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  • Momentum and Adjustment, our Current Real Estate Market

    Friday, September 11, 2020   /   by Jenny Carroll

    Momentum and Adjustment, our Current Real Estate Market

    Contributed by Sharon Rosshirt

     In real estate, as in life right now, there are an above-normal number of moving parts.  It’s harder to see into the future, because the analytics keep changing.

     Currently, there is a very strong level of demand for residential real estate as people’s lives keep changing in ways that call for a housing change.  People are still moving to central Texas, the greater Austin metro area in response to our still very strong job creation, relatively low unemployment, balanced and strong economy, absence of a state income tax, and that wonderful quality of life aspects of our hill country, Colorado River the system, music, and other cultural perks.  We have a strong technology base and a high level of entrepreneurial start-up businesses.  So many strong positives for our area!

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     There is a great opportunity to purchase a home while money is cheap, the average 30-year mortgage hit an all-time low of 2.86 percent this week, according to data released this week by Freddie Mac. This “now-if-ever” feeling from borrowers is driving some of our demand as well.

     As an industry, real estate professionals have found resourceful ways to maximize safety and minimize exposure for buyers and sellers looking at properties to purchase through the creative use of photography, drone footage, videos, and live broadcasts.  We have expanded safety protocols for in-home, in-person viewings; and buyers have responded by moving forward with purchases.

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     One of the trickiest aspects of this robust demand, which is partly in spite of and partly created by this pandemic, is that we are still bound up by lack of inventory.  This has been the root of the aggressive bidding and multiple offers we see so much lately, driving up prices for resale homes.  This supply shortage has been a factor for resale homes for some time, and the slack was being taken up by new home builders. 

     At this moment, builders are having their own set of challenges as lumber prices have doubled and they are scrambling to figure out how to manage that.  There will be price increases, but this is such a game-changer that many large production builders have hit the Pause button as they reassess.  If they add the increase entirely on the top, we’ll have appraisal issues and push back from buyers.  They may have some reduction in features to make numbers work, but they don’t want to risk quality or their reputations. 

     There are many challenges for buyers and sellers of real estate housing right now, but demand and creativity are finding new paths to success.  Having a savvy professional Realtor is your number one best advantage.  We bring a team of indispensables into your transaction; lenders, title experts, attorneys, inspectors, repair team, surveyor, appraiser, remodeler, and others who play vital roles in your success.  There is momentum taking place right now that makes it an especially opportune, if challenging, time to buy or sell real estate in central Texas.  We can help. 

    www.stanberry.com