FLUCTUATING FIGURES In the last several months, the local housing market has undergone a correction due to raised interest rates and other factors. The following data—taken from each December—shows what this stabilization has looked like compared to each of the last five years.
Georgetown
Cedar Park
Leander
MONTHS OF INVENTORY*
CLOSED SALES
AVERAGE PRICE PER SQUARE FOOT
3.5 3
$250
200
$200
150
2.5
$150
1.5 2
100
$100
0.5 1
50
$50
0
0
0
2018 2019 2020 2021
2022
2018 2019 2020 2021
2022
2018 2019 2020 2021
2022
*MONTHS OF INVENTORY IS THE AMOUNT OF TIME IT WOULD TAKE TO SELL ALL PROPERTIES FOR SALE AT THE AVERAGE MONTHLY PACE.
SOURCE: AUSTIN BOARD OF REALTORS/COMMUNITY IMPACT
CONTINUED FROM 1
Rising interest rates can have a considerable effect on a person’s purchasing power, causing some hesitancy among potential buyers, Howard said. “Those move-up buyers—those people who are looking because they’ve expanded their family, or they’re looking to get a bigger house—they generally refinanced during the refinance boom, or they bought when rates were in the 3[%]s or maybe even 2[%]s,” he said. “So they are really reluctant to let go of that interest rate to come into the 6[%]s.” Building up inventory The rise in interest rates, which has led to a decline in sales, has spurred home inventory in Georgetown. The local market, according to ABoR, had 3.1 months of inventory in December, meaning if no more homes went up for sale, the market would dry up in around three months. In December 2021, inventory in the city was 0.3 months. A combination of low mortgage rates and a lack of inventory going into 2022 then created a “buying frenzy,” Howard said. “There were five homes and 400 people out there shopping for them,” he said. “Now we’ve got the opposite, where there are five buyers out there looking and 500 homes to choose from.” While the demand is not as high as it was a year ago,
some agents are starting to see more buyers. Sandra Davi and her husband moved to Georgetown in early January. After visiting several houses, the couple was able to use the profits from selling their New Jersey home to quickly find a new one. “We found a home we fell in love with,” she said. “It only took us a few days to be quite honest.” As inventory has gone up, home prices have come down. Costs dropped from an average price of $225 per square foot in December 2021 to $219 in December 2022, per ABoR data. The median price of homes sold decreased from $422,000 to $399,000 in that timespan. “There’s a lot more inventory that’s building, and that’s actually a good thing for a buyer,” Howard said. Future housing expectations With interest rates starting to dip in late 2022, sales are expected to pick up in the new year, according to Realtors. Mortgage applications for the week of Jan. 13 increased 28% from the week prior, according to data from the Mortgage Bankers Association. Housing experts now predict rates will go lower, which will provide buyers with some relief. Catlin said industry prognosticators believe rates could be 4.75%-5.25% by the end of 2023. He also said buyers
Market slows Fluctuation in market activity is natural, according to experts. The slowest time of the year for Realtors is Thanksgiving through December, and business typically picks back up in the spring and summer. Still, the average time listings spent on the market in December—61 days—was the highest since the winter of 2019-20, when homes were on the market 67 days that December and 90 days in February 2020, according to data from the Austin Board of Realtors. In contrast, listings in Georgetown during December 2021 spent 15 days waiting for a buyer on average. Meanwhile, ABoR data shows home sales in the city decreased, going from 197 in December 2020 to 140 in December 2021 to 98 in December 2022. Those in the industry attribute this drop in activity to multiple factors, including rising interest rates. “People seeing interest rates in the 6[%]s—it’s really put the brakes on,” said Michael Howard, branch manager at Main Street Mortgage in Georgetown. The average rate on a 30-year fixed home loan in December 2021 was 3.11%, according to data from Freddie Mac, the Federal Home Loan Mortgage Corp. By the end of 2022, it had reached 6.33% with the high point in November at 7.08%.
Dr. Brad Harrub Brad Harrub, PH.D is the Executive Director of Focus Press. He holds an earned B.S. degree in biology and an earned PH.D in Anatomy & Neurobiology Dr. Harrub has authored numerous books including Convicted: A Scientist Examines the Evidence for Christianity Guest Speaker Westside Church of Christ 3300 FM 1431 Round Rock 512-388-9999 Invitation to a Free Seminar Topics include: Dinosaur Studies, Science of Mt. St Helens & Culture in Crisis: Children & Parents Saturday, Feb 25 9:30 am - 11:30 am & 1:30 pm - 3:30 pm Sunday, Feb 26 9:30 am - 10:30 am Q&A after each session. Refreshments will be served.
MEDICAL WEIGHT LOSS Eliminate up to 20% of Body Fat Supervised by Board-Certified Providers. We titrate the medication to fit your body's needs, metabolism, medical history and lifestyle. Semaglutide and Tirzepatide plus MIC injections.
Curated Just for You!
3008 Dawn Drive, #104, Georgetown, TX 78628 737-275-0725
bespokemedaesthetics.com
28
COMMUNITYIMPACT.COM
Powered by FlippingBook