Driving It Home with Unlock MLS

In this episode of Driving It Home, Dr. Clare Knapp and Danielle Hammett, Deputy Director of Communications at ABoR, discuss the current state of Austin's rental market, comparing it to other metropolitan areas and exploring its implications for 2024. Dr. Knapp explains that Austin's rental market is slightly skewed toward renters, partly due to the city's major educational institutions.

Dr. Knapp highlights the role of the rental market in providing affordability, especially in the context of high home prices and elevated mortgage rates. Over the past decade, rentals have grown in significance, now comprising around 40-45% of the market. While build-to-rent communities have slowed due to higher mortgage rates and construction costs, there's an increase in rental properties within the city of Austin, primarily as homeowners choose to rent out their properties instead of selling.

Looking forward, Dr. Knapp suggests that Austin's rental market may see a slight slowdown as the market stabilizes and potential homebuyers adjust to mortgage rates. This could lead to more affordable rental rates and increased inventory, benefiting renters. The episode concludes with a reminder for agents to communicate the current market dynamics to their clients and consider both renting and buying options based on individual circumstances.

Links Mentioned

Monthly Market Data Labs with Dr. Knapp - https://www.abor.com/course-type/market-data-labs

ABoR Research - https://www.abor.com/research

Buy vs Rent Index - https://www.abor.com/buyrentindex

Download an episode transcript: https://www.abor.com/content/uploads/2024/08/DIH-8-27-24.pdf

Listen On:

Apple: https://podcasts.apple.com/us/podcast/driving-it-home-with-abors-housing-economist/id1714289732

YouTube: https://www.youtube.com/playlist?list=PLzH_caxJ3VPq5iExWilqZOahnREgSFgqC 

Connect with us on socials: https://www.abor.com/socials

Connect with Dr. Clare Knapp on LinkedIn: https://www.linkedin.com/in/clare-losey 

Have feedback? Email us at [email protected].

In this episode of Driving It Home, Dr. Clare Knapp and Emily Chenevert discuss the recent changes to Unlock MLS rules and the current challenges in the housing market. Emily emphasizes the importance of staying informed through the resources provided by ABoR, such as classes and events, to help members stay competitive. The episode also highlights the value of the Buyer's Agent Portfolio published earlier in the summer, which includes resources to educate buyers on the wealth-building potential of homeownership and the impact of demographics on housing demand.

Dr. Clare Knapp shares insights on how agents can effectively distill and present market data to their clients, emphasizing the importance of telling a story with the data. She suggests moving from general to specific information, such as comparing market conditions across different geographies or timelines. Dr. Knapp also addresses the challenge of analyzing market trends in the post-pandemic environment, noting that while the rapid home price appreciation during COVID-19 was unsustainable, the long-term benefits of homeownership remain significant. She encourages agents to use tools like the Buy vs Rent index to illustrate these benefits to clients.

The episode wraps up with advice for agents on how to develop their data analysis skills. Dr. Knapp recommends making data analysis a regular practice, using available resources like ABoR’s Research, and seeking support from colleagues or attending Market Data Labs. Listeners are encouraged to reach out with questions or suggestions for future podcast topics, emphasizing their commitment to providing valuable resources for agents navigating the current housing market.

Links Mentioned

Events - https://www.abor.com/events

Education - https://www.abor.com/take-a-class

Buyer’s Agent Portfolio - https://www.abor.com/content/uploads/2024/06/2024-Buyers-Agent-portfolio-ABoR-Unlock-MLS.pdf

Buy vs. Rent Index - https://www.abor.com/buyvsrent

ABoR Research - https://www.abor.com/research

Market Data Labs - https://www.abor.com/course-type/market-data-labs

Reach out – email [email protected]

Download an episode transcript: https://www.abor.com/cms/wp-admin/upload.php?item=334950

Listen On:

Apple: https://podcasts.apple.com/us/podcast/driving-it-home-with-abors-housing-economist/id1714289732

YouTube: https://www.youtube.com/playlist?list=PLzH_caxJ3VPq5iExWilqZOahnREgSFgqC 

Connect with us on socials: https://www.abor.com/socials

Connect with Dr. Clare Knapp on LinkedIn: https://www.linkedin.com/in/clare-losey 

Have feedback? Email us at [email protected].

