Austin Real Estate Guru

Demystifying real estate with a cutting edge market commentary on housing trends in the Booming Greater Austin market. As Navigators of town for over 3 decades, we unravel the mystery behind the purchase and sale process. It is our hope to serve as a leading light and offer swift real estate insights to lead you to a happy dwelling place that benefits you for years to come.

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Austin Real Estate Guru

Market Slowdown NOT Go Down

October 14, 2021 • Lisa Marie Contaldi • Season 1 • Episode 12

0:00 | 5:55

DECELERATED APPRECIATION IS NOT DEPRECIATION. MOST PEOPLE WILL MISUNDERSTAND THIS and think prices are going down. WRONG. Listen to this Austin Housing update for October.

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?

Hello Friends.

Here’s a quick October update on housing activity in Austin from your private confidant and knowledge broker.

HOW’S THE MARKET

Let’s look at home price appreciation nationally and locally using YEAR OVER YEAR statistics.

Core logic reported a year over year appreciation of 18%, the Federal Housing Financing Agency (FHFA) showed 19.2% and S&P Case Shiller Index showed a remarkable 19.7% house appreciation in July 2021.

Austin Texas MSA local stats are even more impressive!

TAR and ABOR our local associations reported and increase in the average sales price of 14.41% = from $461k to $574k - that’s 24.41% Year over year.

Price per square foot - 34% increase

$277 a square foot in August

Days on Market 58 days to sell vs 63 with home selling quicker by 28% year over year

Close to original list price 103.84% up almost 5% .

Do you know what this means?? Homes that were placed on the market this summer received about 5% above asking price in August and in 2021 the Year to date number is even better. Close to original list price was 107% of original list price - an increase of 8.8%. WHOA~~

I KNOW I KNOW WHAT YOU REALLY WANNA KNOW IS The What’s going on In October and in 2022 and beyond…

Here’s how the experts see it.

SLOW DOWN NOT GO DOWN

Our price appreciation will slow down (but not go down).

Home prices are expected to appreciate at a slower (or decelerated pace.) MAKE NO MISTAKE, DECELERATED APPRECIATION IS NOT DEPRECIATION. MOST PEOPLE WILL MISUNDERSTAND THIS and think prices are going down. WRONG. The Home Expectations Survey (from 100 leading economists) shows home prices moderately increasing by 11.74 % nationally - compared to the 18, 19 and 20% increases we’ve been seeing.

HERE ARE THREE LIKELY SCENARIOS FOR THE FUTURE

Listings will EITHER #1)grow #2)flatten out or #3) they’ll peak and then dwindle. If we have #3 prices will rise. Make sense?

This conclusion can be drawn by looking at strong housing activity in 2019 (a normal year) ; tempered by 2020 an abnormal year where things peaked and troughed later going gangbusters right through the end of 2020. Thereafter we did tons of business while we got over lockdowns.

Outlooks show there’s still plenty of pent up demand because sellers are more comfortable going on the market now with COVID in the background vs foreground and builders are still building as much as they can with pressures from labor and lumber costs easing up a bit.

We’re now seeing receive emails of inventory from builders were we were only getting invitations to bid on lots.

In our next episode we’ll answer the question = ARE WE IN A HOUSING BUBBLE?

SEE YOU SOON!