June is Time for Yards, Watering, and Heat Management [[+]] Buyers and Sellers Show Mixed Signals as Prices Hold Steady in Latest Austin Area Real Estate Market: Chuck Farr’s June 2024 Newsletter

Welcome to the Summer Solstice (June 20, 2024), 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 continued (if slight) downward pricing pressure by home sellers outpacing buyers in the Austin metro area market as interest rates hold steady. Inventory and active listings continue to increase. Depending on a sometimes wide range from varying sources, the mean sales price in May dropped 1 to 2% YOY, closed number of sales fell 6 to 13% YOY, active listings rose 23 to 38% YOY, listed inventory increased to 4 to 5 months YOY, and days on market dropped slightly. Expired and withdrawn listings increased to just over 30% as sellers decided to pull them rather than drop prices. We seem to have reached a state of limbo as sellers holding historically low-interest mortgages (reduced motivation to sell) offer the market more listings while buyers with reduced buying power manifest less real demand due to higher rates.

In the News: According to the Austin Board of REALTORS® and their service, Unlock MLS, the Austin metro area market in May “saw a 12.8% decline in closed listings with 4.9 months of available inventory, a level that hasn’t been seen in 13 years according to the latest Central Texas Housing Report released by Unlock MLS. Meanwhile, active listings ticked up 37.7% year-over-year. Because of this increase in available options, buyers have the power to be more selective when purchasing a home.

“Clare Losey, Ph.D., housing economist for Unlock MLS and the Austin Board of REALTORS®, provided insight into what this data means for buyers and sellers.

‘“This data demonstrates that buyers can continue to be more selective when searching for a home in their price range. Although it may appear to be a buyer's market from the outside, it’s important to understand the context behind these statistics, including higher interest rates resulting in a reduction in purchasing power. This market does not offer a clear advantage to either buyers or sellers.”’

Check the latest Central Texas Housing Market Report for more details and data.

Summer Home Maintenance Tips: Summertime has its own home maintenance checklist in Central Texas, especially for existing property owners. Here are a few items to consider during June:

·      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.

·      Reverse the setting on your ceiling fans to 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]].