In this episode of Driving It Home, Dr. Clare Knapp and Emily Chenevert discuss the latest real estate market stats for Central Texas, focusing on the slight decline in overall closed sales, which were down by 3.5% in the MSA. A significant factor was the 12% decline in sales within Travis County, although outlying counties like Williamson, Hayes, Caldwell, and Bastrop saw an uptick in sales. Despite these declines, prices have remained relatively flat, with buyers' purchasing power holding steady due to minimal changes in mortgage rates.

Dr. Knapp highlights that more affordable homes, particularly those under $300,000, saw increased sales, especially in the outlying counties. Newer properties (built in 2020 or later) are also in higher demand, both in the resale and rental markets, as buyers and renters prefer homes that require less renovation. This trend is particularly evident in the northern and southern regions of Austin, where there is more activity in both sales and rentals compared to Travis County.

The podcast concludes by discussing the importance of pricing strategies in the current market, especially for sellers with higher-priced properties or luxury homes, where sales have slowed. Dr. Knapp advises agents to be more flexible with pricing to align with buyers' and renters' purchasing power and market conditions.

Links Mentioned

July 2024 Central Texas Housing Report – July stats coming Wednesday, August 14! https://www.abor.com/marketstatistics

Right Here, Right Now Resource Hub: https://www.abor.com/rightnow

Download an episode transcript: https://www.abor.com/content/uploads/2024/08/DIH-8-13-24.pdf

Listen On:

Apple: https://podcasts.apple.com/us/podcast/driving-it-home-with-abors-housing-economist/id1714289732

YouTube: https://www.youtube.com/playlist?list=PLzH_caxJ3VPq5iExWilqZOahnREgSFgqC 

Connect with us on socials: https://www.abor.com/socials

Connect with Dr. Clare Knapp on LinkedIn: https://www.linkedin.com/in/clare-losey 

Have feedback? Email us at [email protected].

In this episode of Driving It Home, Dr. Clare Knapp and Emily Chenevert discuss the latest economic developments, particularly focusing on the recent jobs report and its impact on the housing market. The conversation highlights the rise in the unemployment rate to 4.3%, a three-year high, and the addition of fewer new jobs than expected. These factors, along with the market's anticipation of potential Federal Reserve rate cuts, are influencing the 10-year Treasury yield, which has seen a significant decline.

Dr. Knapp explains how these economic changes are expected to lead to a decrease in mortgage rates, potentially easing the pressure on homebuyers facing high listing prices. However, she remains cautious about predicting significant rate cuts, suggesting a moderate reduction may occur, but not as aggressively as some market speculations suggest. This possible decrease in mortgage rates could encourage more buyers to enter the market, though it's unlikely to unleash a significant wave of new buyers.

The discussion also touches on the importance of proper pricing and market positioning for sellers, especially in light of the potential changes in buyer interest due to shifting mortgage rates. Emily and Dr. Knapp emphasize the need for homes to be move-in ready to attract buyers who may already be financially stretched. They conclude with a reminder about upcoming NAR-mandated changes in business rules for REALTORS® coming August 13, highlighting the importance of staying informed and prepared for these updates in the Right Here, Right Now Resource Hub at ABoR.com/RightNow.

Links Mentioned

Right Here, Right Now Resource Hub - https://www.abor.com/rightnow

Download an episode transcript: https://www.abor.com/content/uploads/2024/08/DIH-8-6-24.pdf

Listen On:

Apple: https://podcasts.apple.com/us/podcast/driving-it-home-with-abors-housing-economist/id1714289732

YouTube: https://www.youtube.com/playlist?list=PLzH_caxJ3VPq5iExWilqZOahnREgSFgqC 

Connect with us on socials: https://www.abor.com/socials

Connect with Dr. Clare Knapp on LinkedIn: https://www.linkedin.com/in/clare-losey 

Have feedback? Email us at [email protected].

