Austin Real Estate Market Update

 

Jan. 25, 2024

Austin Real Estate Market Year End Recap 2023

Happy New Year! Can I still say that if January isn't over yet?!?

To say that 2023 was a rough one for real estate, might be an understatement... nationally, homes sales were the lowest in almost 30 years!  High mortgage rates and prices made home buying prohibitively expensive for many people last year.  

While Austin didn't see the lowest level in home sales in 30 years - due to extreme population growth over the years - we were not immune to the slow down. Existing home sales slid just over 9% in 2023 compared to the prior year and the average home price is down about 6.5%.  However, the average sold price from the end of 2019 to 2023 is up 37%.

"Real estate pricing is generally a slow moving ship, so it could be considered alarming to see price swings like this. However, when we look at a longer term perspective, we see that prices are generally stable. The pandemic caused extreme buyer behavior, but it appears that has now been corrected. Population growth has always been the primary driver of Austin’s real estate market (people need a place to live). When comparing our Avg Sold Price with our population growth, it appears very healthy." - Eric Bramlett

 

Is the real estate market slow down over?   

We think it is!  Mortgage rates have come down significantly from the peak and the Fed seems to have signaled more cuts happening this year.  That will increase affordability for many people and we expect to see more buyers in the market this Spring... on a side note, our Spring market actually starts in February!

Home Prices

While the average sold price has declined 6.5% in the past year, you can see on the graph below that prices took an uptick in December.  If that trend continues as we expect heading into the Spring market, we could eventually see prices return to 2021 levels in the near future.  We should see a modest increase in prices for 2024. 

Number of Homes Sold

2023 was the slowest real estate market we have seen in the past 5 years, down 9.26% for the year.  However, with improvements in mortgage rates, we expect home sales to be steady for this coming year.

Home Sales in Austin Texas Dec 2022 | Lori Wakefield REALTOR Keller Williams

Homes for Sale

The number of homes for sale hit a 5 year high earlier this year, but but tapered off at the end of year which is normal during the holiday season.  Interestingly, despite a nearly 300% increase in inventory since Dec 2020, we only have a 3 months supply of homes for sale - meaning, if no more homes come on the market, and we continue to sell homes at the same pace, there will be no more homes for sale.  In other words, when the next market shift happens, we could quickly see ourselves back in the days of bidding wars and fast moving prices - but that's a conversation for 2025.

Homes for Sale in Austin Texas Dec 2022 | Lori Wakefield REALTOR Keller Williams

So, what does all of this mean for you?

If you are a buyer:  Mortgage rates have come down significantly compared to a few months ago which is bringing out buyers who were on the fence and as we enter the Spring market, we should continue to see an increase in buyer competition.  Increased inventory gives buyers more choices and lessens the chances for multiple offers, but the best homes will go quickly and garner more interest.

If you are seller: You can still benefit from the appreciate we've seen these past few years.  Just know that there are a lot of homes competing for the same few buyers which means the the homes that are selling are staged, in great condition and priced well.

 

Call me, if you or someone you know is looking to buy or sell real estate in the Austin area, I'd love to help!

 

 

Kind regards,

 
photo

Lori Wakefield
REALTOR, Keller Williams Realty

icon 512.657.4455

icon www.loriwakefield.com

icon lwakefield@kw.com

icon 1921 Lohmans Crossing, Austin TX 78734

 

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Posted in Market Stats
Jan. 8, 2024

Seizing the Moment: Record Mortgage Rate Decrease Signals Prime Time for Homebuyers and Sellers

Exciting news! Last month, we witnessed the largest drop in mortgage rates in 3 DECADES!! creating a golden opportunity for both homebuyers and sellers alike. 

According to Michael Nasserfar with Movement Mortgage, “The average 30-year fixed-rate mortgage dipped between 5.875% to 6.25%, providing an unprecedented window for prospective buyers to secure favorable financing. This is almost a full 2% drop from the heights seen earlier in 2023.”

We are already seeing more buyers moving into the market setting us up for what should be a busy Spring buying season. 

