Friday housing update for you!

Friday housing update for you!

Median listing price in the Austin-Round Rock metro is at $625,000 for April 2022—that’s a gain of 27.6% compared to one year ago.

However, there is some good news. We’re also seeing more sellers (around 6.8% of the total) reducing their asking prices. One possible reason for this increase in sellers reducing asking price is because the Austin area is actually seeing more housing inventory—active listings increased by 16.5% compared to one year ago.

You can check out this data here on Realtor.com.

For today, Friday, May 13, 2022, the average rate for a 30-year fixed mortgage is 5.375%,?up 15 basis points since the same time last week.

So what does this all mean, in real money? I’ve run the numbers for you using our mortgage payment calculator:

If you purchased a median-priced home at $625k, your pre-tax monthly income would need to be $13,000 or around $156k per year. (This figure is calculated by assuming you spend no more than 28% of your income on housing).

Let’s look at local salary data. According to DATA USA: the median household income for Austin- Round Rock, TX is $80,954 year. Yes, you are seeing a substantial gap between median household income and the income necessary to comfortably afford a median-priced home.

If these numbers are overwhelming, take a breath! As the housing inventory in Austin continues to increase,?prices of homes will continue to go down.

The best time to prepare to buy a home is now. As housing prices go down, you’ll want to be ready and prequalified so you can be ahead of the market. As a loan officer, I want to prepare you for the homebuying process. If you're ready to start your journey, please connect with me. I’d love to help!?