July 15, 2021

    July 15, 2021

    Jul 15, 2021

    In 2008, the average Austin home price was less than the national average. So, when the GFC hit, we had a buffer. As some of you may remember, it affected the housing market here in Central Texas, but not nearly to the degree which it did in places like California.

    Today, the low home price buffer no longer exists in Austin and the surrounding areas. However, some say the prices can be justified by the demand. The demand is real. People are leaving California, New York, Illinois, and West Virginia, and moving to places like Florida and Texas. Realtors are having trouble finding buyers in New York, just as we are having trouble finding sellers here. So, when the overall housing market adjusts, our region may be somewhat protected from catastrophe, much like it was in 2008, while California suffers once again.

    As a trader friend of mine often says, "It can't go up forever." This is undoubtedly true, but when it stops going up, what will it do next? Will it go down? How quickly, and how far? Or will it just go sideways, and for how long? No one knows. Also, one must consider the question: When home prices finally adjust, will they adjust in nominal terms, or in real terms? In other words, if you sell two identical houses, one today, and one after any market correction, which one will net you the most purchasing power, independent of the actual dollar amount you receive from the sale? Again, no one knows.

    There are many variables at play here. Unless you are an investor, these details are not what drive you to buy or sell your house. They may help influence your decision, but ultimately you participate in the market because you have a life need. When life sends you to a different location, it helps to have someone with an eye on the market who can be straight forward about the current market conditions, to help you make the best decision.

    My goal is not to convince you of anything, or persuade you to do anything. My goal is to be the expert you need to help you get where you want to go. I want to provide the information you need to make your own decision. And if you choose to work with me, I want to do the legwork that is necessary to not only get you the best deal, but to ensure a fair, solid and seamless transaction.