However, Michael cautions, “there is the possibility of rates inching upward as the Fed continues their efforts to lower inflation.  Urgency is key – now is the perfect time to capitalize on the lowered rates before the expected increase ahead.“

As the demand increases we likely will see an increase in home prices making it a great opportunity for home sellers who have been on the fence this past year.  

And for buyers who have been waiting for the “bottom of the market” to buy, it’s here!  Don't miss out on this limited-time window - now is the time to act swiftly to capitalize on the current buyer-friendly landscape before prices start to climb as we all saw occur starting in 2020. 

If you have been thinking about buying or selling a home in Austin Texas, I would love the opportunity to help.  

Lori Wakefield, Realtor | Keller Williams Realty | 512.657.4455 | www.LoriWakefield.com

And if you need a great lender or want to discuss your financial options, reach out to Michael Nasserfar NMLS 209485 | Movement Mortgage | 512.797.8916 | www.MichaelLoan.com

Historical Mortgage Rates

 

Kind regards,

 
photo

Lori Wakefield
REALTOR, Keller Williams Realty

icon 512.657.4455

icon www.loriwakefield.com

icon lwakefield@kw.com

icon 1921 Lohmans Crossing, Austin TX 78734

 

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IMPORTANT: The contents of this email and any attachments are confidential. They are intended for the named recipient(s) only. If you have received this email by mistake, please notify the sender immediately and do not disclose the contents to anyone or make copies thereof.

 

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Dec. 26, 2023

The largest number of potential buyers in U.S. history

In 2023, there were fewer than four million real estate transactions — the lowest number of homes sold in the last thirty years. In 1993, we had just 260 million people living in the U.S. Now we have 340 million. So last year was a record low. That’s why there is huge pent-up desire for people to move in 2024. The number one age group that wants to make a move is millennials. There are 72 million of them. 45.5 million are between the ages of 26 and 35. 26 is the typical age when people move out of their parents’ home, and 35 is when they become first-time buyers. This is the largest number of potential buyers in U.S. history. If you’ve been thinking about making a move, now is the time to talk through the unique opportunities in this market. I’m grateful to be your trusted advisor for all your real estate needs.

 

#BuyerBoom #USHistory #MarketRevolution #BuyersUnveiled #HistoricalShift #GameChanger #BreakingNews #MarketTrends #EconomicShift #InvestmentInsights

 

 

Kind regards,

 
photo

Lori Wakefield
REALTOR, Keller Williams Realty

icon 512.657.4455

icon www.loriwakefield.com

icon lwakefield@kw.com

icon 1921 Lohmans Crossing, Austin TX 78734

 

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IMPORTANT: The contents of this email and any attachments are confidential. They are intended for the named recipient(s) only. If you have received this email by mistake, please notify the sender immediately and do not disclose the contents to anyone or make copies thereof.

 

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Posted in Market Stats
Dec. 13, 2023

Unlocking Housing Opportunities: The Resurgence of Real Estate Markets in 2024

Unlocking Housing Opportunities: The Resurgence of Real Estate Markets in 2024

Is 2023 the "bottom out" year for real estate?

Following two years of subdued activity, the housing market is expected to grow in 2024. Several signs point to an imminent market recover, notably, the projection of lower mortgage rates.

According to the National Association of Realtors, Austin TX boasts one of the largest pools of "returning" buyers. If interest rates drop to 6.5% in 2024, 5.1% of all households will once again have the means to afford the median priced home.

As we step into 2024, these markets are poised to lead the way in unlocking housing opportunities, presenting an optimistic outlook for the real estate sector's resurgence:

Geographical Hotspots: Top 10 Markets With the Most Pent-up Housing Demand

  1. Austin-Round Rock-Georgetown, TX
  2. Dallas-Fort Worth-Arlington, TX
  3. Dayton-Kettering, OH
  4. Durham-Chapel Hill, NC
  5. Harrisburg-Carlisle, PA
  6. Houston-The Woodlands-Sugar Land, TX
  7. Nashville-Davidson–Murfreesboro–Franklin, TN
  8. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
  9. Portland-South Portland, ME
  10. Washington-Arlington-Alexandria, DC-VA-MD-WV

If you are thinking about buying or selling a home in Austin, I would love the opportunity to help you!

