During the Covid pandemic, housing prices were insane. Due to extremely low inventory, an influx of savings for many Americans, more people working from home and insanely low interest rates, the housing market boomed. Houses sat on the market for less than a day before receiving multiple offers that were well above asking price. Buyers covered a lot more in closing costs. Sellers were making a ton of money off their most prized asset.
However, that is no longer the world we live in. Higher interest rates, coupled with the still inflated cost of housing, has left many out of the home buying experience. In the Austin area, new home builders are pumping out so much inventory that buying a used home is not even worth the effort to click on it's Zillow listing. Not to mention that they can provide incentives like low interest rates, interest rate buy down, money at closing, free upgrades or little to no closing costs. New builds are the best bang for your buck right now. Too many older homes are being listed for COVID era prices and are just not selling. New builds are not even able to sell for a premium at the moment.
The chart above is data collected from Redfin that shows the COVID era trend has come and gone. The average home price in Georgetown was about $520,000 at its height and has now fallen to just below $450,000.
This chart showcases the average time a home has sat on the amrket before being sold. During the COVID era, it was less than 20 days. Now its about a 51 day average.
This chart outlines how "hot" the Georgetown market is. Almost 40% of all homes sold had to drop their price and that is for a "hot home", a home that is expected to be the most competitive on the market.
Now is one of the best times to buy. Buyers have so much leverage on new builds that its insane. I had one client that brought only $500 to closing. Builders have inventory to sale and are even offering rates as low as 3.99% on selected inventory.
If you are trying to sell, the market isn't bad but don't expect a payday like previous years. The houses that are selling pretty fast are priced below market value.
Hopefully this information helps with your decision to buy or sale in the Georgetown area. If you need any assistance, please reach out to me.
