August is Time for Lawn & Garden Survival and HEAT Management [[+]] Buyers Sought Affordable Housing Inventory Beyond Travis County in July: Chuck Farr’s August 2024 Newsletter
Welcome back to the dog days of Summer, homeowners, tenants, prospective buyers, and real-estate investors!
Market Backchannel: (Keeping my ears peeled for local market chatter.) Nobody can predict the future, but the latest Central Texas data from my local realty network shows the real-estate market still in a holding pattern with continued mortgage rates hovering near 6.5% and a flat job market. There is speculation that the Fed will reduce interest rates this Fall, but the job market may take some time to recover. With small decreases in median sales prices, there is continuing evidence of overall price stability as we approach a new year. The uncertainty that comes before any major election will likely cause temporary but continued cooling, but overall the market shows a flat trajectory on appreciation and depreciation of assets. As you shall see in the ABoR report below, the sluggish market shows continued signs of pent-up demand as buyers seek inventory outside of Travis County. Fall and Winter are historically slower than Spring and Summer, and this pattern should continue into 2025. Average days on market ticked up slightly in July, and months of inventory rose to 4.7 to 5.1 months, depending on the data source.
In the News: According to the Austin Board of REALTORS® and their service, Unlock MLS:
“In July, the Austin-Round Rock-San Marcos MSA [metropolitan statistical area] housing market experienced a 3.5% decrease in sales overall, with 2,652 closed listings. However, sales increased in Williamson, Hays, Bastrop and Caldwell counties as buyers continue to seek more affordable housing options, according to Unlock MLS’ July Central Texas Housing Report.
“’Consistently high mortgage rates continue to impact buyer’s purchasing power, but July’s increase in sales in four of the five MSA counties shows the strength of Central Texas housing demand,’” Clare Knapp, Ph.D, housing economist for Unlock MLS and the Austin Board of REALTORS®, said. ‘With rates around 6.5%, only about half of homeowners in our market can afford a median priced home and only about a quarter of renters can afford a starter home. Home prices across the market still need to decrease to meet market conditions and meet buyers where their purchasing power is currently. It is notable that we are seeing more first-time buyers willing to make a move this year compared to last, and that is a positive sign for our market.’”
“Austin-Round Rock-San Marcos MSA
2,652 – Residential homes sold, 3.5% less than July 2023.
$450,000 – Median price for residential homes, 2.8% less than July 2023.
3,812 – New home listings on the market, 0.3% less than July 2023.
12,661 – Active home listings on the market, 20.3% more than July 2023.
2,567 – Pending sales, 5.1% less than July 2023.
5.1 – Months of inventory, 1.0 months more than July 2023.
$1,530,599,967 – Total dollar volume of homes sold, 6.6% less than July 2023.
94.2% – Average close to list price, compared to 94.6% in July 2023.”
Just as a reminder for folks in the Austin area, if you had bought a house in 2018 at the average median price of $305K, its value would have increased to $502K by the May 2022 peak. Average median price for the MSA is now $450K, so you would have still done very well investing in Central Texas real estate. Some people say that beyond the timing of when you enter and exit a real-estate market, it is always a good time to buy real estate. Check the latest Central Texas Housing Report for more details and data for the city of Austin and surrounding counties.
Summer Home Maintenance Tips: Summertime has its own home maintenance checklist in Central Texas. Here are a few items to consider during August (a repeat from the July newsletter):
· Set your mower on the highest setting so you do not cut the grass too short and expose it to drought and weeds.
· Make sure your foliage gets plenty of water during hot summer days. Water early in the day, but not necessarily every day. Plants prefer a good soaking a few times a week rather than a light, daily drizzle.
· Ensure the setting on your ceiling fans is rotating counterclockwise (search YouTube for how to do that). This pushes the air down, creating a nice breeze. Shut off fans when you leave the house to save electricity.
· Whether you have central air-conditioning or window units, you should clean or replace your filters at least once every other month (or more often if they are visibly dirty).
· Check the weather stripping around doors and windows to keep the cool air in. Cover windows that receive morning or afternoon sun with drapes.
· Increase your insulation in the attic to R-30 or more. Each month buy a little insulation until the job is done. Alternatively, consider adding in the new foam style insulation inside your walls and in the attic with the help of a professional.
Issues of this and previous newsletters are located on the Blog tab of my website at www.chuckfarr.com.
