As I’ve mentioned here before, the Federal Reserve has raised interest rates at the fastest pace in modern history this year (see below). This is, by far, the #1 contributor to the slowdown we’ve seen in our real estate market this year. When people are uncertain, human nature is to go into ‘wait and see’ mode as mortgage rates have risen this year, however, 2022 will not be a repeat of 2008 when bad mortgages (along with some other things) caused the crash. Once the Fed believes our economy has topped out and begins a recession (many think we are in one now), interest rates should come back down as in past history. As we did with the Great Recession, our Austin metro was the last city to the “recession party and the first to leave” since our home market was barely phased. In fact, our Average home price dropped only .70% in 2008 and 1.5% in 2009…the worst 2 years for Austin during the GR.
(512) 853-0110 or robert@AustinTxHomeSales.com
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