Another inventory record has been hit this month as we continue to see lower buyer demand in the market. Following the trend of the last several months, buyer demand has been tempered by persistently high interest rates. Additionally, as the early fall months often coincide with back-to-school season, real estate activity tends to slow down during this time. However, there’s reason to be optimistic about an uptick in October and some moderate improvement in the September stats as well.

Inventory and Buyer’s Market Conditions

Currently, we are solidly in a buyer’s market. As we inch closer to 5 months of inventory based on current demand, sellers need to be strategic in pricing their homes and responding to the market. One of the most important things for sellers to keep in mind is that it can take 90+ days just to get a home under contract in this environment. Proper pricing, presentation, and flexibility are crucial in maintaining competitiveness.

Interest Rates and Buyer Opportunity

On a positive note, interest rates have pulled back significantly in recent weeks, and small reductions are expected as we approach the end of the year. This could create renewed interest from potential buyers, particularly those who were previously hesitant due to rising rates.

Let’s dive into some of the latest insights from the National Association of REALTORS (NAR) and what leading economists are predicting for the months ahead.

Instant Reaction: Mortgage Rates – September 12, 2024

By: Jessica Lautz The average 30-year fixed mortgage rate from Freddie Mac fell to 6.20% this week, down from 6.35% the week prior. At 6.20%, a monthly mortgage payment on a $400,000 home with 20% down would be $1,960. For buyers with 10% down, the monthly payment would be around $2,205.

Positive Takeaways:

• Interest rates are down 1.59% from their peak in October 2023, offering a significant saving for buyers.
• A $400,000 mortgage today would save you $341 monthly, or $4,092 annually compared to last October’s rates.
• Inflation is at its lowest level since February 2021, and the Federal Reserve is expected to cut the Fed Funds rate imminently.

Challenges:

• Despite the expected rate cuts, mortgage rates may not decrease further, as these cuts have already been accounted for in the current market.
• While mortgage applications have increased, nearly 47% of these applications are refinancings, not new home purchases, signaling continued caution from potential buyers.

Instant Reaction: Jobs Report – September 6, 2024

By: Lawrence Yun The net monthly job additions averaged 116,000 over the past three months through August, which is a relatively light figure. This could suggest the potential for job losses if the economy faces an unexpected downturn. However, the good news is that the Federal Reserve is expected to cut interest rates as early as mid-September, with more rate cuts anticipated in 2025.

The average mortgage rate is already reflecting these anticipated cuts, currently sitting at 6.3%, down from the 7-8% levels we’ve seen over the past 18 months. FHA and VA loans are seeing rates even lower, under 6%.

What This Means for the Housing Market:

Historically, a weakening job market does not necessarily mean a drop in home prices or sales—especially if it’s accompanied by falling interest rates. With over 90% of the workforce still employed and many considering their jobs secure, falling mortgage rates could exert more influence on the housing market than employment numbers. This could be the case once again if rates continue to drop, spurring homebuyer activity.

Conclusion

In summary, while we are still navigating a buyer’s market, there are promising signs on the horizon. Interest rates are gradually easing, providing an opportunity for buyers who have been waiting on the sidelines. Sellers, however, must remain proactive in pricing their properties correctly and adjusting to market conditions as we move into the fall season.

As always, BHGRE Senter, REALTORS is here to help you navigate these shifts in the market—whether you’re looking to buy or sell. With decades of local expertise and a full-time commitment to our clients, we are ready to provide you with the guidance you need for success.

If you’re considering making a move, give us a call today! Let’s make the most of the current market conditions together.

Rising Inventory Levels

Inventory levels in Abilene continue to rise, increasing options for buyers across various price ranges. While higher interest rates were still a factor for much of July, we began to see a pull-back towards the end of the month, which continued into August.

Sales Trends & Market Comparison

It’s important to note that home sales were up in July 2024 compared to July 2023, but context is key. July 2023 saw a significant drop in sales, and although July 2024 showed improvement, the numbers were slightly down from June 2024. This signals a market that is still finding its footing.

Housing Affordability

Housing affordability is gradually improving but remains a challenge. Throughout 2024, affordability has tempered buyer demand, with property prices, insurance costs, and taxes being the main factors. Sellers should be aware of this trend when pricing their homes.

Seller Concessions & Buyer Assistance

Seller concessions continue to remain high in most price ranges. Buyers needing closing cost assistance can reliably expect to receive support from sellers. This is a strong advantage for buyers navigating today’s market.