 

Kind regards,

 
photo

Lori Wakefield
REALTOR, Keller Williams Realty

icon 512.657.4455

icon www.loriwakefield.com

icon lwakefield@kw.com

icon 1921 Lohmans Crossing, Austin TX 78734

 

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linkedin

twitter

 

IMPORTANT: The contents of this email and any attachments are confidential. They are intended for the named recipient(s) only. If you have received this email by mistake, please notify the sender immediately and do not disclose the contents to anyone or make copies thereof.

 

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__tpx__Geographical Hotspots: Top 10 Markets With the Most Pent-up Housing Demand

Posted in Market Stats
Dec. 12, 2023

Looking Ahead to the 2024 Real Estate Market

As we start a new year, the real estate market is once again shifting. Many experts project that rates will finally start to decline. When that happens, it’s anticipated that there will be an influx of buyers and sellers ready to enter the market.

Take a look at this information on the state of the housing market, historical interest rates and some well-researched stats on why the typical homeowner moves.

I’m here to answer any questions you may have about Austin real estate and help you through every step of your future home sale or purchase. Please feel free to reach out any time!

 
Kind regards,
 
photo

Lori Wakefield
REALTOR, Keller Williams Realty

512.657.4455  |  www.loriwakefield.com  |  lwakefield@kw.com

1921 Lohmans Crossing, Austin TX 78734

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IMPORTANT: The contents of this email and any attachments are confidential. They are intended for the named recipient(s) only. If you have received this email by mistake, please notify the sender immediately and do not disclose the contents to anyone or make copies thereof.

 
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Nov. 27, 2023

Unveiling the Secret Advantage: Selling Your Home in a Challenging Market

🏡 Unlock the Advantage in a Challenging Market! 🚀

🌟 Are you hesitating to sell in today's challenging market? Think again! Over 7,300 savvy individuals in the Austin area have successfully sold their homes in the last 90 days, and you could be next!

⚖️ Why sell now?

Despite high interest rates, low inventory, and economic uncertainty, selling in a low inventory market is a unique advantage. Seize the opportunity to capture demand, command a strong price, and even attract multiple offers.

🌐 The Power of Strategy:

Before you list your home, it's crucial to develop a selling strategy that stands out and appeals to the right buyer. Let's create a plan that sets your property apart from the rest.

📞 Schedule Your Strategy Call Today!

Call me at 512-657-4455 to schedule a complimentary strategy call. Discover how we can tailor a selling approach that maximizes your home's potential and gets you the results you deserve.

🏆 Why wait? Let's make your home stand out in this market! 💼

Nov. 6, 2023

The Fed's Interest Rate Pivot: What it Means for Real Estate - A Comprehensive Guide

The number one question I get asked these days is about Mortgage Interest Rates.  In recent statements from the National Association of Realtors, a significant shift in the economic landscape has been forecasted, with the Federal Reserve moving from raising interest rates to a more neutral stance, eventually leading to rate cuts next year. This shift is based on concerns about the weakening job market and its impact on the overall economy. In this article, we'll delve into the implications of these changes on the real estate market and what it means for both prospective homebuyers and sellers.

Introduction

The Federal Reserve's monetary policies have a profound impact on various sectors of the economy, including the real estate market. Understanding these shifts is crucial for anyone looking to buy or sell a home.

Understanding the Federal Reserve's Shift

The Federal Reserve has been actively raising interest rates to combat rising inflation. However, the latest job market statistics have raised concerns. The job gains in October were at their weakest in the past three years, with only 150,000 jobs added. This has pushed the unemployment rate up to 3.9%, approaching a two-year high, and wage gains have slowed to 4.1%, compared to nearly 6% last year, which is expected to alleviate inflationary pressures.

The Job Market Woes

The weakening job market is a cause for worry. As the job market falters, it affects consumer confidence, which is a crucial factor in the real estate market. Homebuyers and sellers pay close attention to employment stability when making decisions.

