After a year of adjustments and adaptations, the Austin housing market is seeing a return to stability. In a recent Austin American Statesman article, Brohn co-founder, Aaron Boenig, discusses why today is the best time to buy a new home. He expands on market home price reductions, interest rates and how nearby growing cities can provide home buyers with more affordable options.
Home Prices
Throughout Austin, home prices have come back down from record-high marks driven largely by the effects of the pandemic and record-low interest rates. Boenig says, “With a record low drop in the interest rate at 2.65% in January 2021, it created an opportunity for home-buying and selling at record rates which, in addition to pandemic-induced supply chain issues, led to the housing inventory drying up and the prices of homes skyrocketing.” In contrast to the rise and recent decrease in interest rates, home prices have come back down from the record-high marks set during the pandemic.
Interest Rates & Buying Power
As a result of interest rates bottoming out in January 2021, the 30-year fixed mortgage rate climbed as high as 7.08% on November 10, 2022, and began to fall again, sitting at 6.13%, as of Jan. 26, 2023. Boenig says, “The spike in interest rates cooled movement for buyers and sellers, but it has allowed inventory to slowly build up in some markets, including Austin, and helped push us back toward a more normal market.”
For 20+ years Brohn has been looking for ways to help families achieve homeownership and offers financing options that provide more buying power through interest rate reductions. Only with Brohn Homes, and their partner lender, can you reap the benefits of interest rates LOWER THAN last year’s average! Our rate reduction incentives, combined with home prices normalizing, make today the best time to buy. Review the table on this page and you’ll see why >>>
Rapidly Growing Cities
Boenig recommends home shoppers expand their search to emerging markets, “That could mean surrounding cities such as Elgin, Liberty Hill, Kyle and additional nearby cities that are growing rapidly and provide more affordable options.” Brohn Homes builds throughout Central Texas in many of these cities. Communities are carefully chosen for the lifestyle benefits home shoppers seek and are often where lifestyle, quality construction and affordability meet.
Things are always subject to change, but as the shift to normalcy advances, we’ll continue to see market conditions improve for buyers and sellers, and Austin will remain a great place to buy or sell a home.
*©2023 CMG Financial, all rights reserved. CMG Financial is a registered trade name of CMG Mortgage Inc., NMLS #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender. Registered Mortgage Banker with the Texas Department of Savings and Mortgage Lending. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and nmlsconsumeraccess.org. All loans subject to credit approval and only eligible with CMG Financial, Brohn’s lender partner. The rates shown above are for educational purposes only, not a commitment to end, please contact LO to see your qualified rate. Stated rate may change or may not be available at time of rate lock. Example: 10/6 ARM, Purchase Price $262,990, 20% Down Payment, $210,392 Loan Amount, 30 year term, initial interest rate 4.250% (5.639% APR) for initial 120 payments of $1,035.00 not including mortgage insurance/taxes/insurance. Post Introductory Period Example: Interest Rate = SOFR + Margin. Payment can adjust every 6 months. Sample Repayments at month 120 with balance of $167,142: 3% Margin, 4.864% SOFR (5/10/23), 7.875% variable rate, $1,386.00 monthly payment. At max interest rate of 9.25% payment is $1,531.00. If the down payment is less than 20%, mortgage insurance may be required, which could increase the monthly payment and the APR. Estimated monthly payment does not include amounts for taxes and insurance premiums. Adjustable-rate loans and rates are subject to change during the loan term. That change can increase or decrease your monthly payment. The rates shown above are the current rates for the purchase of a single-family primary residence based on a 45 day lock period, 740 credit score and 80% LTV. These rates are not guaranteed and are subject to change. This is not a credit decision or a commitment to lend. Your rate will depend on various factors including loan product, loan size, credit profile, property value, geographic location, occupancy and other factors. Offer is for a limited time only and can be stopped at any time and with no prior notice. Offers only valid when financing through Brohn’s lender partner, CMG Financial. Please see a Brohn Homes Sales Consultant for complete details. Stated monthly payment is for principal and interest only. Offer may not be available with all programs in all states. All figures are estimates and subject to change at any time. The information here is provided as a general guide to help you determine if a property may be viable for you. Rates, APR’s & programs are illustrations subject to change at any time. These do not constitute a ‘Loan or Good Faith Estimate’ for payments and closing costs. Everyone’s situation is different and it’s best to be pre-approved for a range of potential prices, payments or loan programs. The flex cash amount is contingent on the price of the home and only valid on participating homes and in participating communities. Speak to a Brohn Homes Sales Consultant for details on participating homes and participating communities. If using flex cash to reduce the price of the home, the reduction cannot bring the home price below base price. The flex cash can only be used in one of six ways including reduction in purchase price (not being less than base price of home) or applying towards closing costs or move-on costs or long term rate locks or buying down the interest rate on a 10/6 Arm (specific interest rate and associated APR fluctuate on a daily basis and change due to individual situations) or toward early lease termination fees. A 30 year loan would result in 360 monthly payments. A 20 year loan would result in 240 monthly payments, and a 15 year loan would result in 180 monthly payments. This is a limited time incentive program that can be stopped at any time and with no prior notice. Must provide proof of current lease agreement, documentation confirming an early lease termination, the execution of a contract with Brohn Homes on a Brohn home that is set to close during the limited time frame in which the incentive is offered. Exterior home renderings are for representation purposes only and subject to change. The Brohn Group, LLC (DBA Brohn Homes) reserves the right to make changes to pricing, floor plans, specifications, features, materials, dimensions, and incentives without prior notice.