78732 Market Update for November 2022
The number of new listings in October remained steady with 21 new listings.
The months of inventory metric has been declining since it’s peak in July this year with October having 2.8 months of inventory. This is the number of current listings divided by the average number of listings sold for the last 6 months.
Our sales price to original list price ratio went up 4% in October. This means original pricing at the time of listing is getting more accurate.
And the number of cash buyers went up to 27%, the highest number since January.
But what does this all mean? We are a full 6 months into the “new normal” and I’m ready to get into some more detail about what’s happening in our market by addressing some of the things I keep hearing.
From Sellers: “Nobody is Buying” – this is FALSE. What’s true is that buyers are expecting more value. A more accurate statement would be “Nobody is buying crappy listings at peak prices!” Take a look at these numbers showing number of sales in October of these years:
Yes, this year is lower than other years, but not that much lower than pre-covid years. In the Austin metro, October 2022 was 24% less than in 2019, 16% less than 2018, 12% less than 2017, 8% less than 2016, etc…
What do I mean by “crappy” listings? I’m seeing listings with zero upgrades, homes with yards full of weeds, rotted decks, tons of deferred maintenance, even filthy homes listed at the top of the price range. Those just aren’t going to sell. Buyers have options now and they are not going to consider these homes unless they are a great deal. All of the things that were important pre-2020 are important again – staging, presentation, property condition, appliances and systems not past their useful life, etc…
And From Buyers: “Rates Are Too High” Non-cash buyers should consider the total cost of the purchase – not just the price and not just the rate! This chart shows three 10% loan amount reductions and three 1% rate increases – Notice what happens to the total cost and payments – They are almost the same, what differs is who the money is paid to.
So, is the market terrible? No way. Has it changed? Yes, absolutely. It is just more important than ever to work with an agent who is active in the market you are in. Someone who is and has been working with buyers and sellers in your hyperlocal market throughout this shift.
If you are thinking of buying or selling, I’d love to help and can be reached at (512) 657-7510 or Elicia@SteinerRanchInfo.com.
