Autsin/Central Texas Housing Market Report for June 2024

In the first half of 2024, the Austin-Round Rock-San Marcos housing market has seen a 1.8% decline in residential home sales compared to the first half of 2023, with the median price dropping slightly to $450K. However, new home listings have surged by 15%, and active listings have increased by 15%, providing buyers with more options. Despite a slight dip in the total dollar volume of homes sold, the market remains dynamic, with pending sales up by 1.6% more than the first half of 2023. These shifts highlight the importance of staying informed and adapting strategies for buyers and sellers in this evolving market.

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

Home prices decline — Median home prices decreased by 2% from last month and showed a 6% decrease compared to last year.
Time on the market increases — Homes are now on the market for an average of 65 days, up 8 days from last month and 2 days from last year.
Buyer demands slows— Pending sales decreased by 2% compared to last year and 5% from last month.
Home sales decline — Home sales decreased by 13% compared to last year and by 7% from last month.
Housing supply and inventory — Housing supply stands at 5.0 months, up from 3.7 months last year.

 Forecasted Decline in Mortgage Rates Is Good News

The 30-year fixed-rate mortgage fell to its lowest level since mid-March, dropping 12 basis points from last week, now at 6.77% according to Freddie Mac as of July 18. Mortgage rates are headed in the right direction and the economy remains resilient, two positive incremental signs for the housing market. 

Why Time in the Market Matters More Than Timing It

According to the Fannie Mae Home Price Expectations Survey, home prices will continue rising by 3-4% annually through at least 2028. This reinforces the importance of entering the market now to benefit from long-term appreciation.

What to expect in Austin's Housing Market

As we enter the second half of 2024, the Austin Real Estate Market is expected to see seasonal declines in activity and pricing. Buyers and Sellers should anticipate slower demand. Home prices should continue to decline as remaining inventory increase.

For those who are considering buying a property, now can be a favorable time to enter the market. With more inventory available, you have a better chance of finding a home that meets your needs without the intense competition seen in previous months. Mortgage rates, while higher than historic lows, remain relatively stable, providing a window of opportunity to lock in a reasonable rate before any potential future increases. 

If you are contemplating selling your property, the market still offers advantageous conditions. While price appreciation has moderated, home values remain strong. Increased inventory means more competition, so pricing your home correctly and making any necessary improvements to enhance its appeal can help attract serious buyers. 

If you are considering Buying or Selling in Austin/Central Texas, there can be benefits for both sides, the current market conditions present opportunities that, with the right approach and guidance, can lead to successful real estate transactions. Should you consider buying or selling, I'd love to learn your story to where we can understand your situation and create a roadmap that can lead to your success.