AUSTIN (KXAN) — Colder weather may be settling in, but new data suggests the winter housing market is heating up again.
According to a recent report by Realtor.com, nationwide home prices have spiked more than 10% in the last year. Austin’s increases go far beyond that.
“They have to be ready to know what they want and what they can live without,” said Danielle Hale, Realtor.com chief economist.
Acting fast in the Austin real estate market is key according to Hale. A December report shows listing prices increased by 28% year-over-year, and buyers are against another roadblock.
“Inventory is down by 10% year-over-year basis, that’s a pretty big drop,” said Hale.
At 12 Rivers Realty in Austin, Paul Smith said that’s not a good sign when it comes to affordability.
“We have about 12 to 14 days of inventory, and now we’re going into the busy season. That’s a scary thought,” said Smith.
Smith recounts a transaction he never thought he’d see in 2021.
“There was one property that had 96 offers on it, sold for 50% over asking,” said Smith. “Austin at that point went through a reclassification of wealth.”
Smith doesn’t expect the inventory to increase with Austin being such an attractive city, but Realtor.com does anticipate the overall price growth to slacken a bit.
“We expect the federal reserve is going to increase the interest rates, which will lead to higher mortgage rates,” said Hale. “In fact, we’re seeing mortgage rates already tick up, so that’s going to raise the cost of buying a home, and as a result, prices are going to slow down in response.”
Las Vegas (32.4%), Tampa (25.4%) and Orlando (21.7%) are among the highest-ranked large metro areas when it comes to listing price, according to the Realtor.com December report.