Luxe Austin Homes - purchasing power

"Homebuyers can afford to be picky as Austin housing inventory rises"

CultureMap Austin shares, "The latest real estate report from Unlock MLS and the Austin Board of Realtors (ABoR) has revealed housing inventory is still on a steady rise in the Austin-Round Rock-San Marcos MSA, creating more choices for potential homebuyers as they navigate a high interest rate market.

Residential home sales dipped by a mere 1.5 percent year-over-year from October 2023, amounting to 2,248 closed sales in the Austin-Round Rock-San Marcos MSA. Median prices have also dropped to $430,000, or 3.2 percent less than this time last year. More than 3,300 new home listings were added on the market — a 7.4 percent increase from 2023 — bringing the total number of active home listings to 11,599.

According to Unlock MLS and ABoR housing…

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"Mortgage Rates Hit Lowest Level Since February 2023"

Realtor Magazine reports, "Borrowing costs fell ahead of the Federal Reserve’s anticipated rate cut next week. But economists say home buyers may not want to wait to see if rates go lower.

The 30-year fixed-rate mortgage fell to 6.2% this week, down significantly compared to a year ago when they surged above 7%. But some prospective home buyers are holding out for even lower rates in anticipation of the Federal Reserve’s meeting next week, where it’s expected to cut short-term interest rates.

Still, home buyers may be getting their hopes up too much: “Even with the September expected rate cut [by the Fed], mortgage interest rates are not likely to move as this cut has been baked into the mortgage market,” says Jessica Lautz, deputy chief…

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"Is Austin's housing market overvalued? At least by one measure, the answer is yes"

Austin Business Journal writes, "Home prices in Austin are eclipsing the median buying power of local residents.

That's according to data from First American Financial Corp., which found the housing markets in at least half of the nation's major metro areas are overvalued compared to local buying power.

Home prices have soared nationally over the past decade — especially during the pandemic — and that's driving a significant affordability crisis in many regions. High interest rates and a sustained lack of inventory aren't helping matters.

Local buying power in Austin is $434,663, according to the data. Unfortunately for those in the market for a new home, the median sale price of a house in Austin was clocked at $466,867. That's about a…

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"Home sales are up in Austin thanks to stabilizing housing prices, new real estate report says"

CultureMap Austin writes, "Austin-Round Rock-Georgetown experienced its highest year-over-year increase in home sales this past April, illustrating a growing optimism in the metro area's housing market. That's according to the latest real estate report from Unlock MLS and the Austin Board of Realtor (ABoR).

More than 2,700 homes were sold in April across the Austin-Round Rock-Georgetown MSA, which is a 5.9 percent increase from this time last year. Median prices landed at just under $470,000 in a 1.1 percent increase year-over-year. There were 10,808 active home listings on the market, which is nearly a 32 percent jump from April 2023.

"Despite the higher rate environment, the uptick in affordable inventory in the $300,000 range is allowing more…

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"Austin home prices rise, but so do choices for buyers"

Austin Business Journal writes, "As spring rolls on, Austin’s housing inventory continues to grow.

April saw an increase in active and new home listings in the region, as well as pending and closed sales, according to the most recent market data from Unlock MLS published on the Austin Board of Realtors' website.

Unfortunately for home buyers, the median sales price of a home in the metro also creeped up in an already-pricey environment due to elevated interest rates. Still, the increase in inventory has resulted in an uptick in the number of home for sale at many price points, even those priced more affordably.

“The MSA experienced an increase in sales, indicating more opportunity in the market for all buyers,” stated Clare Losey, Unlock MLS…

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"Austin nests on Zillow list of best cities for first-time homebuyers"

Culturemap Austin shares, "It's not easy to buy a home anywhere, but folks in Austin are doing way better than average, according to Zillow. Texas' capital ranked No. 5 among the top 10 U.S. cities for buying a first home.

In 2023, new homebuyers occupied the largest slice of the market since the report started in 2018, making up about half of all buyers. The demographic was only 37 percent in 2021. It cites the "rate lock" effect for keeping "repeat buyers" from moving on too quickly and abandoning their lower mortgage rates. Hopefully strength in numbers gives newcomers a little more power against flippers and developers.

The new Zillow report further helps follow purchasing power, identifying places with a larger selection of homes and more…

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"Is a Mortgage Pre-Approval Letter Necessary to Make an Offer on a House?"

Realtor.com explains, "the short answer is no. However, if you want your offer to be taken seriously and to stand out from any competing bids, this little piece of paperwork can really give you the edge.

“While you do not ‘need’ a pre-approval letter from your lender in order for your offer to be accepted, I highly recommend all of my buyers present it,” says Denise Shur, a Realtor® with 1:1 Realty in San Jose, CA. In fact, “I do not look for homes with my buyers until they have a pre-approval letter from their lender. To me, it’s that important.”

What is mortgage pre-approval?

Basically, a mortgage pre-approval letter is a guarantee from a lender that it’s willing to finance your home purchase up to a certain dollar amount, based on…

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