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Why Austin home prices remain stubbornly high https://ift.tt/j4AdYPL In 2021, HousingWire published an article spotlighting Austin as one of the hottest housing markets in the country. The Texas capital was a COVID-era darling, but the city had been attracting employers and homebuyers well before the pandemic. As noted in that article, Austin had ranked No. 1 in population growth for eight straight years and The Wall Street Journal named it the hottest job market in 2019 and 2020. During COVID, remote tech workers drawn to the Lone Star State’s lower cost of living relocated to Austin in droves and their deep pockets drove up home prices. But today, some of the bloom is off the rose. Looking at Altos Research data on home prices, inventory and days on market over the past five years, Austin’s meteoric rise during the pandemic era — and its abrupt cooldown after mortgage rates started to rise in May 2022 — are evident. But while rising inventory and days on market are proof of lower demand, Austin home prices remain stubbornly elevated above their 2019 levels. Austin inventory Low mortgage rates tied to COVID-era policies spurred a nationwide homebuying spree that stripped inventory levels to a record low in 2022 of only 240,194 homes nationwide. It was hard to find a house anywhere — and Austin was no exception. Today, Austin inventory has rebounded to more than double the low points of 2022 and is 47% higher than 2019 levels. June 21, 2019: 6,887 June 17, 2022: 4,859 June 14, 2024: 10,128 Days on market Austin is back to pre-COVID levels for days on market, with an average of 88 days today versus 89 days in 2019. Contrast that with June 2022, when the average was a mere 29 days. June 21, 2019: 89 days June 17, 2022: 29 days June 14, 2024: 88 days Prices prove sticky Austin home prices started to rise in 2020, with the median price skyrocketing from $374,000 in June 2019 to a whopping $635,000 in June 2022 — a 69.7% increase. That number has since dropped 15% to land at $569,000 today, but that’s still 52.1% higher than 2019 prices. (The absolute peak for Austin homes prices happened in April 2022, when the median reached $675,000.) “Austin is one of the few housing markets that have had a price correction since the peak of pricing in 2022,” HousingWire Lead Analyst Logan Mohtashami said. “House prices are usually sticky coming back down. Nationally, since 1942, it’s rare to have nominal home price declines, but Austin’s home prices inflated aggressively and have come down noticeably from the peak. Now we are seeing the price declines level off.” Austin median home prices: June 21, 2019: $374,000 June 17, 2022: $635,000 June 14, 2024: $569,000 Austin is an outlier even among other Texas metro areas that have had impressive population and job growth in the past few years. The Dallas-Fort Worth-Arlington metroplex experienced the largest population growth of any U.S. metro in 2023 and had the second-highest rate of j...

Real estate prices surged nationwide when the pandemic hit. Bidding wars, all-cash offers, and contingency removals became commonplace. Now, the tide has turned in some markets. Home prices in some large US cities declined in April, according to mortgage data company ICE Mortgage (ICE). San Antonio and Austin in Texas, and Tampa, Florida — among the most popular cities during the pandemic — saw the biggest monthly price declines. The shift comes as these markets recalibrate: Homesellers and house builders are adding more listings, just as fewer Americans are relocating there. “The key differentiator we're seeing in terms of growing inventory levels in Florida and Texas is a rise in sellers' willingness to list their homes for sale,” said Andy Walden, vice president of enterprise research strategy at ICE Mortgage. Nine major US markets have seen new listings exceed pre-pandemic averages, he said, and eight of those are in Texas or Florida. Monthly home prices declined the most in San Antonio at 0.3% in April, followed by 0.25% in Austin, and 0.16% in Tampa, according to ICE Mortgage. The cool-downs are a sharp turnaround from when home prices skyrocketed. Austin home prices soared almost 70% between 2020 and 2022, while San Antonio rose 40% and Tampa rose 60%, according to ICE Mortgage data. Allan Griego, owner of Austin Market Realty, told Yahoo Finance that when COVID hit, homebuyers were making offers 5% to 20% over asking prices, inflating the market with a “hyper-accelerated value that was not sustainable." The confluence of two events pushed supply and demand out of whack: Many folks moved to these markets for more space during the pandemic, but local homeowners stopped selling. The number of available homes-for-sale cratered. The lowest monthly active listing counts between 2020 and 2022 were 1,400 in Austin, 2,600 in San Antonio, and 3,000 in Tampa — they represented a 67% to 80% inventory deficit compared to averages during 2017 to 2019. Meanwhile, inbound migration surged. The population grew by tens and hundreds of thousands in these cities. All that, too, is changing. In May, active listings reached 10,000 in Austin, 11,000 in San Antonio, and 15,000 in Tampa. The number of days homes are sitting on the market is higher than the national average, indicating these markets are leaning toward buyers. One factor is a lack of affordable property insurance, which is pressuring more homeowners to sell, Walden said. The average property insurance premium in Florida and Texas were $11,000 and $4,500 in 2023, well above the national average of $2,400. Severe weather events such as hurricanes, tornadoes, and floods have led to an insurance premium surge in these two markets.

