Austin Home Sellers IN SERIOUS Trouble! Buyers Taking Advantage!
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- Опубліковано 7 вер 2024
- Austin Housing Market Numbers just landed and it doesn't look good for home owners that are trying to sell. Home buyers are taking advantage!
#homebuying #crash
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6-mon inventory is a buyer's market for Austin, period. The last 6-mon inventory is Jul 2011. Austin typically has less than 3-mon inventory in the last ~10 years before 2024.
It should crash here, the homes are small and lousy. Dallas and Houston have such amazing homes that make them worth every penny
Pfft that’s funny.
Buyers (like myself) are waiting for the knife to fully drop, not catch it while it's falling. We're not waiting for lower interest rates. We have a recession coming. Buyers would be an idiot to make a move now and a good Realtor would recommend they wait.
Every person is different, and every person has a different reason for buying. So, calling everyone an idiot that are buying now? Well, people told me 2020 was a bad time to buy. Turns out it was a great time. We can assume there will be a recession. Unfortunately, most recessions result in prices going up. Only time will tell.
@@JeremyAKnight An idiot is someone who doesn't have enough information and it's the Realtor's job to advise the buyer on a strategy that aligns with saving money. Prices continue to drop so why would a buyer purchase now? They'd understandably wait this out. We're in an election year and recession talks are increasing. The biggest challenge an agent has today is explaining price corrections (which can take 7 months) to sellers. The current sales prices aren't realistic. A look at a Zillow flow chart for the past five years tells a buyer everything they need to know. Austin is still over valued. Businesses are leaving and the population is decreasing. It's not 2022 anymore. It's more like 2019...and even then the interest rates were lower. The prices should reflect the actual interest rate.
As Sir John Templeton put it, “To buy when others are despondently selling and sell when others are greedily buying requires the greatest fortitude and pays the greatest reward. Buying something for less than its value. In my opinion, this is what it's all about-the most dependable way to make money.
I will stay in the sidelines myself due to all the headwinds, company earnings, personal debt levels and personal savings levels and unemployment, nevertheless anyone making good income and have a lot of disposable income, should just buy in my opinion. Even if we have a crash, in the long term homes on average will appreciate
There are a lot on the sidelines (including myself). I’m not sure the knife will fully drop as you think it will
7% is the new normal. I expect a range between 6.75% - 7.5% for the foreseeable future.
I see that for a while!
We’re so blessed to have affordable homes in the Austin metro. In Vancouver Canada metro 45 min outside the city you pay the same for a tiny one bed wood frame condo as a detached home (after currency conversion*). Upward mobility and the American dream is still alive for the action takers
Good info.
Yeah, we have our house on the market. Been sitting for 2 months with about a $90K drop as of the start. We get people at the open houses, they love the home and say the price or concessions are good, but never put in an offer. Buyers just seem to be waiting on the election or Fed to drop rates, but neither is guaranteed to make a (positive) difference. At some point, the house prices simply cannot go down anymore as people are not going to sell at a loss, unless absolutely needed. I'm seeing crazy price drops so sellers are willing to deal...but the buyers aren't there. Might need to lease out the home, but that's its own can of worms, not to mention like I said, there's no guarantee we'll be in a better position in 6-12 months. We're willing to negotiate a good deal with someone, but we can't even get to that point. 90% of pending and closing is new construction, new construction, and new construction (regardless of price).
That’s rough. What neighborhood?
@@JeremyAKnight Sent you a PM.
I see it.
I’m one of those buyers you speak of, I look at price history. I’m not going to pay 500k for a home that only 3 years ago cost you 250-300k. I would rather buy land and build my own home.
@@mannyortega9667 That's not the case with my listing. I'm only listed $12K higher than what we paid. After additional concessions, commissions, etc, we'd get less than what we paid for it in Dec 2021.
I still got an amazing deal in December sometimes I think I made the wrong choice but I've not seen a deal as good as the one I got....... but winter is coming.
Nice!
What kind of deal did you get
@@kingmoz 3 bed 2 bath by lake pflugerville at 290k
@@ehren5347 That’s an okay deal. Considering the school district and traffic, a better deal would’ve been under $275,000.
@@mamamack1024 I would stick to what you know, same floorplan in the same neighborhood sells for 315k at least. I own 4 houses, 3 of which are rentals. Please use an agent when buying because thinking you know things you don't will lead to disaster.
Reventure guy called it2 years ago when Austin was at the peak
He said it was going to crash back in 2020. He’s been playing that drum awhile.
@@JeremyAKnight ua-cam.com/video/R2zI_5rOO-4/v-deo.htmlsi=N_eVf742sgmuovUo
We’ve bought 6 properties in North Austin since summer 2022 and are feeling great about the beachhead achieved and look forward to scaling to 50 in the next 2-3 years. Do the opposite of the masses to achieve opposite results
Lol that guys whole UA-cam collection is just views from fear/hope.
