What the Market is Really Telling Us (and What You Should Do About It)

What the Market is Really Telling Us (and What You Should Do About It)

Spoiler: It’s not just about interest rates.

We’ve all heard the headlines: interest rates are high, homes are sitting longer, and inventory is up. But what does that actually mean for you?

If you're a buyer, a homeowner, or just someone who's wondering if now is the right time to make a move — this is for you. Because the question isn’t just what’s happening in the market, it’s what does this moment make possible?

First, are you happy in your home?

Let’s start here. Because when I talk to my clients, the real conversation isn’t about interest rates — it’s about alignment. Does your home still support the life you’re living? Are you staying for the rate… or staying because you actually love where you are?

You don’t have to settle just because rates are higher. In fact, this market might offer you the chance to trade up, downsize, or simply choose a home that fits your life better — with less buyer competition and more negotiating power than we've seen in years.

Sellers are negotiating — and buyers are benefiting.

This is where things get interesting: buyers are regaining leverage.

• Homes are closing an average of 2.7% below asking price, meaning there’s room to negotiate strategically.

• Over 56% of listings have had at least one price drop, and those drops average around 8% off the original list price. 

  • Homes that do price-drop are going under contract faster than those that don’t — median of 18 days post price reduction.

• I’ve personally negotiated four new roofs this month, and sellers are offering rate buy-downs, closing cost credits, and extended timelines to accommodate buyers.

• Listings in the $400K–$699K range remain active, while properties over $1.2M are sitting longer and seeing even more aggressive concessions.
  
  

If you’re a buyer who’s been on the fence, this market is giving you time, options, and opportunities.

What “inventory” means — and why it matters

When we say inventory is up, we’re talking about the number of homes available for sale. Right now, Austin has 5.7 months of inventory, which marks a major shift from the ultra-competitive days of 2021 and early 2022.

And no — it doesn’t mean the “Austin boom” is over. It means we’re entering a more balanced market. Some of this increase is due to pent-up listings from people who delayed selling during the rate hikes. Meanwhile, many would-be sellers are still staying put, hanging onto their sub-3% mortgage rates — which limits turnover and shifts buyer traffic toward new or longer-sitting listings.

More inventory isn’t a bad sign. It’s a sign of opportunity — more inventory means:

• Buyers have more choices

• Sellers have more competition

• And pricing your home correctly the first time is crucial
  
  

I have listings right now that are beautiful but showings have slowed — simply because the price hasn’t adjusted with the changing market. The data backs this up: homes that price-drop go under contract in a median of just 18 days. That’s powerful.

What This Means for Buyers

This is a window of opportunity.

• You have more time and breathing room to explore options

• Sellers are motivated and open to negotiation

• The sweet spot for activity is in the $400K–$699K range, with steady demand and seller flexibility
  
  

If you're waiting for the perfect interest rate, you might miss the perfect house. A well-negotiated deal today could beat a better rate tomorrow.

What This Means for Sellers

You can still win in this market — but it takes strategy.

• Homes that are priced right and show well are still moving, often faster than you’d expect

• Buyers are savvy and watching price reductions closely

• Overpricing leads to stalling, and stubborn pricing leads to silence
  
  

The truth? Pricing correctly from day one puts you in control. And if a price drop becomes necessary, it’s not a failure — it’s a smart, proven tactic that gets results.

So… are you staying in your home because it’s right for you — or because you’re scared to move?

Let’s look at your full picture. You might be sitting on significant equity that can help offset the rate conversation, get you into a home that serves you better, or open up investment possibilities you hadn’t considered.

I’m here to walk you through all of it — from running numbers to finding hidden opportunities — without pressure, just perspective.

Remember: staying put is a choice. Let’s make sure it’s the right one.

With love from ATX,
Khani Zulu Group