The Austin real estate market saw a significant spike in home prices during the pandemic, and homes were flying off the market with over-asking prices and all-cash offers. Like many other large cities, the Austin housing market was hot in the metro area and allowed sellers more advantages than buyers. With such dramatic changes in the market, many locals wonder when things might begin to change and make buying a home more attainable. It is good news for potential buyers; there are some changes forecasted for the
Austin, Texas market in 2023; take a look:
Swift shift from a seller to a buyer market
The Austin market is forecasted to experience a swift shift from sellers to buyers in the next year. Many locals are wondering when this transition will take place, as prices in the metro area have surged during the pandemic. While the market is still heating up, there are indications that it is headed in the direction of buyers taking the lead.
The current real estate market in Austin is a seller’s market. This means there are more buyers than homes for sale. It can significantly increase prices, cause bidding wars, and make buying challenging for many individuals. Sellers often have the upper hand in a seller’s market because they can choose a high offer that suits their needs and negotiate terms they like or find another willing buyer. Buyers need to make strong initial offers and have financing to stay competitive in the market.
In 2023, the market will slowly shift to a buyer’s market as inventory grows and slows the rising prices. A buyer’s market has more homes for sale than potential buyers. This situation is reversed and gives buyers the upper hand because they have more homes to view and make offers on. Negotiations can often favor their needs because sellers know they may not have other offers with so many other homes on the market. It is essential for sellers to stay competitive with professional real estate photos, home staging, and the expertise of a local agent.
Buyers will have more advantages
When the market does shift to a buyer’s market, there are some advantages that they will experience. For starters, home prices are not anticipated to rise as rapidly as they have been. This is good news for buyers who have been priced out of the market or have been waiting to purchase a home. Additionally, sellers will be more motivated to negotiate the price and terms of the sale.
Many buyers will find buying a home more affordable and attainable in 2023. The shift in the market, combined with historically low-interest
rates, makes it an excellent time to buy a home in Austin. While the rates may be perceived as high, that is not the case if you look at past interest rates in the double digits. Buyers can work with mortgage lenders to find the best rates before starting the home search.
Inventory increases
The inventory growth in Austin is mainly responsible for the shift toward a buyer’s market. With more homes on the market, buyers are not as competitive because there are enough homes to meet demand. Austin has seen an increase in homes for sale that is projected to continue into 2023, balancing out the hectic market after the pandemic. Buyers can enter the market feeling confident in securing a home, while sellers need to be strategic to stand out from the other homes.
Homes will sit on the market longer
With more inventory on the market, homes will stay on the market longer. During the height of the seller’s market, Austin homes were selling within a week and sometimes even within hours of being listed. In 2023, as the market shifts, more homes will be available, which means that they will stay on the market longer. This allows more buyers to view and secure a home without bidding wars or exorbitant home prices.
Home prices cool off
Home prices are not expected to continue rising as they have during and after the pandemic. The growing inventory helps level out pricing, but buyers should not expect significant drops. Home prices will remain steady with slight decreases throughout 2023. These changes will be slow and steady so as not to disrupt the market.
The market will still be stable
Some people might assume that these coming changes mean a market crash could be in Austin’s future. In this case, these changes are not forecasted to be dramatic. They will happen over the course of many months and in small increments. Buyers and sellers can continue to expect a strong and stable real estate market without fear of a crash in 2023. It is also essential to understand that a real estate forecast estimates future changes and is meant to help potential buyers and sellers prepare for the upcoming year. No one can know what 2023 holds, and it is best to work with a real estate professional to receive accurate local market information.
Navigate the changes with an expert
With all of the changes happening in the real estate market, it is crucial to work with an expert real estate agent to navigate the changes. There are many factors at play, and it can be complicated to understand what is happening and how market shifts affect your goals. An experienced real estate agent can help you navigate the market and make the best decisions for your needs. Working with an expert can save you time and energy trying to stay up-to-date with the many upcoming changes in 2023. Find a local expert that can provide real-time information and insights into the market and make your buying or selling experience seamless and less stressful.
Malana Rudnicki is an enthusiastic
Austin real estate agent committed to understanding your needs and creating an effective buying or selling strategy to reach your goals.
Malana has extensive experience working with clients in various market conditions and can help you navigate market changes.
