According to a recent survey from Zillow.com, 60% of housing experts agree that we are not in a bubble. Real estate bubbles occur when speculation overtakes a market causing prices to rise regardless of the demand for housing. Rising prices lead buyers to believe that their home values will continue on an upward trajectory in the near future, increasing the value of their investment. However, when the demand is low, high prices must come down, thus bursting the bubble. Demand for homes in Williamson County remains high due to business and population influx, and increased demand will keep home values high. In addition, heightened consumer protections and more rigid regulations on the mortgage industry are aimed at preventing bubbles after the pop in 2008. As the Fed continues to raise interest rates, the market is beginning to shift slightly. This current change in the market is being classified as a ‘market correction’ or a ‘shift.’
Here are last month’s numbers for Williamson County:
According to the Austin Board of Realtors’ monthly Central Texas Housing Market Report, Williamson County saw a rise in new and active listings with an 18.5% increase in median sales price compared to May 2021. Pending and closed sales are decreasing, causing inventory to rise and homes to stay on the market an average of three days longer than this time last year.
Leander Market Reports
In May 2022, Leander home prices were up 27.6% compared to last year and sold for a median price of $545,000. In Leander, 203 homes sold in May this year, down from 250 last May. Homes in Leander are averaging 22 days on the market, 4 days less than May 2021.
Cedar Park Market Reports
Cedar Park home prices were up 25% compared to May 2021, selling for a median price of $640,000. There were 122 homes sold in Cedar Park last month, down from 139 homes sold in the previous year. On average, homes in Cedar Park are spending 29 days on the market, 2 days longer than last year.
Dissecting the Data
What does all of this mean for Sellers? Despite declining buyer optimism, demand remains high, and home values continue to rise. The housing market is unlikely to shift from a seller’s to a buyer’s market anytime soon, so right now is still the right time to list.
What does the data mean for Buyers? An increase in active listings with a decline in pending sales has caused housing inventory to increase for the first time since 2019. More inventory means sellers might become more amenable to negotiations as bidding wars begin to decline. While rising mortgage rates have taken the steam out of some homebuyers’ sails, waiting in the hope prices will drop may not be the best option, as that might not happen any time soon.
If you’re looking for a home in Leander or Cedar Park, contact The Cummings Team® today! 512-619-3186 | [email protected].