Impact on Interest Rates

The bond market has already begun reacting to these developments, anticipating that the Fed might cut rates in 2024. The benchmark 10-year Treasury yield has fallen to 4.55%, below its recent high of 5%. As a result, mortgage rates are expected to decline. The 30-year fixed-rate mortgage, which has been hovering around 7%, is likely to dip into the 6% range by the spring of next year.

Mortgage Rates: What to Expect

This is great news for potential homebuyers, as lower mortgage rates can make homeownership more affordable. However, it's important to note that if the spread between Treasury and mortgage rates were to return to its historical average, mortgage rates could already be in the range of 6.2% to 6.7%.

The Real Estate Market Outlook

What does this mean for the real estate market as a whole? We can expect to see an uptick in both home buyers and sellers. Lower mortgage rates often stimulate housing demand, as more people find it financially viable to purchase homes.

Implications for Homebuyers

If you've been contemplating buying a home, this shift in interest rates could be an excellent opportunity. With lower mortgage rates, you can secure a more favorable financing deal. However, it's essential to act swiftly, as the market dynamics can change rapidly.

Implications for Home Sellers

For those looking to sell their homes, a more active market with a higher number of potential buyers is a positive development. It could translate into quicker sales and potentially better offers.

Financial Advice: What to Do

Financial experts suggest that it's a good time to consult with a mortgage advisor and explore refinancing options. For homebuyers, getting pre-approved for a mortgage should be a priority.

Preparing for Market Fluctuations

It's important to remember that the real estate market is influenced by various factors, and while lower interest rates are favorable for buyers and sellers, market conditions can change.

Experts' Opinions

Economists and real estate experts have differing opinions about the impact of these changes. Some believe it will result in a real estate boom, while others are cautious, emphasizing the importance of staying informed.

Factors Influencing the Real Estate Market

Besides interest rates, factors like supply and demand, regional economic conditions, and government policies play a significant role in shaping the real estate market.

Navigating Uncertainty

In conclusion, the shifting stance of the Federal Reserve, with the anticipation of rate cuts, opens up opportunities for both homebuyers and sellers. However, it's essential to navigate the uncertainty with caution, stay informed, and consider expert advice when making real estate decisions.

Conclusion

The real estate market is poised for change, driven by economic shifts. Whether you're buying or selling a home, understanding the evolving landscape is key to making informed decisions.

FAQs

1. What is the Federal Reserve's role in influencing interest rates?

The Federal Reserve, often referred to as the Fed, plays a crucial role in the U.S. economy by controlling the country's monetary policy. One of the tools it uses is the setting of interest rates. When the Fed wants to stimulate economic growth, it lowers interest rates. Conversely, when it wants to curb inflation, it raises interest rates. Changes in interest rates can impact everything from savings and loans to credit card debt and mortgage rates. For the real estate market, lower interest rates generally mean more affordable mortgages, which can encourage homebuying.

2. How do lower interest rates affect the housing market?

Lower interest rates have a significant and positive impact on the housing market. When interest rates decrease, it becomes cheaper to borrow money for a mortgage. This, in turn, can lead to increased demand for homes, as more people find homeownership financially feasible. As demand rises, it can put upward pressure on home prices. Therefore, lower interest rates often lead to a more active and competitive real estate market, which can be favorable for both buyers and sellers.

3. Is it a good time to refinance my mortgage?

Refinancing a mortgage can be a wise financial move when interest rates drop. By refinancing, homeowners can replace their current mortgage with a new one with a lower interest rate. This can lead to lower monthly mortgage payments and potentially substantial savings over the life of the loan. However, whether it's a good time to refinance depends on several factors, including the difference in interest rates, your credit score, and how long you plan to stay in your home. It's advisable to consult with a mortgage professional to assess whether refinancing makes sense for your specific situation.

4. What are the key factors to consider when buying a home in a changing market?

In a changing real estate market, there are several key factors to consider:

  • Market Conditions: Keep a close eye on local market conditions, such as inventory levels, pricing trends, and days on market. These factors can influence your buying strategy.

  • Financing: With changing interest rates, it's crucial to secure the right mortgage. Get pre-approved for a mortgage to strengthen your bargaining power.

  • Budget: Assess your budget and ensure it aligns with your long-term financial goals. Don't overextend yourself, even in a buyer's market.

