If you live in Austin, you are aware of the crazy housing market. Whether you are considering buying your first home or are getting offers on your house that isn’t even for sale, you probably wonder when this craziness will end. However, the Austin real estate market is showing no signs of slowing down in 2022 as it continues to reach record breaking numbers. Local realtor Jacey Hamilton gives us some insight on what you can do if you’re looking to purchase a home in central Texas.
According to the Austin Board of Realtors latest report, the Austin-Metro area median home price increased 20.9% year over year, reaching $550,000 for the month of January. In February home sales increased 2.5% and the median home price increased 15% to a February record breaking $565,000. Even with Austin dropping from the #1 spot to #10 on Zillow’s top ten housing markets list, this has had no impact on the climbing market trends. iWe continue to see an influx of people moving to Austin, low mortgage interest rates and industrial development contributing to high demand while inventory remains low. This information is not meant to discourage, but instead bring awareness of how to best prepare for the home buying process.
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- CONDUCTING RESEARCH
Researching the market is a great way to give yourself a glimpse at what to expect and gauge if you are ready to jump into the home buying process. Also, this can help build a foundation of questions to address with your realtor. A good place to start would be researching current mortgage interest rates, neighborhood interest and property taxes, as well as monthly housing market reports on the Austin Board of Realtors website at www.abor.com.
- FINDING THE RIGHT REALTOR
You’ll want to have the proper representation when it comes to one of life’s most important investments, especially in a market as high in-demand as Austin. A realtor should demonstrate honesty, active listening skills to understand their client’s needs, wants and desires, knowledge of current market trends, willingness to locate answers and the ability to put your mind at ease along the way. Lastly, a good real estate agent will make themselves available to you even if you are not 100% sure you are ready to purchase a home.
- GETTING PRE-APPROVED
Start by getting a few lender recommendations from your realtor to begin the pre-approval process. It would be wise to investigate a few different options, as some lenders can get you lower mortgage interest rates than others. Be prepared to work alongside your lender throughout the home buying process. Once you’ve chosen your preferred lender and made it through the pre-qualification process, you should receive your pre-approval. This will give you the range on how much money you can borrow and show the sellers that you are a qualified buyer; this is pertinent in today’s market.
- MAKING AN OFFER
Know that most offers result in a bidding war or multiple offer situation due to the current demand and lack of inventory. You’ll need to be prepared to act fast if you want to be a top contender and/or win the offer. Be prepared to potentially make an offer at or over listing price, reduce your option period and consider a conventional loan instead of FHA loan. Cash offers usually take the win but not always.
- DON’T GET DISCOURAGED
You got this! It is common to put in offers on multiple properties before you win an offer. It is easy to become exhausted by the bidding wars but know that there is a house out there for you and the right one will come along at the right time. Remember, every shot you don’t take is a missed opportunity. Lean on your realtor for encouragement and keep pushing!
If you have any questions about real estate in Austin or are looking to buy or sell a home, Jacey is happy to help – jacey@viprealestate.com
