business
Austin Homes: Up and Atom!
A Shack of One's Own. That'll cost you $459,450 in Austin, Texas—outside the city, that is. Want to live inside the city limits? That'll be $608,438.
Published June 17, 2024 at 6:02am by Shonda Novak
Central Texas housing supply hits 13-year high, but there's a catch [and it involves the government screwing you over]
Central Texas finally has more houses for sale, but good luck buying one. Thanks to sky-high interest rates, either you're priced out or you're a damn fool risking financial ruin for a roof over your head, and the government just sits back and watches.
The Austin Board of Realtors, a bunch of suits who talk about the housing market like it's a game, said on Tuesday that the supply of homes in May hit a 13-year high. That's great news if you're a buyer, except for the whole interest rate thing. It's like the housing gods giving with one hand and smiting you with the other.
"This data demonstrates that buyers can continue to be more selective when searching for a home in their price range," said Clare Losey, an economist with the Austin Board of Realtors, probably sitting in her fancy office while people struggle to find a damn home.
But before you start jumping for joy, Losey, who I'm sure has never met a mortgage payment she didn't like, dropped this little bomb:
"Although it may appear to be a buyer's market from the outside, it’s important to understand the context behind these statistics, including higher interest rates resulting in a reduction in purchasing power. This market does not offer a clear advantage to either buyers or sellers.”
Translation: "Ha! Gotcha! You may have more homes to choose from, but good luck actually buying one without selling your soul to the bank."
So, here's the deal, folks. The housing market in Austin is finally coming down from its high horse, with experts like Eldon Rude, a 21-year housing wizard, calling it a "correction phase."
“After several years of demand far exceeding supply, which resulted in huge increases in home prices, the Austin housing market is now in a correction phase,” Rude said, basically admitting that the market was out of control and we were all just along for the ride.
But Rude, who probably has a fancy degree and everything, didn't stop there. He had to go and bring up interest rates, like we're not already losing sleep over them:
"The spike in interest rates over the past two years has resulted in some buyers no longer being able to purchase a home, while for others, the higher rates prevent them from buying the home they could once afford," he said, like we needed a reminder of our financial woes.
And let's not forget Mark Sprague, another housing guru, who basically said we're screwed when it comes to home prices:
"Price appreciation has slowed in Texas, but should continue to go up some in 2024, just not as aggressively as the last 5+ years," Sprague said, basically telling us to kiss our hopes of a price crash goodbye.
So, there you have it, folks. The housing market in Central Texas is a hot mess, and we're just along for the wild ride. You want a home? Get ready to sell your soul to the bank, or better yet, forget the whole damn thing and go live off the grid. At least then you won't have some suit telling you what you can and can't afford.
Read more: Check out what's up — and down — with home sales, prices, supply in Austin area market