Austin Real Estate Market Analysis - February 08, 2024

by: Team Price Real Estate, Unmatched Agents, Unrivaled Insights
Published on: Thursday, February 08, 2024 at 2:52pm

Updated Market Overview: The real estate landscape in the Austin area has undergone subtle yet notable changes over the past year. Looking at the Austin-Area MLS, the total number of active listings slightly decreased from 9,976 in 2023 to 9,966 in 2024, marking a marginal decrease of 0.1%. However, there has been an increase in the Months of Inventory, rising from 2.98 months to 3.53 months, indicating an 18.4% uptick. These figures suggest a slight easing in the market, with a modest decrease in available properties but a longer duration for inventory turnover.

Pricing Dynamics in Austin Real Estate: Across the board, pricing in Austin real estate has adjusted. The average active listing price in the Austin-Area MLS saw a decline of 1.4%, settling at $554,103, while the median active listing price decreased by 2.4% to $439,000. Similarly, the average sold property prices experienced a downturn, with a 1.3% dip to $532,305 and a 2.5% decrease in the median sold price to $425,000. These adjustments reflect a market that is recalibrating in response to various factors influencing buyer and seller behavior.

City and Regional Dynamics: Within the City of Austin, there has been a 4.8% increase in total sales, from 2,544 to 2,666 properties, indicating continued demand. However, the Months of Inventory has seen a significant jump of 44.2%, from 2.20 months to 3.18 months. Additionally, the average active listing price in Austin decreased by 6.3%, suggesting a shift towards more competitive pricing. The median active listing price also experienced a notable decline of 7.7% to $549,000. These changes highlight unique dynamics within the city, with adjustments in both sales volume and pricing.

Central Texas Cities and Zip Code Analysis: Analyzing Central Texas cities, 40% reported month-over-month price increases, while 57% experienced decreases. Looking at year-over-year data, 47% of cities witnessed price increases, with the remaining 53% seeing declines. Similarly, among the 75 zip codes within Central Texas, 37% observed month-over-month price increases, and 40% saw year-over-year increases. These findings suggest localized variations in market conditions across the region.

Sales vs. List Price Analysis: The current sales-to-list price ratio stands at 96.99%. Among properties sold this month, 71.92% sold under the list price, while 19.24% sold at the list price, and 8.83% sold over the list price. These figures indicate a market where buyers often negotiate prices down from initial listings, though a notable fraction still achieves or surpasses their asking price.

Peak Value Analysis: Austin-Area MLS: Reflecting on peak values, several key metrics have decreased from their peaks in the past 12 months. In March 2023, the average list price peaked at $710,416, experiencing a decrease of $38,077 or 5.36% from its peak value. Similarly, the median list price reached its peak in May 2022 at $539,900, showing a decline of $64,900 or 12.02%. The average sold price also peaked in May 2022 at $664,515, seeing a substantial decrease of $112,766 or 16.97% from its peak value. Additionally, the median sold price reached its highest point in May 2022 at $538,000, showing a decline of $89,250 or 16.59%. Moreover, the average sold price per square foot peaked in April 2022 at $324, but has since decreased by $60 or 18.52% from its peak value. Similarly, the median sold price per square foot reached its peak in April 2022 at $280, experiencing a decline of $47 or 16.79%.

Peak Value Analysis: City of Austin: Analyzing peak values within the City of Austin, several metrics have experienced declines from their respective peaks. In March 2023, the average list price peaked at $935,239, showing a decrease of $38,282 or 4.09% from its peak value. Similarly, the median list price reached its highest point in May 2022 at $658,589, seeing a decline of $68,589 or 10.41%. The average sold price also peaked in May 2022 at $847,583, experiencing a substantial decrease of $183,208 or 21.62% from its peak value. Additionally, the median sold price reached its highest point in May 2022 at $680,000, showing a decline of $161,276 or 23.72%. Moreover, the average sold price per square foot peaked in May 2022 at $442, but has since decreased by $116 or 26.24% from its peak value. Similarly, the median sold price per square foot reached its peak in April 2022 at $393, experiencing a decline of $101 or 25.70%. These figures highlight significant adjustments in property values within the City of Austin, indicative of evolving market dynamics and buyer trends.

The following report, with over 570 pages, dives deep into every facet of the Austin real estate market, focusing on market cycles, affordability, and interest rates, providing essential insights for informed decision-making. Team Price Real Estate, with its expertise and data-driven approach, continues to uphold its commitment to "Where Experience Meets Insight," delivering exceptional service in the Austin real estate market.