It seems for as far back as any of us can remember, Austin has featured in a whole range of different top-ten lists; all associated with celebrating positive, buoyant markets. One of the main things that has always driven Austin’s real estate market is the strong demand for houses. People want to live here. Why? Because it’s awesome, of course.
While supply could never quite keep up with the demand for Austin’s homes, the prices never spiraled out of control and our real estate’s valuations have always maintained a certain sense of practicality with regard to the ability to afford a happy, comfortable life.
Recent analytical data from summer 2017 shows a number of trends which we believe could be the beginning of a slow down to the frenetic pace Austin real estate investors are used to seeing. It could be the thing which finally brings balance to this full-powered steam train we call the property market.
Slower Home Sales Growth Rate
Recent data from the Austin Board of Realtors Market Report began to show a slight slowdown of the home sales growth rate in June 2017 compared to June 2016. Home sales growth rate still rose for the Austin-Round Rock metro area, but at a slightly slower 2.8% increase year-on-year.
Single-family home sales growth held steady in July 2017 throughout Austin-Round Rock, but the latest data did highlight an interesting direction for Austin’s market – with a marked increase in inventory.
In the Austin Board of Realtors’ July 2017 Market Report, we find that, interestingly, the inventory for the metro area rose over the summer, leaping from 0.4 months in July 2016 to 3.2 months in July 2017.
In recent history, real estate professionals have seen a typical drop in the inventory of houses during the summer months. It happens seasonally – it’s a good time to move – and so the market tends to grow as hot as our blissfully long sunlit days.
This increase of inventory in Austin-Round Rock is a good thing for our real estate market. It shows early signs of a degree of normalization – of balance – as supply is finally beginning to catch up with the rampant demand.
The shortage we used to have in inventory maintained the competitive edge our market was known for, which forced sale prices higher as multiple buyers competed to purchase the same properties. July 2017’s increase in inventory means that this shortage of available homes didn’t happen this year, putting buyers in a stronger position to negotiate.
The Time to Buy?
With a higher inventory, buyers are not fighting over the same homes, and so it gives the would-be homeowner a chance to be a little more shrewd, a little more selective and exercise a little more power when negotiate a favorable deal.
Buyers could dare to push beyond their previous price point with savvy negotiation skills and snap up an amazing home while staying within budget. Remember, a higher inventory means they have a slimmer chance of finding a buyer, and an increased inventory means homes are spending more time on the market. This all works in your favor when trying to get the most out of your real estate purchase. Our advice at this stage? Go for it.
Harlan Realty is at the forefront of Austin area real estate. We know the market and are expertly positioned to assist you with your best interests when buying or selling a house within this fast-paced, ever-changing city. Contact us for free helpful advice on how you could make the most of Austin real estate.