Should I lease or sell my Austin home?
Sluggish housing conditions are causing more sellers to lease their homes instead of sell, and that impacts resale inventory and prices. With the Austin real estate market slowing, we've seen a marked increase in the number of single family homes for lease. While it's taken awhile, the jump in leasing inventory is having an impact on Austin home prices this October.
After the market peaked in April 2022 many sellers became frustrated that their homes weren't selling for the high prices that seemed normal just a month ago. Many of those sellers chose to lease their home in hopes of selling it later when market conditions improve. By July 2022 our Austin area real estate statistics show a dramatic uptick in the number of single family homes for lease. Leasing inventory is now at levels that we haven't seen in some time.
When the leasing inventory rises, the number of homes for sale tends to decline. As a result, our October 2022 home sales inventory looks lower than expected. Don't get too excited though. The decline in inventory is not because there was an increase in home sales; this is primarily the result of homes that were for sale being pulled from the market entirely or being offered for lease instead.
Regardless of cause, the inventory shift was big enough to impact our supply/demand curve. For the first time in months we saw an increase in median price per foot. Granted, a $4 increase isn't a lot, especially when we consider that Austin homes are still selling for around $30 less per foot than they were in the peak of April 2022.
Frankly, neither leasing or selling are great options in our current market.
UNDECIDED ABOUT LEASING OR SELLING?
If you're on the fence about selling or leasing, let's talk. It's a hard decision to make in this market. As you weigh your options you should have (1) a realistic picture of the leasing market, (2) get an idea of what your home may sell for in this quickly shifting market, and (3) explore some options you may not have considered. Wherever life takes you, we're here to offer a practical dose of real estate advice. Reach out to us at [email protected].
Frequently Asked Questions
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