Could Austin’s housing market be cooling off?

AUSTIN, Texas – Might Austin’s housing market lastly be beginning to cool off? 

A brand new report from the Austin Board of Realtors reveals that dwelling costs right here in Travis County have fallen to their lowest degree in two years. 

Kent Redding, the 2023 president-elect for the Austin Board of Realtors, joins FOX 7 Austin’s John Krinjak to debate.

JOHN KRINJAK: So discuss to us about this report. What did it discover in terms of median dwelling costs in comparison with earlier years?

KENT REDDING: Certain our median dwelling value in January adjusted to 450,000 roughly. And that is a 6% adjustment since December. And actually in all probability the biggest adjustment, based on the info that we have had since 2011. So it has been a pleasant little respite for our consumers.

JOHN KRINJAK: Yeah, I imply, particularly simply form of listening to about costs going up and up and up and when is it going to cease. So, I imply, does this imply the market is cooling off, that homes have gotten increasingly reasonably priced, or is it not that straightforward?

KENT REDDING: It is a bit extra sophisticated than that. I’d say that we’re changing into extra normalized market. What we had and within the, you already know, pre-pandemic space there was simply unsustainable. That was not a sensible market. And we’re getting again to, based on the info, simply extra of a traditional market. However stock remains to be low. Typically, 4 to six months is a balanced stock market, and we’re nonetheless at 2.7 months of stock. And we had 7000 roughly houses in the marketplace in January versus 10,000 again in September. So there’s nonetheless some tightness available in the market, however time, nice time for consumers to get out and be wanting round.

JOHN KRINJAK: Yeah. So, I imply, given all these elements, do you anticipate the costs will hold falling? You are not a lot.

KENT REDDING: You already know, that is simply my opinion. You already know, anecdotally, I do not assume the costs are going to fall dramatically. I feel they’ll degree off at about this tempo that we’re having in February and March, presumably for the subsequent 4 to five months. It’s going to simply be extra of a traditional market. After which I consider in all probability the autumn that is once more, simply me talking right here. We’ll get again to some regular Austin appreciation, which will be, you already know, 3 to 4% yearly. I anticipate that to occur within the fall. However for now, the subsequent six months, I consider this, you already know, will stay fairly degree.

JOHN KRINJAK: And lastly, I simply wish to ask you, you already know, we’re heading into a brand new 12 months right here. What recommendation would you’ve gotten for folks seeking to purchase or seeking to promote in 2023?

KENT REDDING: Effectively, for our sellers, our recommendation is to cost with the market. You already know, you are not going to get presumably that platinum value that you just might need gotten 24 months in the past or 18 months in the past, however you are still going to get a diamond value. And I do know, not less than based on my spouse, diamonds nonetheless fairly darn good. So sellers are nonetheless in a fantastic place to promote and consumers are needs to be affected person. You already know, it’s a little bit extra of a purchaser’s market. They’re much less more likely to should compete and pay over asking value. So our recommendation of ours is be affected person. Discover the house you’re keen on. Discover the neighborhood you’re keen on. And completely, with a market that shifts and strikes round like this one has carried out lately, work with the realtor, discover a discover an skilled that may stroll alongside you and show you how to make choice.

JOHN KRINJAK: We respect the recommendation. Kent Redding from the Austin Board of Realtors, thanks a lot for sharing your experience, your perception with us. We respect it.

KENT REDDING: My pleasure. Recognize it.