New Construction vs. Pre-Owned Homes

The supply of new construction housing remains strong. Sellers in the pre-owned market should be mindful of how their property compares in terms of features and pricing. Price reductions are becoming common, particularly among overpriced pre-owned homes. Now more than ever, receiving expert guidance from a skilled listing agent is crucial.

Interest Rates & Economic Insights

Let’s dive into some insights from NAR economists on interest rates and what to expect moving forward.

Instant Reaction: Mortgage Rates (August 8, 2024)
By Jessica Lautz

• Facts: The 30-year fixed mortgage rate from Freddie Mac dropped to 6.47% this week, down from 6.73% last week. At this rate, with 20% down, a monthly mortgage payment on a $400,000 home is $2,016. This is $285 less per month than in October 2023 when rates were 7.79%, saving homeowners $3,420 annually.
• Positive: This week’s mortgage rates are the lowest since May 2023, marking the biggest one-week drop in nine months. Mortgage applications are on the rise, presenting an opportunity for buyers who had been waiting on the sidelines.
• Negative: While this drop in rates is positive, it’s just one aspect of housing affordability. Home prices remain high, and the rates provided are a weekly average.

Instant Reaction: CPI (August 14, 2024)
By Lawrence Yun

• Inflation Trends: Inflation is calming, setting the stage for the Federal Reserve to begin cutting rates in September. Consumer prices rose by 2.9% in July, with expectations to reach the desired 2% in the coming months. The Fed has indicated it may begin cutting rates as inflation nears 2%, rather than waiting for it to hit that target.
• Shelter Costs: Shelter costs have decelerated to 5.0%, still high but trending down, thanks to a temporary oversupply of new apartment units. However, auto insurance has skyrocketed, up 19% from last year, which could negatively impact property insurance costs.
• Rate-Cutting Cycle: The rate-cutting process is expected to continue through 2025, with six to eight rounds likely. The new normal for mortgage rates may settle around 6%, a notable change from pre-COVID levels of around 4%.

As we wrap up the first half of 2024, let’s take a closer look at the Abilene housing market trends and key insights from top economists at the National Association of REALTORS®.

Market Trends:

• Inventory Levels: We’ve seen a steady rise in inventory from 3.7 months and 684 total listings in January to 4.6 months and 827 total listings in June.
• Sales Activity: Year-over-year, sales have dipped by approximately 7% compared to 2023.
• Price Movements: Home prices have increased by 7-8% in most price ranges.
• Time to Close: The average time to close has been hovering around 90 days for several months now.

Looking Ahead: While significant changes are not anticipated in the immediate future, better terms may be on the horizon. Here’s what some of the leading voices in real estate economics are saying:

Lawrence Yun, Chief Economist at NAR:

• New Apartment Units: The completion of new apartment units reached a 50-year high in June, leading to a halt in rising rents in many cities. Interestingly, rents have decreased in cities like Austin, Nashville, Charlotte, and Phoenix due to an oversupply of rental units.
• Future Concerns: New multifamily housing starts are currently at a 10-year low due to high financing costs and low rent growth, which might lead to a rental housing shortage in the future. Single-family housing completions were above 1 million, but new starts were below this mark. Lower interest rates could potentially increase housing supply and lower future housing inflation.

Jessica Lautz, VP of Demographics and Behavioral Insights at NAR:

• Mortgage Rates: The 30-year fixed mortgage rate from Freddie Mac dropped to 6.89% recently from 6.95%. At this rate, with a 20% down payment, a monthly mortgage payment on a $400,000 home is $2,105; with a 10% down payment, it is $2,369.
• Inflation Insights: The CPI has retreated, with shelter costs showing slower gains. Fed Chair Jerome Powell indicated a potential path to lowering the Fed Funds rate if inflation continues to cool. However, Powell also noted that we likely won’t see the ultralow rates of the past decade return, meaning buyers waiting for historically low mortgage rates might be waiting for a long time.

Conclusion: As we navigate through 2024, the Abilene housing market continues to show resilience despite national trends. Whether you’re buying, selling, or investing, staying informed and working with experienced professionals like those at BHGRE Senter Realtors can make all the difference. Let’s keep an eye on these trends and insights as we move forward! Contact Us if you need assistance with your real estate goals today.

Welcome to our latest housing market update for Abilene. As we dive into the data from May 2024, we’ll explore the trends and shifts that are shaping the local real estate landscape. Plus, in celebration of National Homeownership Month, we’ll reflect on the importance of owning a home and how it impacts our community.

Inventory Continues to Soar

The inventory in Abilene is on the rise, with active listings up almost 40% compared to last year. This increase has brought the market to 4.3 months of inventory, marking the highest level we’ve seen in over five years. For buyers, this means more options and a less stressful purchasing process, as the high inventory levels provide a more relaxed environment.

