Edy Knows

Market Crash or Market Slowdown?
Despite the constant barrage from the media indicating that a housing market crash is imminent, the current data does not support that theory, at least not in Austin. The median sales price in the 5 county greater Austin area is up 5% year over year for the month of September. What we are seeing is a significant decrease in volume, closed sales are down 18% and pending sales down 29%.  The slowing down in the market is attributed to climbing interest rates.  The interest rates are affecting both supply and demand and in order for prices to go down, supply needs to outpace demand, currently that is not the case.  The biggest price reductions I’m seeing are in new construction where the builders are motivated to unload year end inventory and also willing to buy down rates for the buyers.  As interest rates continue to rise putting a squeeze on affordability, I do anticipate more buyers priced out of the market which will in turn put increased pressure on rental rates.