How to be hopeful in this crazy real estate trend? (Austin: renters, new house)

[Bubchub68]

We've been looking for houses for quite some time in Northwest Austin. There were not many houses earlier this year, but for the last 3 weeks, there are some activity. If the house is good, it either gets sold before it hits the MLS or within few days. Even if we're ready to offer full price there is no guarantee that we'll get the house since there are buyers willing to pay/paying more than the asking price.

If the trend goes on like this the prices are going to go up and there aren't going to be houses in the market for buyers like us. How do we be hopeful that we'll find a house?

[Moonlady]

You know I was hoping some realtors would chime in here. I'm feeling the same way. We've been looking to relocate NW nearer to work and the kids, but we're not finding much on the market we like. Since we're not selling our current home, we are somewhat limited in our budget, but I was sure we could find something until we started looking. I'm not looking for a forever home, we just want something we can live in comfortably for the next 5 years. Since I haven't been househunting for an existing home...well...ever...I didn't expect it to be so difficult.

I know what you mean about them selling so fast - a few I have seen hit the MLS are gone in less than a week. I guess for us, the only saving grace is that we don't have any requirement to move on a specific schedule.

[TexasHorseLady]

For quite some time it's been a buyer's market. It's beginning to even out a little bit and even, in some areas, become a seller's market. It's not a "crazy" market, it's an adjusting market.

As you said, inventory was light in the area you're looking in earlier in the year, and you likely were not the only person looking. So as inventory comes on the market (usually does in the spring), houses are going to be snapped up pretty quickly. What does your agent have to say?

[Bubchub68]

My agent is confident that we'll find "a" house. I do think that we'll find a house, but I'm scared since the houses that are good goes real quick once it hits the market or even before it's listed.

Not sure if we'll be to find one before interest rates go up.

[Moonlady]

My agent says pretty much the same thing as you said! I'm curious what factors cause it to be a buyers market vs a sellers. Certainly the fact that interest rates are so low make it really attractive to buy a home right now. But I'd also think it would be a good time for a seller to trade up. My search is complicated by the fact that we are looking at older homes and there are all sorts of challenges there!

[GreenPlastic]

A lot of pent up demand. I know several couple getting out of rentals and looking to buy in central Austin.

[CptnRn]

There are a lot of people moving to Austin and the rental market is at 95% occupancy, that puts more pressure on the housing market for people who can afford to buy. A lot of renters have been sitting on the fence waiting to buy after the economy showed some signs of improving, which seems to be happening. Many people who already have a house, are nervous about "moving up" and getting into more debt until they feel the economy is solid. So no rush to trade up if you already have a comfortable place to live. There have not been many new houses built in recent years compared to in the past, so the options are limited for moving up, yet the city kept on growing in population. So it doesn't surprise me that its getting hard to find available housing in popular areas.

[Austin97]

Originally Posted by Bubchub68

We've been looking for houses for quite some time in Northwest Austin. There were not many houses earlier this year, but for the last 3 weeks, there are some activity. If the house is good, it either gets sold before it hits the MLS or within few days. Even if we're ready to offer full price there is no guarantee that we'll get the house since there are buyers willing to pay/paying more than the asking price.

If the trend goes on like this the prices are going to go up and there aren't going to be houses in the market for buyers like us. How do we be hopeful that we'll find a house?

here is an article from the northwest austin impact newspaper about the nw austin housing market. It corroborates what you are experiencing.

Austin | Housing market begins to favor sellers, Realtors say - Community Impact Newspaper

[Mom2NAC]

Ugh! We are going through the exact same thing in SW Austin. There were so many houses just sitting on the market for months last year, and then February rolls around, right around the time we got all of our finances together and ready to buy, and BAM! Houses are getting snatched up left and right! We put an offer on a house last week, 5 hours after it went on the market, for the listing price, and we got outbid! I really wish we had pulled things together to move late last year, but we just weren't ready. I hope we can find something before the interest rates go up. We got quoted 3.875% in our pre-approval.

[Bubchub68]

Even houses that were having difficulties getting sold in the last 4 years (on and off) got sold within couple days. Off late, houses get into MLS after it's getting sold. I would say that in the area that we're looking there are only 4-5 houses under 450k that not under contract. Good luck to ourselves .