07/09/2021 - I received a text message from a client concerned about the economy and how it could effect the sale of their home that we are putting on the market next week.  Specifically, they are concerned about interest rates dropping, the market will shift in a decline and could crash or cause an extreme correction. 

This concern is something I addressed in a recent post that you can read here:  Is This a Bubble? but I thought it was worth exploring again.

I shared my clients concern with David Tandy, President of Texas National Title.  He was on vacation, but I love that he took the time to respond so I could help my clients feel comfortable and confident in their decision to sell their home.

Here is what David had to say:

I’m on vacation so I can’t write much. Here are important points to highlight. 

1) Low interest rates help offset the increase in home prices. Ultimately the Fed wants to keep rates low for many reasons which helps home buyers. 

2) The economy is driven by having a healthy job market. And there has never been a hotter job market. Google “Austin chamber of commerce job report” and look at the most recent report. It shows there are almost 90,000 job postings per month. Far and away the highest it’s ever been. The economy is very hot and there are not enough employees with the needed skills. 

3) There is no danger of a bubble bursting. Mortgages have high underwriting standards. Loans have not been made to people who cannot afford them. Many sales have been for cash and many people have had to put down large down payments. People do not walk away from mortgages when they have large amounts of equity. 

 4) Forbearance is not an issue. There are only about 2 million loans still in forbearance. And all of those have equity. 

 5) Inventory will remain an issue for the next 6 years at least. It will take at least that long for builders to catch up to our population growth. 

 6) Austin is in really good shape for jobs. Google, Apple, Tesla have yet to really start the hiring. 

I’ll send more when I get back on the 14th 

In addition to David's comments, Austin is currently ranked as the #3 Best City to Live in the US in 2020 and 2021 AND Austin has been named THE #1 CITY to Start a Business in 2020 for the third consecutive year!  There is not a better place to be than Austin Texas!

If you or someone you know is in that market to buy or sell in the Austin area, I would love the opportunity to help!

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.

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What are the most asked real estate questions on Google right now?

1.  Is this a bubble?  

NO!  The reasons both local and national economists do not believe a crash is likely, is because:

• Inventory is at record lows
• Developers and builders cannot build quick enough to meet demand - Austin has on average 150 families per day moving here!
• Mortgage rates are still near historic lows
• Lending parameters are still strict
• Foreclosure activity is near nonexistent
• Job creation - Austin has a long list of major companies moving or expanding here

2.  When is the housing market going to crash?

There are no current economic indicators pointing to a crash anytime soon because of all the reason we aren't in a bubble.  

3.  Why is the market so hot?

• There is very little supply of existing homes
• Builders can not keep up with demand to help bridge the supply gap
• Mortgage Rates are at records low
• Demographic trends - 62 million Millennials are now at home buying age adding to the already 55 miilion Gen X'ers
• COVID lockdowns made people re-evaluate their lifestyles and the increased ability to work from anywhere has opened up buying options.

4.  How much over asking should I offer?

I hate to say that it depends, but that's the answer... Inventory is low and buyer demand is high which is causing multiple offers on many homes.  While we are seeing a slow down from the frenzy we experienced at that beginning of the year, demand is still outpacing supply so buyers should expect to compete with multiple offers.  In the Austin market, every neighborhood and price point is behaving a little differently. 

This market can seem difficult to navigate to the average consumer because it is fast paced and transactions are becoming increasingly complex.  That is why it is so important to work with a REALTOR who understands the market and can help you find a home that fits your needs and your budget.  If you are thinking of buying a home, I'd love to chat with you about your specific situation.  

Is the Austin Real Estate Market slowing down??  Leading report indicators tell us it's starting to look that way!

While multiple offers are still common, homes are receiving fewer offers than we've seen over the past few months.  Additionally, we are seeing the number of new listings outpace the number of homes going under contract and surprisingly, mortgage applications are the lowest we've seen since February 2020.  Lastly, according to a recent survey of local real estate agents, nearly 62% feel that the market is normalizing or cooling down.  

What does that mean for you? 

Despite the "slow" down, what we are seeing is shift from an "Ultra Strong" Sellers Market to a "Strong" Sellers Market.  Home prices are still going up and buyer demand is still strong, but we are seeing a stabilizing of the market.  It is still a great time to buy and a great time to be a seller.

Here's a quick look at the monthly activity trends:

And, of course, everyone's favorite - Check out the May 2021 >>> MEDIAN SALES PRICE APPRECIATION BY ZIP CODE

If you are curious about what is happening in your neighborhood or have been thinking about buying or selling real estate in the Austin area, call me!  I'd love the opportunity to help you!

                                                                                                            Happy Summer!                                                        

Curious about how much homes have appreciated in your zip code?  Check out this Heat Map for the Median Sales Price Appreciation from March 2020 to March 2021. 

It's an extraordinary time in Austin to sell!  Call me if you have been considering listing your home.  I'd love the opportunity to help you with a quick sale at top dollar. 

Lori Wakefield, REALTOR | Keller Williams Austin TX | 512.657.4455 

And Oh, by the way, I'm never too busy for your referrals!

While the number of homes sold is up about 7% over the 1Q of 2020 we are actually  DOWN 22% from where we ended in the 4Q 2020.  This is due to a lack of inventory—lots of buyers in the market and no homes to sell.

Year-to-date Average Sold Price increased 32% to $554,481.  We are still seeing homes going into multiple offers and selling over asking.

Listings are down 78% from this time last year!  For the last four(4) years, we have averaged about 6,300 homes for sale this time of year.  Today, we have about 1,200.