@@derekpeeverconn I am confused about your comment. Are you suggestion you are happy the value of the 6 properties you purchased in 2022 have gone down as much as 20% or more since 2022? Wouldn't you have been better off if you bought the same homes at todays price? I am a cash buyer who has been sitting on the sidelines and watching prices fall everyday. I am NOT an investor and looking to purchase my first home and houses selling for $525,000 two years ago are now $400,000. One home I was looking at dropped $34,000 4 days ago. So trying to understand why you are suggesting to do opposite of what masses are doing and buy properties as prices continue to fall. Why are you waiting 2 to 3 years to scale to 50 homes and not buying now unless you feel like me that prices will continue to drop. Google, FB and Oracle have all left Austin so all those wealthy techies are know longer in market and the buyers still looking to purchase are priced out do to mortgage rates. Even if the Fed cuts rates .25 points, that will not get anyone to buy a home because mortgage rates need to be close to 4 to 5% to get buyers in market and that will take another few years until the Fed cuts rates another 2%. This is all new to me and just happy I did not buy in 2022. Rents are also dropping that it almost makes sense to rent as a 888 Sq ft luxury apt is now $1295 if willing to go 5 miles south of city. I was paying $2500 a month to live in a luxury apt near Barton Springs & Zilker and didn't even have a car for past 7 years just an ebike. Love to hear your advice as you are obviously a savvy investor if you are looking to scale to 50 homes so congrats on your success. 👍
It may not be a buyers market in Austin, but everywhere around Austin is a buyers market - a glut of housing equals a buyers market. There's only a certain percentage of people who can afford the Austin market, the larger percentage is buying in the surrounding areas.
The median price in those areas is largely more affordable. Thats why buyers are going that direction.
@@JeremyAKnight The home values in outlying areas are dropping and have been dropping for the past 5 months. You guys keep a close pulse on Austin, but not so much the outlying areas.
@@rockingredpoppy9119 I do. I chart them every month.
@@JeremyAKnight Values have dropped. 👍
I like the market named after me. Buyers Market
They are seriously screwed - instead of 300% profit after few years, they will have 250% profit. Boo Whoo....
🤣
And now i have to pay buyer's agent commissions
Is it 95% of the current list price or of the original list price. It makes a difference if it’s the current list price because it doesn’t take into consideration how much it is down from the original expected profit
It’s from original list price.
Crime in Austin. Wow. When a house in Cedar Park was 125k for a 4/3 it was like yeah i'll deal with it. But now??? NOPE
What's going on with buy & hold investors in Austin right now? I remember asking you guys on a podcast around 3030/21 why you would buy a rental that doesn't cashflow and you guys poo-pooed cashflow. "It's all about the appreciation! Why do I care about $200 a door in cashflow?!" I didn't respond, but maarkets like this are why. I can hold onto unlimited rentals making $200/mo forever until the market turns. How many and how long can you hang onto when you're paying $200+/mo to own it before you cut bait and take that big L?
In March, we sold our house in NC, well above asking. We wanted to buy here (Plug Lake area), but we are glad we decided to rent a year. Every national real estate pundit is always talking about how bad Austin is. So many available houses are empty.
Yes, and those people have fear mongered people into renting. Are you going to wait for rates to drop?
@@JeremyAKnight Exactly. There are absolutely zero guarantees rates are going to drop next year, nevermind to anything that makes a difference. People need to buy now and start getting the equity or rent, throwing away their money, for a potentially very long indeterminate time. If rates do in fact go down, it's likely house prices will do the opposite and you're in no better position.
@@matteosummer79when I say that… I’m told I’m a sleezy realtor. 😮
@@JeremyAKnight We're cash buyers. Rates are important, but price is everything.
@@danwebb755 Probably the wrong person to ask as you said you're a cash buyer, but sounds like you would prefer to see something like $590K vs $600K with $10K concessions. Thoughts?
People don’t buy hence developers don’t develop. Fed prints more money per usual. Buyers go in expecting deals. Inventory is tight. Prices go up and people get left out. Repeat cycle. The real question is-> Will the government stop printing money ? If so then save cash and buy out right.
Not enough people are sitting on that much cash.
Not enough inventory, video states most inventory in the last 10 years, and it's going to keep stacking up
If a house is on the market, it means the owner has compelling reason to sell. If the transaction still goes down, it means buyers cannot afford. It does not matter if Fed keeps printing money or not, as long as not enough money passing down to the mass buyers, the sellers have to lower price to sell. Seller can withdraw from the market, but what's the better option there? The inventory piling up only means many owners are not seeing a recovery any time soon while costs keep stacking up.