If you pay any attention to the Real Estate market in the Southwest Austin and Dripping Springs area you will notice some interesting things.
First, homes are taking longer to sell than they have this entire year. New home builders are discounting homes and offering incentives to agents to bring buyers. Butler Ranch, Harrison Hills and Caliterra have all been offering incentives and discounts from most of the builders represented there. That is notable because many of these subdivisions are new and only barely started. Are the builders worried about competition from the other subdivisions or a potential lack of buyers? Only time will tell but it may be a good time for a buyer to get a price break on a new home. For resale homes the longer selling times means getting the price right. If you have padded your listing price right now then all you are doing is helping the guy down the street sell his home. Sharpen your pencil and get he price right!
Secondly, resale homes are seeing significant price reductions across the board. I am seeing initial reductions of as much as 10% in the first couple of weeks. These sellers get it and know price is key. All the staging and professional pictures wont make a difference if the price is too high. Smart sellers will review the numbers with their agent on a regular basis and adjust as needed.
Thirdly, homes with issues are not selling unless bargain priced. If the house has a carpet allowance, needs paint, or repairs sellers are being low-balled. Right now buyers are king and they expect pristine houses for the money. This is not applicable to certain areas in Austin like Circle C, Shady Hollow, Tarrytown, Western Oaks and Legend Oaks. The high demand for those areas allows sellers to get more money.
Fourth, and most important, the market is a shifting market from a solid sellers market to a buyers market again. The one concrete fact of Real Estate sales is that the market is constantly in flux. What is working today may not work tomorrow. When you are looking to buy or sell you need to pay attention to the market conditions and react accordingly. If you base your buys and sells on static market conditions you will not get the returns you want. Remember the golden rule “You make money when you buy real estate, not when you sell it.”
Broker-Mallett Integrity Team and Keller Williams Realty- Selling Real Estate in Austin since 2003