It's no secret that the past couple of years have been pretty chaotic when discussing the real estate market in Austin, Texas. From historically low rates offered by lenders to the influx of population, Austin experienced a massive boom in our real estate market which saw housing prices soar to record numbers.
As our economy wakes up from the dream of, essentially, free money and fast-moving listings on the MLS, we enter a time of more financial uncertainty. Rates are rising to levels that we haven't seen in years and at the same time, the average American has been affected by unforeseen economic factors, such as rising inflation.
In the video above, our founder, Jason Huval, and our Director of Business Development at Stone Oak, Mike Oellrich, discuss the shifts in our market and how they may affect landlords and individuals trying to sell/lease their properties across Greater Austin. Mike also discusses several questions he has been hearing from property owners in his day-to-day and discuss how landlords and property owner are overcoming obstacles they find in the market here in 2023.
Frequent Questions from Austin, Texas Property Owners Entering 2023
My 'For Sale' home is sitting longer than I expected. What's the deal?
- The proof is in the data. Homes just aren't moving like they were. Per the video with Mike & Jason, closings on homes saw a 36% decline when compared to the previous month.
- At the end of November 2022 there were 9,415 active 'for sale' listings on the MLS. Compared to two years prior you'll see things are pretty stagnant. At the end of Nov '21 there were 3,285 active listings and at the end of Nov '20 there were 3,233 active listings on the market.
- This represents a 187% increase in available homes on the market compared to the year prior.
- What does this all mean? Homes aren't moving like they were and with the rising rates seen from lenders in our space, we don't expect that # to have any drastic changes any time soon.
Do you think rental prices will be affected by the increase in the inventory of homes available on the market?
Yes, based on supply and demand the market should shift from the higher rents we have been experiencing these last couple of years here int he Austin, Texas area. The more options renters have the harder it is to attract great tenants to your property without being priced competitively. Spending even just two months on the market because you are pushing for a higher price will result in lost money. Had you put a tenant in the property at a lower price you wouldn't have to float your property for those months of vacancy.
Want a market-relevant report on what your property should rent for? Request a free market analysis from a property manager and learn what your home should rent for in this market!
What does the average time on market look like right now?
The average time on the market that we are seeing at Stone Oak is 3-5 weeks. Properties not as competitively priced can sit for longer as more inventory comes online.
Are there benefits to renting my home right now?
Please refer to the video above as Jason does an excellent job of highlighting the benefits of renting, even at a loss, instead of selling your property for a lower cash amount in a high-interest rate economy. Historically, real estate has seen its fair share of ups and downs, but at the end of the day the asset is what is most important. If you can basically amortize a loss on a property over several years by renting the home you give yourself the runway of catching the market rebound instead of realizing your loss today.
Questions about property management services for your rental in Austin, Texas area? Contact Stone Oak Property Management today. You can speak with Mike and his team about our Austin property management services by calling 512.615.7737.