Although the mortgage markets have been in trouble since July and August, now is a great time to buy in Texas. I've been working on a market update slide-show, but the team has been swamped putting deals together for buyers and investors.
So why has business picked up even though it's a buyer's market? Well, because buyers can finally buy. Agents are now able to negotiate with sellers for decent home deals. Steady appreciation combined with the decline of the national market had caused multiple offers to skyrocket.
AUGUST MARKET STATISTICS- AUSTIN OVERVIEW
Take a look at the chart from the Austin Board of REALTORS. Actual home sales only decreased by a few hundred, but number of active listings have increased by over 1600 units. Again, this is due to the deflating mortgage market. There's just fewer qualified buyers with 5-10% to put down on a home. The median price has increased again. Last year, the median single-family home price was $180,500. In August, it increased by 6% to $192,200.
SHOULD YOU BUY?
The #1 rule I've learned as an investor is to buy when prices are low and sell when your value is high. I've heard some investors say they don't want to buy because it's a buyer's market, which doesn't make much sense.The bottom line is that it's always a good time to buy...at the right price in the right area.
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