The Austin American-Statesman reports that average Travis County home appraisals rose an average 3.8% this year – still an increase, but the smallest in five years. How real is this? Reporters asked local real estate consultant Charles Heimsath, who noted that appraisals are based on the previous year’s sales, and in 2008 most sales occurred while prices were still trending higher. However “next year, the appraisals will reflect the lower home values that people are currently experiencing.”
So while appraisals are higher now, sales prices for homes are actually dropping. This is all very localized, depending on the neighborhood.
If you’re selling your home, be sure you get complete information on trends for the area and your specific neighborhood. You don’t want to be chasing the market down. And you want to catch it when it starts trending up again.
If you’re a buyer, be sure to review market data before making your offer. Even though a home is more than just numbers, you want to make a wise financial decision.