Market Update: What's going on in Austin's real estate market?

Welcome everyone, today we are digging into an Austin real estate market update. I have some interesting data, provided through Realtors Property Resource®, to share with you that will clear the cobwebs on current market trends and help you make informed decisions. Let's dig right in!

First, let's talk about the months supply of inventory, which stands at 4.51. This metric indicates the number of months it would take for all of the homes on the market to sell if no additional homes were listed for sale. A lower number suggests a seller's market, where demand exceeds supply, resulting in potentially higher prices and quicker sales. You may get different answers depending on who you ask, but if there is 7+ months of housing inventory, it is considered a buyer’s market. If there is 5 months, or less, it’s considered a seller’s market. Anything in between is a neutral market. So, although it may seem like a buyers market when you compare today to early 2022, when there was less than one months supply of inventory, the current inventory suggests it is still a sellers market.

Months Supply of Inventory

The 12-month change in months of inventory shows an increase of +36%, meaning there has been a notable uptick in the supply of homes available for sale, and corresponds with the increase in the months supply of inventory. This increase could be due to various factors such as new construction, a decrease in demand, or a combination of both.

Moving on, we have the median days homes are on the market, which stands at 39. This metric provides insight into the average amount of time it takes for a home to sell. A lower number suggests a highly competitive market, where well-priced and desirable properties tend to sell quickly. On the other hand, a higher number might indicate a more balanced market, allowing buyers more time to consider their options. Since 2019, the median days on the market has ranged between 6 days and 76 days.

Next up is the list-to-sold price percentage, which sits at an impressive 97%. This metric represents the percentage of the listing price that sellers ultimately receive - meaning that homes are selling for 97% of the listing price on average. For sellers, this means that you can still benefit from the 66% increase in the median sold price that single family homes in Austin have experienced since January, 2019. The median sale price in January, 2019 was $359K and is currently $595K (chart below). And for buyers, 3% in negotiating power can be used in creative ways financially, so talk to a local lender about how you can potentially lower your monthly mortgage payments and combat current interest rates. Keep in mind, this data does not always account for price drops, so homes may be selling for less than 97% the original listing price, if the listing price was decreased while the home was on the market.

Median Sold Price

So, what do all these metrics tell us? The increase in the supply of homes over the past year suggests more options for buyers to choose from, while the median days on the market indicate a relatively quick turnover for sellers. Additionally, the list to sold price percentage suggests that sellers are receiving offers close to their asking prices. Buyers, you may find more choices and potentially negotiate better deals in this market. Sellers, although there is healthy demand, it's important to price your property competitively to ensure a swift sale.

In conclusion, armed with this data, both buyers and sellers can navigate the real estate market with confidence. Remember to consult with a knowledgeable real estate professional who can provide you with personalized advice based on your specific needs and goals. Happy buying and selling!