Here’s what you need to know to navigate our current market.
What’s happening in our real estate market? Everyone knows things have been pretty crazy lately, but what does that mean for you? Today we want to take a look at our local market and let you know how you can best navigate it.
The defining feature of our market is our low inventory. Because of it, we’re in a very strong seller’s market, and we have been for some time. You pretty much have to go back to the last crash to find a time with plenty of inventory. After 2008, builders stopped building as many homes to hedge against another downturn, and we’re still feeling the effects today. The pandemic has only exacerbated the issue since people from the cities have been flooding into the Texas Hill Country.
“Buying a home in the Texas Hill Country is a very stable investment.”
To put things into perspective, we currently have just one month of inventory available. This means that if no new homes entered the market, our total supply would run out in 30 days. The Texas Hill Country generally has between eight and 12 months of inventory, but things have changed since 2020.
Because our seller’s market is so strong, many buyers want to know if they’re overpaying. Let us put it this way: Our area never has big dips in home values. Houses appreciate slowly but surely, and when a downturn hits the rest of the market, values level out instead of crashing. This makes buying a home in the Texas Hill Country a very stable investment. On top of that, we’ve been outpacing our normal rate of appreciation for the last two years, and there’s nothing on the horizon that makes us think that will change anytime soon.
The bottom line is that now is a great time to buy. As homes continue to appreciate, the sooner you buy, the better. For example, houses increased between 10% and 12% in 2021, and we anticipate this year to be the same. We know it’s frustrating to buy right now, so make sure you hire an experienced real estate team to go to bat for you.
If you are looking to buy or sell or have any real estate-related questions, please call or email us. We’d love to help!