Austin "NOW” In A Buyers Housing Market

Austin Housing Market Update: Is it Finally a Buyer’s Market?

The latest Austin housing market statistics have just been released, bringing a mix of intriguing data and insights. With so much noise and varying opinions out there, it's essential to dig into the actual numbers and understand what they mean for both buyers and sellers in Austin. Today, I’m going to break down these stats for you, and provide some clarity on the current state of our market.

Understanding the Data

Firstly, it’s important to note that Texas is a non-disclosure state, which means accurate sold data can be hard to come by for those not directly involved in the market. This often leads to skewed figures in articles from sources like Redfin and Realtor.com, as they don’t have access to all the closed data. 

Median Home Price: As of the latest report, the median home price in Austin stands at $593,000. This represents a 21% decrease from the market's peak during the pandemic but an overall increase of 38% from previous years. Despite the negative year-over-year figures reported by some sources, Austin’s city proper has actually seen a 6% increase in home prices year-over-year.

Inventory Levels: One of the most significant changes in the market is the increase in inventory. We currently have 5.4 months of inventory, up 52% from last year. This influx has led some to question whether we are now in a buyer’s market.

Sales Volume: Contrary to what you might expect with higher inventory, closed sales volume is up 33% compared to 2023. Pending sales are also up by 18.7%, indicating strong buyer interest despite the growing inventory.

Days on Market and Active Listings: The average days on market has risen to 13 days, and active listings are up 75%. This suggests that while homes are taking slightly longer to sell, the market is still moving, with a notable portion of inventory selling under $500,000.

Buyer and Seller Challenges

For Sellers: Sellers are facing a unique set of challenges in today’s market. Homes that are priced correctly and are move-in ready tend to sell quickly. However, many sellers are holding onto price expectations from 2021 and 2022, leading to longer times on market for overpriced homes. Sellers might need to consider pricing more competitively or offering concessions to attract buyers.

For Buyers: Buyers, on the other hand, have more options than before, thanks to the increased inventory. While interest rates remain a concern, there are strategies to mitigate this, such as negotiating closing costs or taking advantage of price reductions. Multiple offers are still occurring, but they are not as intense as they were a couple of years ago.

Closed to List Price Ratio: An interesting statistic is the closed to list price ratio. Currently, this ratio is at 95.3%, almost identical to last year’s 95.4%. This indicates that homes are selling very close to their listing prices, suggesting a stable market despite increased inventory.

Market Sentiment: The sentiment among home builders has recently dropped, and interest rates have dipped below 7% for the first time in two months. These factors could influence market activity in the coming months, potentially heating up buyer interest.

The Austin housing market is in a state of flux, with significant changes in inventory and buyer activity. While it may not be a full-blown buyer’s market yet, it is certainly more buyer-friendly than in recent years. Sellers need to be realistic with their pricing, and buyers have more negotiating power and options.

What do you think? Are we in a buyer’s market? 

Drop a comment below with your thoughts and experiences in the current Austin housing market. Let's discuss!

Feel free to reach out if you have any specific questions or need further insights into the Austin housing market. I'm here to help!