The journey to homeownership has been tumultuous for potential buyers in recent years, marked by fluctuating trends and economic uncertainties. While buyers initially benefited from historically low interest rates at the start of the pandemic, they also encountered record price hikes due to limited inventory and intense competition. Now, the landscape has shifted, yet relief remains elusive. Although high interest rates have somewhat tempered home prices, these adjustments have not adequately offset the heightened borrowing costs linked to these elevated rates. Adding to these challenges is the persistent shortage of housing inventory, which continues to be a concern across various cities, sustaining relatively high price levels and perpetuating affordability worries for aspiring homeowners. A recent study conducted by the national consulting firm Construction Coverage reveals a significant increase of over 53% in mortgage payments within the New York metro area over the past two years, which is almost equal as the national average. The study aimed to pinpoint the regions where homebuyers are most affected by high interest rates. Here are the key findings from the study, focusing on important statistics for the New York-Newark-Jersey City, NY-NJ-PA metro area: • Nationally, average mortgage rates surged from 3.8% to 6.8% in the last two years, alongside a rise in median home prices from $316,778 to $347,716. • Consequently, the monthly mortgage payment for a median-priced home in the U.S. has spiked by approximately 54%—increasing from $1,175 to $1,809. In the NY metro area, the median home price increased from $581,066 in 2022 to $634,651 presently. • Combining this median home price with the average 30-year fixed mortgage interest rate, estimated monthly mortgage payments in the NY metro surged by 53.1% in just two years. • This translates to an estimated monthly mortgage payment of $2,156 for a median-priced home in 2022, compared to $3,302 per month for prospective homebuyers today in the NY metro area. Overall, the increase in estimated mortgage payments in the NY metro area over the past two years falls slightly below the national average increase. At HSC Management, we have the expertise and solutions to anticipate and address needs, regardless of property type. H.S.C. Management: Serving New York residential rental, coop and condo buildings for over 45 years. We are a Fannie Mae approved Property Management Company. For more information, kindly reach out to us via email at info@hscmanagement.com or by phone at 718-414-2073 (Westchester: 914-237-1600, NYC: 718-543-2800). Explore more about us at https://hscmanagement.com/. #propertymanagement #homeowner #Westchester #NY #NewYork #tristatearea #realestate #assetmanagement #mortgage #rocklandcounty #westchesterrealestate #westchestercounty #property #building #management #collaboration #communication #engagement #experience #work #qualitymanagement #professionalism

These five states have the most overvalued housing markets: Tennessee, Arkansas, South Carolina, Montana, and Alabama. If there's one thing we've learned about housing markets, it's that they're very local. The U.S. housing market continues to face significant challenges with several factors contributing to rising home prices and limited availability. A fundamental issue has been years of underbuilding, which has created a persistent shortage of homes, which was exacerbated when so many people moved out of CA and NY during the pandemic. This situation has worsened due to rapid increases in mortgage rates and the high cost of construction materials, according to a recent report from Realtor.com. The supply of available homes remains dramatically low, down 34.3% from levels seen before the COVID-19 pandemic began in early 2020. Additionally, homeowners who secured mortgage rates as low as 3% during the pandemic are hesitant to sell, a phenomenon known as the "golden handcuff" effect, further exacerbating the supply crunch. Despite some markets seeing an increase in home listings, the recovery is being hindered by high mortgage rates and escalating home prices, according to Fitch Ratings. Some housing economists anticipate that mortgage rates, which recently decreased to 7.02% from a peak of 7.79% in fall 2023, will remain elevated and only start to decline when the Federal Reserve begins cutting rates - although still not to the pandemic-era lows. The combination of steep mortgage rates and high home prices has pushed the median monthly housing payment to a record $2,775, marking an 11% increase from last year, as reported by Redfin. "Market conditions for homebuyers remain challenging with few homes listed and costs for ownership still climbing. Despite strong fundamentals for demand from demographics and a strong labor market, many first-time buyers are being shut out of the market by elevated financing rates and rising prices," said Ben Ayers, a senior economist at Nationwide. But as we've learned, these national statistics can vary markedly from one state to another. And the recent story in Fox Business Network does a good job summarizing recent evidence pointing to Tennessee, Arkansas, South Carolina, Montana, and Alabama as five states where there's a potentially big bubble. The caveat here is the within-state heterogeneity... every county is different and looking at Memphis TN is totally different than Nashville. Read more below, and follow great housing economists and voices like Orphe Divounguy for more news on housing! #housing #inflation #labor https://lnkd.in/ewKhNmrD

