Austin Home Prices Just Got Worse!

Austin Housing Market in November: Vindicated by the Numbers

Remember when everyone predicted doom and gloom for Austin real estate? Turns out they were wrong. The Austin MSA (Metropolitan Statistical Area) saw home prices increase by 2.4% year-over-year, with the median price now sitting at $435,000. Within the city of Austin itself, prices climbed 2%, reaching $573,000.

Closed sales in October surged by a staggering 99.2% year-over-year, showing that buyers are returning to the market in droves. Pending sales in November also jumped 29.7%, signaling strong buyer demand. Despite these gains, homes in Austin are still selling about 7% below list price on average, presenting opportunities for savvy buyers.

Why Now Might Be the Best Time to Buy

Fannie Mae forecasts that 30-year mortgage rates will hover between 6.4% and 6.7% in 2024. While affordability remains a challenge for many, rates have shown some stabilization, encouraging buyers to re-enter the market. Historically, December and January are the best months to score a deal before prices start climbing again in the spring.

Additionally, 62% of homes in the Austin MSA are selling for under $500,000, with new construction making up 37% of those sales. If you’re looking for a home in this range, now is the time to act.

The 2025 Housing Market Outlook

According to Fannie Mae, national home sales are projected to increase to 4.25 million in 2025, up from 4.06 million in 2024. However, price growth is expected to slow, with national home prices forecasted to rise by 3.6%, compared to 5.8% in 2024.

For Austin, the biggest factor influencing the market will be inventory. While more homes are expected to hit the market in early 2025, demand remains strong, especially as buyers and sellers adjust to the “new normal” of mortgage rates above 6%.

Key Insights for Sellers

If you’re planning to sell, now’s the time to strategize. With 51% of homes selling under $435,000, pricing your home competitively is crucial, especially if you’re in a market with significant new construction competition. Buyers are increasingly price-conscious, and working with a knowledgeable Realtor can help you maximize your sale.

What’s Next for Austin?

The Austin housing market continues to demonstrate resilience, driven by strong demand and a stabilizing rate environment. If you’re a buyer, seller, or investor looking for personalized advice, don’t hesitate to reach out.

Have questions about specific neighborhoods or want to know where prices are appreciating the fastest? Drop a comment below or reach out directly. And if you found this update helpful, be sure to share it with your friends—it might just help them make their next big move!

What do you think about the current market? Let’s keep the conversation going in the comments. Stay tuned for more updates, and as always, I’m here to help you navigate Austin real estate!