As we enter the second half of the year, now is an opportune moment to review Austin’s real estate market. 2023 has presented both challenges and opportunities, shaping the dynamic landscape of our local real estate sector.
Despite some voiced national concerns regarding inflation and a potential recession, Emily Moreland (Owner) maintains that "the numbers and activity in Austin truly deny this." Our unwavering focus remains on the Austin market, where new businesses continue to open and expand while we also witness the occasional closure of beloved establishments.
Inventory levels in Austin and surrounding areas are higher than what we have seen in recent years. Currently standing at 3.63 months of inventory, this increase offers more opportunities for motivated buyers eager to explore their options. Six months of inventory is widely considered a “balanced market,” with anything below indicating a “seller’s market.”
Many buyers find themselves holding out for lower interest rates. However, they need to be mindful that lower rates tend to drive up demand which in turn will drive up prices. Mark Sprague, State Director for Information Capital, recently said “the worst thing clients can do presently is wait to see if rates dip”.
Taking into consideration the cautious approach of many buyers, sellers must now employ more competitive strategies than in previous years to ensure the successful sale of their properties. As Sarah Railey (Broker, COO) aptly states, "there is still a very active market in all price ranges." However, sellers must present their properties in impeccable condition and align their pricing with recent comparable sales data. It is crucial for sellers to recognize that the market dynamics of 2021 differ significantly from the present, and sellers “cannot look back to last year and compare.”
According to Forbes Global Properties, the data is “pointing toward stabilization, with prices leveling out and inventory bouncing back” from the “frenzied market” in the past. Forbes notes that while “the days of cutthroat bidding wars may be over—at least for now—the effects on the luxury segment of the market may prove long-standing.”
Austin remains “a real draw to those wanting to live in this very welcoming city with so much to offer. The lakes, the golf courses, arts activities and the music scene are very much a part of what makes Austin so attractive. The price of real estate has pushed some buyers to the suburbs, but those areas are also offering very attractive lifestyles.” - Emily Moreland
If you are contemplating the ideal time to buy or sell, rely on our expertise to guide you through the intricacies of the market. While we don’t claim to have a crystal ball, our experienced real estate professionals are dedicated to helping you navigate and succeed during all types of market conditions. Allow us to develop a personalized strategy that encourages your peace of mind. Reach out to us today to initiate a conversation with one of our esteemed real estate professionals.
