Monday, July 27 – Austin Metro Area Real Estate Update
410 new homes emerged on the market in the past 7 days. 7.3% decrease from last week.
576 homes went under contract in the past 7 days. .35% decrease from last week.
397 homes sold and closed in the past 7 days. 3% decrease from last week.
70 homes withdrawn or temporarily taken off the market. 14.2% decrease from last week.
Austin Metro Area Market Overview
The real estate scene was largely unchanged last week. New and active homes dipped a bit which was the 3rd week of declining new home inventory. Pending sales continue to outpace active homes with more buyers than available homes. Pending sales have been outpacing new listings since the end of April, an 11 week run at this point. If interest rates continue to remain low which we expect them to, this trend will continue unless we see an increase in new inventory. This need for new housing continues to remain a top priority in the market and the fuel that is causing the rapid increase in home values this summer. Competitive multiple offers continue to be the norm for buyers throughout the metro. Our new home communities are seeing a record number of contracts with limited lots remaining at many of our builder communities. As we continue to educate our buyers setting time frame expectations and planning ahead is key in this market. So if you have a lease or move deadline coming this Fall is it better to get started sooner than later in your search.
IMPORTANT UPDATES ON – Interest Rates, Loan Refinancing & Loan Qualification
Despite national news interest rates remained steady and unchanged this past week. Throughout this pandemic news outlets have issued articles from time to time reporting news of lowered interest rates. Oftentimes this news is just an overview and reminder of the overall scene and doesn’t accurately reflect true to time changes that occur in the field. Right now you can get 2.875% for a 30 year conventional loan and 2.62% for a 15 year Conventional Loan. Refinance rates are a little bit higher now at 3.125%. So it is always important for you to get accurate data from a mortgage lender if you are curious about the current rates. I am encouraging clients and customers to connect with your lender sometimes before the end of the year for a brief consultation to review your current mortgage and to determine if a refinance is recommended. It is important to note that some home mortgage institutions are not prioritizing refinances so they may be offering higher rates so be careful to get second opinions especially when dealing with larger banks and institutions.
Our lenders are still communicating that they expect to see interest 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 not seen any significant changes in the past month. We still have adjustments to the Fannie Mae credit score, employment verification, 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.
Austin Realtors Request to City of Austin – Hold the Line of the Budget & let the Housing Industry Lead Local Economic Recovery
From Emily Chenevert, CEO of the Austin Board of realtors, “The Austin Board of REALTORS® have a strong message for Austin and the surrounding cities looking at their budgets this year- don’t overburden property owners anymore than they are so housing can play the role it’s meant to and help us recover from the recession we’re in”“Housing is the most crucial infrastructure we have. Just look at how the meaning of “home” has changed as it has become our refuge under the siege of COVID-19. Keeping Austinites in their homes and making home ownership accessible to help lead the economic recovery can be done only if we continually pass policies and budgets that enable a more affordable Austin today and tomorrow.”