Recently, the Austin-American Statesman ran a story about a speech from Gary Keller, the co-founder of Keller Williams. Keller warned his agents across the country to prepare for a coming downturn in the national housing market. You can review the story here.
I and several other local housing experts were asked to comment for the story. I’ve written a few more things to help you interpret this information in the context of our local market.
- The Austin market is still robust, but correct pricing (within 95% to 100% of median value) is the key to selling property within the first 30 to 45 days. The exception presently is luxury ($1.5+ million), because of inventory surplus (making a buyers’ market)
- Luxury slowdown has been a precursor to overall market slowdowns the last downturns, 1977, 1988, 1999, 2005.
- Gary Keller is commenting on national and international statistics. Because he is headquartered in Austin we tend to take his comments on a local and regional scale. He is looking at a bigger picture than that. I would compare it to Bill Gates making a comment and the effect it would have on the tech world, whether they were associated with Microsoft or not.
- The ratio of median Austin home cost to median Austin household income is ell within acceptable housing finance parameters Austin household median income $63,603./Austin median priced home $263,900.