The past few years of Austin real estate have been what Moreland Properties' founder and CEO, Emily Moreland, calls “a wild ride.” Whether that meant buying a home after seeing it exclusively on Facetime, or selling your house overnight, the real estate market was a circus.
As of late, there is growing concern about inflation and a recession and their respective impacts on the national real estate market. Slowdowns can be confusing, so here at Moreland we are staying focused on what we know best: Austin.
“While we must not treat these warning signs too lightly, our community of greater Austin is in a unique position. The job market is still strong, and new companies are either moving here, or some of those already here are expanding”, says Sarah Railey, COO and Broker. Emily Moreland and Sarah Railey have worked side by side to make sure agents have the knowledge and services they need.
Austin’s growth as an up-and-coming city is comforting, but what does the data say?
Inventory levels are up. Now, what exactly does that mean? Months of inventory refers to the relationship between the number of active listings on the market and the amount of sold transactions in the past month. A balanced market has 6 months of inventory. Throughout the chaos of the past 2 years, Austin saw inventory levels as low as 0.4 months of inventory in January 2021 (ABOR). In 2018 and 2019, we saw more normal inventory levels: “buyers had time to think about the offer they made on a property before it had multiple offers” (Emily Moreland). See graph below.
Alongside increasing inventory levels, property values are increasing and holding strong. 2022 property values in the Austin Metropolitan Statistical Area are still significantly higher than in years 2018, 2019, 2020, and 2021 (Independence Title). See graph below.
What next? “As we go forward, we are expecting a very brisk and energetic market. The homes in great locations will keep selling, and while we will see the days on market increase, the values will hold." (Sarah Railey).
If you are looking for the right time to buy or sell, allow our expertise to guide you. We know it can be overwhelming, but we also know the market and can develop a strategy that encourages peace of mind. Contact us and start a conversation with one of our experienced real estate professionals.
