In May, the Austin-Round Rock-Georgetown MSA reached the highest level of inventory the area has seen in 13 years at 4.9 months.
With a 37.7% YoY increase in active listings, homebuyers can be much more selective in finding a home that fits their price range.
In May, the Austin-Round Rock-Georgetown MSA saw a 12.8% decline in closed listings with 4.9 months of available inventory, a level that hasn’t been seen in 13 years according to the latest Central Texas Housing Report released by Unlock MLS. Meanwhile, active listings ticked up 37.7% year-over-year. Because of this increase in available options, buyers have the power to be more selective when purchasing a home.
Clare Losey, Ph.D., housing economist for Unlock MLS and the Austin Board of REALTORS®, provided insight into what this data means for buyers and sellers.
“This data demonstrates that buyers can continue to be more selective when searching for a home in their price range. Although it may appear to be a buyer’s market from the outside, it’s important to understand the context behind these statistics, including higher interest rates resulting in a reduction in purchasing power. This market does not offer a clear advantage to either buyers or sellers.”
Kent Redding, 2024 Unlock MLS and ABoR president, elaborated on the importance of working with a REALTOR® to ensure the best possible guidance in navigating this complicated housing market.
“Since the market is no longer as straightforward as it once was, it’s imperative to work with a REALTOR® to navigate current conditions. Working with a professional who understands the nuances of the market can help sellers list their homes at prices that are in line with the market while helping buyers understand how to find the best possible housing options in their price range.”
This is why when selling your home, it needs to be presented very well, professional photography, preferably staged and more important priced well from the very beginning! This is not the time to test the market.
Take a look at the Market Snapshots for May:
Many factors are at play when buying a home, no matter where you live. Potential homeowners need to determine their budget for a down payment, research the best type of mortgage for their needs, and make sure the home will suit all of their lifestyle needs in the long term.
Though these considerations are true for home buyers across the U.S., some factors are specific to the state where you’re shopping for real estate. Property taxes, for instance. In Texas, there are a few tax-related real estate acronyms that new residents should fully understand before making their purchase. What does a home listing mean when it says it’s part of a PUD? Why do some listings advertise “No MUD or PID”? If you know before you go, you’ll be able to browse listings with confidence.
The acronym “MUD” stands for the municipal utility district, a facet of Texas infrastructure that focuses on building and maintaining roads and providing utility services such as stormwater drainage, sewer access, and clean water in areas where the nearest city might be unable to.
MUDs are usually responsible for providing utilities for newer residential developments built outside their nearest city’s public utility services. This often includes the growing trend of master-planned communities.
Essentially, your MUD property tax serves as a contribution to this infrastructure organization and helps provide much-needed water, sewer, and other utility services to your neighborhood.
You’re only responsible for MUD taxes if you live in an area that uses their services, and your MUD tax decreases each year as the upfront cost of the services slowly gets paid off. Additionally, the more homeowners that are paying into a MUD, the less any individual homeowner has to pay.
Not all residents want to live in a city center, and MUD makes it possible to make your home outside busy urban areas while still receiving all of the utilities you need.
While the PID tax is relatively similar to the MUD tax, it has some distinct differences. PID stands for property improvement district, which is a specialized city or county district that focuses on improving and building new infrastructure in an area’s neighborhoods.
The PID tax provides benefits such as better city parks and green spaces, improved neighborhood landscapes, more fountains and lakes, additional shade structures, and other features that appeal to those who live in the area as well as pedestrians and visitors.
This differs from the MUD tax, which focuses on providing water, sewer services, stormwater drainage, and other similar utilities to neighborhoods that are just outside of public city services.
PID taxes are only paid by the residents who reap the benefits of them, which is an even greater incentive for locals in a given area to use the parks and green spaces in their neighborhood.
Additionally, residents have the choice of paying their PID taxes in full in a single lump sum or spreading them out over several years. Most Texas neighborhoods that levy PID taxes pay them over a 20- to 40-year span, making them a relatively affordable expense on a yearly basis.
The acronym “PUD” stands for a planned unit development, which is a specially designed community of homes in which every homeowner belongs to a homeowner’s association or HOA.
Depending on the location and what types of features are prioritized in the building of a PUD, they can be made up of any type of home, including single-family homes, but are often associated with condos and townhomes.
Because these are planned developments, residential areas in a PUD are usually interspersed with commercial areas, giving residents easy access to amenities like grocery stores, schools, restaurants, and workplaces. Mandatory HOA membership often helps stabilize home values, and the HOA maintains common areas and community amenities like parks, pools, and playgrounds.
