The Steiner Ranch real estate market got interesting this month….but stats won’t reflect the shift until next month.
The average sales price to original list price ratio again remained relatively unchanged in June – same as April and May. April’s ratio was 102.11%, May’s was 102.17%, June’s was 101.92
It’s important to note that the properties that sold in April and May likely went under contract in March and April, respectively. The properties that closed in June mostly went pending in May, when is when we started to see the inventory increase while demand started to drop.
June 2022 had 55 new listings vs. 40 in June of 2021. When you look at the numbers going back to 2018, you’ll see that we are trending back to 2018 numbers for new listings.
This is the great news that buyers have been waiting for – much more inventory to choose from, more neutral sale terms. But mid to late May was when interest rate hike speculation intensified, and the stock market “crashed” on May 23. Since then, we’ve seen a drop in buyer demand all over Austin. But a drop from the insanity to where we are now is still a good market and I think buyers who are sitting on the sidelines now will regret it later. If you were one of those frustrated local move-up buyers who couldn’t move because contingencies weren’t accepted – now is your chance! VA and FHA buyers who kept getting beat out by cash buyers – there is opportunity out there to get an offer accepted that wouldn’t have been possible a few months ago.
Do I think prices will come down? They are coming down a bit, but 2022 prices will still end up way higher than 2021 and then I believe we will return to a normal 5-6% appreciation year after year. Will there be a crash in Austin? No, I don’t think so. Having been a Realtor for almost 22 years, I’ve been through a crash (2004 in CA) and several shifts. Austin has a stronger than average job market, favorable business conditions, and most homeowners have plenty of equity and aren’t in unsustainable loan programs. Of the 60+ transactions I was involved in in the past 2 years, the least amount the buyers put down was 30%. We are not going to see a wave of foreclosures here.
Six months of inventory is considered a balanced market, more than six months is considered a buyer’s market. We are currently at 3 months inventory in Steiner Ranch.
As always, if you would like data specific to your property or are ready to buy or sell, give me a call. To make an appointment to talk about your goals and see if we are a good fit, give me a call at (512) 657-7510. You can also click here to sign up for property specific market updates, or view the current report for 78732 here.