Austin Real Estate Guru
Austin Real Estate Guru
The Rise and Fall of Interest Rates - Savvy Buyer Series Part 3
We are starting to see a little shift in the housing market
As The old saying goes...
When Rates Rise they take the elevator.. and When they come down they take the steps!
Hi! I’m Lisa Marie Contaldi and my family has called Austin Texas home since the late 80’s. I’ve celebrated hundreds of success stories and memorable housing experiences helping buyers and sellers achieve their personal financial goals. We’ve all witnessed the astounding changes from a rapidly evolving housing market in Austin through many real estate cycles. Is it time for you and your family to cash out and make the change you’ve been planning for months; or dreaming about for years?
WE ARE knowledge brokers offering an authentic ongoing conversation that will develop your natural intelligence in real estate and other endeavors.
http://lisacontaldi.com
HOW’S THE MARKET?
We are starting to see a little shift in the market
As The old saying goes...
When Rates Rise they take the elevator.. and When they come down they take the steps!
The First 6 months of 2022 has been all about a quick, unforeseen rises in mortgage rates
In Dec 2021 or Jan 2022 rates were 3.1% for the average 30 year Fixed
By April they started to stabilize. Today they hover between 5.1 and 5.5%. (FREDDIE MAC)
Interest rates most definitely affect affordability
ABOR is seeing increase in inventory -
(Austin Board of Realtors - May)
City Austin 1.0 month supply of homes
Austin MSA shows us at 1.2 month supply
Overall we are up by about .5 to .7 months
ARE WE HAVING A CORRECTION?
Correction = decline of 10% or greater in a security asset or financial market
The median sales prices is up 18% in May——SO NO!
We have not had consecutive declines
We are at a turning point - but the real estate market has seen historical highs
WE ARE STILL IN A SELLERS MARKET
THERE ARE STILL MORE BUYERS THAN AVAILABLE HOMES.
We are approaching demand that looks a whole lot like pre-pandemic levels. In 2017, 2018, 2019 were still amazing years for real estate.
Folks have never seen rates so high but here’s how they looked over the past 5 decades. In the 70's they were 8.8%, the 80's 12.7, the 90's 8.12%, in Year 2000 6.27%, in 2010 years 4.09%
WHAT’S AHEAD
Because Millenial’s are reaching the age where they start to consider home ownership this is likely to keep the market moving and prices escalated.
REMEMBER Recession does not equal housing Crisis!
Home Prices declined in only 2 of 6 recessions. But people only remember the WORST which was 2008 when home prices declined by 19.7%. In the 80's home prices increased by 6%; in 81 3.5% ; 91 they declined by just 1.9%; 2001 6.6% increase, 2008, down by 19.7%; and in 2020 6.0% was the increase in home prices
Source CORELOGIC
So Fear not. The real estate market is alive and kicking!