Do you remember the last time we talked about home loans and mortgages?
While I wrote that down while trying to understand my affordability and ability to buy a home, I was still unsure if Austin’s unstable and unsustainable real estate market during COVID-19 would make my decision wise.
I am so glad that we waited and did not rush into buying a house.
According to the recent data, Austin market is returning back to the pre-covid normalcy – that is, affordable housing again! During Covid, due to a high number of people moving in, the market created a sort of bubble which was bound to burst – high inventory, high demand, high prices and extremely high-interest rates.
Current Austin Housing Market
According to the Austin Board of REALTORS® :
- The market is moving towards pre-pandemic sales activity and inventory.
- Buyers have more bargaining power now than at any point since before the pandemic.
- Homes still closed at over 100% of the list price on average in June.
- Residential home sales declined 20.3% year over year.
- New listings jumped 19.6% to 6,160.
- Housing inventory increased to 2.1 months of inventory, up 1.5 months from last June — a sign of a seller’s real estate market.
Buying a home in Austin: Is this the right time?
If you are planning to buy a house in Austin, perhaps the time is getting better.
The Austin-area housing market is slowing down and returning to how it was before the pandemic.
The factors contributing to this:
- Housing inventory rose over two months for the first time since November 2019
- Dip in residential home sales
- The slowed pace of home price growth in June
Can you afford a home in Austin?
Buying a house is always a financial decision. There are a lot of other factors but in my opinion, you should always be financially secure before becoming house poor. And this is always subjective.
It is always a better idea to weigh the pros and cons.
The interest rates are high in Austin right now but they are historically low! Also, you really don’t lose money when you invest in a house.
You can always utilize this mortgage calculator, a fantastic way to calculate your mortgages, and remortgages and estimate your affordability to buy a house. This is a great way to understand your finances and plan ahead.
Wish you all the best in your home-owning journey.