We continue to receive questions from clients contemplating selling their home. The most common is “Will the recession impact prices?”. One of the benefits of working with realtors like the two of us is that we work tirelessly to study the market and keep our clients informed. You may not be ready to move now, but when ready, we want you to be informed.
Here are our thoughts:
- Typically recessions slow down appreciation of home values, but with the exception of a brief blip in 1991 and the massive challenges in 2007/2008, no recession has actually led to a DECLINE in housing values. In fact, home prices appreciated in 4 of the last 6 recessions. And, in Austin, even in 2007/8, home prices were not impacted even remotely close to the rest of the country. Austin typically has done relatively well in the past 9 recessions.
- Today, the market is beginning to move back toward pre-pandemic levels. But even the forecast for 10% home price growth in 2022 is well beyond the 3.8% that’s more typical for a normal market. (More here)
- The uncertainty with recession, rising inflation and higher mortgage rates does leave room for negotiations which in return drop home values. But it is also scaring away some sellers, which reduces inventory and increases competition, which means the brave sellers are able to get their homes competitively sold. (More here)
- Do I think listing a home now versus listing 3 months ago will get different results? Yes! Do I think Austin has gained appreciation on a level to have comps to justify sales price now? Yes. Do I think it’s better to list now versus list later due to the current comps? Yes. As I said before, I believe we have comps to justify the sales price now. As those patterns change so will getting the list price. It is important to also strategize incentives from the start instead of lowering price points which I am happy to expand on.
We need to strategize the best marketing for your home. Austin has many microneighborhoods that need to be treated as such. Partnerships in the community certainly make a difference in getting sales. We are on a team of 20 and we touch many clients when we list properties for sale or find properties for buyers. Collectively, we have $250 million in sales this year and are on track for $400 Million.
For more market perspectives, below is a pdf from one of our lender partners, Josh Penland at Legacy Mutual. We also encourage you to continue to leverage our website blog for market perspectives.
Thank you for trusting us to be your real estate partners.
Adam and Timothy