This Halloween season those of us in real estate industry are looking into our crystal balls and making predictions about what 2023 will bring…Where will Austin’s historically competitive housing market go next?

Fannie Mae recently released an Economic Growth Forecast. Topping the list of concerns for the US economy is inflation, monetary policy tightening and a slowing housing market. The Economic Research Group (ESR) predicts:
🏠 Single-family housing sales volume will decrease nationally by about 18%.
🏢Multifamily construction will remain strong.
💰 National home price growth in Q4 of 2022 predicted to be 9.0 percent, down from last month’s prediction of 16.0 percent.
💸 Prices decline 1.5 percent in 2023, down from the previous prediction of home price growth of 4.4 percent in 2023.

What does this mean for Austin? While these macro-economic issues will certainly be felt in Austin, I don’t think they will be as severe or last as long as in other markets. We should be prepared for the following:
🏠 More inventory available in all Austin areas and price points.
💰 Builder incentives in the outlying markets.
💸 Price corrections based on individual property merits. Prices will correct to the condition and location of the property.
🔑 Picky buyers. With more homes to choose from, buyers want homes in excellent condition and they need more cooperation from sellers – incentives and flexible terms like contingencies and rate buy-downs.

What does this mean for YOU? Residential real estate is hyper-local. If you want to discuss the ever changing market and how it could impact your home value, give me a call. 📞 512-809-5495