As the pandemic has stretched on, demand for single-family housing has returned, and with a vengeance. The results of this have affected Austin’s market in several ways:
1. We are firmly in a seller’s market. Most homes have multiple buyers interested and are selling for over the asking price due to multiple offer scenarios.
2. The US is experiencing a national lumber price increase. As inventory shortages (seller’s not putting their homes on market) around the nation persist, demand for new construction is soaring. The lumber mills were not prepared for the high demand for housing paired with the low inventory, so pricing for lumber has increased exponentially (~ 60% over the last 6 months). For reference, framing lumber accounts for roughly 1/5 of the materials cost when building a new home.
What this means for you:
A) If you’re currently on the fence about buying a new home, act now. Many new home builders are planning base price hikes in the coming weeks in order to compensate for their newly added lumber costs. Locking in a purchase price for a new home before then can help you get some “instant equity” once the home is built 6-10 months down the line. I sell in many fantastic new construction communities all over Austin, so please feel free to contact me if you’re interested in learning more.
B) If you’re currently a homeowner who has been thinking about selling and relocating, now is a good time to sell as there are far more buyers than sellers in the Austin market.
C) However, if you have no plans to leave the Austin area and currently own property, I recommend holding onto it. While it’s true that properties are selling quickly and often well over the asking price, Austin is still growing and opportunity is still ripe to gain solid equity year over year on your existing home.
As always, please reach out any time with questions!
August 29, 2020