Realtor.com’s top housing markets for 2025 are in the South and West https://ift.tt/e4PlahX Even after home prices and mortgage rates rose for much of 2024, markets in the South and West are uniquely poised for growth next year. This week, Realtor.com highlighted markets in Colorado, Florida, Virginia and Texas among its top housing markets for 2025. The forecast combines housing market and economic data to rank the 100 largest U.S. metropolitan areas. Realtor.com ranked these markets based on estimated growth in homes prices and home sales in 2025. The real estate portal also noted that younger families (those below 35 years of age) and military households have high representation among the top markets. The No. 1 market for 2025 is Colorado Springs, Colorado. It is followed by Miami; Virginia Beach, Virginia; El Paso, Texas; Richmond, Virginia; Orlando; McAllen, Texas; Phoenix; Atlanta; and Greensboro, North Carolina. “With mortgage rates likely to ease only modestly next year, these markets — offering relatively lower-priced homes, more new and existing houses to choose from, and mortgage products designed to give buyers a leg up — could provide some would-be buyers a better chance at entering the market next year,” Realtor.com chief economist Danielle Hale said in a statement. Realtor.com noted that seven of the top 10 markets are more affordable than average in terms of housing expenses. McAllen, Texas, was the most affordable market with living costs 13% below the national average. Miami, where living expenses were 11.5% above the national average, was the least affordable. Realtor.com notes that “while these areas generally offer lower home prices than the national average, incomes tend to be lower as well.” Among the top 10 markets, buyers spend about 31.1% of their income on housing — slightly above the national average of 29.2%. Many buyers in these markets target flexible work opportunities to offset lower incomes. Five of the top 10 markets — Richmond, Atlanta, Phoenix, Colorado Springs and Orlando — had higher shares of remote and hybrid work listings than the U.S. average. Realtor.com also noted that higher shares of homeowners without mortgages will protect some of these markets from rising mortgage rates and cause them to be less impacted by the lock-in effect. Among the top 10 markets, McAllen (61.7%), El Paso (49%), Miami (43.8%) and Greensboro (38.2%) had the highest shares of “outright ownership.” On average, 28.8% of the households in the top 10 markets include children, compared to a national average of 26.5%, while roughly one in seven were active-duty military or veterans. Realtor.com wasn’t overly excited about the prospect for home sales in 2025. It projected 1.5% growth in existing-home sales for a total of slightly more than 4 million. HousingWire‘s forecast is a tad more optimistic at 4.2 million. Recent government shifts also play a factor. President-elect Donald Trump plans to enact mass...

THE HISTORY OF REAL ESTATE (PART 3) Every realtor knows that open houses can be a great tool for selling homes. This technique was first introduced in 1947, although it failed in an almost comedic fashion. The first open house drew in neighbors of the home in Levittown, New York. Because all of the homes in the neighborhood were replicas of each other, individuals were left a little confused by the concept. Although the first open house failed, it opened the door for home tours and future open houses. People learned slowly that they enjoyed viewing homes, and that it was an important step to take in any potential purchase. In 1960, homeownership had risen to 61.9%, and the real estate industry was booming. Track houses and cookie-cutter communities were popping up all over America, and returning veterans were purchasing them quickly. The average home price in the early ‘60s was $12,700, although with demand had risen to $25,000 by the late ‘60s. Instant equity for the early birds! The MLS was created in response to the demand, and realtors rejoiced at the ability to effectively list and view homes. Throughout the 1970’s, mortgage rates remained lower between 6 and 7 percent, and the housing market continued to steadily grow. However, by the 1980’s the popularity of adjustable rate mortgages had increased, and mortgage rates skyrocketed to 18% or higher for some! This led to a small decline in home purchases, although the dip did not last too long. The market continued to expand, and regulations were repealed slowly. By 2008, many regulations had been drawn back or eliminated entirely. This led to the crisis of 2008, the housing market crash, and the foreclosure of over 4 million homes. While the first years of the crash were difficult, by 2011 many professionals felt hopeful that the market would make a strong comeback. Today, we have more connectivity than ever. Homes can be listed on a variety of online databases, and even sold via social media. We have access to more data and research, and we are surer of what works and what doesn’t. The homeownership rate has fallen, although the market is seeing a steady revival. Rates are in a great range, and people are becoming increasingly more excited about the possibility of homeownership. As long as we encourage smart lending, smart buying, and financial health we should continue to see the market grow. To be continued... I am here to make your real estate dream of a reality! ✅Contact us for more inquiries. Are you looking forward to invest in a SECURED Real Estate/property(s) investment. Or Do you desire partnering with us as a Realtor and make extra income from commissions on sales💰? We've got you covered. 📞 Just DM us on WhatsApp or call via (+234 903 273 7290) and let's discuss how to help you more. #PrinceOfRealEstateInvestment #RealEstateInNigeria #GenuineProperties #RealEstate #RealEstateInvestments #SuccessHavenHomes #WealthyBillionaire