  • Location: The location of the property remains vital. Consider factors like proximity to schools, work, and amenities, as well as the potential for future growth in the area.

  • Future Trends: Look at broader economic and demographic trends to gauge the long-term potential of your investment.

5. How can I stay updated on real estate market trends and developments?

Call me! I have my finger on the pulse of our market and know real time what is happening and how that may impact your personal situation.

By keeping yourself well-informed, you'll be better equipped to make strategic decisions in the ever-evolving real estate market.

 

Kind regards,

 

photo

Lori Wakefield
REALTOR, Keller Williams Realty

512.657.4455  |  www.loriwakefield.com  |  lwakefield@kw.com

1921 Lohmans Crossing, Austin TX 78734

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Oct. 4, 2023

Discover the Top 10 Newest Listings in Austin, Texas

Are you on the hunt for your dream home in Austin, Texas? The vibrant city of Austin is known for its lively culture, delicious food, and fantastic live music scene. It's no wonder that so many people are eager to call Austin their home. If you're one of them, you're in luck!

At loriwakefield.com, we've curated a selection of the latest Austin Texas real estate listings just for you. Whether you're a first-time buyer or looking to upgrade, our list of the Top 10 Newest Listings will surely pique your interest.

Why Choose Austin, Texas?

Austin, the capital of Texas, is a city filled with opportunities and attractions. From tech startups to stunning parks and outdoor activities, this city has something for everyone. The real estate market in Austin is thriving, offering a diverse range of properties that cater to different preferences and budgets.

Your Dream Home Awaits

We have scoured the Austin real estate market to bring you the most enticing properties. From cozy condos to spacious family homes, you'll find a variety of options on our list. We understand that finding the perfect home is a big decision, and that's why we've made it our mission to present you with the very best.

Start Your Journey Today

Don't miss out on the opportunity to live in one of the most exciting cities in the United States. Explore the latest Austin Texas real estate listings with our curated Top 10 selection. Your dream home could be just a click away.

Ready to take the next step? Visit loriwakefield.com and begin your journey towards finding the perfect home in Austin, Texas. Your dream home is waiting for you!

Check out the Top 10 Newest Listings in Austin Texas - updated in real time!

>> CLICK HERE <<

June 7, 2023

Why Hire Lori Wakefield, Realtor, Keller Williams Realty to Sell Your Austin Texas Home

Are you looking to sell your Austin Texas home and wondering who you should trust with this important task? Look no further than Lori Wakefield, Realtor at Keller Williams Realty. With her extensive experience, exceptional skills, and unwavering dedication, Lori is the ideal choice to help you navigate the competitive real estate market in Austin. In this article, we will delve into the reasons why hiring Lori Wakefield can make all the difference in selling your home and achieving the best possible results.

Expertise in the Austin Real Estate Market

One of the key factors that sets Lori Wakefield apart is her in-depth knowledge of the Austin real estate market. As a seasoned professional with years of experience, Lori understands the intricacies of the local market trends, property values, and buyer preferences. She stays up-to-date with the latest market insights, ensuring that her clients receive accurate and valuable information to make informed decisions.

Personalized Approach to Selling Your Home

Lori Wakefield believes that every home has a unique story to tell. That's why she takes a personalized approach to each client and property she represents. From the initial consultation to the final closing, Lori invests the time and effort to understand your specific goals and expectations. By tailoring her strategies to your individual needs, she maximizes the potential of your home and creates a compelling narrative that resonates with potential buyers.

Comprehensive Marketing Strategies

In today's digital age, effective marketing plays a crucial role in selling a home. Lori Wakefield leverages her expertise in online and offline marketing channels to ensure maximum exposure for your Austin Texas home. She employs a comprehensive range of strategies, including professional photography, virtual tours, targeted online advertising, and captivating property descriptions. By showcasing your home's unique features and creating a compelling online presence, Lori attracts qualified buyers and generates a buzz in the market.

Strong Negotiation Skills

Negotiation is an art, and Lori Wakefield is a master of it. With her strong negotiation skills, she advocates for your best interests and strives to secure the most favorable terms for the sale of your home. Whether it's negotiating the purchase price, contingencies, or repair requests, Lori remains focused and assertive throughout the process. Her ability to navigate complex negotiations ensures that you receive the best possible outcome.

