Austin will turn the corner this year and start adding jobs at an increasing rate, which will drive our real estate values higher by next year at the latest, and possibly sooner if interest rates rise faster and inventory shrinks quicker than expected.
Those buyers who waited until this summer to buy might find fatigued and motivated sellers with whom to cut a deal.
Interest rates remain at historic lows. But rates will start to rise soon, if not immediately. A 5% interest rate is an unbelievably extraordinary interest rate which, in and of itself, would normally excite buyers (both new and move-up) and get them out looking at homes. People under the age of 30 don’t know that, historically, 7% to 8% is a decent mortgage interest rate.
Austin buyers have become so desensitized to a 5% rate that it is not, at present, serving as the motivational catalyst that it should. there is universal agreement that rates are on the way up.By this time next year, rates should be in to 6%+ range.
