Austin Real Estate Market Analysis - December 21st 2023 Update

by: Team Price Real Estate, Unmatched Agents, Unrivaled Insights
Published on: Thursday, December 21, 2023 at 12:45pm

Welcome to our updated analysis of the Austin real estate market as of December 21st, 2023. At Team Price Real Estate, we are committed to providing accurate, data-driven insights into Austin's ever-evolving real estate landscape. Our focus remains on delivering comprehensive information about market trends, supply and demand dynamics, and pricing variations in both the Austin area and the broader Central Texas region.

Market Overview: In the current Austin real estate market update, our data shows significant changes in various key metrics. The total number of active listings in the Austin-Area MLS now stands at 10,957, which is slightly up from the previous year's 10,628. This modest increase is accompanied by a noteworthy growth in the Months of Inventory, indicating a shift towards a more balanced market. Specifically, the Months of Inventory has increased by 1.2 times, from 4.13 months last year to 4.77 months this year. In the City of Austin, this increase is even more pronounced, at 1.3 times.

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Interest Rates Analysis: A significant and positive development pertains to interest rates. FHA 30 Year Fixed Rates are approaching 6.00%, while 30-Year Conventional Rates are fluctuating between 6.25% and 6.375%. These rates represent the most favorable we've seen in the past 7 months. Consequently, they have encouraged a surge in buyer activity, which is reflected in the increased activity index and positive price appreciation observed this month. Additionally, these lower rates have contributed to a decrease in the months of inventory, indicating a more dynamic and competitive real estate market. 

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Pricing and Affordability: The market has witnessed notable changes in pricing trends. The average list price for active homes in the Austin-Area MLS currently stands at $553,211, reflecting a year-over-year decrease of 4.1%. The average sold price is $532,094, indicating a 3.6% decrease year-over-year, while the median sold price has decreased by 4.7% to $419,666. However, in the City of Austin, the median sold price has increased by 3.2% compared to the previous year, reaching $563,500. These figures highlight the nuanced pricing landscape, with variations observed across different market segments.

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City and Regional Dynamics: In Austin, total sales have experienced a 13.6% increase, rising from 2,645 to 3,006. This growth contrasts with the decline in total sales in the Austin-Area MLS. Despite this decline, the average active price in Austin has seen a slight increase of 1.2% to $775,997, while the median active price has remained stable at $579,500. These trends suggest resilience in specific market segments within the city.

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Zip Codes Analysis: Our analysis of 75 zip codes across Central Texas underscores the diversity in market dynamics. Approximately 37% of these zip codes have reported month-over-month price increases, while 63% have witnessed decreases. Similarly, year-over-year, 45% of zip codes have seen price increases, contrasting with 53% that have reported decreases.

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Sales vs. List Price: The sales to list price ratio continues to be a crucial indicator of market conditions. This month, 71.97% of all sold properties were below the list price, showing a slight increase from the previous month's 66.90%. Properties sold at list price accounted for 18.66%, and those sold over list price represented 9.37%. These statistics reflect subtle shifts in market dynamics, offering various opportunities for both buyers and sellers in the Austin real estate market.

Our comprehensive report, spanning over 570 pages, delves deeper into these aspects of the Austin real estate market. It focuses on market cycles, affordability, and interest rates, offering invaluable insights for informed decision-making. Team Price Real Estate, known for its expert agents and data-driven approach, remains dedicated to its motto, "Where Experience Meets Insight," ensuring top-tier service in the Austin real estate market.