Austin's Housing Market Report for October 2023

In October, the Austin housing market experienced key shifts, presenting both opportunities and challenges for buyers and sellers. Despite a 7% year-over-year drop in the median home price to $435,000, residential home sales increased by 4%, suggesting a market where buyers have more bargaining power.

Let's explore the main points from the October 2023 Austin real estate market:

Increased homes for sale – The number of homes for sale increased by 5% compared to the previous year, giving buyers a broader selection.

Extended time on market – Homes now stay on the market for an average of 68 days, up by 3 days from the previous month and 21 days longer than a year ago. Tip: For sellers, patience is crucial. Pricing correctly and presenting the home well are essential for attracting buyers.

Decline in new listings – New listings decreased by less than 1% compared to last year and 12% from the previous month, a trend we typically see in the late fall months.

Shift in buyer demand – Buyer demand dipped 2% from last month, indicating slightly less competition. However, compared to last year, 12% more homes went under contract.

Fluctuating home sales – Home sales increased by 4% compared to last year but decreased by 2% from the previous month, showing a return to normal seasonality.

Housing supply and inventory – Housing supply currently sits at 3.9 months. This time last year, housing inventory was at 3.2 months.

Current market snapshot – Currently, there are over 11,000 homes for sale, with more than 5,000 homes seeing a price reduction in the last month. The median home sale price decreased by 7% compared to the previous year, now at $435k. Pricing the home correctly is imperative to avoid potential price reductions.

2024 Housing Market Forecast

Experts from Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors predict a rise in home prices, emphasizing real estate as a sound investment. Increased sales activity offers optimism for potential home buyers. Monitoring supply and demand, mortgage rates, and potential price pressures are key. The housing market is still normalizing, and as we get closer to the end of the year, teaming up with my Team is the best way to succeed in this market.

Housing Market Resilience Amid Rising Rates

“Year-over-year comparisons show an upward trend in sales activity. Assuming stable mortgage rates, modest year-over-year gains in home sales are likely in early 2024,” noted Tom Thornton, Agent Success Manager at Realty Austin Compass.

Changes in mortgage rates significantly impact the buying and selling dynamics. The Federal Reserve's decision to maintain rates provides a more predictable borrowing environment for home buyers. 

Housing Supply Growth This Year

Housing supply grew 44% from the beginning of the year. Factors such as mortgage rate fluctuations, normal seasonality, and demand dynamics contribute to the ebb and flow of inventory.