In this episode of Driving It Home, Dr. Clare Knapp and Deputy Director of Government Affairs, Taylor Smith, discuss the current real estate market dynamics in the Austin area, focusing on seller expectations, new home construction, and leasing trends. Sellers are holding onto significant home equity gains, with prices up 30-40% compared to 2019. However, there is a reluctance to adjust prices in line with buyer affordability, despite market data suggesting flat sales and a close-to-original list price ratio hovering around 94-96%. Dr. Knapp emphasizes the importance of sellers being realistic about pricing to align with current market conditions.

The conversation also touches on the increased housing supply, with active listings at a 13-year high and a surge in multifamily unit construction. Dr. Knapp highlights the growth in single-family rental demand, noting that even with expected slight declines in mortgage rates, the rental market remains strong. Key areas of new home construction are identified, particularly in Northwest Austin along Ronald Reagan Boulevard and the southern regions around San Marcos, Buda, and Kyle. These areas are experiencing significant growth due to large-scale builders, while the City of Austin sees more custom builds.

The episode concludes with a discussion about the upcoming 2024 ABoR Diversity Summit on August 15. The summit will focus on fair housing and diversity in the real estate industry, featuring a keynote speech from Alexia Smokler, NAR's Director of Fair Housing Policy and Programs, and a panel discussion with Dr. Valencia, the City of Austin's City Demographer. This event aims to help REALTORS® navigate the evolving industry and emphasize the importance of diversity in business practices – you won’t want to miss it!

Download an episode transcript: https://www.abor.com/content/uploads/2024/07/DIH-7-30-24.pdf

Links Mentioned

2024 ABoR Diversity Summit - https://www.abor.com/event-type/diversitysummit

Listen On:

Apple: https://podcasts.apple.com/us/podcast/driving-it-home-with-abors-housing-economist/id1714289732

YouTube: https://www.youtube.com/playlist?list=PLzH_caxJ3VPq5iExWilqZOahnREgSFgqC 

Connect with us on socials: https://www.abor.com/socials

Connect with Dr. Clare Knapp on LinkedIn: https://www.linkedin.com/in/clare-losey 

Have feedback? Email us at [email protected].

In this episode of Driving It Home, Dr. Clare Knapp and Emily Chenevert discuss the recent mid-year ⁠housing statistics for June⁠, focusing on more detailed granular data. They emphasize the importance of understanding these nuances to better navigate the current housing market and help clients make informed decisions. Dr. Knapp provides insights into the areas within the MSA where home prices have seen the most significant changes, highlighting both the declines near the city center and increases in more distant zip codes.

Dr. Knapp also discusses the varying affordability of different zip codes within Travis, Williamson, and Hayes counties, noting that more affordable areas tend to have faster-moving properties due to higher demand from first-time buyers. The conversation shifts to buyer financing methods, where conventional loans dominate, and explores the impact of interest rates on different financing options. Despite higher mortgage rates, alternative financing forms like seller financing remain rare.

Finally, the discussion touches on open houses, their frequency, and their effectiveness in different price ranges. The importance of new construction in the market is acknowledged, with builders increasingly using MLS to market their properties due to higher interest rates. The episode concludes with an invitation for listeners to attend the July 23 ⁠Market Data Lab⁠ session with Dr. Knapp to gain deeper insights and discuss market-specific questions.

