We are just over a week away from the official beginning of summer (June 21st), but with temperatures already in the mid 90's, don't bother trying to convince anyone that it's still spring. Summer marks the busiest time of the year in the housing market as families move-up to a larger home or relocate while school is out. The largest number of homes are sold during the summer months with activity peaking in August, which historically delivers both the largest sales volume and highest average price of any month.
Rising interest rates are the major story line in the Austin Tx real estate market. The average rate on a 30-year fixed mortgage is now at 4%, up from a historic low of 3.35% in January. This small jump in rates wipes away $23,000 in buying power on a $300,000 home purchase. In other words, the principal and interest payment on a $300,000 loan at 3.35% is $1332. A $277,000 home loan at 4% interest is also the same monthly payment of $1332. With interest rates climbing, if you or someone you know is thinking about moving, it's important to consider the risk of waiting and possibly losing even more buying power.
Let's take a quick look at the market numbers for Austin Tx Home Sales May 2013.
Market Snapshot (city of Austin Residential Home Sales)
- 1246 Single-family homes sold, 9% more than May 2012.
- $382,378 - Average price for homes was 9% more than May 2012.
- 28 - Average number of days that single-family homes spent on the market, 36% fewer days than the same month in 2012.
- 99.6% Sales Price/Original List Ratio, 2% better than last May.
To summarize, the growing momentum in the Austin Tx housing market we observed during the spring has achieved critical mass. There is little to no negotiation room for Buyers with Sellers getting 99.6% of their asking price on average. With such high demand for homes and low inventory of available homes, if you're considering selling, the time is now. You can take advantage of the seasonal peak in buyer activity and interest rates that are still remarkably low.