How Will Increasing Interest Rates Affect the Austin Market?

As you probably know by now, the Fed increased interest rates at the end of last year. Today I’ll go over what effect that increase is having on our Austin market.

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By now, you’ve probably heard that there was an increase in interest rates at the end of last year. I want to go over the impact of that increase on our market here in Austin and give you an idea of what you can expect as a result in 2017. 

We’ve been told that interest rates will be raised at least three more times in 2017, with some economists predicting a worst-case scenario of a rate of 5% by the end of the year. 

Whenever rates increase, people get a little concerned about how it will affect home sales. According to local economists, there really is no cause for alarm, but the increase may affect the rate at which home values increase. Instead of the 7% to 10% increase in home values we are used to, we might only see a 5% increase. 

Austin is experiencing great job growth right now, but it doesn’t seem to be causing a negative effect on the housing market as consumer confidence is high and unemployment is low.

Right now is a fantastic time to sell your home.

All in all, economists predict 2017 to be a great year for our market. That being said, if you’re thinking about selling a home this year and are wondering when the best time to sell is, the answer is right now. 

Give us a call today and we can get you in contact with our preferred lender who will get you started on your way to financing a home. Additionally, if you have any other real estate-related questions or you’d like to find out how we can ensure your home sale process is as smooth and successful as possible, please feel free to reach out to us. I look forward to hearing from you! 

What's in Store for the 2017 Austin Market?

I recently attended the Austin Home Builders Association 2017 forecast, and I wanted to bring you an update on our market based on what I learned. 2017 looks to be another great year for our market.

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Today we have a quick update on the real estate market here in Austin.

In 2016, we had another great year in real estate. The median price for a home rose 7.2% to $284,000, and on average, homes sold in just 50 days. Inventory stayed tight at about two months worth of supply. On average, sellers got 98% of their list price.  

So what does 2017 look like? I wish I had a crystal ball, but I don't. I did, however, recently attend the Austin Home Builders Association 2017 forecast where local economists predicted another great year in 2017 in Austin. Job growth, population growth, and the low inventory will all contribute. Builders are working hard and fast to meet that demand, but the supply just isn't there yet. They weren't concerned about rising interest rates hindering the market because they're still historically low.

"Supply is low and demand is high, making conditions very favorable for sellers."

So what does this mean for you? If you want to sell your house this year, it's a great time to do so. Low inventory means you won't face a lot of competition. We also know a lot of people move here on a daily basis. 

If you're looking to sell your home, we'd love the chance to work with you. Our clients get 102% of their asking price on average and sell in an average of just 17 days. Just give me a call or send me an email and let's get the discussion started.

How Do You Find a Home in Your Dream Neighborhood?

If you want to move into a neighborhood you can’t afford, there are three steps to accomplish this goal.

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Recently, we asked our viewers to send us questions they had about the Austin market. Today we’re answering Fran, who asked, “If you like an area and can’t afford to buy in it right now, how can you get into the neighborhood and what can you do to buy a home there?”

Great question, Fran. There are three steps to accomplishing this:

1. Call me and meet our team. I would love the opportunity to introduce you to our preferred lending partner and give you a chance to counsel with him so you can understand what your buying power is. You never know—you might be able to afford more than you think you can.

2. Come and counsel with me. Let’s talk about what you’re interested in and what’s drawing you to that area. What is it about the homes and the community that you like so much? This will help you understand what kind of community you’re looking for.  

"Call me and counsel with me."

3. Be open as a buyer to more areas. As they say, there are plenty of fish in the sea. You might not be able to afford to live in the neighborhood you want, but odds are there is another neighborhood just like it somewhere in Austin that’s more affordable. If you try a different neighborhood, you always have the opportunity to build up your equity in another house so that sometime in the future, we can move you into your dream neighborhood.

If you have any questions or are interested in buying, selling, or investing in real estate, let us be your resource. We would love to work with you and help you accomplish your goals!