Market Changes

The real estate market made an abrupt change over the past few weeks and I'm here to tell you about those changes. Watch the video or read the information in text format below the video.

Greetings.  Yes, the real estate market is changing. I expect prices to come down a bit in the near-term with month-over-month declines in prices.  We won’t see year-over-year declines for a while (if at all) because values are up about 20% so far this year.  The rising interest rates are the main factor that is slowing demand.  With the quick increase in rates, some buyers have decided to sit out for a while or are having to adjust to purchasing a lower priced home.  As a result, the supply of available homes is increasing.   As prices begin to come down a tad, buyers are deciding if they want to wait to see if prices come down further but also knowing that interest rates are only expected to go up as the year moves on.  Whether to buy or wait is an individual choice that will vary based upon an individual buyer’s situation.  There are many factors for a buyer to consider – are they paying cash or getting a home loan, what type of loan, can they extend an existing lease – if so, at what cost, was their down payment in stocks that have declined, and on, and on.  In short, prices are coming down, how far is hard to say in the short term, but the medium and long term outlook in Central Texas still looks great so a big decline in prices is not widely expected by many observers.

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