Download an episode transcript: ⁠https://www.abor.com/content/uploads/2024/07/DIH-7-16-24.pdf⁠

Links Mentioned

⁠June 2024 Central Texas Housing Report⁠ https://www.abor.com/marketstatistics

⁠Market Data Lab with Dr. Knapp – July 23⁠  ⁠https://www.abor.com/class/market-data-lab-6⁠

⁠2024 International Homebuyers Survey⁠ https://www.abor.com/intlsurvey

In this episode of Driving It Home, Dr. Clare Knapp and Emily Chenevert discuss the recent mid-year housing statistics for June, focusing on more detailed granular data. They emphasize the importance of understanding these nuances to better navigate the current housing market and help clients make informed decisions. Dr. Knapp provides insights into the areas within the MSA where home prices have seen the most significant changes, highlighting both the declines near the city center and increases in more distant zip codes.

Dr. Knapp also discusses the varying affordability of different zip codes within Travis, Williamson, and Hayes counties, noting that more affordable areas tend to have faster-moving properties due to higher demand from first-time buyers. The conversation shifts to buyer financing methods, where conventional loans dominate, and explores the impact of interest rates on different financing options. Despite higher mortgage rates, alternative financing forms like seller financing remain rare.

Finally, the discussion touches on open houses, their frequency, and their effectiveness in different price ranges. The importance of new construction in the market is acknowledged, with builders increasingly using MLS to market their properties due to higher interest rates. The episode concludes with an invitation for listeners to attend the July 23 Market Data Lab session with Dr. Knapp to gain deeper insights and discuss market-specific questions.

Download an episode transcript: https://www.abor.com/content/uploads/2024/07/DIH-7-16-24.pdf

Links Mentioned

June 2024 Central Texas Housing Report https://www.abor.com/marketstatistics

Market Data Lab with Dr. Knapp – July 23  https://www.abor.com/class/market-data-lab-6

2024 International Homebuyers Survey https://www.abor.com/intlsurvey

In this episode of Driving It Home, Dr. Clare Knapp and Emily Chenevert delve into the upcoming June housing statistics. They highlight a significant expected decline in home sales by 15-20% year-over-year, while median sales prices have remained relatively stable, only dropping about 5%. This discrepancy raises questions about whether this sales drop is an anomaly or a trend for the rest of the year, especially given the increased interest rates and their impact on buying power.

Dr. Knapp explains that despite more consistent mortgage rates in 2024, there was a noticeable rise in April from 6.8% to 7.2%, which deterred some buyers. This has resulted in an unusual market situation where sales are down, but prices are not falling significantly. One contributing factor is that more inventory is available, with listings increasing by 30-40% year-over-year, yet demand is lower due to higher mortgage rates. The inventory that does sell is highly desirable, indicating that buyers are becoming more selective.

The conversation also touches on sellers' motivations, particularly those with low-interest mortgages from previous years, who may be less inclined to sell. Additionally, the market is seeing an increase in leases as an alternative to buying, driven by affordability issues and sellers who prefer to lease their properties rather than reduce their asking prices. This trend is particularly evident in central and south Austin, where leases are becoming a more common option for would-be buyers. The discussion underscores the current disconnect between buyers' and sellers' expectations and the evolving dynamics of the housing market in Austin.

Download an episode transcript here: https://www.abor.com/content/uploads/2024/07/DIH-7-9-24.pdf

Links Mentioned:

June 2024 Housing Market Report - Coming Soon! https://www.abor.com/marketstatistics

Market Data Lab - July 23 - https://www.abor.com/class/market-data-lab-6

Listen On:

Apple: https://podcasts.apple.com/us/podcast/driving-it-home-with-abors-housing-economist/id1714289732

YouTube: https://www.youtube.com/playlist?list=PLzH_caxJ3VPq5iExWilqZOahnREgSFgqC 

Connect with us on socials: https://www.abor.com/socials

Connect with Dr. Clare Knapp on LinkedIn: https://www.linkedin.com/in/clare-losey 

Have feedback? Email us at [email protected].

