Austin Housing Market Report for March 2024

In March 2024, the Austin area experienced a 10% increase in new home listings from the previous year. According to the Central Texas Housing Report, this uptick has led to several regional markets boasting four months of available inventory. This provides more options for home buyers and helps stabilize prices. Sellers benefit from increased confidence in the market, with more opportunities to sell their properties at fair values.

Let's take a closer look at the latest trends and what they mean for you:

Home price trends – Median home prices increased by 1% from February to March and showed no change from last year.
Time on the market – Homes are now on the market for an average of 80 days, down by three days from last month and showing no change from the previous year.
New listings surge - New homes hitting the market increased by 20% monthly and 10% annually, providing buyers with more options in today’s market.
Increased buyer demand – Pending listings increased by 9% compared to last year, indicating heightened demand.
Rise in home sales – Home sales decreased slightly compared to last year but increased by 19% from last month.
Housing supply and inventory – Housing supply stands at 3.8 months, up from 3.1 months last March.
Current market snapshot – Over 9,000 homes are for sale, selling for 94% of their original listing price.

Where are home prices headed this summer?
“Home prices typically peak in June, driven by optimal inventory and demand,” said John Coake, Vice President of Sales at Realty Austin Compass. “Home prices aren’t falling, they’re rising, just at a slower pace. In the long run, waiting to purchase a home may cost you more.” 

The surge in new listings provides more options for buyers and helps stabilize prices. Additionally, the rise in pending listings reflects continued buyer interest. Despite a slight decrease in year-over-year home sales, the current housing supply suggests a balanced market with potential for price growth amidst strong demand.

Fannie Mae Reports Positive Outlook for Home Buying and Selling
Fannie Mae's latest report reveals encouraging sentiments among consumers regarding home buying and selling opportunities, maintaining a positive trajectory in March. Indicators for a "good time to buy" and a "good time to sell" continued to rise steadily, suggesting growing confidence in the housing market. 

With an increase in the inventory of homes growing each month, this creates better opportunities for me and my team to negotiate concessions to help the buyer get a better deal in the forms of cash to help lower closing costs, a rate buy-down, and other types of incentives for the buyer.

Should You Wait for Mortgage Rates to Lower?

While experts say rates will come down, current mortgage rates are above 7%. The robust American economy indicates that short-term interest rates will likely remain high. As people seek new opportunities or require more space, they realize there may be more practical options than waiting for better mortgage rates. This shift in perspective is evident in the increasing number of homeowners considering moving despite higher rates. 

“Looking ahead, mortgage rates are unlikely to drop soon. So, it's all about making smart choices based on your situation instead of hoping for better rates,” shared Tom Thornton, Agent Success Manager at Realty Austin Compass. “For homebuyers waiting for lower mortgage rates, it's important to note that even slight rate decreases could spur increased demand, leading to reduced inventory and heightened competition in the market.”

Texas Home Financing Trends: What Buyers and Sellers Should Know

According to the latest Texas Residential Mortgage Survey (TRMS), Texas sees a positive trend in home financing, with optimism among industry experts reaching new heights. Despite challenges like fluctuating mortgage rates, the Texas housing market remains relatively strong due to its robust economy and lack of state income taxes. This trend suggests improved opportunities for home buyers, who may find more options for loans and purchasing homes, and sellers, who may benefit from increased buyer activity in the market.

Exploring Newly Built Homes: A Solution for Homebuyers

In today's competitive housing market, finding the perfect home within your budget can be challenging. Newly built homes emerge as a promising solution. Unlike existing homes in short supply, newly constructed properties offer a fresh inventory for buyers to explore. This uptick in new home construction provides more choices for homebuyers, whether seeking move-in ready homes or wanting to customize their build. Additionally, builders offer incentives such as mortgage rate buy-downs, making new homes more affordable and appealing.

Your Moves Inspire

At Realty Austin Compass, your moves inspire my team and I to serve as invaluable guides throughout your real estate journey, alleviating complexities and always advocating for your best interests. We will navigate market trends, decode pricing dynamics, review contracts, and leverage negotiation skills to ensure you can make an informed decision and secure a favorable outcome. If you are thinking about making the move, we will love to learn about you and your real estate goals to where we can create a roadmap and timeline that applies to your goals.