Austin Real Estate Market Analysis - February 22, 2024

by: Team Price Real Estate, Unmatched Agents, Unrivaled Insights
Published on: Thursday, February 22, 2024 at 12:21pm

Updated Market Overview: In the ever-evolving landscape of real estate in the Austin area, shifts in supply and demand dynamics continue to shape the market. Comparing data from the previous year to the present, there has been a noticeable increase in the total number of active listings within the Austin-Area MLS, rising from 9,976 to 10,305 properties, marking a 3.3% uptick. However, this increase in inventory is accompanied by a corresponding rise in the Months of Inventory, climbing from 2.98 months to 3.65 months, indicating a 22.4% increase. These figures suggest a shift in the market balance towards a slightly higher inventory level compared to the previous year.

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Pricing Dynamics in Austin Real Estate: Across the board, pricing trends in Austin real estate have shown slight fluctuations. The average active listing price in the Austin-Area MLS has experienced a modest increase of 3.3% to $569,065, while the median active listing price has decreased by 0.5% to $444,990. Similarly, the average sold property prices have seen a slight uptick, with a 3.2% increase to $547,459, while the median sold price has remained relatively stable at $430,000, showing a marginal decrease of 0.2%. These adjustments reflect the nuanced nature of the market, with pricing responding to various factors influencing buyer and seller behavior.

City and Regional Dynamics: Within the City of Austin, there has been a notable increase in total sales, rising by 10.3% from 2,544 to 2,807 properties, indicating sustained demand within the urban core. However, this increase in demand is accompanied by a significant jump in the Months of Inventory, from 2.20 months to 3.35 months, suggesting a shift in the balance between supply and demand. Additionally, both the average and median active listing prices in Austin have experienced declines of 2.7% and 6.6%, respectively, further reflecting adjustments in pricing dynamics within the city.

Central Texas Cities and Zip Code Analysis: Analyzing data from Central Texas cities and zip codes reveals localized variations in market conditions. In terms of month-over-month price changes, 50% of cities and 56% of zip codes reported increases, while 50% of cities and 41% of zip codes experienced decreases. Looking at year-over-year data, 43% of cities and 43% of zip codes witnessed price increases, with the remaining experiencing declines. These findings underscore the heterogeneous nature of the real estate market across different areas within Central Texas.

Sales vs. List Price Analysis: The current sales-to-list price ratio stands at 97.14%, indicating a market where buyers often negotiate prices close to initial listings. Among properties sold this month, the majority, or 69.01%, sold under the list price, while 18.84% sold at the list price, and 12.14% sold over the list price. These figures reflect the negotiation dynamics between buyers and sellers in the current market environment.

Peak Value Analysis: Austin-Area MLS: Reflecting on peak values over the past 12 months, several key metrics have experienced declines. From their respective peaks, the average list price decreased by 5.19%, the median list price decreased by 14.01%, the average sold price decreased by 15.86%, the median sold price decreased by 18.73%, the average sold price per square foot decreased by 18.21%, and the median sold price per square foot decreased by 19.64%.

Peak Value Analysis: City of Austin: Similarly, analyzing peak values within the City of Austin reveals declines across various metrics. From their respective peaks, the average list price has remained stable, while the median list price decreased by 7.38%, the average sold price decreased by 15.91%, the median sold price decreased by 19.56%, the average sold price per square foot decreased by 18.10%, and the median sold price per square foot decreased by 19.08%. These figures highlight the broader market trends and adjustments in property values within the city limits.

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.