Why is Austin’s real estate boom slowing down?

Instead of selling a home in just a day or two like it did in 2020, it now takes about a month or more.

AUSTIN, Texas — More than two years ago, in 2020, Austin experienced what many realtors and developers have dubbed a gold rush, with homes selling in a matter of hours. Now the market seems to be slowing down.

“It brought a lot of people here and it was just a perfect storm,” said Chester Wilson, one of the owners of Greater Austin Builders.

Two years ago, many turned their eyes to Austin.

“Gold Rush is a perfect term for it. I’ve been doing this for 25 years. It was unlike anything we’ve ever seen,” said Cord Shiflet, the president of the Austin Board of Realtors.

However, Shiflet said Austin’s housing boom is going nowhere, it’s just slowing down.

He found that selling houses now takes about a month, instead of just a day or two. But why?

“On average, interest rates have pretty much doubled over the last year,” Shiflet said. “You have to somehow erase what you’ve seen in the last year or two. I mean, these are historic lows.”

Austin’s luxury real estate business is also feeling the effects of the slowdown.

“We couldn’t believe it. Prices continued to rise. We thought it was good,” Wilson said in reference to how fast they were selling homes in 2020. “It’s been a slowdown, and here it is.”

Wilson and his team built these luxury homes in the Austin area and said longer listing times lead to price reductions.

“There are actually many compelling reasons to go out and look for houses. Now, with the extra inventory for buyers, and especially with all the price drops we’re seeing,” Wilson said.

Shiflet noted that there are some silver linings for buyers.

“What buyers are enjoying is that there are no longer 40 listings for a home. You can actually try to get a house,” Shiflet said.

He said if buyers take advantage now, they can refinance in the future after interest rates come down.

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https://www.kvue.com/article/news/local/austin-real-estate-boom-over-october-2022/269-35cf4860-b2a2-4545-893d-78bf7abd5c86 Why is Austin’s real estate boom slowing down?

Laura Coffey

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