363 new homes emerged on the market in the past 7 days. 66.4% decrease from last week.
495 homes went under contract in the past 7 days. 93.2% decrease from last week.
298 homes sold and closed in the past 7 days. 92.2% decrease from last week.
59 homes withdrawn or temporarily taken off the market. 17% decrease from last week.
Austin Metro Area Market Overview
A dramatic change in stats this week as we look at the past 7 day numbers. Active, pending, and sold numbers are down across the board. It’s too early to tell if this is a symptom of the surge in COVID-19 cases, summer distractions or something else. I will say that buyer activity remained strong for me out in the field this week. Open houses and buyer tour schedules were busy with continued multiple offer scenarios.
Overall, I am seeing an increase in new buyers emerging in the market due to low interest rates and changing needs in buyer home space. With more work/ school at home activity happening buyers are looking for designated office space. The open floor plan concept is proving to be a privacy challenge for multiple at-home needs. I suspect we will start to see builders add more office space to floor plans in the coming year. We are also seeing increased interest in suburban communities with more yard space and walkable outdoor amenities. With local restrictions on social gatherings homeowners are taking a second look at their living space and creating a better work/play home environment. This is leading to increased interest in garden space, chicken coops, pools, decks, and outdoor entertainment options.
Ultimately, WE NEED MORE INVENTORY. We have more buyers than available homes which is increasing home values. Low interest rates are helping buyers right now but if we continue to see $20,000 – $40,000 over ask price to win multiple offers it may price some buyers out of neighborhoods by the end of summer.
A lot to watch over the next few weeks and you know I’ll be tracking the story!
Metro Area Mask Regulations
Executive orders by the Governor’s office last week placed new limitations on some businesses with direct links to infectious spread. In addition, most Austin metro area cities have now issued ordinances requiring face coverings in business establishments. These steps will all help our businesses and communities stay safe and continue to limit the negative effects of the spread of COVID-19.
Cedar Park Mayor, Corbin Van Arsdale, shared the following statement today on social media with many of our surrounding Austin suburbs following suit shortly after.
“After listening to feedback from our residents, our Cedar Park Chamber of Commerce, and several key business owners in one-on-one calls, later today I’m issuing an order that directs our Cedar Park businesses and nonprofits to require face coverings indoors for both employees and visitors. It will become effective this Wednesday. You will see similar directives issued shortly by Georgetown, Taylor, Round Rock, Hutto, and Leander in an effort to slow down the COVID spread, save our ICU bed capacity, and protect businesses from a second wave of shutdowns that could bankrupt them.First, this will protect our Cedar Park residents. Our Wilco ICU bed usage is at 88% and expected to fill soon if big changes don’t happen right now. Cedar Park has only four ICU beds currently available. One of us, or someone we care about, may need an ICU bed this summer. We must do everything we can to make sure that bed will be there. Since I’ve been on the city council, I don’t remember receiving more emails/phone calls about any issue than I have in the last 10 days on the issue of face coverings. The ratio from residents has been 9-to-1 in favor of businesses requiring face coverings.Second, this will protect our businesses and our economy—particularly our small businesses. The businesses themselves have universally told me they are highly supportive of having such a directive in place. When a customer infects one of their employees, sometimes the entire business has to temporarily shut down. Also, businesses should not have to deal with unequal playing fields with their competitors when making mask policies, while they’re fighting to survive. That playing field should be level. Further, not requiring face coverings will expose our businesses to tremendous liability exposure from post-COVID litigation. While our large corporate and multinational businesses can maybe survive a second statewide shutdown, our smaller businesses simply can’t—many would be bankrupted by that. We can’t let that happen.***The main reason to wear face coverings is not to protect ourselves, it’s to protect OTHERS from our spreading COVID should we have it but not realize it.*** We must slow down the spread by keeping six feet distance from others and, when we can’t, by wearing face coverings. Lots of uncertainty remains about this virus. If we’re wrong about face coverings, then it’s a small inconvenience. But if we’re right about them, we’re saving lives and we’re saving our economy.I know these are tough times. We’ve all been highly affected. It’s been hard. This isn’t a time for politics or selfishness. Our main priority right now is to make choices that help our neighbors. It’s one of the things that makes us Cedar Park. So let’s keep being there for each other. We will get through this together. —CORBIN”
Interest Rates & Loan Qualification Updates
Interest rates remained steady this past week. Right now you can get a 30 year conventional loan for 2.78%, 2.5% for a 15 year Conventional Loan. Refinance rates are still resting at 3%.
Our lenders are still communicating that they expect to see these rates go down this year so it is best to keep an eye on things if you have plans to purchase before 2021. Mortgage qualification rules have changed throughout this pandemic with new Fannie Mae credit score, employment, self-employed and income review regulations. A consultation with one of our local lenders can help you identify how to navigate new financial options for a home purchase so you can plan accordingly.
As always our preferred lenders are available to discuss changes in the mortgage scene and answer your questions.
Agent Jill Summer Project Journal
Phase SIX of the Plant Tower – It’s HARVEST time! Okay, well maybe not the largest harvest but I sure did feel like a farmer this past week going outside to grab fresh basil and mint. Tonight I am going to try the spinach.
We found some great tea & herb seeds that we are trying next. I love tea so can’t wait to see if I can be successful growing my own Chamomile! Stay tuned.