Home affordability hasn't improved as much as anticipated so far this year — a huge letdown for buyers hoping to secure a place of their own. Buying a home was a historic challenge last year because of sky-high listing values and the highest mortgage rates since the turn of the century. In fact, the third quarter of 2023 was the least affordable market in nearly 40 years, according to the National Association of Realtors. Heading into 2024, the consensus among real-estate mavens is that affordability will get substantially better, largely due to declining mortgage rates. Lower inflation would allow the Federal Reserve to cut interest rates at least a half-dozen times throughout the year, the thinking went, which would bring down homebuyers' borrowing costs as well. Instead, an unexpectedly strong economy has helped keep inflation afloat, making rate cuts less likely. In turn, mortgage rates are now headed in the wrong direction, steadily rising from 6.6% late last year to nearly 6.9% as of mid-April. All else equal, higher borrowing costs should translate to lower property prices because of lower demand from buyers. However, the long-standing housing supply shortage has kept prices from falling, forcing buyers in most markets to either pay up and refinance later or hold out for a better deal. Neither option is ideal, as those who continue to rent are giving landlords even more leverage. Home prices rose from the prior year in 87 of the 104 largest US real-estate markets in February, according to data from real-estate site Point2 shared with Business Insider in mid-April. Only a dozen real-estate markets fitting that description saw property prices fall by more than 1%. Even more startling for buyers is that prices rose by at least 10% in 27 markets, led by Jersey City, New Jersey's 26.5% gain. The firm's researchers noted that property values in the New York-adjacent city have doubled in less than seven years — the ninth-fastest rate in the nation. Significant price gains were noticeable from the Northeast to the Southwest and every region in between, though the most expensive markets were almost exclusively in the West. Thirteen of the 14 priciest markets were west of the Rocky Mountains, and seven of the eight costliest cities were in California. Unsurprisingly, Manhattan, New York, was the exception. Below are the 27 US real-estate markets where property prices have risen by at least 10% in the last year, according to Point2 data, along with each market's year-over-year price growth and price difference, as well as the median home prices for February 2024 and 2023.

Real Estate Pros Make Case for Buying a Home This Fall Autumn in the US could bring a thaw to the housing market. Hopeful buyers and sellers should be ready to pounce well ahead of the traditional start to moving season in the spring, and I’ll tell you how to prepare. The stage is set for something of an inversion in the market, one typically thought to slow at the end of a calendar year and heat up again in spring. People, the thinking goes, are more motivated to tour houses as the weather heats up and families want plenty of time to settle into their new homes ahead of the next school year. But a series of interest rate cuts widely expected to begin later this month appear to be breathing life into a residential real estate market called everything from “frozen” to “almost impossible” in recent years. Mortgage rates have dropped and are at their lowest level since May 2023. Potential homebuyers are already applying for loans at a faster clip. A true stampede has yet to start, though, and rate cuts are not a certainty. That presents a unique opportunity for those who are ready. “Now could be the perfect time for a buyer who’s been waiting on the sidelines to jump into the market,” says Orphe Divounguy, a senior economist at Zillow. “You’ve got an improvement in housing affordability coming from mortgage rates. You have a lot of new homes on the market. And builders are offering all types of incentives to try to get their inventory moving faster.” Buyers looking to seize the moment can help themselves by planning ahead. Getting a feel for the market, preparing the necessary paperwork and refining their credit scores all help. Boosting a score can be as simple as calling your credit card company and asking for an increase to your monthly limit, says John Bovard, owner of Incline Wealth Advisors in Cincinnati. Still, mortgage rates may not decrease as much as anticipated, cautions Laura Mattia, senior vice president of Wealth Enhancement Group in Sarasota, Florida. It’s crucial for homebuyers to ensure they can afford their mortgage at the time of purchase, she says. And for sellers, it’s important to set expectations. The latest data show existing-home sales recently increased for the first time in five months. But competition from buyers is still muted compared to the heady days of the pandemic. Divounguy says many potential sellers who have been waiting out the chilly market are now willing to cut prices so their homes sell quickly. In this context, agents say it’s more important than ever to focus on the appearance of a home online. A quality web presence can be the difference between boom and bust. “A lot of the buyer’s journey starts online,” says Marina Macartney, a Realtor with First Team Real Estate in Orange County, California. “Have you done the work that’s going to convert those online visitors into in-person tours?”