Clearly, the biggest opportunity in this slow down is for cash buyers. The next best opportunity for buyers in general to finally have a chance to find the perfect house and not have fight twenty offers and bid-up prices. During the craziness of 2021, I had a nice listing in Southwest Austin. The ultimate buyers offered $10,000 option, $100,000 earnest money, and more than $100,000 over asking. As I write this, an MLS search now finds 12 houses for sale in Shady Hollow. So, I pose this question: Would you rather have a house that is a perfect fit at a reasonable price but 7% interest, or a nice (but not perfect) house that cost a buyer premium of $100,000 at 3 ½%?
Along that line: Circle C Ranch has 16 homes for sale, Great Hills 11, River Place 16, and Milwood 44! Buyers finally have choices again!
Now to finish my story. My friend commented that our buddy was smarter because he waited until rates came down before he built his house. Our buddy, a real estate lawyer, disagreed, and his reasoning is worth considering. “No.” He replied. “You were the smart one. You built when rates were high and house prices were depressed. I built when rates were low and house prices were high. You can refinance when rates drop, but I cannot buy my house any cheaper.”
I often think about the famous Warren Buffet quote that wise investors should be “fearful when others are greedy, and greedy when others are fearful.” Maybe not greedy exactly, but opportunistic