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- Horns aren't the only thing down in Austin, Texas - so is rent!
Horns aren't the only thing down in Austin, Texas - so is rent!
Your 5 minute weekly real estate update
Kimi Green
May 11, 2023
In Today’s Email
Rent in Austin, Texas
Existing home sales
Zillow’s April housing market report
Executive summary from PD
Quick reads
Rent in Austin, Texas is Declining
New apartment construction impacts rental market: Austin is experiencing an unprecedented surge in apartment construction, with approximately 50,000 units under development. This increased supply has contributed to more vacant apartments and prompted landlords to adjust prices.
Renters adapt to rising costs: Facing higher living expenses, Austin renters are making changes such as moving in with relatives, sharing accommodations, or relocating to more affordable areas. These shifts, along with increased apartment supply, have resulted in lower rent prices or smaller increases.
Existing Home Sales Decline
Median sale prices show a marginal decline: While the nationwide median sale price for existing homes rose slightly month-over-month, it fell by 0.9% compared to March 2022. This marks two consecutive months of year-over-year declines after a long streak of price increases. The West region experienced the highest median price drop at 7.5% from a year ago.
Low housing inventory remains a challenge: The total housing inventory increased slightly by 1% from February and 5.4% from the previous year, reaching 980,000 units. However, this still represents a mere 2.6-month supply, well below the 5 to 6 months required for a healthier market. The limited inventory continues to contribute to the challenges faced by homebuyers.
Zillow’s April Housing Market Report
Active inventory and pending listings: While the number of new listings is lower than usual, active inventory saw a modest 2.9% year-over-year increase in April. This low inventory is a key factor driving the rise in home prices. Newly pending listings also improved compared to March, suggesting a return to more normal seasonal trends.
Positive impact of lower mortgage rates: Lower mortgage rates in April have contributed to buyers' strength and increased pending sales. The average rates have declined, creating favorable conditions for homebuyers and stimulating market activity.
Executive Summary From PD
As new home sales rise and existing home sales stabilize, builders are more likely to offer deals, while sellers of existing homes may be less motivated to lower prices or provide concessions. At Groundfloor, we provide financing for both new construction and fix-and-flip projects, offering investors opportunities in both sectors. Despite market uncertainties, we recognize the ongoing demand for new housing units and continue to support new construction projects throughout the year.
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