However, with these amenities, as well as the efforts of the HOA, PUD residents are responsible for more taxes and fees than the average Texas homeowner. Additionally, HOAs will set out CC&Rs—covenants, conditions, and restrictions—that PUD homeowners are obligated to abide by.
An important thing to note: all PUDs have HOAs, but not all HOAs are PUDs. The difference between a PUD and an HOA can be a fine one, but as a general rule of thumb, a PUD gives homeowners ownership of both the structure and the lot itself.
TIF stands for tax increment financing, a funding method used by cities and counties to invest in neighborhood improvements. In order for TIF to take place, a city or county must establish a tax increment reinvestment zone, or TIRZ, which includes properties from which tax revenue will be captured.
TIF isn’t a tax itself but a method of funding community improvements through taxes. Not current taxes, though—future taxes.
Basically, TIF funding allows a city or county to issue a bond for development projects backed by the expected increase in property tax revenue that the development will generate. By improving the community, local property values will increase, and that increased property value results in increased property tax revenue. With TIF, cities and counties can spend now, pay later.
Each taxing entity within the TIRZ may choose how much of the increased property tax revenue above the original revenue—the “tax increment”—goes toward repaying the TIF bond. Homeowners simply pay their property taxes as usual.
With a TIRZ established, current residents and new homebuyers can be made fully aware of whether a portion of their yearly property taxes are being allocated toward a TIF and what improvements they can expect thanks to that TIF. Some places will even have a list of active TIRZs, such as this list of TIF Districts in Tarrant County.
The prospect of buying a home is overwhelming enough without all of the other property taxes that can come across during the process. However, once you’re familiar with the terms you may come across in real estate listings, it becomes much less daunting to choose your next home in Texas.
When you are purchasing a home, you want a seasonal professional to guide you through the process. I work with buyers providing advocacy, support, and expertise. As your Accredited Buyer’s Agent – ABR®, I will guide you through one of life’s most significant and impactful transactions—providing invaluable advocacy, support, and expertise.
My commitment is to find my represented buyers what they are looking for, in the time frame they want and for the best price. It’s a process I take seriously. My buyers who are committed to my services are on my priority and I work tirelessly every day for them. Many other professional agents work the same way. What can you expect from me?
Here are some reasons a buyer’s agent is essential when navigating your home search and purchase:
As your buyer’s agent, I’m here to protect your interests, provide you with local market insights and advice, negotiate the best price, and navigate the complexities that come with real estate transactions.
If you are not represented and go check out homes on your own without a buyer agent, remember that the listing broker has a fiduciary duty to the seller. Listing agents work in the best interest of the seller, looking for viable offers to consider and marketing the property at a reasonable price.
Buyers agents work in the best interest of the buyer, looking for the best properties and negotiating to ensure the best price.
Reach out and let’s set up a time to see if we are a good fit, I’d welcome the opportunity to work with you!
While the headlines about changing real estate commission structures might sound exciting and like a potential game-changer for you as a home seller or buyer, they are misleading, because nobody knows exactly how things are going to play out. While it’s true that commissions may shift, the details remain uncertain.
If the proposed settlement is accepted by the courts, sellers won’t be able to advertise agent commissions, however they will still be allowed to offer them, just not within their listing. In many cases this will still benefit the seller to do so in order to get the most exposure for their house, and sell it for the most money possible.
Buyers will be given the option to not work with a buyers agent, however that could come with some unexpected downsides and difficulties, and may not produce the savings they anticipate. Fortunately, you will still be able to hire your own representation, and have an agent looking out for your interests and helping you through the process.
Beyond the Headlines: Understanding How the Proposed Changes in Real Estate Commissions Will Actually Impact You As A Buyer or Seller.
You’ve probably heard the news that there are changes coming in terms of how real estate commissions are paid.
This might sound exciting and like a potential game-changer for you as a home seller or buyer, with headlines proclaiming things like:
But you’re also probably not sure exactly what it all means, how it will work, or how you’ll benefit from the changes.
Unfortunately, even if you ask the most informed agents on the planet, you probably aren’t going to get many answers. It isn’t because agents don’t want to answer your questions; it’s because they don’t even know exactly how the changes are going to work.
The settlement happened seemingly overnight. There was no advance warning or discussion with agents. They found out by reading a bunch of headlines you probably saw at the same time they did.
On top of that, most of the headlines are misleading, because nobody knows exactly how things are going to play out. Any claims that the media makes that commissions will be cut in half, or any specific number of dollars will be saved by consumers, remains to be seen. The changes might reduce commissions. On the other hand, they could increase them. As with many things the government or court system touches, there’s always the possibility that it could create more issues than it solves.
