May 2024 Housing Report for Austin, Texas

In May, the Austin-Round Rock-Georgetown area saw its highest housing inventory in 13 years, offering buyers more options and the ability to be more selective. However, higher mortgage rates have balanced the market, impacting buyers' purchasing power. Sellers are navigating a complex market where strategic pricing and understanding buyer behavior are more crucial than ever as home prices remain flat and housing inventory rises.

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

Home prices maintain — Median home prices decreased by 2% from last month and showed a less than 1% decrease compared to last year.
Time on the market decreases — Homes are now on the market for an average of 57 days, down 11 days from last month and eight days from last year.

New listings surge — The number of new homes hitting the market increased by 2% from last month and 16% compared to last year, providing buyers with more options in today’s market.

Slight shift in buyer demand — Pending sales decreased by 2% compared to last year and 6% from last month.

Home sales up MoM — Home sales decreased by 12% compared to last year; however, closed sales increased by 9% from last month.

Housing supply and inventory — Housing supply stands at 4.9 months, up from 3.4 months last year.

Current market snapshot — Over 12,000 homes are for sale, selling for 95% of their original listing price. 

Austin's Record-High Housing Inventory and Its Impact on the Market

The Austin housing market has reached a 13-year peak, with inventory levels climbing to 4.9 months, up from 3.4 months just last year. This surge in available homes signifies a shift towards a buyer's market, giving potential buyers a wider selection and more negotiating power. On the other hand, sellers may need to adjust their strategies to stand out in a more competitive landscape. 

Mortgage Rates Cool Down

As of June 24th, mortgage rates for a 30-year fixed home loan are 7.02%, down from 7.05% the previous month. The Federal Reserve made efforts to maintain stability, and mortgage rates are slowly decreasing. Fannie Mae predicts a gradual market improvement in the year ahead, with mortgage rates averaging 6.7% at the end of 2024. Despite this slight decrease, the market remains largely unchanged as we transition from spring to summer, with home prices and housing stock levels holding steady. 

Home Prices and Market Stability

In May, the Austin housing market saw a slight decrease in median sales prices, reflecting less than a 1% drop year over year. This minor change suggests a stabilizing market, where pricing strategy becomes crucial for sellers aiming for an effective sale.

Why Your Home's Asking Price Matters

Your home's asking price can significantly impact your bottom line and how quickly it sells. Setting the price too high may deter potential buyers while pricing it too low can result in a potential profit loss. Therefore, it is important that my team and I are able to work with our sellers to establish a competitive price that will attract potential buyers while maximizing a high return.

If You’re Buying This Summer

Late spring and summer are popular times for buying homes. These seasons usually see more buyers, increasing competition, and more sellers listing their homes. Working with us is critical during this busy time. We will help you stay updated on new listings, make strong offers, and understand the true value of homes.

If You’re Selling This Summer

This season presents opportunities because many buyers are eager to move before the new school year starts. With higher inventory levels, being an experienced agent, I can help guide you through effective marketing and pricing strategies to achieve your goals. We can help navigate offer contingencies and negotiations, ensuring your home is well-presented and priced correctly for faster sales and higher offers.

Conclusion

Having a dedicated Real Estate Agent is crucial. There are numerous complexities that can and will happen during buying or selling property. That is why we understand the market to where we can be proactive, and work to avoid any complications. Therefore, if you are thinking about purchasing or selling, we will love to learn your story. We are here to serve, provide accurate information to help you get the most out of your investment.