Understanding <a href="https://teamprice.com/austin-real-estate-absorption-rates-market-demand">Absorption Rates in Austin’s Real Estate Market</a>: A Comprehensive Analysis by Price Point The Austin real estate market continues to evolve, offering diverse opportunities for both buyers and sellers. By analyzing <a href="https://teamprice.com/austin-real-estate-absorption-rates-market-demand">absorption rates</a>, we can gain valuable insights into market demand, price competitiveness, and buyer-seller dynamics. Absorption rates, which measure the pace at which homes are sold relative to the number of active listings, provide a clear snapshot of market activity. This report offers a breakdown of Austin’s market conditions by price point, revealing important trends. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241223033740.png" alt="" width="" height="" style=""></figure></div>​In the $200,000 to $300,000 price range, the market reflects a mix of activity levels. Properties in this segment primarily fall into the yellow/orange category, indicating moderate demand with a balanced market environment. This balance suggests that buyers have some negotiating power, while sellers can still achieve favorable outcomes with strategic pricing. However, there are instances of light green demand, showing pockets of stronger competition.​As we move into the $400,000 to $600,000 range, the market begins to exhibit stronger signs of activity. Yellow/orange demand remains prominent, but light green demand is increasingly visible. For homes priced at $500,000, strong demand is noticeable, with sellers experiencing shorter time on the market. Meanwhile, higher-end properties in the $700,000 to $900,000 range show varied activity. While yellow/orange demand is consistent, light green and even dark green demand levels highlight extremely competitive conditions in certain areas, especially for well-maintained or uniquely positioned properties.​At the $1,000,000 and above price point, market activity is diverse. While some properties show no activity, represented by grey, others fall under dark green, indicating exceptional demand in select areas. This contrast underscores the importance of location, property condition, and buyer preferences in this price range. Sellers in this segment should consider detailed market analysis to position their homes competitively.​The <a href="https://teamprice.com/austin-real-estate-absorption-rates-market-demand">absorption rate data</a> also highlights the importance of color-coded demand levels in understanding market conditions. Dark green represents extremely high demand, signaling a seller’s market where homes sell rapidly. Light green indicates strong demand, benefiting sellers but still providing room for negotiation. Yellow/orange shows balanced conditions, red reflects opportunities for buyers to negotiate favorable deals, and grey points to stagnant markets with no sales activity. This nuanced view of the Austin real estate market underscores the critical role of data-driven insights in navigating buying and selling decisions. The trends across price points demonstrate that opportunities exist for both buyers and sellers, depending on market conditions and strategic timing. Whether you’re entering the market as a buyer or positioning your property as a seller, understanding absorption rates is key to achieving your goals in Austin’s competitive real estate landscape​

Explore Austin’s real estate market with a detailed analysis of absorption rates by price point. Understand buyer-seller dynamics, market demand, and trends shaping the housing landscape in 2024

Austin Housing Market Breakdown: Insights on Absorption Rates

Is the Austin Market Recovering? Insights into Price Changes and Market Dynamics The Austin real estate market has undergone significant changes in recent years, highlighted by a notable decrease in the median list price for homes. This trend is evident when examining data from May 2022 to December 2024, showcasing a dramatic shift in the market dynamics. In May 2022, the <a href="https://teamprice.com/residential-price">median list price for homes in the Austin</a> area reached a peak of $539,900. This marked a high point in the market, reflecting robust buyer demand and limited inventory that characterized much of 2021 and early 2022. However, by December 2024, the median list price had declined to $425,000, representing a substantial drop of $114,900, or 21.3%, over the 31-month period. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241223122457.png" alt="" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" width="" height="" data-size="," data-align="none" data-percentage="auto,auto" data-index="0" data-file-name="image.png" data-file-size="297154" data-origin="," style=""></figure></div> To better understand this trend, it is important to contextualize it within broader market conditions. The Austin real estate market experienced unprecedented growth during the years of 2020 and 2021, driven by factors such as remote work flexibility, a surge in population migration to Texas, and historically low mortgage rates. These factors contributed to a sharp <a href="https://teamprice.com/residential-price" class="on">increase in home prices</a>, culminating in the 2022 peak. The subsequent decline in median list prices can be attributed to a combination of factors. Rising interest rates beginning in late 2022 played a pivotal role in cooling the market, as higher borrowing costs reduced affordability for many buyers. Additionally, increased inventory levels throughout 2023 and 2024 helped to alleviate the supply-demand imbalance that had previously driven prices upward. This trend is further illustrated by seasonal fluctuations in pricing over the years. For instance, during the first quarter of 2024, the median list price hovered around $459,900 in February and $479,900 in March, before settling at $425,000 by December. These monthly variations highlight the typical ebbs and flows of the market, influenced by factors such as buyer activity and economic conditions. Despite the overall decline, the Austin real estate market remains dynamic. While the drop in prices may be concerning to sellers, it presents potential opportunities for buyers. A 21.3% reduction in the median list price has improved affordability, making homeownership more attainable for those who were previously priced out of the market. The question of whether the Austin market is crashing or recovering depends on perspective. The data suggests that the market has shifted toward stabilization after a period of extraordinary growth. Indicators such as declining prices, improved inventory levels, and fewer multiple-offer scenarios point to a market that is neither collapsing nor overheated, but rather adjusting to more balanced conditions. For those considering entering the Austin real estate market, whether as a buyer or seller, understanding these trends is crucial. Buyers can leverage the current conditions to negotiate better deals, while sellers may need to adjust expectations and pricing strategies to align with the evolving market landscape. In conclusion, the Austin area has seen a significant recalibration in median list prices from their peak in May 2022 to December 2024. This shift reflects broader economic changes and local market adjustments. As the market continues to evolve, staying informed about these trends will be essential for making sound real estate decisions.&nbsp;

Explore how Austin's real estate market has evolved with a 21% drop in median list prices from 2022 to 2024. Understand key factors influencing the market, from interest rates to inventory levels, and what it means for buyers and sellers

