Here are my fact-based responses to some common 2021 market fears.
First of all, many people fear that the Central Texas real estate market is in a bubble. The bubble that formed in the early 2000s during the lead-up to the housing crisis was mainly the result of a lot of unqualified buyers getting cheap money to purchase as many homes as they possibly could. Those properties were going underwater very quickly when the market started to pile up with inventory. From top to bottom, that whole scenario is unlike what we’re seeing now.
Today, we have buyers moving into the Central Texas region—one of many hotbeds of activity across the country—to look for properties that better accommodate their new COVID-shaped lifestyles. Here’s the important distinction: These buyers aren’t coming here with money doled out by lackadaisical lenders; they’re putting massive amounts of cash down and bidding up home prices. The lightning pace that this sky-high demand creates can certainly feel like a bubble, but in reality, these buyers are simply injecting a lot of equity into their new homes and the market is responding authentically.
Also, consider that these buyers are moving here for jobs—not speculation. Yes, there are some investors actively eyeing Austin, but the primary driver of real estate here is the strong job market. Hopefully, at this point, you understand that our market is increasing because buyers are snatching up homes almost as soon as they are being listed. Perhaps this understanding leads you to another common fear, though: “What if I can’t find a home? What if I do find one I want but can’t compete against the swarm of other interested buyers?”
Thankfully, there are plenty of programs to help buyers stay competitive such as The Moat Team’s “Buy With Cash” program. Instead of rushing out there and submitting an offer on a home that’s backed by a massive mortgage, we help you put forth an all-cash offer so that you can show the seller that you mean business. Our “Buy With Cash” program is made possible through a partnership with another great program called Homework. If you want to learn more about how you can leverage the maximum amount of resources available to make a fierce bid for the home of your dreams, click here.
“The primary driver of real estate here is the strong job market, not investor speculation.”
Lastly, a prominent fear I have to routinely address comes from my seller clients, who ask, “I get that I can sell quickly and at top dollar, but where am I going to move? Inventory is insanely low.” This is an understandable concern, which is why we’re proud to offer another program that allows sellers to buy their next home with cash before selling their current one. Not only will you be able to secure your next place, but you’ll even be able to move into it before having to sell your other property.
I hope this information calms your nerves and empowers you to take a bold step in the market, be it buying, selling, or investing in real estate. Again, just know that this sizzling market isn’t going to pop anytime soon—its temperature is being controlled by the economic principles of supply and demand.
If you still have questions about the market or want to get the ball rolling on your 2021 buying or selling plans, just give us a call or send an email. It’s our pleasure to dispel fear and reveal the remarkable opportunities that exist in abundance today. We look forward to hearing from you soon!