Price Reductions and Stable Property Prices

While we’re seeing a significant number of price reductions, the overall property prices have remained mostly static. The median sales price is up 10% compared to May of last year. However, when we look at the broader data, we notice only a small 3% rise in prices year-over-year. This slight increase is expected, considering the sales prices remained mostly flat throughout 2023. Despite the large amounts of price reductions, the sold data shows very minor adjustments in the final deals year over year.

Affordability and Seller Concessions

Housing affordability remains a challenge, but it has become the new normal. Sellers are adjusting to the market dynamics, offering substantial price reductions and concessions. Buyers can benefit from these high levels of seller concessions, making it a favorable time for those looking to purchase a home in Abilene.

National Homeownership Month

June is National Homeownership Month, a time to celebrate the joys and benefits of owning a home. Homeownership is a cornerstone of the American Dream, providing stability, building wealth, and fostering strong communities. At BHGRE Senter, we are dedicated to helping our clients achieve their homeownership goals. Our decades of experience and full-time commitment to our profession and clients ensure that we are the constant you can count on in this ever-changing market.

Let Us Guide You

The real estate market is always evolving, but our commitment to our clients remains steadfast. Whether you’re buying or selling, our team at BHGRE Senter is here to guide you with expert knowledge and personalized service. Let us help you navigate the current market conditions and find the perfect home for you and your family.

Thank you for trusting us with your real estate needs. If you have any questions or need assistance, please don’t hesitate to reach out. Happy National Homeownership Month from all of us at BHGRE Senter!

Spring has sprung, and the Abilene housing market is reflecting that with a much-anticipated boost in activity. After a sluggish first quarter, April has brought a refreshing uptick, signaling a strong start to the spring selling season. While rising interest rates and home prices continue to challenge buyers, the inventory of available homes is at one of the highest levels we’ve seen in the past eight years.

Market Dynamics

The increased volume of listings has tipped the scales in favor of buyers across most market segments. Sellers are offering concessions and implementing price reductions daily to stay competitive. Affordability remains a key concern for buyers, with the costs of taxes and insurance adding to the financial burden. Despite these challenges, the current market offers some excellent opportunities for those who can afford to buy.

Advice for Sellers

Given the rapid growth in inventory, it is crucial for sellers to maintain regular communication with their agents. Pricing your property correctly is more important than ever; an overpriced listing can quickly become stagnant in such a competitive market. Sellers should be prepared to make adjustments as needed to attract potential buyers.

Tips for Buyers

For prospective buyers, understanding the true cost of homeownership is essential. While owning a home is still one of the best ways to build wealth over time, the rising prices and increased costs of taxes, insurance, and maintenance can add up quickly. Buyers need to budget carefully and be aware of all the associated expenses to avoid any unpleasant surprises.

Expert Guidance

Navigating the ever-changing real estate market can be daunting. That’s why having the support of a full-time professional is invaluable. At BHGRE Senter, REALTORS, our team of dedicated agents brings decades of experience and a commitment to serving our clients. We provide the guidance and advice needed to succeed in today’s market.

Whether you’re looking to buy or sell, we’re here to help. Contact us today at (325) 695-8000 and let us assist you in making the most of the current market conditions.

Key Takeaways:

• April saw a strong start to the spring selling season after a slow first quarter.
• High inventory levels have created a buyer’s market in many areas.
• Seller concessions and price reductions are common as sellers strive to remain competitive.
• Affordability remains a challenge, but opportunities abound for those who can navigate the costs.
• Regular communication with your agent is crucial for sellers to adjust pricing strategies.
• Buyers need to be aware of the full costs of ownership, including taxes and insurance.
• BHGRE Senter, REALTORS offers expert guidance to help you succeed in this market.

Call us today if we can help you buy or sell! (325) 695-8000

The Abilene real estate market continues to stabilize, settling into a new normal as we navigate the changing landscape. While home prices have seen a decrease compared to March 2023, overall prices have remained relatively higher in 2024 so far. We anticipate a modest price increase of 1-2.5% by the end of the year.

For Sellers: It’s essential for sellers to receive expert advice, insight, and guidance to remain competitive in the current market. Making informed decisions about whether selling is the right move for you at this time is crucial. Despite high concessions being offered in the market to buyers, many sellers still hold substantial equity in their homes, thanks to the price increases over the last few years. With the right strategies, homes can still sell quickly. Our REALTORS® offer free initial consultations to help you navigate pricing, concessions, staging, and more.