Is the Austin Housing Market Crashing or Stabilizing? Key Price Trends Explained

Understanding Austin Area Real Estate: Sellers, Buyers, and Neutral Markets December 22, 2024 : The Austin area real estate market continues to be a dynamic landscape, offering insights into both opportunities and challenges for buyers, sellers, and investors. Recent data underscores the variety of market conditions across the top 30 cities in the Austin area, categorized by the months of inventory available—a critical measure of market balance. Understanding these distinctions is vital for anyone navigating real estate in this vibrant region. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241222112737.png" alt="" width="" height="" style=""></figure></div> In December 2024, the Austin area showcased a spectrum of market types, from sellers' markets to buyers' markets, defined by months of inventory. A sellers' market, characterized by less than 4.9 months of inventory, signals high demand and limited supply. Austin, for example, reported 4.1 months of inventory, aligning with its reputation as a competitive market. Median prices in Austin stood at $599,000, with an average active listing price of $984,704, underscoring the city's strong position in the regional market. In contrast, buyers’ markets, with more than 7 months of inventory, were observed in cities such as Burnet and Dale. Burnet, with 9.42 months of inventory, had a median price of $529,500, reflecting more negotiating power for buyers. Similarly, Dale exhibited 11 months of inventory, further emphasizing its status as a buyers’ market. These conditions highlight opportunities for buyers looking to secure properties at potentially favorable terms in less competitive markets. Neutral markets, where inventory ranges from 5 to 6.9 months, were represented by cities such as Bastrop and Driftwood. Bastrop, with 5.8 months of inventory, had a median price of $424,900. Driftwood, known for its luxury appeal, showcased a median price of $1,257,500 and exactly 6 months of inventory, indicating a balanced environment between buyers and sellers. Georgetown and Cedar Park are other notable examples of sellers’ markets. Georgetown reported 3.28 months of inventory, a median price of $509,545, and a significant volume of active listings, illustrating its steady demand. Cedar Park, with just 2.09 months of inventory, reflected one of the strongest sellers' market conditions in the area, with median prices at $499,999.&nbsp;Cities like Hutto and Pflugerville also demonstrated robust sellers’ markets, with 3.25 and 2.86 months of inventory, respectively. Hutto’s median price reached $399,990, while Pflugerville’s stood at $435,000. These cities remain attractive for those seeking homes at relatively moderate price points compared to Austin. On the other hand, cities such as Smithville and Spicewood leaned toward buyers’ markets. Smithville’s inventory was at 7.36 months, with a median price of $341,900. Spicewood, with 10.08 months of inventory and a median price of $862,500, provided opportunities for buyers interested in higher-end properties with more time to negotiate.&nbsp;The data also revealed shifts in pricing dynamics across the region. Cities like Manor and Kyle showed competitive conditions with inventory levels at 3.7 and 3.33 months, respectively, while median prices were $390,103 and $363,945. Price trends across these cities reflect the nuanced nature of the Austin area market, where local factors heavily influence demand and supply. Overall, the Austin area real estate market demonstrates a diverse range of opportunities, with each city offering unique conditions. Whether navigating a competitive sellers’ market or exploring the advantages of a buyers’ market, understanding these dynamics is essential for success in real estate.&nbsp;If you are a real estate agent or thinking of becoming one, please reach out. We are expanding our team and hiring new and experienced agents. No license is required to schedule a meeting with me, Dan Price, Broker. You are welcome to call me directly to discuss opportunities at 512-963-3768.&nbsp;

Latest trends in the Austin area real estate market with data-driven insights from December 2024. Learn about market conditions, median prices, and opportunities for buyers, sellers, and agents across 30 cities

Austin Area Real Estate Market Update: December 2024 Insights

The Austin Real Estate Market: A Detailed Look at the Sold Price to List Price Ratio (2000–2024) The Austin real estate market has undergone significant changes over the years, with the <a href="https://teamprice.com/sold-price-to-list-price-ratio">sold price to list price ratio</a> serving as a critical metric to evaluate market conditions. This ratio reflects how closely the final selling price of a property aligns with its listed price. Analyzing this data from 2000 through 2024 reveals fascinating trends, offering insights into how the market has evolved. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241220113951.png" alt="" width="" height="" style=""></figure></div>​In the early 2000s, the <a href="https://teamprice.com/sold-price-to-list-price-ratio">sold price to list price ratio in Austin</a> hovered in the upper 90% range. In 2000, the annual average was 99.2%, with monthly variations ranging from 98.5% to 99.6%. This stability suggested a market leaning towards balanced conditions. Moving into 2001, a slight decline was observed, with an average of 98.6% and a minimum monthly value of 97.4%. The years 2002 and 2003 showed further dips, with averages of 97.7% and 97.2%, respectively, marking a subtle cooling in the market.​From 2004 to 2006, the market began to stabilize, with ratios climbing back to averages of 97.3% to 98.1%. The upward trend indicated a modest recovery, likely fueled by growing demand and favorable economic conditions. However, the financial crisis of 2008 caused notable shifts. That year, the sold price to list price ratio dropped to a low of 95.5%, with an annual average of just 96.7%. The subsequent years, 2009 and 2010, saw minimal improvements, with averages of 96.7% and 96.5%, respectively, underscoring the market’s slow recovery.​A significant turning point emerged in the mid-2010s as Austin’s real estate market began gaining momentum. By 2013, the average ratio climbed to 98.2%, with highs reaching 98.8% during peak months. This growth continued through 2015, when the annual average hit 98.4%, supported by strong local demand and economic growth in the region.&nbsp;The most dramatic changes occurred between 2020 and 2022. In 2020, the sold price to list price ratio surpassed 100% for the first time, with a maximum monthly ratio of 100.4%. This trend accelerated in 2021, when the ratio soared to an unprecedented high of 109.5% in April, reflecting intense competition among buyers. This surge was driven by historically low mortgage rates, limited inventory, and a surge in buyer demand.​By 2022, the market began to cool as interest rates increased and affordability became a concern for many buyers. The annual average ratio dropped to 100.9%, with monthly lows reaching 96.1% by December. This cooling trend has persisted into 2023 and 2024. In 2023, the average ratio settled at 97.3%, with monthly variations ranging from 96.3% to 97.8%. The data for 2024, up to October, indicates continued stability, with an average of 97.3% and a peak of 98.0% in the spring months. Overall, the sold price to list price ratio provides a detailed lens through which the Austin market’s dynamics can be understood. Periods of economic stability, growth, and contraction are all reflected in this data. For buyers and sellers navigating the current market, understanding these trends can help set realistic expectations and guide strategic decisions. While recent years have shown a return to more balanced conditions, the data underscores the importance of staying informed in a market as dynamic as Austin’s.&nbsp;

