Thoughts on the Market?

Question

Hey investors and real estate agents! I would love to find out what you think on the market trends right now, and what your thoughts are for what might happen in the coming months. Let's discuss!

Brad Jacobson · Answer

I can provide insight into the Utah market - Utah saw wild appreciation over the past three years.  The median house price doubled or more.

However, Utah is seeing a rather significant correction.  The majority of listings have received a price drop and some of the buyer's I'm working with are getting homes for much lower than they could have a few months ago.  Recently I had a pair of buyers win houses $80,000 and $110,000 under the original list price.

I would expect that if rates continue to rise past 6% that prices will continue to correct.  However, there's still plenty of demand so I don't see anything more significant happening than the price corrections we've seen over the past six months.

Personally, with rates around 5.5% and prices dropping 10-20%, I think it's a great time to buy.  Better than any other time we've had in the past 12 months probably.

Good luck!

Robert Finn · Answer

San Antonio, we are still seeing multiple offer situations. Our price points didn't really soar to extreme heights like other Texas markets, so it's not surprising we are still seeing strong demand. Long term rents have increased (12%+) and the travel demand is still there (military, corporate travel, theme parks, historic district, etc). Small multifamily is even more competitive!

Conner Olsen · Answer

Account Closed Many sellers in Austin still want high prices for their homes so they are sitting longer. Our buyers are coming in and getting a lot of closing costs covered so they can buy down their interest rates or rehab the property. We have listed properties at the right price and sold them in a weekend so it all depends on the property.

Michael Dumler · Answer

Account Closed, buyers and sellers are not on the same page at all and it's frustrating, to say the least, haha. Most sellers still think the market is where it was 5-6 months ago which is clearly not the case (location dependent). Interest rates have nearly doubled since this time last year and this is enough to scare first-time home buyers out of the market. I swear most individuals do not understand the tradeoffs when it comes to real estate. We are starting to see homes sit on the market longer due to lower demand and a lack of offers. I will say, however, that I view today's market still more so favoring sellers simply because inventory is still so damn low. With all that being said, if inventory increases we will definitely start to see an expected shift in price reductions. Basic supply and demand. Love to hear others' thoughts.

Lynn Wise · Answer

I agree with Michael that buyers and sellers are not on the same page! I'm in Austin, and I'm seeing many sellers priced 10-15% above where they should be and unwilling to negotiate much, so houses are just sitting. I'm thinking part of it might be because some sellers bought before selling. They were counting on their home selling for a certain price and aren't willing to accept where the market is now. I'm just curious where the market goes in the Spring ...

Theresa Harris · Answer

It really depends on where you are.  Each market is different. I know places where things are still slow and prices only went up a bit over the last year, another place prices continue to go up to insane prices though sales are slowing a bit.

Account Closed · Answer

Love it! Thank you for your impute!

Corey Martin · Answer

For the Nashville market, predictions are that we will now see healthy growth instead of exponential growth. From June 2021 to June 2022, we saw upwards of 23% appreciation. The prediction for June 2023 will be 8%. Its not a crash but more of a return to normal healthy growth.

With that, we will see home prices begin to level out in an acceptable way for investors while rents continue to increase. Which means cap rates will rise. Which is good for all of us here to make better money in the market. For the buy and holds, this means you can expect better rents to match the sort of caps you may see in other markets but still have the option to sell and upgrade. It'll be exciting for the right investor!

Account Closed · Answer

Thank you guys!! It is really great getting to look into another states market.

Account Closed · Answer

Great point! I definitely think that prices will start to even out and become more reasonable.

Thoughts on the Market?

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