Austin Price and Inventory Trends

There’s a lot of economic uncertainty in the air, what with souring inflation, the fed about to raise rates, stock and crypto market turmoil, etc. I’m frequently asked the question as to whether their investment (their home purchase) will be safe. I know I’m biased, but I have to be honest and say “I don’t see downward movement ANYWHERE in the near term future for Austin. It’s going to be a seller’s market, and thus appreciating, for as far forward as I can currently see.” I often encourage people to keep their eye on one key metric, months of inventory.
That will tell you which way things are trending, and how far they are from equilibrium. It’s just a measure of supply and demand, and/or how lopsided that is. If we were to turn into a buyer’s market, that could not happen overnight without some type of Chernobyl-type event. This “months of inventory” number has to be chipped away at, and isn’t flipped overnight. Right now, we have a SEVERE lack of inventory, as seen by these numbers below. Let me know how I can help digest these, or any other questions you might have.