January is Time for Homestead Exemptions, Big Jobs, & Ceiling Fans [[+]] Austin Area Home Market Continues to Find Its Footing Against Macroeconomic Factors: Chuck Farr’s January 2024 Newsletter

Happy new year, homeowners, tenants, prospective buyers, and real-estate investors. If you bought a home last year and if you live there (it is not an investment) and you did not already do so, make a note to file your homestead exemption in January or February 2024 (also check on disability and over 65 exemptions if applicable) at your local county tax office to save money on property taxes. It can save you thousands of dollars this year.

In the News: The Austin Board of REALTORS® says that in 2023, ‘the median price for a home in the Austin-Round Rock MSA decreased 10.2% to $450,000, according to the Austin Board of REALTORS® December 2023 and Year-End Central Texas Housing Market Report. When compared to the steep 24.2% decline in pending sales in 2022, 2023 saw a slight 3.0% decline to 30,353 sales emphasizing that the Central Texas housing market continues to find its footing despite macroeconomic factors impacting the broader housing market and economy.

‘“In 2023 the Austin-Round Rock MSA housing market continued its move towards a more sustainable pace,” Kent Redding, 2024 ABoR president, said. “Housing inventory reached the highest level it’s been in more than eight years, and while there was a drop in closed sales and median close price, these were both symptomatic of higher mortgage rates….”

‘In the month of December, closed listings across the MSA declined 8.9% to 2,295 year-over-year as sales dollar volume decreased 8.5% to $1,270,818,458. The median sales price dropped 1.4% to $443,753. New listings increased 8.4% to 1,956 listings, active listings ticked up 4.6% to 7,717 listings, and pending sales rose 13.8% in December to 2,082 sales. Last month, homes spent an average of 84 days on the market, 9 more compared to December 2022.

‘Clare Losey, Ph.D., housing economist for ABoR, identified higher mortgage rates as being the biggest constraint for potential homebuyers in 2023 and underscores the lack of housing accessibility, specifically for first-time homebuyers.

‘“The single biggest factor constraining the Central Texas housing market in 2023 was the gradual rise in mortgage rates, which peaked in late October. This caused sellers, and buyers essentially, to continually readjust to the current rate environment. While we have seen some leveling off in home prices, the Central Texas region still lacks a sufficient inventory of affordable homes for sale, especially those homes priced below $300,000, which is keeping many would-be first-time homebuyers on the sidelines.”

‘When looking to 2024, Losey foresees annual trends to be relatively consistent with this year and mentions that current data is favorable compared to pre-pandemic numbers.

‘“Home prices and sales will likely remain essentially flat, to the tune of a 5.0% increase or decrease year over year in 2024. While the market continues to find its footing, it’s noteworthy that total sales dollar volume is up 30.5%, there are 21.9% more active listings and 38.4% more months of inventory today than there were five years ago. Housing demand is still strong and the uptick in the inventory of homes for sale in 2023 has provided more options for repeat buyers.”’ (Check the complete [[ABoR Central Texas Housing Report]] for more details and data!)

I chatted with one of my favorite lenders while writing this newsletter today, and it seems the latest December inflation numbers are still putting pressure on the Fed that may delay cutting rates near-term, putting upward pressure on mortgage rates into Q2 or Q3. Stay tuned. Hang tough. Keep going.

Winter Home Maintenance Tips: Winter is here--and has its own home maintenance checklist in Central Texas. Here are a few items to consider during January:

·      Outdoor Tasks:

o   If you are considering doing some big jobs, like HVAC, external painting, or roofing repair/replacement, remember that this is the slow season for many contractors, and you may get a better price and quicker scheduling now.

o   Don’t forget to protect your people, pipes, plants, and pets when freezes come to town. Web search for “4Ps winterization” for details.

·      Indoor Tasks:

o   If you have ceiling fans, consider switching the rotation of the blades to conserve energy and feel warmer in winter months. Usually this means running the ceiling fan at a slow speed and switching the rotation from counterclockwise to clockwise in winter months. [[Watch this video for details.]]

o   Have your furnace professionally inspected if you did not in the Fall; make sure they check for carbon monoxide leaks. Remember to change out your indoor HVAC filters on a regular schedule.

Issues of this and previous newsletters are located on the Blog tab of my website at [[www.chuckfarr.com]].