SOUTH CENTRAL

“With the yield curve inverting on July 9th, I know we are all waiting on the impending recession: however, we need to remember that real estate is hyper-local, and not all markets will suffer.

Austin is likely to be the last to enter and first to exit the recession and will likely experience a shallow recession, given other factors like high growth and low unemployment. Moreover, our housing inventory is still very low (around three months which is still a sellers’ market by definition).

Furthermore, a slowdown in new construction and fewer re-sales due to homeowners being locked at very low rates and low taxes (Austin saw a huge increase in our real estate tax valuations last year) will put further pressure on our inventory.

Buyers will realize that home values are not likely to depreciate and will re-enter the market regardless of interest rates. Many lenders offer free refinance options, and buyers’ negotiating ability offsets the current rates. Our market will become very competitive again quickly. When interest rates soften, we may even see a repeat of the highly competitive market (less than 30 days inventory) that we saw in the first half of both 2021 and 2022.

In short, there hasn’t been a buying opportunity like this in Austin for a long time, and it will not last long.”

– Laurel Pratt, Compass, Austin, TX

“We saw some leveling off in neighborhoods adjacent to the Park Cities. The demand, however, is still outpacing supply, especially for turnkey homes in sought-after neighborhoods. Speculative builders have stopped gobbling up lots as quickly as they were in the past; however, there aren’t many custom-building sites remaining, especially in the close-in established neighborhoods. So, the high-end new construction starts have slowed, yet the migration has not slowed people coming here. Therefore, I anticipate low supply keeping prices at least stable in Dallas for the luxury neighborhoods. And we are still seeing some competitive situations if two parties want the same property or home. Goldman Sachs just started construction on a building downtown to house the 5,000 employees calling Dallas home in the near future. Announcements like this one are what is driving demand up for Dallas. The long-term viability of Dallas real estate is excellent. I am encouraging buyers to get educated on the market sooner than later and not to be afraid to pounce on an opportunity when one comes along. I do not forecast vast new inventory this spring, so being in the market now is wise.”

South

“Fortunately, Charlotte, North Carolina, is an area of the country continuing to experience exponential growth in residential and commercial real estate. I remain optimistic about 2023 despite the rising mortgage rates. With continued historically low inventory and high demand, I feel we will have a strong year ahead for real estate in the Carolinas.”

“I think the Atlanta market will remain active in all price points in 2023. Atlanta has been ranked the #1 market to watch in 2023 by the National Association of Realtors based on many metrics including housing affordability, employment and population growth, when compared to the national average. Because of these key metrics, many major tech companies are opening offices in the Atlanta area which will continue to bring a large influx of relocation buyers. I am expecting another solid year of sales like 2022.”