Let’s talk about what is actually happening in the real estate market.
What everyone seems to be talking about is the fact that interest rates are up. This feels dramatic because over the last two years they have been artificially suppressed and incredibly low. But the truth is, they are still below what they have averaged over the last 40-50 years.
Aren’t Home Prices On The Rise?
Last month residential home sales declined, as the median prices rose–maintaining the all-time record of $550,000 set in April 2022.
Sellers are currently catching up to the recalibration of the real estate market and coming back down to actual market-appropriate prices.
Values and prices are not the same thing.
Values can be calculated to some degree by using traditional market comparison methods, but because of the subjective elements, there is a portion of value that remains an educated guess. The price of a home is what a ready, willing and able buyer will pay for a home that has been exposed to the open market. You can learn all about home values and prices here.
Home values rose at a staggering rate over the last couple of years and experts anticipate those values will start to rise at a slower rate than they have been.
With median prices on the rise, the housing inventory has more than doubled, showing active listings skyrocketing to 146.2% or 4,173 listings in Austin. The increase in inventory that we’re seeing is helpful for buyers who have had a hard time finding a home these past two years
No, the real estate market is not crashing.
Rather, it’s settling into a more balanced place. Which is currently very much still a seller’s market, don’t worry buyers we’re getting there.
Yes, there have been some dramatic changes recently in the market but that is not a reason to be concerned or frantic. These changes are anticipated and normal from where we have come from to where we need to get to go.