Unparalleled Client Satisfaction

Lori Wakefield's commitment to client satisfaction is unmatched. She goes above and beyond to exceed her clients' expectations and deliver exceptional service at every step. Her professionalism, integrity, and genuine care for her clients create a positive and stress-free experience. Testimonials from her satisfied clients speak volumes about her dedication, expertise, and the outstanding results she consistently achieves.

Local Connections and Resources

Being an established realtor in Austin, Lori Wakefield has developed strong connections with various professionals in the industry. From trusted home inspectors to reliable contractors, she can connect you with reputable service providers who can assist with any necessary repairs or improvements to enhance your home's appeal. Having access to a network of reliable resources saves you time and ensures that your home is market-ready.

Results That Speak for Themselves

Ultimately, the proof of a realtor's capabilities lies in their track record of success. Lori Wakefield has a long list of satisfied clients and a history of achieving remarkable results in selling homes in Austin Texas. Her expertise, dedication, and unwavering commitment to excellence consistently shine through, positioning her as one of the top realtors in the area.

If you are looking to sell your Austin Texas home, choosing Lori Wakefield, Realtor, Keller Williams Realty, is a decision that can significantly impact your selling experience and overall outcome. With her expertise, personalized approach, comprehensive marketing strategies, strong negotiation skills, and unparalleled client satisfaction, Lori is the epitome of a real estate professional who can help you achieve your goals.

 

May 30, 2023

Austin Real Estate Stats - April 2023

Is the real estate market slow down over?   

Based on year-end numbers, it doesn't look like it just yet, but stay tuned! We are seeing an increase in buyer activity right now as we enter the Spring market.

Home Prices

Median sold prices officially dropped below 2021 numbers in December 2022, and while prices have dropped 17% since the April/May 2022 peak, they are still at least 20% higher than 2020 prices.  Preliminary numbers for January show another slight drop in prices, however, we have seen buyer activity pick up this past month indicating a likely stabilization and potential uptick in prices as we enter the Spring market which would end the decline we've seen for the past 8 months.   

Number of Homes Sold

The number of homes sold is the lowest we've seen in 5 years and down 4% compared to Dec last year and in the 4th quarter of 2022, we sold about 33% fewer homes than in the same time period in 2021.

Home Sales in Austin Texas Dec 2022 | Lori Wakefield REALTOR Keller Williams

Homes for Sale

We have seen over a 300% increase in homes coming on the market over the past few months.  Inventory increased at a rapid rate over the summer months, but now seems to have stabilized and is following the normal seasonal trend.  Over the last 5 years we have seen an increase in population as well as in the number of homes built so it is normal to expect inventory to increase year-over-year and not particularly noteworthy as long as it is following the normal market trend.

Homes for Sale in Austin Texas Dec 2022 | Lori Wakefield REALTOR Keller Williams

What does all of this mean for you?

If you are a buyer:  Mortgage rates have come down significantly compared to a few months ago which is bringing out buyers who were on the fence and as we enter the Spring market, we should continue to see an increase in buyer competition.  Increased inventory gives buyers more choices and lessens the chances for multiple offers, but the best homes will go quickly and garner more interest.

If you are seller: You can still benefit from the appreciate we've seen these past couple years.  Just know that there are a lot of homes competing for the same few buyers which means the the homes that are selling are staged, in great condition and priced well.

 

Call me, if you or someone you know is looking to buy or sell real estate in the Austin area, I'd love to help!

 
photo

Lori Wakefield

REALTOR
Keller Williams Realty
512.657.4455
lwakefield@kw.com
www.loriwakefield.com
1921 Lohmans Crossing, Austin TX 78734
 
Oh, by the way, I'm never too busy for you, or your referrals!

IMPORTANT: The contents of this email and any attachments are confidential. They are intended for the named recipient(s) only. If you have received this email by mistake, please notify the sender immediately and do not disclose the contents to anyone or make copies thereof.

 

Posted in Market Stats