I obtained historical interest rate data from themortgagereports.com and the number of units single family residential sold from 2004-2022 in Austin, TX from Austin Board of Realtors; then I plotted the data (see graph below). We know that low interest rates tend to increase demand for property. We saw this in Austin in 2021 (per graph).Currently in Austin, we have over 12,000 active homes in the market, thanks to the current 7% interest rate. Last week, I attended an economic forcast and the speaker shared that over 50% of today's buyers (nationally) are first time home buyers.
What is the market like in your area? Are you seeing high inventory or multiple offers? Please comment below and let me know.
