June 11, 2024 | Driving It Home with ABoR's Housing Economist

In this episode of Driving It Home, Dr. Clare Knapp and Danielle Hammett discuss the state of the housing market as of May 2024. Danielle opens by noting the end of May and the imminent release May's Central Texas Housing Report. Dr. Knapp highlights the significant impact of mortgage rates on the national housing market, noting their fluctuation between the high six and low seven percent range, which has affected affordability and reduced buyers' purchasing power. Despite declines in median sales prices over the past two years, high mortgage rates have not offset the decline in affordability.
Dr. Knapp elaborates on local factors affecting the Austin housing market, such as the lingering effects of the pandemic surge in home sales and prices. She explains that the market is experiencing a natural reduction in activity as fewer people are buying and moving, compounded by high job growth post-pandemic, which has since slowed. This has resulted in a period of slower growth in both the housing and labor markets.
The discussion shifts to May's market data, showing a 13% year-over-year decline in closed sales and a 37% increase in active listings, indicating more sellers are entering the market. This suggests a cautious approach among buyers who are taking more time to select homes due to the increased inventory. Dr. Knapp advises real estate agents to contextualize these trends for their clients and emphasizes the importance of expert guidance in navigating the current market. The podcast concludes with announcements of upcoming events, including the June 26 Market Shift Conversations (www.abor.com/e...) event and a Market Data Lab session (www.abor.com/e...) on June 18 to further discuss market trends and statistics.
Download a transcript of this episode: www.abor.com/c...
Links Mentioned
Market Data Lab w/ Dr. Knapp | June 18 www.abor.com/c...
Market Shift Conversations: Buyer’s Representation | June 26 www.abor.com/e...
Central Texas Housing Report | Coming this week www.abor.com/m...
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