Luxe Austin Homes - housing

"Housing Market Predictions For 2023: When Will Home Prices Be Affordable Again?"

Forbes.com writes, "though winter may still be months away, housing market activity—already cooling due to eye-popping home prices and interest rates—may be on the verge of a deep freeze.

The national average 30-year mortgage rate rose to a 23-year high of 7.49% in the first week of October, according to Freddie Mac.

Given current rate conditions, it’s no wonder that year-over-year existing home sales sagged for the third consecutive month, slipping by 0.7%, with all four major U.S. regions posting declines, according to the National Association of Realtors (NAR).

Nonetheless, the housing market remains competitive for prospective buyers. With many homeowners “locked in” at low interest rates and unwilling to sell, demand continues to exceed…

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"Is the Housing Market Overvalued? What Buyers Need To Know"

Realtor.com writes, "is the housing market overvalued?

It’s an increasingly fraught question, and the answer might depend on who’s being asked.

Some real estate experts believe home prices are well above what they should be and expect them to begin coming down. Others think the high prices make sense given how many people are still in the market looking for properties, despite mortgage rates nearing 8%.

“If you look at how much income homebuyers are putting toward their housing payment, if the number is not the highest ever, it’s really darn close,” says Realtor.com® Chief Economist Danielle Hale.

No one wants to buy a home at the peak of the market—and then watch the home value trickle down.

Homes in 98 of the 100 largest housing…

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"Millions of homes are vacant in large cities across America"

Austin Business Journal writes, "there are millions of homes sitting empty across America at a time when inventory and affordability are squeezing the nation's housing market.

According to a recent analysis of U.S. Census Bureau 2022 American Community Survey data by LendingTree Inc., there are nearly 5.5 million vacant housing units in the nation's 50 largest metro areas. That puts the housing vacancy rate across those metros at about 8%.

But the reasons why millions of homes are sitting vacant at a time when the nation's housing market is starved of inventory and home prices remain high — the median price of new houses sold in August was $430,300, down slightly from $436,600 a month prior — are varied and nuanced.

The study found, on…

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"Luxury homes with hefty price tags rise in West Austin"

Austin Business Journal shares, "a new, gated luxury housing development is rising south of West Lake Hills.

The development itself may be small by most standards — five homes on 5.5 acres — but the size of the homes and their price point are not. The homes at Five, as the development is called, range from 6,700 to 8,900 square feet and list prices start at $12.5 million, according to Moreland Properties' Eric Moreland Group, which is marketing the homes for Houston-based developer Unicus Developments LLC.

Five isn't the sort of development that your typical Austinite could spring for, but it is the type of development that can serve a growing population of wealthy homebuyers as Austin's population continues to surge. Last year, the Austin metro…

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"Austin land use changes to see joint review by Council, Planning Commission"

Austin Business Journal reports, "amendments to Austin's land development code intended to boost building density throughout the city will soon be considered in a joint public hearing between the Austin City Council and Planning Commission. The changes could have a significant impact on housing supply in the city.

A meeting date has not been yet been scheduled but is expected to occur this year. Council on Sept. 21 approved a resolution calling for the joint public hearing, which was recommended by the city’s Housing and Planning Department.

The hearing shows there is political momentum behind the city's effort to address the housing shortage and correlated affordability concerns — as well as controversy. After a previous effort to overhaul the…

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"The housing market is slowing but home prices are still going up"

Austin Business Journal writes, "this year's housing market, beset by high interest rates, is on track for the lowest number of homes sold in 12 years.

Fannie Mae, the government-sponsored mortgage financing organization, projects total home sales in 2023 to be about 4.8 million, the lowest since 2011, and only slightly higher in 2024 at 4.9 million. The total amount of mortgage originations for 2023 is expected to be about $1.56 trillion, down from what Fannie Mae had originally projected to be $1.6 trillion this year.

Fannie Mae sees personal spending to be at unsustainable levels relative to American incomes and it projects a "modest economic contraction" in the first half of 2024, combined with mortgage rates hovering above 7%.

And while…

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"For Pearlstone Partners, $700 million in new investment is on tap for Austin market"

Austin American-Statesman writes, "Pearlstone Partners is doubling down on its commitment to growing in Austin.

Over the next three years, the Austin-based real estate investment firm said it plans to add three new projects totaling upwards of $700 million to its expanding portfolio. The new developments will further redefine the skyline and urban living in the city, Pearlstone officials say.

The privately held Pearlstone — one of the largest providers of for-sale housing in and near downtown Austin —already has invested about $500 million in two completed residential projects and three that are under construction.

Now, it is seeking capital partners for three future projects. The planned projects will add an additional $700 million to…

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"U.S. Housing Starts Drop to Lowest Level Since June 2020"

Realtor.com reports, "The numbers: Construction of new U.S. homes fell 11.3% in August—falling short of Wall Street expectations—as builders scaled back new projects to focus on completions.

The pace of construction reversed course and fell as mortgage rates stayed over 7%, dampening home-buying demand. The last time construction of new homes was at this level was in June 2020.

So-called housing starts fell to a 1.28 million annual pace from 1.45 million in August, the government said Tuesday. That’s how many houses would be built over an entire year if construction took place at the same rate every month as it did in August.

Economists on Wall Street were expecting a drop in starts to 1.43 million. All numbers are seasonally adjusted.

…

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"Austin may allow tiny homes with wheels, RVs as permanent residences"

Austin Business Journal reports, "Austin homeowners may have an opportunity to transform their backyards and other open spaces into leasable dwellings as the local government works to create new options for affordable housing.

Austin City Council on Sept. 14 asked city staffers to draft an ordinance that would allow mobile tiny homes and recreational vehicles to be used as permanent residences in areas zoned for single-family housing. The draft of the code amendment is expected to be presented to Austin's Housing and Planning Committee and to Council by the end of November.

The effort would be another piecemeal change to Austin's land development code as city leaders work to eliminate barriers to creating additional housing. Affordability issues…

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"Home prices in some Central Austin ZIP codes increased in August"

Community Impact Austin writes, "August home prices in multiple Central Austin ZIP codes increased with homes in 78752 seeing the biggest jump at 38.27% year over year, according to data from the Austin Board of Realtors.

However, there was also a decrease in August home prices in some ZIP codes, including 78701, which dropped by nearly 35%.

Seven ZIP codes in the market also saw more home sales in August compared to last year, while 78751 remained consistent with 15 home sold in both August 2022 and August 2023.

Overall, homes stayed on the Central Austin market in August for at least a month. Last August, homes averaged three weeks on the market."

Source: Community Impact Austin

Written by: Brittany Anderson

Published: September 15,…

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