When it comes to listings sold per person across Abilene and the surrounding areas, our team at Better Homes and Gardens Real Estate Senter, REALTORS® stands out in terms of productivity. Let us assist you too!

For Buyers: For buyers, the market offers more concessions than we’ve seen in the last five years. Interest rates have remained relatively stable over the past three months, but we expect slight reductions by year’s end. Inventory levels are the highest they’ve been since 2018, providing buyers with more options and less competition for the perfect home. Our full-time experts are here to guide you through the buying process and help you craft a winning offer.

Importance of Advertising: As market inventory increases, the need for effective advertising becomes more pronounced. While many homes sold quickly in 2022 and 2023 with minimal advertising, this is no longer the case. Listing on Zillow is important, but it only covers around 56-58% of real estate website traffic. Reaching potential buyers across different platforms, including social media and beyond, is essential. Our 10-day paid advertising campaigns for every listing have played a key role in our strong performance.

We’re Here to Help: With nearly 70 years of experience, we are your Abilene-grown, family-owned, residential and commercial real estate experts. Reach out to your favorite BHGRE Senter agent today, and let us help you on your path to success!

March 2024 Stats

Q1 2024 Stats

Market Activity Trends

Activity is picking up but remains below February 2023 levels. With pending contracts indicating a positive trajectory, March is anticipated to witness a significant uptick, traditionally signaling the onset of the spring selling season. This year holds even greater promise due to favorable interest rates and market conditions.

Pricing Dynamics

Lower interest rates and robust new construction sales have supported high housing prices, following the correction prompted by elevated interest rates in 2023. Prices are expected to experience a modest upward trend until year-end, mirroring the anticipated decline in interest rates, possibly reaching the high 5 percent range by Q4.

Buyer’s Market Dynamics

Despite prevailing buyer-friendly conditions in most of the Taylor County market area, exceptions exist, emphasizing the indispensable role of seasoned REALTORS. Crafting the right pricing strategy, offering property concessions, and implementing a robust marketing plan with targeted advertising are now more crucial than ever.

Importance of Marketing

With the average marketing time hovering around 100 days, effective marketing and advertising have never been more important. Unlike previous years, where listings often sold with minimal marketing, the current climate necessitates a proactive approach. BHGRE Senter, REALTORS, offers comprehensive paid marketing packages integral to achieving successful outcomes for clients.

In summary, while the Abilene housing market presents challenges, informed decision-making and strategic guidance from experienced professionals remain pivotal in navigating evolving dynamics and achieving optimal results in real estate transactions. Contact Us if our full-time and experienced experts can help you buy or sell!

Abilene Area Housing Market Stats

State of Texas Housing Stats

As January unfolded, it brought with it the gentle stirring of a new year in Abilene’s housing market. While the 115 closed sales is significantly less than many previous months, it’s a reflection of a shifting landscape from the seller’s market that characterized much of 2023. Indeed, last year saw a notable decline in sales volume compared to 2022, signaling a change in the tide.

Adjusting Expectations in a Changing Market

Buyers stepping into the arena are met with the reality of higher prices and interest rates, but there’s a silver lining in the form of seller concessions. These concessions can offer significant savings at the closing table and provide welcome relief. However, sellers must also adapt to the evolving market conditions, as evidenced by the increasing average time on the market, which soared to 117 days in January 2024. While this figure may fluctuate in the coming months, it underscores the importance of managing expectations and planning accordingly for a longer selling timeline.

Navigating the Price Range Conundrum

One notable shift is the scarcity of homes in the $100,000-199,000 price range, which has reached its lowest closed percent in January. This can be attributed to the rising prices across the board, transforming it into the new “investor bracket.” However, despite the challenges posed by potential renovations and repairs, there are still hidden gems waiting to be discovered. Additionally, buyers qualifying for homes in this range often qualify beyond this range. Many buyers opt for properties with more features or space, leveraging their purchasing power to meet their evolving needs.

Embracing the New Normal

As we settle into the new normal, it’s crucial to dispel unfounded speculation and focus on practical decision-making. With major market shifts already behind us, waiting for further changes may yield little benefit. Instead, anticipate a steady annual rise in prices and the possibility of interest rates dipping into the low 6% range by year’s end. At Better Homes and Gardens Real Estate Senter, REALTORS, our team stands ready to offer expert guidance tailored to your unique circumstances. Whether you’re a buyer or a seller, trust us to navigate the nuances of the Abilene housing market and help you achieve your goals.

Contact any of our agents today to embark on your real estate journey with clarity and assurance.