Austin Real Estate Weekly Market Update - November 27, 2024

by: Team Price Real Estate, Austin's leading data analysis brokerage, where data drives exceptional service
Published on: Thursday, November 27, 2024 at 9:13 am

Updated Market Overview

The Austin real estate market continues to adjust as we near the end of 2024. New data shows notable shifts in inventory levels and pricing trends, signaling evolving conditions for both buyers and sellers. The total number of active listings in the Austin-area MLS is now 13,512, an increase of 7.8% compared to the 12,534 active listings at this time last year. Months of Inventory has risen to 4.70 months, up from 4.34 months—a year-over-year increase of 8.32%. These figures suggest a more balanced market, providing buyers with more options while slightly lengthening the time properties remain on the market.

Pricing Dynamics in Austin Real Estate

Pricing trends in the Austin-area MLS reveal modest increases over the past year. The average list price for active homes is now $569,089, representing a 3.67% increase compared to last year’s $548,952. The average sold price has risen by 3.34%, climbing from $530,418 to $548,110. Median prices have also shown growth, with the median active list price up by 2.66% to $438,990 and the median sold price increasing by 2.41% to $425,000. These changes indicate steady demand across various price points while reflecting some market stabilization.

Within the City of Austin, similar trends are evident. The number of active listings has grown by 4.53% from 3,645 last year to 3,810 today. The average list price for active homes in Austin is now $782,441, a 2.70% increase from last year’s $761,867. Sold prices show modest gains as well, with the average sold price rising 2.30% to $750,678 and the median sold price increasing by 2.45% to $572,200. These figures highlight a steady upward trajectory in pricing within the city limits, even as inventory continues to grow.

City and Regional Dynamics

Across the broader Austin-area MLS, price trends have varied by region and market segment. Approximately 53% of Central Texas cities saw month-over-month price increases, while 47% experienced decreases. Year-over-year, 50% of cities showed price growth, with the remaining 50% seeing declines. The median sold price across the MLS has dropped by 20% from its peak in May 2022, reflecting a market correction after years of rapid appreciation.

In the City of Austin, similar patterns are observed. The median sold price is down 15.4% from its peak of $680,000 in May 2022, now standing at $575,000. The average sold price per square foot in the city has fallen 17.6% from its peak of $442 in May 2022 to $364 today. These shifts underscore the broader correction in the market following a period of unprecedented price growth.

Central Texas Cities and Zip Code Analysis

Looking more closely at Central Texas, 16 of the region’s 30 cities saw month-over-month price increases, while 14 experienced declines. Year-over-year, 15 cities recorded price growth, and 15 saw decreases. Among the 75 zip codes in Central Texas, 38 zip codes—or 51%—experienced month-over-month price increases, while 35 zip codes—or 47%—saw declines. Year-over-year, 48% of zip codes recorded price growth, while 52% experienced declines. Over the past 12 months, only three zip codes have shown price increases from their peak, while 72 have seen declines.

Sales vs. List Price Analysis

Buyer behavior continues to evolve as homes take longer to sell. Currently, 69.04% of all sold properties in the Austin-area MLS are closing below their list price, an increase from 67.57% last month. Meanwhile, 20.69% of homes sold at their list price, down slightly from 21% the previous month. Homes selling above their list price now account for 10.26% of transactions, a decrease from 11.43% last month and significantly lower than October 2023’s 12.97%. These trends suggest that buyers are becoming more cautious and negotiating more aggressively, impacting sellers’ ability to command prices above listing.

Peak Value Analysis: Austin-Area MLS

From their peak values, both average and median prices in the Austin-area MLS have seen declines. The average list price has dropped by 11.6% from its March 2023 high of $708,943 to $626,319. The median list price has decreased by 18.5% from its May 2022 peak of $539,900 to $440,000. Average sold prices are down 15.96% from their May 2022 peak of $664,515, and the median sold price has fallen 20% from $538,000 to $429,990. These declines highlight the adjustments the market has undergone over the past two years.

Peak Value Analysis: City of Austin

Within the City of Austin, peak value declines have been less pronounced but still significant. The average list price has dropped 5.6% from its April 2024 high of $945,851 to $892,875. The median list price has fallen 9.05% from its May 2022 peak of $658,589 to $599,000. Average sold prices have decreased by 8.99% from their May 2022 peak of $847,583 to $771,310, while the median sold price has dropped by 15.4% from $680,000 to $575,000. The average sold price per square foot has declined 17.6% from its peak, and the median price per square foot is down 21.8%. These figures reflect a cooling market but also highlight opportunities for buyers in a more balanced environment.

Closing Thoughts

The Austin real estate market continues to show signs of stabilization as it adjusts from the rapid price increases seen in recent years. Rising inventory levels, modest price growth, and evolving buyer behavior are shaping a market that is more balanced than in previous years. These trends provide valuable insights for buyers and sellers navigating the current landscape. As conditions evolve, staying informed on market data remains essential for making strategic decisions in the Austin real estate market. The following report, with over 800 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.