Monday, Aug 17 – Austin Metro Area Real Estate Update
352 new homes emerged on the market in the past 7 days. 5% increase from last week.
598 homes went under contract in the past 7 days. 26% increase from last week.
413 homes sold and closed in the past 7 days. 38.3% increase from last week.
68 homes withdrawn or temporarily taken off the market. 7% decrease from last week.
Austin Metro Area Market Overview from Agent Jill
If we keep this pace up with pending sales significantly outpacing active sales I’m worried we are going to have 100 buyers fighting over 1 house in Austin. The multiple offer experiences and stories out here are REAL. 26 offers for one house and going for 60k over ask price. We’ve seen fierce competition in Austin before but the low interest rates this year along with the news of more employers setting up new offices in the metro has raised things to a new level.
In addition we usually don’t see an increase in activity the weeks before school darts which is setting things up for a completely different Fall. So, BIG PICTURE: Real estate is still moving at a fast pace even during our record breaking August heat.
Weekly Snapshot on Interest Rates, Loan Refinancing & Loan Qualification
August 17th Update – RATES ARE STILL LOW!
Right now you can get 2.5% for a conventional loan. 2.5%. These are historically low rates. Now I want to reiterate that consumers are not quite seeing these kinds of rates for home mortgage refinances. The reality is that demand is so high for refinances right now the only way to lessen the demand and help unclog the system is to discourage through higher rates. So, Please shop around and be patient if you are looking to refinance.
Remember that mortgage qualification rules have changed during covid so if you know you are needing to shop for a home mortgage provider in the next 6-12 months set aside time to let our lenders educate you on the scene. A consultation with one of our local lenders can help you identify how to navigate the 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.
The City of Austin Budget and Tax Rate – A Look at Project Connect Transportation Plan and the November Ballot –
The Austin City Council held two meetings this week to discuss and adopt the City Budget and Tax Rate and add the Project Connect Tax Rate Election and any bonds to the November Ballot. Here’s a summary of three major items Council approved at yesterday’s meeting:
City Budget & Tax Rate
Council adopted a $4.2 Billion budget for FY 2020-2021. The budget will go into effect on October 1 and is balanced on a 3.5% increase to property tax revenue. The tax rate to fund this budget is $0.4460 per $100 of taxable value, which is within the guidelines established by SB2.
Tax Rate Election for Project Connect
Council also approved an ordinance ordering a Special Election to approve a tax rate increase to fund Project Connect. If approved by the voters, the tax rate will increase by $0.0875 per $100 of taxable value, making for a total municipal tax rate of $0.5335 per $100 of taxable value.
This will be on the November Ballot as Proposition A.
Council also approved a $460 million bond to fund active transportation across Austin. This bond includes funding for sidewalks, urban trails, bike lanes, safety improvements, safe routes to school, transit enhancements, large capital projects, and improvements for substandard streets. The vote to approve this bond was 9-1-1, with Council Member Flannigan voting in opposition and Council Member Alter abstaining.
This will be on the November Ballot as Proposition B.