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GREAT NEWS FOR BUYERS! INVENTORY ON THE RISE! INTEREST RATES DECREASE!
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A double dose of good news for housing affordability |
Home Price Index went up 4.1%, while starter homes are more affordable than they've been in four years - in part due to a shift in perspective. By Dave Gallagher September 30, 2024 (Excerpt)
A couple of new studies found that affordability is getting better for home buyers - in ways that signal "further relief" ahead as well as a changing definition of starter homes.
First American's Home Price Index found that annual affordability improved 4.1% for buyers in August, the first time that's happened since 2021. Not only did dropping mortgage rates help, but household income increased by 3.1%.
The third factor - home price appreciation - continued to climb, but at a slower rate and was not enough to offset the higher income and lower rates, said Mark Fleming, chief economist at First American.
Starter homes are also a better deal: Starter home prices are up 4.2% this year, but rising incomes and dropping mortgage rates offset that increase.
Other signs: The improvement in affordability is being noticed in other measures as well. Redfin estimates the monthly median housing payment is down $300 from April's all-time high while national inventory ticked up to 4.2 months, putting buyers in a better position to find a home. |
Courtesy of Realtor.com and Austin Board of Realtors |
Real estate markets are relatively predictable - they run in cycles, just like the seasons. Spring after winter, Fall after summer - the harder thing to do is to predict WHEN the seasons will change.
Timing is everything in real estate. Right now, Austin, TX is coming out of an overheated "Summer" boom into a rather dramatic "Autumn". Austin has gone from near ZERO inventory a few short years ago to the highest inventory of homes available in it's history.
The pandemic induced boom has fizzled into a buyer's market which is GREAT for buyers - not so great for sellers. For the first time in 14 years, the buyers have the upper hand. Check out the first paragraph of the housing report issued by the Austin Board of Realtors:
AUSTIN, Texas - According to the June and Mid-Year 2024 Central Texas Housing Report released by the Austin MLS, active home listings in June increased 25.9% to 13,227 listings. This increase, coupled with the rise in mortgage rates in late April and early May to 7.2%, induced a decline of 6.3% to the median sales price of $450,000 in June, providing buyers with the highest level of inventory, 5.0 months of inventory, in the MSA since 2011. Click on the Area Home Stats tab to see the full report Austin Texas Housing Report.
GREAT NEWS for buyers on the fence and investors looking for deals. Interest rates are heading in the right direction - down! And sellers are learning that if they need to sell they are going to have to negotiate. If you need to sell, you can, you just have to understand this new dynamic.
Our sub-markets are still doing very well. There are brand new homes available for just under $200K - most builders are offering this week a fixed rate of 3.99% with additional incentives for the buyer.
Special of the week: Interest rates fixed for 30 years 3.75%:
 Kyle-Maxwell*:
 Starlight Homes 2-story; 2,121sqft; 4 beds; 2.5 baths; bonus loft up; PITI** $2,060 (30 year fixed interest rate!), USDA financing, no down payment, gas range, refrigerator, washer/dryer, granite countertops, fully landscaped front and back with irrigation
Kyle-Maxwell*:
Starlight Homes 1-story; 1,522sqft; 3beds; 2-car garage; monthly PITI** $1,920 (30 year fixed interest rate!) USDA financing, no down payment, gas range, refrigerator, washer/dryer, granite countertops, fully landscaped front and back with irrigation
Del Valle*:
Lennar 2-story;1,950sqft; 4 beds; 2.5 baths; 2-car garage; monthly PITI** $2,326 (30 year fixed interest rate!) USDA financing, no down payment
Elgin*:
Century Homes 1-story; 1,531sqft; 4 beds; 2 baths; 2-car garage; monthly PITI** $2,250 (30 year fixed interest rate!) USDA financing, no down payment
Jarrell*:
Starlight Homes 2-story; 1,826sqft; 3 beds; 2.5 baths; bonus loft up; 2-car garage; monthly PITI** $1,995 (30 year fixed interest rate!) USDA financing, no down payment
* Prices and incentives can change anytime.
** PITI= Principal, Interest, Taxes, Insurance
Call 512-585-0131 for more builder's inventory and special pricing. |
Call me at 512-585-0131
There are great deals available.
I can help you finding your dream home for the right price!
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