By: Kaitie Moore Underwood | REALTOR®, Blue Collar Commercial Group


Real Estate in a Nutshell The Federal Reserve’s decision to maintain current interest rates while forecasting robust economic growth has stirred the real estate market. Mortgage rates are hovering near recent peaks, and transaction volumes are tapering off, yet home prices continue to climb in most areas.

Builder confidence has dipped for the second consecutive month, with the Housing Market Index falling below 50, signaling bearish sentiment for the first time since December 2022. Housing starts saw an 11% month-over-month decrease in August, with single-family home starts only dropping by 4%. Existing home sales for August dipped slightly month-over-month, but median sales prices are up by nearly 4% year-over-year.


Understanding Buyer Barriers A recent survey by the National Association of Realtors (NAR) sheds light on the challenges prospective homebuyers face. The top reasons for delaying a home purchase include an inability to find affordable homes (34%), waiting for mortgage rates to drop (18%), and hoping for lower prices (9%). Over 25% of respondents are banking on market changes, but home prices are steadily rising across the board.

Saving for a down payment can be a hurdle for many, with 28% citing credit card debt and car loans as hindrances. Homebuyers in this situation may benefit from discussing debt consolidation strategies with lenders, potentially saving on overall interest payments.


Realtors Confidence Index While confidence among Realtors is dwindling, competition in the market remains fierce. Only 11% of surveyed Realtors anticipate an increase in buyer traffic over the next three months. The homes listed for sale continue to attract high levels of competition, with 72% selling in less than a month, and 31% selling above the listing price in August.


Fed’s Take The Federal Reserve has maintained current interest rates, with the federal funds rate targeted between 5.25% and 5.50%. Although this marks the second time rates have remained unchanged this year, Fed Chairman Jerome Powell has given no indication of a rate freeze. While the economy is growing solidly, inflation remains a concern. The median forecast for the end of 2023 is 5.6%, implying another rate hike before the year ends, with a forecast of 5.1% for the end of 2024, suggesting the possibility of two rate cuts in 2024.


Mortgage Market Following the Fed’s decision, average 30-year mortgage rates are nearly at recent highs of 7.49%. Lower mortgage rates would enhance both affordability and availability, benefiting both buyers and sellers in the real estate market.


In Closing In a real estate market marked by shifts and uncertainties, staying well-informed is your greatest asset. A good Realtor, like those that make up the Blue Collar Commercial Group, will empower you and help you to understand buyer obstacles, market trends, and the influence of economic factors. As the landscape continues to evolve, let us be the compass that guides you through these changes.


(Source: Scott Bradley Brixon of Keeping Current Matters)

Your Partners in Commercial Real Estate Success

At Blue Collar Commercial Group, we don’t just work in the Texas Hill Country commercial market—we live here. Our deep-rooted understanding of this unique market, combined with our unmatched expertise in commercial real estate, positions us as your ideal partner for navigating the complexities of office space selection.

From identifying your perfect office space to closing the deal with confidence and ease, our team of seasoned commercial real estate professionals is dedicated to guiding you every step of the way.

Ready to make your mark in the Texas Hill Country commercial real estate landscape?

Contact Blue Collar Commercial Group today. Let us empower you with the insights, resources, and personalized support needed to turn your commercial real estate aspirations into reality.

Reach out to us now and embark on your journey toward commercial real estate excellence in Texas Hill Country.

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About the Author: Kaitie Moore Underwood

Kaitie Moore Underwood
Kaitie Moore Underwood's roots in competitive rodeo in Texas intertwined with her academic pursuits at the University of Houston, where she met her husband, Hank. Their move to the Hill Country in 2021 marked the beginning of both their family and Kaitie's successful career in real estate, assisting 18 families in her first year. With a background in the hospitality industry, recognized for her service excellence by the Starwood Hotel Sales Organization, Kaitie has honed her skills in financial analysis, strategy, and marketing. Now, as a pivotal member of the Blue Collar Commercial Group, she continues her professional ascent, consistently exceeding expectations through her dedication to relationships and solutions.

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