By now you have heard about the great shift in THE market. Interest rates are up; home prices are adjusting; days on market (DOM) is longer; the sky is falling according to the media! But is it really? What does this mean for Central Texas home buyers and home sellers?
Well, first, the sky is NOT falling! At least, not in the Austin market! But there is a correction in the market occurring after the past two crazy years we have seen where buyers couldn't get to a new listing fast enough ,and prices went out the window and off the charts, and few houses were even on the market. Our volume is 30% down from 2021 but up 74% from 2020!
So what does my normally fuzzy crystal ball have to say? It says we are going to return to a more traditional manner of selling real estate. You remember this: you saw a property, you put in an offer that was not typically over the asking price, you did not waive your right to an inspection or appraisal , and you closed in 45 to 30 days. (By the way, this is not just my crystal ball talking, but J Kuper, the owner of our company who has his finger on the pulse of the Austin market.) So what do you in this "shift?"
As a seller, you will want to have your home pre-inspected so there are no "surprises" such as a roof that is questionable, out-of-date electrical wiring, or anything else you might not be aware of that is quick fix but in a buyer's mind is a $25K repair. The most volatile time in a contract is the option period because it is the time that the most things can go sideways, and sellers can lose their sale or end up leaving dollars on the table.
Of course, pricing is going to be critical. No mater what, price is the reason a house sells or doesn't sell. It is just a fact. If it backs up to Mopac, it's the price. If it has a stupendous view, it's the price; if it is in a flood plain, it's the price. Hire a professional and listen to what they tell you. We all think our property is special and is worth more than others in the area, but the numbers don't lie. If your property is on the market 15 days, and you have not had any showings or offers, it's the price.
If you are a buyer, the good news is you are going to have some selection. We have already seen the number of houses on the market increase. You still need to narrow down what you want and where you want to be, but you will have a few more choices. Above all, you need to be pre-qualified in the least and pre-approved at the most BEFORE you start looking. Lastly, hire a professional to guide you through the white water rapids of real estate.
I can't say it enough: Hire a professional Realtor. This is such a critical piece to navigating this process. Choose someone with experience who is backed by a reputable company who has history and staying power in the market. There is a reason they have been here for a long time: they are trusted advisors who know what they are doing.
As many of my friends tell me, I am "often wrong, but never in doubt." In this particular case, 38 years as an agent tells me I am not wrong nor am I in doubt, but probably very outspoken. So no matter if you are considering selling or buying at this shifting time in the market, I wish you nothing but the best, and I would love to be your Realtor!