Explore the 24-year trends in Austin’s sold price to list price ratio, revealing key insights into the local real estate market. Discover how market dynamics have evolved from 2000 to 2024, including shifts during economic highs and lows

Are Austin Sellers Getting Their Asking Price? A 24-Year Analysis

Analyzing Year-Over-Year Changes in Active Real Estate Listings for 2024 In 2024, the real estate market in the Austin area has shown significant fluctuations in the <a href="https://teamprice.com/active-residential-listings">number of active listings</a> compared to the previous year. This data-driven analysis provides a detailed look at the percentage changes in <a href="https://teamprice.com/active-residential-listings">active listings year over year</a> (YoY) for each day from March through December. These insights can help buyers, sellers, and agents understand market activity trends and make informed decisions. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241220111626.png" alt="" width="" height="" style=""></figure></div> In early March 2024, active listings were up by approximately 13% compared to the same period in 2023. For instance, on March 4th, the year-over-year percentage increase stood at 13.07%. The trend gradually rose to 14.41% by March 6th, and by March 15th, it reached 16.31%. The end of March saw even higher increases, peaking at 18.76% on March 28th. This indicates a steady rise in available homes for sale during the first quarter. April continued the upward trend with notable growth. On April 5th, active listings increased by 21.01% YoY. By mid-April, the market saw jumps of over 25%, reaching 27.97% on April 19th. Toward the end of the month, on April 26th, active listings saw a substantial 31.44% increase compared to 2023. These figures suggest that more sellers were putting their homes on the market as the spring season progressed, a common pattern in real estate markets. May 2024 recorded some of the highest year-over-year changes. On May 3rd, active listings were up by 32.55%, and by May 10th, they surged to 33.90%. These numbers reflect increased seller confidence and possibly slower buyer demand, leading to higher inventory levels. By the end of May, the percentage change remained strong, with a 31.90% increase on May 31st. June showed a slight decline compared to May, but active listings remained well above 2023 levels. The highest YoY change in June was 30.69% on June 14th. By June 28th, the percentage change was 30.54%. These consistent increases suggest that the market was holding steady with more properties available compared to the previous year. July maintained a similar pattern, with year-over-year changes hovering between 28% and 32%. On July 4th, active listings increased by 32.37%. However, by the end of the month, the percentage change dipped slightly to 28.93% on July 29th. This indicates a possible seasonal slowdown in listings toward the end of summer. In August, the YoY increase in active listings began to decline. On August 2nd, the market saw a 27.10% increase, and by August 19th, it fell to 25.18%. The downward trend continued into September, with percentage changes dropping below 20% by the end of the month. For example, on September 30th, active listings were up only by 20.29% compared to the previous year. These declines may reflect seasonal trends or a shift in market dynamics, with fewer new listings coming on the market. October saw continued declines, with active listings showing a 17.06% YoY increase on October 7th. By October 31st, the increase was down to 15.84%. The trend of declining YoY percentage changes persisted through November and December. On December 2nd, active listings showed an 11.78% increase compared to 2023, reflecting a significant slowdown in new listings as the year closed. This detailed data on year-over-year changes in active listings highlights how the real estate market in 2024 has been more favorable for buyers, with higher inventory levels throughout much of the year. Understanding these trends helps buyers, sellers, and agents navigate the market and make informed decisions based on current conditions.&nbsp;

Discover how Austin's real estate market performed in 2024 with a detailed analysis of year-over-year percentage changes in active listings. Track daily trends from March to December and gain valuable insights for buyers, sellers, and agents

Austin Real Estate Trends 2024: Year-Over-Year Active Listings Analysis

Analyzing the <a href="https://teamprice.com/price-to-rent-ratio">Price-to-Rent Ratios in Austin</a>: What the Data Reveals About Buying vs. Renting The Austin real estate market offers a wide variety of opportunities for both buyers and renters. Understanding the price-to-rent ratio for different areas is crucial for making informed housing decisions. The <a href="https://teamprice.com/price-to-rent-ratio">price-to-rent ratio</a> is a calculation used to determine whether it's better to buy or rent in a specific area. This ratio is obtained by dividing the median home sale price by the annual rent. A lower ratio (below 15) indicates it’s better to buy than rent, while a higher ratio (above 20) suggests renting is more cost-effective. Ratios between 15 and 20 indicate a balanced market where the decision to buy or rent depends on individual preferences and financial goals. Let's explore how Austin's neighborhoods compare based on this data. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241220114207.png" alt="" width="" height="" style=""></figure></div> In downtown Austin’s 78701 zip code, the median rent is $3,150 per month, and the median sale price is $697,000, giving a price-to-rent ratio of 18.4. This places it in a balanced market, suggesting that either buying or renting could be viable depending on your long-term plans. Moving east to 78702, the median rent is $2,635, and the median sale price is $722,500, resulting in a price-to-rent ratio of 22.8. Here, renting is more cost-effective than buying. The trend continues in 78703, where the median rent is $3,200 and the median home price is significantly higher at $1,649,500, leading to a ratio of 43. This data clearly shows that renting in this area is more financially advantageous. In contrast, some areas present better opportunities for buying. For instance, the 78725 zip code has a median rent of $1,950 and a median sale price of $315,500, resulting in a low price-to-rent ratio of 13.5. Similarly, 78724 shows a ratio of 14.7 with a median rent of $1,995 and a median sale price of $352,470. These areas suggest it’s more cost-effective to buy than rent. The same trend is seen in 78610 (Buda) with a ratio of 14.8 and 76537 (Jarrell) with a ratio of 14.5. Several neighborhoods fall within the balanced market category. In 78717 (Austin), the median rent is $2,500, and the median sale price is $487,500, leading to a ratio of 16.3. Nearby, 78747 shows a similar trend with a ratio of 16.2, based on a median rent of $2,350 and a sale price of $457,490. In Pflugerville’s 78660, the ratio is 16.7, where the median rent is $2,150 and the median sale price is $430,510. These figures suggest that whether to buy or rent in these areas depends largely on personal and financial goals. Higher-end areas such as 78746 and 78733 have much higher <a href="https://teamprice.com/price-to-rent-ratio">price-to-rent ratios</a>. In 78746, the median rent is $4,900, while the median sale price is $2,220,000, resulting in a ratio of 37.8. Similarly, 78733 has a median rent of $3,600 and a median sale price of $1,667,500, with a ratio of 38.6. These high ratios indicate that renting is the more cost-effective option in these upscale neighborhoods. The price-to-rent ratios also vary widely in the surrounding suburbs. In Cedar Park’s 78613, the median rent is $2,200, and the median sale price is $499,945, resulting in a ratio of 18.9. This falls into the balanced market range. On the other hand, areas like 78634 (Hutto) offer more favorable conditions for buying, with a ratio of 15.9, where the median rent is $2,090 and the median sale price is $398,941. Georgetown’s 78626 offers a ratio of 17.1, with a median rent of $2,050 and a sale price of $420,000, also placing it in the balanced category. In summary, Austin’s price-to-rent ratios vary significantly by neighborhood. Areas like 78725 and 76537 are more favorable for buying, while high-priced areas like 78703 and 78746 lean heavily toward renting. The balanced market areas, such as 78717 and 78660, offer flexibility depending on individual needs. Understanding these ratios helps both buyers and renters make well-informed decisions in Austin's dynamic housing market​

