Austin Housing Trends 2024

Statistics: While we're well aware of the challenges with low housing inventory and high mortgage rates, the reality is: people are still buying and selling homes every day. What’s interesting is, the top reason for moving is to be closer to family. Let me just share a few stats with you: in the last two years, 3 million couples got married, 7 million babies were born, and another 7 million individuals reached retirement age and all want to be closer to their families. So when rates drop, which it already has and I’ll talk about it in a minute, there will be a lot of moving going on. 

Austin Market Update: The Austin Board of Realtors released the January stats. Overall home sales saw a 4 percent uptick year over year and that was attributed to the drop in mortgage rates in November and December last year. Do you remember when rates peaked at 7.8 percent in October? Unfortunately, when inflation gets out of control, the Feds’ typical response is to increase interest rates and constriction of the economy.  

Fortunately, it went down to the mid-6-ish range in November and December providing the market with the boost we needed to kick off the new year on a positive note.

Now, due to the affordability hit caused by elevated mortgage rates, we did see a 4 percent dip in the median sales price throughout the Austin-Round Rock-Georgetown Metropolitan Statistical Area. As a reminder, the Austin-Round Rock-Georgetown MSA comprises the City of Austin and 5 counties: Travis, Hays, Caldwell, Bastrop and Williamson.  But here's the interesting part – the total sales dollar volume remained pretty much the same. Even though there was a drop in the median price, the increase in sales activity leveled things out. 

Home Sellers: That said, sellers saw an opportunity when rates started to come down which led to more listings.  Additionally, they were pricing their homes more accurately from the start.  That meant we saw less price reductions because the close-to-original list price ratio increased by about 7%.

Now, if you are considering selling your home here in the Austin metro area and you’re not already working with a real estate agent, you and I need to connect.  Here’s why – we need to nail down the right price for your home. Let my expertise guide you through the nuances of our market, your specific neighborhood and even your home's condition.  Pricing your home at the right price is crucial.  All my contact information is on the screen and I can’t wait for us to chat. 

Home Buyers: Experts aren’t projecting any rate hikes, but it seems the Feds are keeping rates on the higher side for a bit longer, hanging around the mid to high 6% range. If you’re thinking,”Gosh, I guess I can’t buy a house right now. Mortgage rates are too high.”  Don’t be too quick to throw in the towel.  Give me a call.  When you work with me, we'll strategize a plan tailored just for you and I work with fantastic lenders! They have a track record of helping my clients get to the closing table in today's market.  Give me a call - my number is on the screen.

Alright, that’s your market update for this month.