KHANI ZULU | MCNE, CLHMS | April 2, 2025
Buyer info
As the bluebonnets bloom and the days get longer, Austin’s spring real estate season is officially underway. March just wrapped, and we’re seeing some interesting shifts that tell a bigger story about where the market is heading.
Let’s look at the numbers for the City of Austin (not the metro, just the city limits), and what they actually mean:
738 sales (📉 down 16.7% YOY)
$595,000 median sale price (📈 up 6.6% YOY)
$791,425 average sale price (📈 up 6.5% YOY)
$369/sqft (📈 up $3.10 YOY)
30 days on market (⏳ up just 1 day YOY)
Even though fewer homes are selling overall, prices are climbing—a clear sign that demand remains strong, especially for well-prepared and well-positioned homes.
We’re witnessing movement across all price points. Recently, my buyers aimed to offer on a $2.6M home that had been listed for just three days—already attracting multiple interested parties. We're currently in backup position, illustrating the competitive nature of the market.
Conversely, my team successfully negotiated a contract for a buyer on a home that had been on the market for a year. This underscores the importance of strategic negotiation and recognizing opportunities others might overlook.
For sellers, we've secured multiple backup offers for both on- and off-market listings. This success stems from precise pricing, compelling marketing, and leveraging relationships to facilitate deals behind the scenes.
Mortgage rates have recently dipped to their lowest levels in five months, enticing more buyers into the market. The 30-year fixed-rate mortgage is averaging around 6.67%, down from previous weeks. This decline has led to a surge in both purchase and refinance applications, indicating renewed buyer enthusiasm.
Significant changes have been made to FHA loan eligibility criteria. As of May 25, 2025, the Federal Housing Administration will limit FHA-insured mortgages to U.S. citizens and lawful permanent residents. Non-permanent residents, including those with work visas or under programs like DACA, will no longer be eligible for FHA loans. This policy shift aims to align with administrative priorities and affects potential buyers relying on FHA financing.
📍 Sellers
Market Dynamics: Prices are up, and buyers are active—but discerning. Proper presentation, preparation, and pricing are crucial.
Leverage Backup Offers: Securing backup offers can provide negotiation advantages and ensure smoother transactions.
Act Now: With interest rates currently favorable, more buyers are entering the market, increasing the pool of potential offers.
📍 Buyers
Take Advantage of Lower Rates: The recent dip in mortgage rates enhances affordability. Locking in a rate now could be beneficial.
Be Prepared: The best homes are moving quickly. Ensure pre-approval and clarity on your preferences to act decisively.
Stay Informed: If you were considering FHA financing and are a non-permanent resident, explore alternative loan options due to the recent eligibility changes.
The Austin market is dynamic, with opportunities for both buyers and sellers. Staying informed about market trends, interest rates, and policy changes is vital.
Curious about how these changes impact your real estate goals? Let's discuss over a cup of coffee or a refreshing Topo Chico.
With Love from ATX,
Khani Zulu Group
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