Any election year brings uncertainty, and 2016 exhibited that with homesellers and buyers waiting until after Nov 9, to make the largest purchasing decision of their family.
Single-family home sales rose 15.8% in November, the biggest year-over-year jump in 3 years. Several chief economists say the post-election rise in interest rates helped folks jump off the fence and capture those 4% and below rates. Same rates now are 4.38% and higher, expected to go to 5% by end of 2017. This affects the purchasing power of every buyer, and the affordability for buyers affects what sellers get for the homes they sell.
Another factor in Austin is the creation of 32,100 jobs in 2016, compared to 39,200 jobs in 2015, and expectations for 28,200 jobs in 2017 being created. These are still very strong job growth numbers. Austin is in a robust economy for sure.
Austin is certainly going to see home sales numbers that look like 2016 will finish as another record breaking year in home sales.
Advice to those thinking of buying or selling. Buyers, maximize your purchasing power now. Higher rates will mean higher mortgage payments (over 30 year life of a mortgage, huge). Sellers, get the house ready for the market. This January will see a rush of buyers trying to lock in those low rates and buy sooner rather than waiting for the traditional spring/summer market.
Call me 512-917-1542 and let me hear your wish list and we'll come up with a good plan of action for you.