Most of us remember the 2006 real estate bubble. Home prices took a dive, causing the real estate industry to suffer all across the nation. Even though it has been difficult for the market to get back on its feet, today real estate experts are stating that the industry is doing better now than it has in the past several years. Home prices have gone up 12% in Austin, as well as in many other major cities across the United States. This is the highest jump in sales prices that has occurred with the past five years. But what does this mean for Austin real estate?
Housing Recovery Continues to Improve in Austin
The housing market continues to improve and pick up steam as home prices spiked in April and continued to increase causing a fiver year high in May. This is great news for homeowners who live in the Austin area and are interested in selling their property. By taking advantage of the current seller’s market, homeowners are guaranteed that they will receive better offers than they would have gotten from buyers two to three years ago. Anyone who has been waiting for the opportune moment to sell their home should do so as soon as possible in order to benefit from the recent home sales hit.
Rise in Home Prices Expected to Drop Soon
The news of an upcoming increase in mortgage rates could cause the housing market to take another drastic hit in the near future. More serious buyers are interested in buying now before interest rates rise, so they can lock in their low rates while they still can. This is great news for sellers because if buyers are in a hurry to close a deal, they will be more willing to pay a higher price instead of taking the time to negotiate for a better deal. Once mortgage rates rise, buyers will expect home prices to go down and will be less likely to pay for an average home with an expensive price tag attached to it. If you want to get the most out of your home, you should attempt to sell as soon as you can. See how much your home is worth:
Do High Sales Prices Hurt the Value of Homes?
Home value appreciation is expected to drop in some areas once mortgage rates begin to rise. This is because many buyers do not mind paying a higher sales price as long as they are getting to take advantage of rock bottom interest rates. However once interest rates rise, many buyers will want to pay less for homes, causing a home that would sell currently at $400,000 to only be worth around $350,000 (or less) once mortgage rates rise.
Selling Your Home
Austin homeowners have the advantage of living in a beautiful southern state with many amenities for local residents to enjoy. While this can be an excellent sales pitch in itself, the fact that sellers can save money on mortgage costs if they decide to buy right now will help you to sell your Austin area home much faster, and at a higher sales price.