The February 2017 Central Texas Housing Market Report released this week by the Austin Board of REALTORS® (ABoR) showed a slowdown in single-family home sales growth throughout the Austin-Round Rock Metropolitan Statistical Area (MSA) in February 2017, indicating that the Central Texas housing market is beginning to normalize to more stable market conditions.—ABoR
What does that mean?
We are still in a seller’s market. Although inventory has crept up for the last couple of months, it remains weighted in favor of sellers. Even though the median home price in the greater Austin area increased only $10 from January, it was up about 7% over 2016, which in itself was a strong year for sellers.
ABoR figures show that new listings, active listings, single-family sales, and pending sales are all up from 2016. But Days on Market (DoM, how long it takes to sell a house) is down. DoM indicates that there is still more demand than supply, even given the price of homes.
If you’re looking to buy a home, these numbers mean you’ll have a long wait if you’re waiting for the price to come down. Given that I don’t seen home mortgages getting any easier to obtain, you should probably buy a house now, if you’re able to.
As an investor, these numbers cut both ways, because I pay on both sides of the market. Houses I can renovate for resale or rent are not getting any easier to find. On the other hand, the leveling prices mean appreciation probably won’t hedge against mistakes or unknown factors. Investing is getting riskier.
Investors can make money no matter what the market does, but the strategies are different in rising, level, or falling markets. It’s possible to lose money no matter what the market does, too.
But that’s not slowing us down. Give us a call at 512-807-8777 if you’d like to talk about this more.