Luxe Austin Homes - buying

"Signed Contracts for U.S. Homes Rise for the Second Month in a Row"

Realtor.com reports, "the numbers: U.S. home sales inched up for the second month in a row, as the housing market continues to be hampered by high rates and a lack of home listings.

Pending home sales rose by 0.9% in July from the previous month, according to the monthly index released Thursday by the National Association of Realtors.

The figure exceeded expectations on Wall Street. Economists were expecting pending home sales to fall 0.5% in July.

Transactions were still down 14% from last year.

Pending home sales reflect transactions where the contract has been signed for the sale of an existing home, but the sale has not yet closed. Economists view it as an indicator for the direction of existing-home sales in subsequent months.

Big…

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"Austin is home to the 8th most attractive U.S. housing market, new report says"

CultureMap Austin writes, "when it comes to places to buy a house, Austin still remains near the top of the list. So says WalletHub's highly anticipated 2023 report on the best real estate markets in the U.S.

The new study by the personal finance website, released August 22, names Austin the No. 8 most attractive real estate market in the country. The state capital joins a host of other Texas cities within the top 10.

Texas housing markets have dominated WalletHub's report throughout the years, showing resilience as other markets rise and fall. Austin and its Central Texas neighbors have been at the top in similar reports, but the city has slid in WalletHub's 2023 report after ranking No. 4 in the 2022 edition and No. 2 in 2021.

With a great…

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"FHA vs. Conventional Loan: Which Mortgage Is Right for You?"

Realtor.com writes, "FHA versus conventional loan: If you need a mortgage to buy a house, you may find yourself weighing these two options. What’s the difference, and which one is right for you?

While the majority of homebuyers might assume they should get a conventional home loan, about 40% end up with FHA loans, which are insured by the Federal Housing Administration.

To help you decide whether an FHA or conventional loan is better for your circumstances, here’s more information about each, including their distinct advantages to you as a home buyer as well as what you’ll need to qualify (which may vary by lender).

Conventional loan requirements

Minimum down payment: 3% to 20%
Minimum credit score: 620
Maximum debt-to-income ratio: below…

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"Is an All-Cash Offer on a House Always a Good Idea? The True Risks and Rewards"

Realtor.com writes, "ah, the all-cash offer. If you’re a home buyer with this ace up your sleeve, you probably have a swagger in your step as you tour homes, looking for the perfect property. And in light of today’s rising mortgage rates, the thought of saving all that monthly interest on a loan makes paying in cash that much sweeter.

Home sellers swoon over all-cash offers for one simple reason: It means there’s no doubt that you’ve got the coin to close the deal.

All-cash home buyers have a distinct advantage over those who need a mortgage, because there’s no guarantee that lenders will fork over the money. A lot can get in the way of that happening, from a subpar credit score to a poor home appraisal and beyond. All these what-ifs are…

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"Are bidding wars coming back to the housing market?"

Austin Business Journal shares, "although the spring 2023 housing market has little resemblance to the frenzied 2021 buying and selling season, there's evidence some markets and types of houses are starting to become more competitive, owing mostly to a lack of inventory.

Forty-eight percent of homes sold nationally during the four weeks ending April 30 went under contract within two weeks, down from 51% a year earlier but up from 46% a month prior, Seattle-based Redfin Corp. (Nasdaq: RDFN) recently found.

While demand for housing among buyers exists, a key reason for increased competition for certain homes is because inventory remains extremely tight. Owners who locked in record-low mortgage rates during the pandemic are hanging onto their…

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"What Is an Escalation Clause in Real Estate and When Should You Use One?"

Realtor.com shares, "when you’re deciding on what price to offer on a home, the situation might call for a single price or, in some cases, numerous prices via an escalation clause.

In a fast-paced, competitive market, having an escalation clause as part of your offer on a house can benefit the homebuyer and seller alike. But it does come with some downsides, so it’s important to know the pros and cons before you include one in an offer (or accept one as a seller).

Here’s what to know about an escalation clause, and when it’s a smart tactic for your real estate deal.

The basics of an escalation clause

An escalation clause is a real estate contract, sometimes called an escalator, that lets a home buyer say: “I will pay X price for this home,…

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Finally, Mortgage Rates and Home Prices Favor Buyers—but How Long Will This Last?

Realtor.com writes, "Christmas has arrived early for America’s homebuyers! And it’s not just one gift, but two that should make them giddy.

Gift No. 1: lower mortgage rates, which have been falling for the past four weeks.

“Housing data in the week that followed the Thanksgiving holiday showed that the recent dip in mortgage rates may already be having an impact,” explains Realtor.com® Chief Economist Danielle Hale in her weekly analysis.

Gift No. 2: Home price growth “slowed notably” for the week ending Dec. 3, according to Hale.

We unwrap the latest real estate statistics and what they mean for homebuyers and sellers in our weekly column “How’s the Housing Market This Week?”

Mortgage rates dipped again

Not too long ago, it had…

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The Austin Real Estate Market: Stats & Trends for 2023

The Austin real estate market is in the middle of a shift.  While the housing market in Austin is still a seller's market, the trend is changing. More would-be buyers are now renting, thanks to a cooling down market. Next year, the market will shift from a seller's to a buyer's market.

Austin's Housing Market Pushed More Would-be Buyers Into Renting During Covid-19 Pandemic

Before the COVID-19 pandemic, Austin's housing market was tight, with rents rising by about 5% annually. In Austin alone, there are nearly 125 people moving every day. In addition, builders haven't kept up with demand, and city zoning laws limit the building of new multifamily housing. As a result, home prices have reached new peaks. In May alone, the median sale price in Austin…

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Austin named the No. 1 housing market for growth and stability

While the Austin housing market continues to shatter price records, a new study shows it’s the best U.S. market for growth and stability.

The study, published by personal finance website SmartAsset, places Austin at No. 1 among 400 metro areas for housing growth and stability. That’s up from the No. 2 spot last year.

The study notes that Austin-area home prices soared 368 percent from 1997 through the end of 2021. That was the biggest spike among all of the metro areas examined in the study. Meanwhile, it estimates there’s a zero percent chance that an Austin-area home would suffer a 5 percent drop in value within 10 years of being purchased. 

In February, the median price of a home in the Austin metro area came within $5 of $500,000,…

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New Homestead Exemption Rule

There is a new update to the Homestead Exemption Law. 

Starting January 1, 2022, homebuyers will be allowed to file for exemption in the year they purchased the property - previously homebuyers had to wait until the following calendar year to file. 

This is great news for homebuyers who can now have the opportunity to lower their property taxes! 

How does this affect prorations? 

Previously, prorations of taxes between the Buyer & Seller, and reserves needed for the Buyer's new escrow accounts, were estimated using the homestead exemption because it was in place until the end of the year. Now, a Seller can buy a new property and move their exemption to that new property immediately. 

Source: Patten Title Company 

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