There are still a lot of changes going on in our market, but overall, we are seeing signs of improvement. Our months of inventory continues to inch up, but remains in what experts consider “neutral territory” (neither a buyer’s nor seller’s market). But if you were looking to cash in by buying real estate in Austin at the market’s absolute lowest, it looks like the time has passed. For the second month in a row, both the average and median home sales prices are up↑.
Median Home Price for May 2009 - $191,700
Median Home Price for Apr 2009 - $184,900
Median Home Price for Mar 2009 - $179,400
Median Home Price for May 2008 - $193,800
This month’s Broker’s Advice?
For buyers… Now is still a great time to buy because rates are still at historical lows. If you’re in the market, buy now because interests rates are headed up and it could be fast from what we’re seeing. Take advantage of low prices on homes, but don’t expect to buy a home 1/2 price, because those instances are still few and far between, especially in the under $1M market. Over $1M, there may be a few new homes by relatively new builders at heavy discounts, but I still recommend buying a new home with a seasoned, reputable builder who can provide you with a rock solid home warranty (and years of experience in building homes with few to no issues). If you’re on the fence waiting for the bottom of the market, get off the fence because it looks like you’ve already missed it. Most sellers have little patience for the “bottom feeder” calls and offers… you’re very likely not the first one to make an insulting 40-50% off offer and most sellers are being cautious these days by not buying a new home until the old one sells. Make a reasonable offer using comparable sales as back-up. Most homes are already priced for the market in order to sell in this market.
For sellers… You may need to make an important choice of whether or not to hang in there. How badly do you need to sell this year? If you absolutely most sell now, be prepared to lower your price below what you ever thought you would and be wary of buyers who are looking for the best possible deal rather than the best possible quality home when you put a low price out there. If it’s not worth it to you to sell 10-20% lower than you would in a strong market — or if the emotional headache is already more than you can bear (buyers are making bad remarks about homes they are interested in as part of the negotiations) I say wait until things calm down (because they will).
For everyone… Don’t forget that this isn’t the first downturn we’ve seen in Austin. It’s not even the first downturn we’ve seen this decade! (9/11 and .com bust anyone?) It won’t be the last. The moral of this story? Don’t panic! Make smart decisions and if you are new to the real estate market (or have other ways you’d rather spend your time) hire a seasoned, experienced, knowledgeable Realtor®, not just any agent because there is a serious business when it comes to making the best and brightest calls in a volatile market with consumer confidence all over the board like we are currently experiencing.
To view the interactive version of this chart, visit:
http://AustinHome.Pro/Data
