So our inventory is up, more homes are on the market, and it takes longer to sell your home in Austin than it did a few years ago.  But Prices are not only holding steady, but are continuing to rise a strong and steady growth rate.

When you compare our home sales volume to the past two years, things look like they may be as bleak as we keep hearing about.  But don’t forget, 2006 was the strongest year EVER in Austin real estate, so many will argue that we are leveling out after a mini-boom.  This is why prices are staying strong, but the market is moving more slowly.

Compare 2008 to other years this decade.  With Austin’s steady growth, we do expect each year to increase over the next.  2005 began our mini-boom that peaked in 2006 and trailed off in 2007.  It is dissapointing to see 2008 dip below the number of homes sold at this time in 2004, and this is where the months of inventory ties into the overall picture of our current market.  The number of homes sold is related to the amount of homes currently available, and is displayed by the Months of Inventory currently available.  This shows the speed of the movement of homes in our market.  Although the volume is holding, this low level demonstrates a buyer’s market.

So don’t avoid buying real estate in Austin just because of fears of the market.  Our prices hold steady even in the worst of times.  If you are buying now, you have the luxury of taking extra time selecting and negotiating the deal.  If you are selling, be prepared to have your home on the market longer than expected.  Selling your home is a lot of work in this market, which is why the role of the good Realtor® is becoming appreciated once more.  It will help to have someone available to market your home full-time and meet for showings when you have other things to do because you are likely to be in for the long haul.

Related Posts:

• Aug08 Market Update: Austin Home Sales Pricing
• Aug08 Market Update: Months of Inventory
• How Bad is Austin’s Real Estate Market, Really?
• Optimism in Commercial Real Estate
• Austin’s market is picking up

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