Latest price-to-rent ratios in Austin areas to determine whether it’s better to buy or rent. This detailed analysis provides insights into Austin’s dynamic real estate market using data-driven comparisons

Austin Price-to-Rent Ratio: Where It’s Better to Buy or Rent in 2024

The Rising Cost of Homeownership in Austin: Analyzing Housing Affordability Trends (2000-2024) December 19, 2024 : <a href="https://teamprice.com/affordability">Austin housing affordability</a> has changed dramatically over the past two decades, with mortgage payments rising significantly in recent years. This trend has made homeownership more expensive for many buyers in the Austin area, especially when compared to historical norms. The data from 2000 to 2024 reveals key patterns in monthly mortgage payments, interest rates, and affordability ratios, offering insights into why Austin homeownership is becoming increasingly challenging. In 2000, the average monthly mortgage payment in the Austin area, including principal, interest, taxes, and insurance (PITI), was around $1,195. From 2000 to 2006, PITI steadily increased, reaching an average of $1,285 by 2006. This period saw relatively stable interest rates, with the median rate hovering between 2.76% and 3.38%. However, the housing market crash of 2008 temporarily reduced these payments. In 2009, the average monthly PITI dropped to $1,246, reflecting lower home prices and interest rates in Austin.&nbsp; <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241219032647.png" alt="" width="" height="" style=""></figure></div> The years following the crash saw mortgage payments fluctuate. From 2010 to 2015, monthly PITI in Austin ranged from $1,236 to $1,627, showing moderate growth. Interest rates during this period remained low, between 3.37% and 4.03%. By 2016, PITI reached $1,706, reflecting an upward trend in Austin home prices. This pattern continued, and by 2019, the average PITI in the Austin area was $1,954. Despite slight declines in 2020 due to lower interest rates, mortgage payments began to rise sharply in 2021. In 2021, monthly PITI surged to an average of $2,686, with some months exceeding $2,700. This increase coincided with rising Austin home prices and interest rates nearing 5%. In 2022, affordability hit a new low, with monthly mortgage payments peaking at $3,742 in June. The average PITI for the year was $3,476, driven by soaring Austin-area home prices and mortgage rates that exceeded 5.5%. Affordability ratios also reflected this shift. In 2022, PITI accounted for 47.19% of median household income, a sharp increase from the 26-30% observed in the early 2000s. The trend continued into 2023 and 2024, with monthly PITI in Austin remaining high. In 2023, the average mortgage payment was $3,443, and in 2024, it hovered around $3,381. Interest rates stayed elevated, with the median rate around 4.54% in December 2024. Although these figures represent a slight improvement from the 2022 peak, they still indicate significant affordability challenges compared to historical levels in Austin. Over the past 24 years, the median sold price-to-income ratio in Austin has also increased. In 2000, the ratio was 2.76, meaning a home’s median price was 2.76 times the median household income. By April 2022, this ratio peaked at 5.75, highlighting the growing gap between Austin home prices and incomes. As of December 2024, the ratio stands at 4.54, above the historical average of 3.74. This indicates that despite recent improvements, Austin home prices remain disproportionately high compared to household incomes. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241219032728.png" alt="" width="" height="" style=""></figure></div> Year-over-year changes in PITI show how volatile the Austin housing market has become. Between 2021 and 2022, monthly mortgage payments increased by over $800. In contrast, the period from 2009 to 2010 saw minimal changes, reflecting the stability after the housing crash. These fluctuations are largely driven by changes in interest rates and Austin home prices. For example, in 2021, interest rates climbed from 4.33% in January to 5.40% by June, contributing to the sharp rise in PITI. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241219032811.png" alt="" width="" height="" style=""></figure></div> <a href="https://teamprice.com/affordability">Affordability in Austin</a> has been especially strained since 2021. Before this period, the PITI-to-income ratio rarely exceeded 30%. In recent years, it has consistently remained above 40%, indicating that buyers are dedicating a larger portion of their income to housing costs. This trend is unsustainable for many households and reflects the need for either higher incomes, lower home prices, or reduced interest rates to improve affordability in Austin. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241219032840.png" alt="" width="" height="" style=""></figure></div> In summary, <a href="https://teamprice.com/affordability">housing affordability in Austin</a> has worsened significantly since 2000. Monthly mortgage payments have more than doubled, and affordability ratios have reached record highs. While homeownership in the Austin area was once manageable for most households, the current market poses challenges that many buyers struggle to overcome. Understanding these trends helps both buyers and industry professionals navigate the evolving Austin housing market and make informed decisions. This article was written on December 19 2024 and reflects data up to that date. The following charts will provide up to date information. If you have any questions, please let us know.&nbsp;

