Austin's midyear housing outlook
Sharp increases in mortgage rates and an unaffordable housing market have left homebuyers scratching their heads, wondering if they should continue their search or press pause.
Why it matters: New listing prices in Austin are up roughly $93,000 since the start of the year, according to data from Redfin.
- For every $1,000 increase, 791 households are priced out of the Austin-Round Rock metro area, according to the National Association of Home Builders.
The big picture: We checked in with local real estate expert Ryan Rodenbeck, broker and owner of Spyglass Realty, for a midyear review of Austin's housing market, tips for homebuying and his outlook for the rest of the year.
What they're saying: Expect the housing market to taper off a bit during the second half of the year, Rodenbeck told Axios.
- "Even in this crazy market, we saw this same cycle in 2021," he added.
Interest rates are rising and Millennials — the largest population of buyers right now — have never seen interest rates above 5%, until now.
- Plus, the Federal Reserve is expected to raise interest rates another 75 basis points in an effort to cool off the demand.
Yes, but: The longer you wait for interest rates to lower, the more equity you're losing, Rodenbeck said.
- "I don’t know anyone who has won by waiting in the Austin market," he explained.
The bottom line: If you can afford the payment, get into the market now.
- "Even if you're at a 6-6.5% interest rate, Austin homes are earning 5-6% appreciation," Rodenbeck added. "You'll pay more for the mortgage up front, but you'll earn it back within a year. It wouldn't be unheard of if appreciation was up to 10% in the coming year."
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