There is currently 0.4 months of inventory on the market which is a very strong sellers market.  Six (6) months of inventory is  considered a normal, balanced market.

Call me at 512-657-4455  if you would like to know more about your specific situation or sub-market.  I would love to hear from you and help guide you through your real estate decision!

Contact Kevin Wieser – Membership Director

Telephone (714) 409-8126

Email Membership@Top100RealEstateAgents.com

Website www.Top100RealEstateAgents.com

FOR IMMEDIATE RELEASE

AMERICA’S TOP 100 REAL ESTATE AGENTS®

January 5, 2021 – Announcing the selection of Lori Wakefield, Keller Williams Realty, Austin Texas among America’s Top 100 Real Estate Agents® for 2020.  Selection to America’s Top 100 Real Estate Agents® is by invitation only and is reserved to identify the nation’s most esteemed and skilled Real Estate Agents and Brokers with a history of routinely selling homes above market value. 

Members are selected through a comprehensive multi-phase selection process involving proprietary algorithms using advanced data analytics to assess a broad array of criteria and data for each candidate, including (but not limited to) the Real Estate Professional's total yearly sales volume, notable above market value sales, luxury home sales, efficiency rating for closing sales, lifetime professional experience, client satisfaction ratings, and other notable recognitions, among many other proprietary factors.  Based on these criteria, a measure/rating for each Real Estate Professional is established indicating their relative effectiveness in closing high-value sales above market value in comparison to other Real Estate Professionals in their region.  Accordingly, the most efficient and effective Real Estate Professionals among the community are then identified for selection among America’s Top 100 Real Estate Agents®.

Only the Top 100 qualifying Real Estate Professionals in each region will receive this honor and be selected for membership among America’s Top 100 Real Estate Agents®.  With these extremely high standards for selection, less than one percent (1%) of active Real Estate Professionals in the United States will receive this honor — truly the most exclusive and elite level of Real Estate Agents and Brokers in the community.

# # #

If you would like more information about America’s Top 100 Real Estate Agents® or the selection process, please visit our website at www.Top100RealEstateAgents.com or contact Kevin Wieser – Membership Director at Membership@Top100RealEstateAgents.com.

COMING SOON in FALCONHEAD WEST!  For more info, contact LORI WAKEFIELD, Realtor, Keller Williams Realty, 512.657.4455

Beautiful Drees Custom Home, Former Model - Driscoll Plan in highly sought after Falconhead West neighborhood.

This highly upgraded home on a quiet cul-de-sac features a spiraling staircase, plantation shutters, hardwood floors and commercial grade appliances.  The formal dining, gourmet kitchen, and breakfast area open to the living room making it perfect for entertaining.  Adjacent to the breakfast area is a lovely sun room which provides tranquil views to the covered terrace with outdoor kitchen and gas burning fireplace.  Master bedroom with luxury bath is a welcome retreat on main level. Large secondary bedrooms each with their own dedicated bathroom.  Upper level has game room and media room.

This home backs to greenbelt with walking trail that connects to the City of Bee Cave's Hike and Bike Trail System.

Large open kitchen w/ commercial grade appliances, double ovens & double islands *

Office/study * Wetbar w/wine fridge * Sunroom * Gameroom * True media room * Backs to greenbelt w/ covered patio * outdoor fireplace & kitchen * Private backyard w/room for pool * Plantation shutters * Hardwood floors * Each bedroom has own bathroom * PLUS! ALL mounted TVs and media equipment convey!

Albert Einstein once said, “The hardest thing in the world to understand is income tax.” Luckily, tax preparers and DIY tax software take much of the mystery out of the process. Whether you prepare your taxes yourself or send them to a professional, it’s still important to collect and sort your information, including any changes in status or economics that occurred during the year.

The information I’m sending this month is intended to prepare you for tax time. Page one provides a list of financial details you may need to gather ahead of time to make the process easier, as well as some tips to help you get your refund faster. Page two outlines steps to take to help you protect your identity from thieves who wish to gain access to your information.

Tax season doesn’t have to be stressful. With a bit of preparation, the process becomes a breeze.

Sincerely,

KELLER WILLIAMS REALTY

ph 512.657.4455

Oh, by the way®… if you know of someone who would appreciate the level of service I provide, please call me with their name and business number. I’ll be happy to follow up and take great care of them.

If you’re like many Americans with a mortgage, you’re probably looking for ways to pay it off sooner. You’re in luck! Below are some great tips to help you reduce your principal and eliminate your mortgage debt faster, so that you have more money in your bank account for retirement, investments or a relaxing tropical vacation. If you’re among the one-in-three lucky homeowners who have paid off their mortgage, forward this information on to family or friends who are seeking to pay off their mortgage debt.

Get the Scoop on the Home Selling Process

Are you thinking of listing your home? For many people, especially first-time sellers, the selling process may seem intimidating because they’re not sure what to expect. A sure way to ease any anxiety you may feel is to learn more about the process.

This month, the information I’m providing has an outline of what to expect during the selling process. From getting your home ready for its market debut to handling offers and the closing process, this piece helps you understand what may happen and offers tips to get your home ready. While the specifics of your sale may be different, the steps listed consistently occur in the majority of transactions.

When you’re ready to list your home, we’ll be there every step of the way to explain the process. Give us a call today at 512.657.4455!

Sincerely,

Oh, by the way®… if you know of someone who would appreciate the level of service I provide, please call me with their name and business number. I’ll be happy to follow up and take great care of them.