“There’s a sucker born every minute” is a phrase closely associated with P. T. Barnum, a mid-19th century American showman. Although there isn’t any evidence that P.T actually said it, the phrase is still used today. In this era of marginalized media the phrase is more relevant than ever.
People are consumed by information and most of the information is slanted toward doom and panic. The sky could fall at any minute folks! A few people are ignoring the constant deluge of dull talking heads and are making some great buys. Buyers are in charge right now and they are driving a hard bargain.
Prices are declining all across the Austin area. Yes interest rates are up. That is the cause of the downward pressure on pricing. If interest rates were still at 3% we’d still be in a frenzy of home sales and inflated prices. Does anyone believe that the Austin area is going to suddenly become a terrible place to live and home prices will plummet? Of course not.
You make money when you buy a home, not when you sell it. If you buy when the market is down you will reap the rewards when the market increases again. Prices will eventually go back to the levels reached during the covid real estate boom. The question is when, but everyone knows prices will rise again.
If you are buying a stock you look at the fundamentals of the company. You do the same when purchasing real estate. The fundamentals of Austin are that tech companies are moving here in record numbers, industry has identified Texas as a great state to be based, and the Austin area is one of the most desirable cities in the country because of the unique mix of urban and suburban activities. None of that is going to change.
Don’t listen to the babbling talking heads on social media saying that we are all doomed. The present inflation bubble, caused by too much government spending, had to be tamed. Raising interest rates is the only tool the government has to fix the problem they created. Eventually inflation will ease, rates will come down and homes will rise in price again.
“Buy Low and Sell High” is a Wall Street proverb. It works for all the rich hedge fund managers and it can work for you.
Steve Mallett is the Host of the Mallett and Michelle on Dripping Springs Podcast and the owner of the Mallett Integrity Team Real Estate company. He’s been an award winning Broker since 2004. Call him anytime at 512-829-2062 for great real estate advice and counsel.