What We Can Learn from Austin TX

With builders slashing prices and resale homes sitting on the market longer, Austin may be showing the first sign of a tougher road ahead for sellers.

If you’re thinking about selling, you’re probably wondering what’s really happening in the market. Many homeowners are asking the same question because they want to know if waiting makes sense. The truth is, the market is shifting, and it is already creating challenges for resale homes. Here’s what we’re seeing and what it means for you.

What’s happening now? In Austin, prices increased by 70% to 80% during COVID, but since then, they’ve dropped by 30% to 40%. Inventory jumped from about 2,500 homes to around 18,000. That type of swing doesn’t just stay local. We’re starting to see similar signs in other parts of the country, which means the pressure is spreading.

Prices and equity. Last year, many homes that could’ve sold for $600,000 are now selling for about $450,000. That’s a $150,000 loss in a short period of time. Sellers who decided to wait for lower rates missed their window. Even if rates drop, it will not reverse the current price declines. If you need to sell in the next few years, your equity is shrinking like a melting iceberg.

Why is resale harder right now? Builders are flooding the market with new construction, offering lower prices and incentives like rate buy-downs. Much of this inventory doesn’t appear online, so most sellers are unaware they are competing against it. Buyers often see more value in new homes, which leaves resale listings on the market for longer periods.

How to price in today’s market? Pricing a home correctly is more important than ever. The key is to price based on where the market is heading, not where it was. With inventory rising, many sellers need to list 3% to 10% below recent comps to stand out. Tools like a market absorption report can help you see the real odds of selling. In many areas, only 20 to 30% of homes sell within 90 days if they’re overpriced.

The housing market is shifting quickly, and the window of opportunity for sellers is closing. If you’re planning to sell soon, acting now can help you protect your equity. Align price, product, and promotion from the outset, and ensure your home is positioned to compete effectively against both resale and new construction.

I recently spoke with Chris Watters about these challenges and their impact on sellers across the country. Chris has built one of the top brokerages in Austin and shares proven strategies in his book The Million Dollar Real Estate Team on Amazon. He also co-founded RealSynch, a platform that helps brokers and teams streamline their systems, enabling them to grow faster.

If you’d like to discuss your options, you can call or text me at 910-395-1000 or email me at buddy@buddyblake.com. I’ll help you make the right move in today’s market so you can reach your selling goals with confidence.