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.
