Cedar Park - Leander Edition | February 2023

DAYS ON MARKET Since early 2020, the amount of time it takes to sell a home in the area had been on a steady decline until the middle of last year, when homes began sitting on the market much longer than previously. Cedar Park Leander Georgetown

A DROP IN AFFORDABILITY As the interest rate on a home loan increases, so does a homeowner’s monthly mortgage payment. The following graphic details how much a home buyer can aord at various interest rates based on a capped monthly payment.

100

• 30-year xed loan • $1,200 annual insurance payment • $2.5% annual tax rate FIXED VARIABLES

INTEREST RATE

HOME PRICE FOR MONTHLY PAYMENT OF $2,780

Jan. 2020

Jan. 2021

Jan. 2022

Jan. 2023

$400,000

3.5%

$388,800

SOURCE: AUSTIN BOARD OF REALTORSCOMMUNITY IMPACT

$373,500

4.5%

$359,100

mortgage rates and lack of inventory at the time, homes were quickly selling, experts said. As an area has closer to six months’ worth of inven- tory, Dishongh said, the market shifts from a seller’s market to a buyer’s market. More homes are on the market with fewer oers and lower values, which helps increase activity. Matthew Smith and Alycia Elkins-Smith settled in Cedar Park, but with their growing family, the couple is looking to buy another home in the city with more space. Because houses are sitting on the market longer, the Smiths can take more time to nd their forever home. “We can take a night to think about it, [and] we don’t need to decide right this second, which is hard,” Elkins-Smith said. McKim said there has been a slight boost in buyers since the beginning of the year. “Buyers are denitely coming back,” she said. “Just from the beginning of the year, I’ve noticed a good uptick in activity and applications.” Future of housing Even with decreasing home prices, aordabil- ity will continue to be an issue in Central Texas, experts said. Since last year’s peak, home prices

have dropped, but they are still considered high for many buyers. “Unless you have a pretty big amount of cash avail- able to you to put towards a down payment, that median sale price is really high for many buyers who would try to qualify,” Rogers said. Dishongh said buyers are having to adjust their expectations of what their new home may look like. “Before, maybe they were looking at a 2,500-square-foot home; now, they’re looking at a 2,000-square-foot home because that price has gone up,” he said. “It’s really, from an agent’s standpoint, setting those expectations upfront.” Getting people to qualify for loans is more di¨cult in the current market, McKim said. “If you’ve got someone who’s used to [paying] $2,000 a month, the problem is they can’t nd a house that’s going to equate to that because the values have jumped so drastically,” she said. “It’s a lot more di¨- cult to qualify for some homebuyers.” Buyers who are looking at homes in Austin will likely pay more money for a smaller house, whereas moving to a suburb, such as Leander, Cedar Park or George- town, will oer more space for less, experts said. “Cedar Park and Leander are becoming their

$344,700 $319,500 $332,100

5.5%

SOURCE: WWW.MAXLEAMAN.COMCOMMUNITY IMPACT

own sort of hub. … [The cities] are doing a really good job of really creating what you need right here,” Dishongh said. “You can get everything right here, and you can get more house for your money that way.” Experts said activity in the market should start to pick up in the summer, and prices will continue to even o throughout the year. “If you’re looking to buy right now, the house that you’re buying today will be pretty close to the same price as what you will look at in the end of 2023,” Dishongh said. “You’re not going to see huge increases like we did, and you won’t see the big decreases that we did at the end of 2022.”

For more information, visit communityimpact.com .

FEATURING

APPLIANCES • CABINETRY • CARPET • COUNTERTOPS • HARDWARE LIGHTING • PLUMBING • SINKS • TILE • WOOD FLOORING

1701 HUR INDUSTRIAL BLVD., CEDAR PARK, TX 512-614-4298 CONTACT US FOR AN APPOINTMENT

INFO@MCSURFACESINC.COM WWW.MCSURFACESINC.COM

HOME ENHANCEMENT FULL SERVICE REMODELING AUSTIN, TX

Transform your countertops and walls with a beautiful, ultra compact surface that won’t scratch or fade over time.

CEDAR PARK LEANDER EDITION • FEBRUARY 2023