Austin Housing Market: Prices Drop 2.8%, Inventory Shortage Remains
It's important to note that while median home prices in Austin have reportedly dropped by 2.8%, the monthly inventory has only increased by 0.2 months, bringing it to 3.2 months of inventory. Considering that the industry standard is 6 months of inventory, this indicates continued growth and a persistent need for more housing in Austin.
The reduction in median sales prices, both in Austin (-2.8%) and surrounding areas such as Hays (-11.8%) and Travis (-3.3%), suggests that Austin is still gradually finding its post-pandemic footing.
Sellers: Strategize for Success in a Changing Real Estate Landscape
In my previous post, I emphasized the importance of thoroughly enhancing, repairing, and staging your listing before entering the market. This advice remains relevant as we step into 2024. While there are positive indicators such as a 4.3% increase in residential homes sold and rising pending sales across most counties, except for Travis which experienced a 4% decline, it's crucial to acknowledge the heightened competition. Active listings have surged by 7.7% in Austin, with Travis up by 4.3% and Caldwell county showing a significant increase of 36.9%. Despite some surrounding cities like Hays and Bastrop experiencing declines of 1% and 3.8% respectively, there's a slight uptick in months of inventory in these areas.
Additionally, it's noteworthy that according to Kent Redding, Unlock MLS and ABoR President, "January marks the fifteenth consecutive month of year-over-year median sales price declines in the Austin - Round Rock housing market." While the market appears to be stabilizing, setting the right list price remains crucial, tailored to your specific needs as a seller. Achieving the optimal value for your property will necessitate employing different strategies based on factors such as your home, land, and location.
Buyers: Navigating a Balancing Market While Searching for Opportunity
Buyers currently hold negotiating power, aided by favorable market conditions and climate. However, it's worth noting that the market is exhibiting signs of increased activity. Pending sales have risen in every county except Travis, which experienced a slight decline of 4%. This uptick indicates active buyer participation in the market as we head to spring.
At Wagner Real Estate, we observed a similar trend among our buyers. Well-staged and appropriately priced properties often attracted multiple offers and sold quickly. Conversely, properties requiring renovations or lingering on the market for extended periods presented opportunities for negotiation power and incentives.
Investors: Seizing Opportunities in Surrounding Austin Cities'
Neighboring cities offer prime opportunities for residential investors. With Austin's rise as a top U.S. city, surrounding areas remain both popular and more affordable. Properties in these areas should yield a more steady rental income and show stable value trends, especially for homes priced around $300,000. Affordable housing in this price range continues to be difficult to come by.
Additionally, commercial properties between Austin and smaller cities can be sound investments. As these areas grow, so does the infrastructure, enhancing commuting for both business and enjoyment, and bolstering commercial property value. Look for the roads that connect smaller towns and cities exiting/entering Austin to continue to flourish.
All data used in this article was provided by Unlock MLS and can be found here: