What’s Up with Real Estate? National news and local views for the week ending Friday, November 3, 2023

Very happy to deliver some good news to would-be buyers: mortgage rates just had a nice move downward! If you’ve put off buying (affordability) or selling (feeling locked-in by low mortgage rates), let’s have a discussion to make sure you’re ready to move when the time is right.

National news and local views for the week ending Friday, November 3, 2023

National Real Estate News

Home prices keep rising

The Case-Shiller indexes are some of the best measures of home price appreciation out there. In August, the national index rose 0.9% month-over-month (that’s a lot in one month!), and is now up 4% year-to-date. 10 of the 20 big city indexes set new records in August, and ALL of the city indexes are up year-to-date. Many of the hardest-hit markets in 2022 (Seattle, Las Vegas) are rebounding quickly.

Fed keeps rates steady

Despite the very strong 3rd quarter GDP number and the resilient job market, the Fed chose to keep interest rates on hold for the second-straight meeting. This, in and of itself, is ‘dovish’ (suggests that rate hikes are already or nearly finished.) But of course, Fed Chairman Jerome Powell refused to officially end the tightening cycle, instead warning that more rate hikes could still be possible.

Big drop in mortgage rates

Was it the Fed’s double skip? The weaker than expected job growth from ADP? Whatever the reason, let’s just celebrate that treasury yields and mortgage rates had a big move lower recently. Are we truly excited about an average 30-year mortgage rate of 7.5%? Perhaps not. But it’s a lot better than the +8% we had over the last few weeks. And it feels like the market has turned an important corner.

Local Market Trends

As of Friday, November 3, 2023

Area	Median Price	Active Listings	New Listings – 5 days	Median Days on Market
Austin, TX	$650,000 0.1%	3808 0.2%	252	61 0.1%
78628	$564,990 0%	646 1%	28	94 0.4%
Pflugerville, TX	$439,999 0%	330 0.2%	24	55 0.1%
Round Rock, TX	$452,470 0%	524 0.2%	31	65 0.1%

Local Market Trends (/) from Oct. to Nov. 2023.