Austin-area housing affordability has changed from 2000 to 2024. Learn about rising mortgage payments, interest rates, and affordability ratios, and understand why homeownership costs have doubled over the past 24 years in the Austin real estate market

Austin Real Estate Affordability: How Homeownership Costs Have Doubled Since 2000

<a href="https://teamprice.com/appreciation-year-over-year-city">Austin Area Housing Market: Year-Over-Year Appreciation Analysis</a> December 17 2024 : The Austin area real estate market has experienced significant growth over the past two decades, with some cities standing out for their long-term appreciation rates and others facing recent price corrections. Data from 2000 to 2024 reveals clear trends in average and median sold prices across cities such as Austin, Leander, Wimberley, Burnet, and many others. This detailed analysis highlights which markets have delivered the strongest growth and identifies emerging opportunities as well as cities where prices have cooled in the past year. In Austin, the average sold price grew from $218,205 in 2000 to $751,478 in 2024, representing a total increase of 244 percent over 24 years. The median sold price followed a similar upward trend, rising from $159,900 to $572,955. This steady appreciation translates to a compound annual growth rate of approximately 5.3 percent for average sold prices and 5.5 percent for median sold prices. Austin remains a stable market with modest year-over-year growth of 0.7 percent for average prices and 0.2 percent for median prices in the most recent year. Leander emerged as one of the top performers in the Austin area housing market. The average sold price skyrocketed from $129,266 in 2000 to $571,688 in 2024, an impressive 342 percent increase over the period. Leander’s median sold price saw even stronger growth, rising from $109,633 to $485,600. Both appreciation rates reflect a compound annual growth of 6.4 percent, placing Leander near the top of Austin area cities for long-term price increases. Over the past year, Leander’s average prices grew by 3.1 percent, signaling consistent demand and robust market activity. Wimberley also stood out for its remarkable appreciation. Between 2000 and 2024, the average sold price increased by 348 percent, climbing from $156,972 to $702,450. Median prices followed closely, rising from $140,000 to $521,400. These numbers represent a compound annual growth rate of 6.4 percent for average prices and 5.6 percent for median prices. Recent performance has been equally strong, with average sold prices rising by 12.7 percent year-over-year. Wimberley’s combination of long-term appreciation and strong recent growth reflects its appeal among buyers looking for value and growth potential. Burnet has also delivered exceptional long-term results for homeowners and investors. The average sold price grew from $135,819 in 2000 to $549,005 in 2024, marking a 304 percent increase over the period. Median prices similarly increased from $107,500 to $408,383, representing a compound annual growth rate of 5.7 percent. Most notably, Burnet’s median sold prices grew by 23.8 percent over the past year, positioning it as one of the fastest-growing markets in the Austin area. While many cities have shown consistent appreciation, others have experienced short-term corrections. For example, Buda saw its average sold price drop by 9.6 percent from 2023 to 2024, moving from $448,600 to $405,406. Similarly, its median sold price fell by 9.8 percent year-over-year. Cedar Creek also recorded a decline, with average prices decreasing by 6.5 percent and median prices by 10.5 percent. Lakeway, a historically strong market, saw average sold prices drop by 5.6 percent and median prices decline by 8.4 percent over the same period. These corrections reflect changing market conditions, likely influenced by affordability challenges and shifts in demand. Manchaca delivered the strongest year-over-year performance among Austin area cities. Average sold prices jumped by 24.6 percent, while median sold prices increased by 4.9 percent. Smithville followed closely with a 15.1 percent year-over-year increase in average sold prices and an 11.1 percent increase in median prices. Both markets are experiencing renewed demand, driven by affordability relative to larger cities and attractive growth potential. Cities such as Taylor and Del Valle continue to show solid growth despite a slower pace. Taylor’s average sold price grew by 1.8 percent year-over-year, while Del Valle saw a 2.7 percent increase. These numbers suggest steady market activity in smaller cities that remain attractive for buyers seeking affordable housing options. Overall, the Austin area real estate market shows a mix of consistent long-term appreciation and localized market adjustments. Cities like Austin, Leander, and Wimberley continue to offer strong long-term returns, while markets like Burnet and Manchaca are experiencing notable short-term gains. On the other hand, cities such as Buda, Cedar Creek, and Lakeway reflect areas where prices have softened, presenting potential opportunities for buyers looking for value in a correcting market. The combination of historical appreciation data and recent trends provides valuable insights for homebuyers, sellers, and investors looking to navigate the dynamic Austin area housing market.&nbsp; <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241217121950.png" alt="" width="" height="" style=""></figure></div>

Explore the Austin area housing market trends, including 24 years of appreciation data. Discover where real estate prices are rising, which cities are cooling, and what to expect for 2025

