Crazy Austin housing market (to rent, loans, homes)

[CarnivalGal]

In my zip, 78732, 84% of homes sold over list price, some several hundred dollars over list. It's not unusual for a house to be listed at $600K and sell for $800K+.

I don't foresee prices coming down, but I do see them leveling off. I think the frenzy will die down. I think that's already happening. Houses that would get 20 offers are now getting 10-12. My neighbor's house is under contract right now. They received 8 offers, 2 for list price and 6 over list. Only one was an investor. Not sure what the final price was, but it closes this week, so I'll find out then. (Kind of rude to ask).

[dicipher]

Heck,

I wouldn't even get to caught up in what something sells over list price. I know in the SF market, realtors would notoriously list prices lower than what they would expect them to sell for just to get a bidding war started (basically drive up the price in a hot market by getting a feeding frenzy started). When open houses look like Grand Central Station, there's a tendency for people to bid higher. Houses going for $100k-$150k over list was the norm. I wouldn't be too surprised if that was starting to happen in this market.

[ashbeeigh]

Originally Posted by CarnivalGal

I think the frenzy will die down. I think that's already happening. Houses that would get 20 offers are now getting 10-12. My neighbor's house is under contract right now. They received 8 offers, 2 for list price and 6 over list. Only one was an investor. Not sure what the final price was, but it closes this week, so I'll find out then. (Kind of rude to ask).

That's good to hear. Hopefully those not willing to bid 100k over asking will have a better chance to get a home at list price now that things aren't getting 30 offers after being on the mls for an hour.

Originally Posted by dicipher

Heck,

I wouldn't even get to caught up in what something sells over list price. I know in the SF market, realtors would notoriously list prices lower than what they would expect them to sell for just to get a bidding war started (basically drive up the price in a hot market by getting a feeding frenzy started). When open houses look like Grand Central Station, there's a tendency for people to bid higher. Houses going for $100k-$150k over list was the norm. I wouldn't be too surprised if that was starting to happen in this market.

That's exactly what is happening. Realtors have learned from other pre-covid hot markets how to get that feeding frenzy.

[cheeva]

Originally Posted by ashbeeigh

That's good to hear. Hopefully those not willing to bid 100k over asking will have a better chance to get a home at list price now that things aren't getting 30 offers after being on the mls for an hour.





That's exactly what is happening. Realtors have learned from other pre-covid hot markets how to get that feeding frenzy.

From a CNN news story on the Austin market

Here's what it's like to house hunt in one of the craziest markets in the country

https://www.cnn.com/videos/business/...g.cnn-business

[ashbeeigh]

Originally Posted by cheeva

From a CNN news story on the Austin market

Here's what it's like to house hunt in one of the craziest markets in the country

https://www.cnn.com/videos/business/...g.cnn-business

Thanks?

[cheeva]

Originally Posted by ashbeeigh

Thanks?

You're welcome?

[Jimmyp25]

I looked at a duplex in Temple back in July last year.. It went 40k over asking.. all cash .. Its crazy out there as well.

[austin-steve]

Mortgage applications are at a lowpoint, which is a leading indicator of buyer demand. Prices will level out at the new values and return to "normal" annual appreciation from the new stepped up basis. There will be no widespread falling of prices, there there may be anecdotal, individual instances of that. I say this because some of the "winning" offers were $50K+ over the next highest. But even then, with a 5 year hold period, the over-exuberant buyer will still pan out.

As others have said upthread, this is apples/oranges to 2008. Not the same thing at all.

[Igor Blevin]

"It is different this time", said everyone in 2006.

[CarnivalGal]

Originally Posted by Igor Blevin

"It is different this time", said everyone in 2006.

What we're seeing now is nothing like what happened in 2006. That bubble was caused by banks lending money to people who had no business getting a mortgage or a mortgage in the amounts they were giving them. And then, low and behold, people could pay them. That's not happening right now.