In this episode of Driving It Home, Dr. Clare Knapp and Emily Chenevert reflect on last week’s Market Shift Conversations program featuring special guest, Marki Lemons-Ryhal. They highlight the new Buyer’s Agent Portfolio released during the event that includes research on Austin's demographics and leasing, plus a mid-year review and a Buy vs. Rent Index Addendum.

Dr. Clare Knapp provides insights into the housing market for the second half of 2024, predicting mortgage rates to remain in the mid to high 6 percent range. She notes a balanced market with substantial inventory but relatively stagnant sales activity. Sellers are encouraged to negotiate with buyers to facilitate transactions, as many buyers are unwilling to pay the original list price. June housing stats are anticipated to show a significant decline in sales, with prices remaining flat and active listings increasing.

The conversation also touches on the labor market, which is experiencing a slowdown in job growth. This trend is expected to impact the housing market as employment changes affect household demographics and homeownership status. Despite the challenges, both Emily and Dr. Knapp emphasize the importance of realistic pricing and the need for sellers and buyers to find common ground to close deals. The podcast concludes with a reminder to stay informed and adapt to market trends for continued success in the real estate industry.

Download an episode transcript here: https://www.abor.com/content/uploads/2024/07/DIH-7-2-24.pdf

Links Mentioned

ABoR Research - https://www.abor.com/research

Buyer’s Agent Portfolio - https://www.abor.com/content/uploads/2024/06/2024-Buyers-Agent-portfolio-ABoR-Unlock-MLS.pdf

Listen On:

Apple: https://podcasts.apple.com/us/podcast/driving-it-home-with-abors-housing-economist/id1714289732

YouTube: https://www.youtube.com/playlist?list=PLzH_caxJ3VPq5iExWilqZOahnREgSFgqC 

Connect with us on socials: https://www.abor.com/socials

Connect with Dr. Clare Knapp on LinkedIn: https://www.linkedin.com/in/clare-losey 

Have feedback? Email us at [email protected].

In this episode of Driving It Home, Dr. Clare Knapp co-hosts with ABoR Deputy Director of Government Affairs, Taylor Smith. The two dive into the HOME Initiative, which aims to address housing affordability in Austin with two phases: first is to allow three units by right on all residential lots (approved December 2023) and second, to reduce minimum lot size from 5,750 to 1,800 square feet (approved May 2024). Dr. Knapp explains that these changes will likely lead to a decrease in the price of new homes by reducing land costs and the square footage of homes, potentially cutting home prices by up to 54%.

Dr. Knapp further elaborates on the broader impact of the HOME Initiative on overall home prices in Austin. While the initiative should reduce upward pressure on home prices, strong demographic fundamentals will likely continue to drive demand and price increases. Therefore, the initiative is expected to moderate the rate of price increases rather than cause an outright decrease in prices. Taylor and Dr. Knapp also discuss the importance of the development review process and development fees. Delays and high fees in this process can significantly affect housing affordability by increasing costs that are ultimately passed on to consumers.

The conversation wraps up with Taylor emphasizing the ongoing efforts at ABoR to improve the development review process and advocate for more efficient and cost-effective practices. He invites listeners to join the advocacy efforts and highlights the importance of continual improvements in housing policies to ensure affordability.

Links Mentioned:

ABoR Research - https://www.abor.com/research

Impact of Minimum Lot Size on Housing Affordability - https://www.abor.com/content/uploads/2024/04/The-Impact-of-Minimum-Lot-Size-on-Housing-Affordability-April-2024.pdf

This week's episode transcript: https://www.abor.com/content/uploads/2024/06/DIH-6-25-24.pdf

Listen On: 

Apple: https://podcasts.apple.com/us/podcast/driving-it-home-with-abors-housing-economist/id1714289732

YouTube: https://www.youtube.com/playlist?list=PLzH_caxJ3VPq5iExWilqZOahnREgSFgqC 

Connect with us on socials: https://www.abor.com/socials

Connect with Dr. Clare Knapp on LinkedIn: https://www.linkedin.com/in/clare-losey 

Have feedback? Email us at [email protected].