Austin Area Real Estate Market: Year-Over-Year Appreciation Trends for 2024

Austin Rental Market Shows Softening Prices and Leasing Activity in 2024 The Austin rental market is experiencing notable shifts as leasing activity and <a href="https://teamprice.com/market-cycle-lease">rent prices decline year-over-year</a>, reflecting changing dynamics in supply, demand, and affordability. Data for the year 2024 highlights key trends that renters, landlords, and market analysts need to consider as they assess the current state of the market.​In December 2024, the total number of leased residential properties dropped to 1,914, marking an 8.2% decrease compared to November when 2,084 properties were leased. This continued decline caps off a year-long trend of softening rental demand, particularly noticeable in the final months. By contrast, leasing activity peaked earlier in the year, reaching 3,244 properties in July 2024, before steadily declining through the fall. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241217120435.png" alt="" width="" height="" style=""></figure></div>​Average rental prices also reflect this downward trend. In December 2024, the average leased price stood at $2,330, a 1.1% increase from November's $2,305 but still a 2.1% decrease year-over-year compared to December 2023's average of $2,379. The median leased price in December fell slightly to $2,100, holding steady month-over-month but representing a 2.3% decline year-over-year. Throughout 2024, median prices fluctuated but ultimately trended downward, with the year starting at $2,195 in January before seeing modest peaks and steady drops into the winter months.​The most significant declines occurred in the late summer and early fall. For instance, in September 2024, the average leased price dropped to $2,296, a 2.9% month-over-month decrease and a 6.0% year-over-year drop from September 2023’s $2,442. Leasing volume in September also saw a sharp drop to 2,437 properties, a 20.8% decline compared to August’s 3,076 properties. These numbers reflect a critical shift in tenant demand, possibly due to rising rental inventory and ongoing affordability challenges.​Historically, the Austin rental market sees peak activity during the summer months, with rents stabilizing or softening as fall and winter approach. This pattern held true in 2024, with average rent prices peaking at $2,520 in May and June 2024, before steadily declining to the December low of $2,330. Leasing volume followed a similar trajectory, with summer months like June seeing 3,053 leases, an 11.0% increase month-over-month, while the final quarter saw consistent declines. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241217120422.png" alt="" width="" height="" style=""></figure></div>​The leased-to-list price ratio remained strong throughout the year, hovering around 99.7% to 99.9%, indicating that landlords have largely maintained their list prices. For instance, in December 2024, the ratio stood at 99.55%, reflecting landlords' reluctance to significantly discount rents despite reduced leasing activity. However, the steady decline in median and average rents suggests that landlords are making smaller adjustments to meet renter affordability concerns.​Several factors have contributed to the cooling rental market. The increased availability of rental units has led to greater competition among landlords, putting downward pressure on prices. Additionally, economic uncertainties and improved affordability in the home purchase market have influenced some renters to explore alternatives, further reducing demand. Rising living costs may have also driven renters to negotiate lower lease prices or delay moving into new properties altogether.​As the year comes to a close, the Austin rental market remains in a state of adjustment. Average and median lease prices have fallen compared to the previous year, and leasing activity has slowed significantly, particularly in the second half of 2024. Renters may find this environment increasingly favorable, with opportunities for negotiation and greater flexibility. Landlords, on the other hand, face the challenge of staying competitive while adapting to evolving market conditions. Looking ahead to 2025, the Austin rental market will likely continue to balance supply and demand. For landlords and investors, monitoring pricing trends and adjusting expectations will be essential to remain competitive. For renters, the ongoing market correction could provide continued opportunities for affordability and flexibility​

Austin Rent Prices : latest trends in Austin’s rental market for 2024. Rent prices fell 2.1% year-over-year, and leasing activity dropped significantly in December. Read our detailed analysis to understand what’s driving these changes in Austin rent prices

Austin Rent Prices Drop 2.1% in December 2024: Latest Leasing Trends and Analysis

Austin Home Prices Surge in December 2024: Highest Monthly Increase Since February 2022 December 16 2024 : The Austin real estate market showed a remarkable surge in December 2024, posting the highest month-over-month price increase since February 2022. After a year of fluctuating trends, this strong finish signaled a significant boost in home values and overall market activity. Both the average and median home prices saw double-digit increases, marking a noteworthy shift in the market. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241216011314.png" alt="" width="" height="" style=""></figure></div>​ In December 2024, the total number of homes sold reached 2,346. This was a 5.5% increase from the previous month’s total of 2,223 homes sold in November 2024. Compared to December 2023, when 2,324 homes were sold, this represented a modest 1.0% year-over-year increase. The upward trend in home sales suggested growing buyer confidence as the year came to a close. The average sold price for December 2024 was $616,500. This was a significant $59,108 jump from November 2024’s average of $557,392. This 10.6% month-over-month increase marked the highest spike in home prices since early 2022. Year-over-year, the average sold price was up by $65,694, representing an 11.9% increase from December 2023’s average of $550,806. These figures highlight a clear upward trend in property values in the Austin area. The median sold price also saw substantial growth, reaching $480,000 in December 2024. This was an $47,500 increase from the previous month’s median of $432,500, representing an 11.0% month-over-month gain. Compared to December 2023’s median price of $440,415, this reflected a 9.0% year-over-year increase. The rise in both average and median prices indicated strong demand across various price points in the market. In addition to rising prices, the sold-to-list price ratio for December 2024 remained consistent at 97.01%. This figure showed that, despite the increase in home values, buyers were still purchasing homes at prices very close to the original list prices. The slight dip from November 2024’s ratio of 97.14% suggested that while prices were climbing, sellers were maintaining realistic expectations. The December 2024 data underscored a strong finish to the year for the Austin real estate market. The combination of increased sales volume and rising prices suggested a renewed energy in the housing market. This surge could be attributed to a variety of factors, such as improved interest rates, seasonal buying patterns, and overall market confidence. With December 2024 marking the highest month-over-month increase since February 2022, it sets the stage for an interesting year ahead in Austin’s real estate market. As we head into 2025, buyers and sellers alike will be watching these trends closely. The data for December 2024 paints a picture of a market where demand is strong, prices are rising, and opportunities abound for those looking to buy or sell homes in the Austin area. Keep in mind that these prices are from December 01 2024 to December 16 2024; prices will change as properties sell between today (December 16 2024) and the end of the month. Stay tunned for updated sold data and visit our <a href="https://teamprice.com/market-cycle">Market Cycle</a> page which is updated daily (Monday through Friday).&nbsp;

Austin’s real estate market surged in December 2024 with the highest month-over-month price increase since February 2022. Average and median home prices jumped over 10%, reflecting strong buyer demand and market growth