But, for the time being, as much as you might want or expect your local agent to be able to give you specifics, please understand that they can’t. For starters, it’s a proposed settlement, not yet accepted by the courts, and if it’s approved, the changes won’t start until July.
Unless you’re in the business, you probably have no desire to read through all of the court documents or proposed settlement. You just want to know what changes will possibly impact you. So here’s an excerpt from a National Association of REALTORS® press release, highlighting the changes that will most likely affect you:
“In addition to the financial payment, NAR has agreed to put in place a new MLS rule prohibiting offers of broker compensation on the MLS. This would mean that offers of broker compensation could not be communicated via the MLS, but they could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. Offers of compensation help make professional representation more accessible, decrease costs for home buyers to secure these services, increase fair housing opportunities, and increase the potential buyer pool for sellers. They are also consistent with the real estate laws in the many states that expressly authorize them.
Further, NAR has agreed to enact a new rule that would require MLS participants working with buyers to enter into written agreements with their buyers. NAR continues, as it has done for years, to encourage its members to use buyer brokerage agreements that help consumers understand exactly what services and value will be provided, and for how much. These changes will go into effect in mid-July 2024.”
Again, unless you’re in the business, that may not even be all that clear of an explanation. So to put it in simpler terms:
Basically, it allows sellers to choose to not offer or agree to pay a commission to buyers’ agents when they list their house for sale, and allows buyers to choose to not work with a buyers’ agent when they buy, in hopes of saving money. But before you do that, there are some things you should keep in mind.
While it’s impossible to predict exactly how everything will play out, those are a few things to keep in mind whether you’re buying or selling.
The best thing to do if you’re curious or concerned about the coming changes is to reach out to your local agent and ask them for their perspective, insights, advice, and to keep you in the loop as the changes get finalized.
Are you thinking about making a move? If so, now may be the perfect time to start the process. That’s because experts say the best week to list your house is just around the corner.
A recent Realtor.com study looked at housing market trends over the past several years (with the exception of 2020, since it was an unusual year), and found the best week to put your house on the market this year is April 14-20:
“Every year, one week stands out from the rest as that perfect stretch of time when it’s great to be a home seller. This year, the week of April 14–20 is the best time to sell—that is, if sellers want to see lots of interest in their homes, sell quickly, and pocket some extra cash, according to Realtor.com® data.”
Here’s why this matters for you. While the spring market is a great time to sell no matter the week, this may be the peak sweet spot. And if you’ve been putting your plans on the back burner and waiting for the right time to act, this could be the nudge you need to make your move happen. As Hannah Jones, Senior Economic Research Analyst at Realtor.com explains:
“The third week of April brings the best combination of housing market factors for sellers. The best week offers higher buyer demand, lower competition [from other sellers], and fewer price reductions than the typical week of the year.”
But, if you want to get in on the action, you’ll need to move quickly and lean on the pros. Your local real estate agent is the perfect go-to when it comes to figuring out a plan to prep your house and get it on the market.
They’ll be able to offer advice to balance your target listing date with what you need to do from a repair and renovation standpoint. And they can walk you through exactly how to prioritize your list so you know what to tackle first.
For example, if your house is already in good shape, you’ll be able to really focus in on the smaller things that are easy to do and make a big impact. As an article from Investopedia says:
“You won’t have time for any major renovations, so focus on quick repairs to address things that could deter potential buyers.”
Here are some specific examples from that article:
Just remember, even if you’re not ready to list within the next couple of weeks, that’s okay. The window of opportunity doesn’t close when this week ends. Spring is the peak homebuying season and it’s still a seller’s market, so you’ll be in the driver’s seat all season long.
Ready to get the ball rolling? Let’s Connect and schedule a time to go over your next steps.
Neither IFPR nor Freeboard change or affect how the mandatory purchase requirement for flood insurance works. Mandatory requirements for flood insurance will still be dictated using FEMA Flood Insurance Rate Maps (FIRMs) and assessing whether the exact location of a habitable structure secured with a federally-backed loan comes into contact with one of the high-risk flood zones known as Special Flood Hazard Areas (SFHAs).
Flood insurance rates, on the other hand, could be positively affected by these variables. For example, the higher a structure is built, the lower the risk of flooding.
To confirm the flood insurance requirements of any property nationwide, simply order a MyFloodStatus flood zone determination report.
© 2022 Coldwell Banker Residential LLC
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