest rates and be prepared for a potential increase in competition later in the year.
If you’re planning a move or have specific questions about the Austin real estate market, don’t hesitate to contact me. I’m here to help guide you through the process and make sure you get the best possible deal.
Feel free to email me or schedule a phone call if you need more information or have any concerns. Let’s make your home-buying experience as smooth and successful as possible.