Austin Home Prices See Highest Increase Since 2022 in December 2024

December 2024 Real Estate Insights: Activity Index at Six-Month High December 03, 2024 : The Austin-area real estate market shows signs of strengthening as of December 3, 2024, with key indicators reflecting improved conditions for both buyers and sellers. Two essential metrics—<a href="https://teamprice.com/real-estate-glossary/activity-index">Activity Index</a> and <a href="https://teamprice.com/real-estate-glossary/months-of-inventory">Months of Inventory</a>—highlight the current state of the market and provide a detailed look at recent trends in Austin real estate. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241203012342.png" alt="" width="" height="" style=""></figure></div> As of December 3, 2024, the Activity Index for the Austin area stands at 23.1%, marking its highest level since July 3, 2024, when it reached 23.3%. This index measures market demand by comparing the number of pending properties to the total active and pending listings. A higher Activity Index indicates increased buyer engagement, a key factor driving the current momentum in Austin area real estate. The recent rise in the Activity Index represents a significant recovery, especially when compared to its low point of 21.3% in mid-August 2024. Another critical indicator, the Months of Inventory for the <a href="https://teamprice.com/">Austin real estate market</a>, is now at 4.48 months. This is the lowest level since April 25, 2024, when it stood at 4.4 months. Months of Inventory measures the time it would take for all current listings to sell if no new properties were added to the market. A decrease in this metric suggests tighter inventory, with homes selling faster due to higher buyer demand. This decline is welcome news for sellers, as it points to a more competitive market that may lead to stronger offers. The <a href="https://teamprice.com/">Austin real estate market</a> has experienced a dynamic year, with fluctuations in both the Activity Index and Months of Inventory. During the summer months, the market softened, with the Activity Index dropping and inventory levels peaking at 5.48 months in mid-July 2024. However, the latter half of the year has seen a reversal of these trends. The Activity Index began to rise steadily, and inventory levels started to decline, reflecting a renewed balance between supply and demand in the Austin area real estate market. These positive shifts underscore the resilience of Austin real estate. Buyers are returning to the market with confidence, and sellers are benefiting from improved conditions. The current trends also align with seasonal patterns, as the fourth quarter traditionally brings heightened activity in preparation for the new year. For those navigating the Austin real estate market, these insights are invaluable. The improving Activity Index and tightening inventory suggest that buyers should act quickly to secure favorable deals, while sellers can leverage the competitive conditions to maximize value. Looking ahead, the Austin real estate market's trajectory will depend on broader factors such as interest rates, local economic conditions, and housing affordability, but the current data signals a strong finish to 2024​

December 03 2024 : Explore the latest Austin-area real estate trends for December 2024, including the highest Activity Index since July and the lowest Months of Inventory since April. Learn what this means for buyers and sellers in Austin real estate

Austin Real Estate Market Trends: December 2024 Insights on Activity Index and Inventory

Austin Housing Market Update: November 2024 Sees Decline in Inventory Levels The Austin housing market has experienced notable fluctuations in inventory levels over the past two decades, with recent data indicating a significant decrease as of November 2024. <a href="https://teamprice.com/real-estate-glossary/months-of-inventory">Months of Inventory (MOI)</a> is a key metric used to assess the balance between housing supply and demand. It represents the number of months it would take to sell all current listings at the prevailing sales pace, assuming no new properties enter the market. This measure helps categorize the market into seller's, neutral, or buyer's markets. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241127012813.png" alt="" width="" height="" style=""></figure></div> Historically, Austin's MOI has varied in response to economic conditions and market dynamics. Between 2005 and 2007, the MOI averaged around 4 to 5 months, indicating a balanced to seller's market. For instance, in January 2005, the MOI was 4.3 months, suggesting a seller's market. This trend continued through 2007, with January recording 3.7 months of inventory. The global financial crisis of 2008 led to a sharp increase in MOI, reflecting a shift toward a buyer's market. By May 2009, the MOI peaked at 7 months, highlighting an oversupply relative to demand. This period was characterized by economic uncertainty and reduced buyer activity. Recovery began in the early 2010s, with MOI gradually declining. By 2012, the MOI consistently fell below 5 months, returning the market to seller-favorable conditions. In January 2013, the MOI was at 2.6 months, indicating high demand and limited supply. This trend persisted through 2014 and 2015, with June 2015 recording an MOI of 4.3 months, maintaining a stable seller's market. The period from 2020 to 2022 marked historic lows in MOI, driven by unprecedented demand, low interest rates, and constrained supply. In January 2021, the MOI dropped to an extraordinary 0.8 months, signaling one of the most competitive seller's markets in recent history. This trend continued throughout 2021, with MOI remaining below 2 months for most of the year. In 2023, the market began to shift, with MOI increasing. By March 2023, the MOI rose to 3.7 months, indicating a transition toward more balanced conditions. As of November 2024, the market has experienced a notable decrease in inventory levels. The MOI has fallen to 4.7 months, down from 5.1 months in October 2024. This decline suggests a tightening market, with reduced supply relative to demand. Seasonal trends also influence MOI fluctuations. Typically, MOI rises during the summer months, peaking in May or June, and declines in the winter. For example, in December 2015, the MOI was at 3.3 months, while by June 2016, it had increased to 4.6 months. These patterns are consistent throughout the data set, reflecting the cyclical nature of real estate activity. Understanding MOI trends is essential for buyers, sellers, and industry professionals. This metric provides valuable insights into market competitiveness and aids in strategic decision-making. Whether navigating a low-inventory seller's market or preparing for a buyer's market with abundant supply, MOI remains a cornerstone for assessing market conditions.&nbsp;

Latest developments in the Austin housing market as of November 2024, highlighting a significant decrease in inventory levels. Understand how Months of Inventory (MOI) reflects current market conditions and what this means for buyers and sellers

