The Austin Board of Realtors recently released the market statistics for the month of October. Check out the video at the bottom of this post for an update!
This month is a very basic stats update focusing solely on the city of Austin (proper). If you were to ask almost any Austin real estate agent What’s the market doing right now?, they will tell you that change is in the air. I’m not saying we need to brace ourselves for a market crash or anything- but something is changing. I’ve spoken with several listing agents in recent weeks who say things like, “We’re getting lots of showings but no offers.” or “We can’t get anyone through the dang door!” or “I’m dreading talking to my seller about a price reduction…but that’s definitely going to have to happen.”
I recently had the following exchange with an agent-friend of mine:
Agent: My listing has been on the market for months. This market is declining!
Me: I think you’re just overpriced.
Agent: But my seller thinks we’re priced correctly.
Me: Your seller is crazy. (or just delusional)
Agent: But there are lots of homes that are not selling right now.
Me: Lots of sellers are crazy.
Seriously, though, I don’t think the Austin market is in decline. We still have the same problem we’ve had for years: Significantly more people want to move here than those who want to move away. Regarding my friend’s predicament- I’m sure that if they were to reduce the price gradually each week by $10,000, they would end up selling it at a price that is about 8% more than they could have sold it for at this time last year. Instead, they are likely trying to sell the property for 25% more than they could have sold it for last year, which is insane. Our market can support moderate appreciation; it cannot support insanity.