Austin Housing Market Update: November 2024 Inventory Levels Decline

Understanding the Price-to-Rent Ratio in Austin: Insights Across 75 Zip Codes The Austin housing market is as dynamic as its growing population, and one key metric stands out for those evaluating whether to buy or rent: the <a href="https://teamprice.com/price-to-rent-ratio">price-to-rent ratio</a>. This metric is calculated by dividing the median home price in an area by the annual cost of renting a comparable property. Understanding this ratio helps individuals make informed decisions, whether they are first-time buyers, seasoned investors, or long-term renters. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241126020605.png" alt="" width="" height="" style=""></figure></div> In Austin, the <a href="https://teamprice.com/price-to-rent-ratio">price-to-rent ratio</a> varies significantly across its 75 zip codes. Areas with a ratio below 15 typically favor buying, as purchasing a home is more cost-effective than renting. For instance, in zip codes like 78724 and 78725, the ratio stands at 12.5. These neighborhoods represent some of the most affordable buying opportunities in the region. Similarly, other zip codes, including 78741 at 13.2 and 78753 at 13.5, offer attractive markets for prospective buyers seeking affordable homeownership options. For those exploring neighborhoods with a balanced market, the <a href="https://teamprice.com/price-to-rent-ratio">price-to-rent ratio</a> ranges from 15 to 20. In these areas, the decision to rent or buy depends on individual circumstances. Notable examples include zip code 78717 with a ratio of 18.8 and 78727 with a ratio of 18.9. These zip codes offer flexibility, allowing potential homeowners and renters to assess their financial goals and lifestyle preferences when making their decisions. On the other end of the spectrum, zip codes with a ratio above 20 suggest renting is more economical. These areas often feature higher <a href="https://teamprice.com/price-to-rent-ratio">home prices relative to rental costs</a>, making them ideal for those who prefer to avoid the financial commitment of homeownership. For example, 78703, with a ratio of 39.4, and 78746, with a ratio of 31.7, stand out as prime rental markets. These zip codes are often sought after for their upscale homes and desirable locations, which drive up property values more rapidly than rental rates. Across the Austin metropolitan area, the median price-to-rent ratio is approximately 19.9. This figure places the overall market in a balanced position, with certain neighborhoods tilting more toward renting or buying based on specific local conditions. For instance, Travis County, which encompasses many of Austin’s central zip codes, showcases a broad range of ratios. Zip codes like 78703 and 78746 reflect high ratios that favor renters, while 78744 at 16.0 and 78747 at 15.1 offer more favorable conditions for buyers. Williamson County offers similar diversity. Zip codes such as 78634 in Hutto and 78641 in Leander reflect balanced ratios, providing opportunities for both renters and buyers. Meanwhile, Hays County, which includes areas like Kyle and Buda, features lower ratios in zip codes like 78640 (14.0) and 78610 (14.2), indicating strong markets for buyers seeking affordability. Overall, 48% of Austin's zip codes fall below a ratio of 15, marking them as buyer-friendly. Another 29% fall within the balanced range of 15 to 20, where market conditions support either buying or renting. The remaining 23% exceed a ratio of 20, emphasizing the value of renting in premium areas. For investors, these metrics provide valuable insights into where rental properties may yield the highest returns. Low-ratio zip codes like 78725 and 78724 present strong rental income opportunities with affordable home prices. Conversely, renters looking to maximize their housing budget should focus on high-ratio areas like 78703, where the relative cost of renting remains favorable compared to buying. By understanding the price-to-rent ratio across Austin's zip codes, individuals can better navigate this competitive real estate market. Whether buying a first home, renting a luxury property, or investing in a rental unit, the price-to-rent ratio serves as a powerful tool to inform smarter decisions and optimize financial outcomes​

Explore the price-to-rent ratio across 75 Austin zip codes. Learn whether it’s better to buy or rent, with detailed data on housing affordability, market trends, and investment opportunities in Austin’s real estate market

Austin Price-to-Rent Ratio: Insights Across 75 Zip Codes

Austin Real Estate Market Update: Shifting Back to a Seller's Market November 09, 2024 : The Austin real estate market is showing significant signs of change as the latest data reveals a dip in the <a href="https://teamprice.com/real-estate-glossary/months-of-inventory">Months of Inventory (MOI)</a> to 4.96. This shift marks a return to a seller's market, highlighting a balance tipped in favor of sellers after a period of higher inventory levels throughout much of 2023 and early 2024. The Months of Inventory is a crucial metric in real estate that measures how long it would take to sell all active listings at the current sales pace, and a figure below 5 months typically indicates strong demand, favoring sellers. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241109015305.png" alt="" width="" height="" style=""></figure></div> Over the past two decades, Austin's real estate market has experienced various cycles, from the stability of the mid-2000s to the turbulence of the financial crisis, and the booming seller's market during the pandemic years. Historically, the Austin area has seen MOI fluctuate based on broader economic trends, local housing demand, and changing interest rates. For context, during the financial crisis in 2009-2011, the MOI surged to levels as high as 8.6 months, reflecting a sharp drop in buyer demand and a significant increase in available listings. In stark contrast, the pandemic-driven market of 2020-2021 recorded some of the lowest inventory levels in history, with MOI dropping to as low as 0.7 months, driven by a surge in buyer demand and limited new listings.​The current MOI of 4.96 suggests a market dynamic where demand is rising again, possibly due to more stable interest rates and a rebound in buyer confidence. This figure signals a shift back from the neutral and buyer-leaning market conditions observed earlier this year, where MOI was often above 5 months. The recent decline below the 5-month threshold suggests a tightening market where sellers have more leverage, and properties are moving at a quicker pace.​In November 2024, the Austin area has 14,136 active residential listings, indicating a robust level of inventory compared to the peak crisis levels of 2010 but still below the highs of the past year. Despite the elevated inventory, the declining MOI points to increased absorption rates, which means that more buyers are entering the market, and properties are being sold at a faster rate. This change is significant because a higher absorption rate usually correlates with a decrease in the number of days properties spend on the market, often resulting in upward pressure on prices. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241109015449.png" alt="" width="" height="" style=""></figure></div>​The analysis of the market data from 2005 to 2024 reveals several key trends. From 2005 to 2008, the market was relatively stable, with MOI hovering around 4-5 months, which is consistent with a balanced market where supply and demand are nearly equal. However, the economic downturn in 2008 led to a sharp increase in inventory levels, peaking in mid-2010 at 8.6 months. This represented a strong buyer’s market, where the number of available homes far exceeded the demand, giving buyers considerable negotiating power.​Following the recovery period from 2012 onwards, the Austin market experienced a gradual tightening. From 2012 to 2019, the MOI consistently stayed below 5 months, marking a prolonged seller’s market as the local economy strengthened and demand outpaced supply. This trend was further exacerbated during the COVID-19 pandemic, when record-low interest rates and heightened demand led to an unprecedented reduction in inventory, with MOI figures consistently below 2 months.​In 2023 and early 2024, there was a noticeable shift, with inventory levels rising and the market moving toward a neutral stance. However, as of November 2024, the MOI’s drop to 4.96 indicates a resurgence of buyer activity. This suggests that buyers are adjusting to the current mortgage rates, and many are capitalizing on the relative affordability improvements compared to the price peaks seen during the height of the pandemic boom.​The market's current conditions align with trends seen in 2013-2014, where MOI hovered around 4-5 months, indicating a slightly seller-favored environment. Unlike that period, however, the macroeconomic landscape today includes higher interest rates, which have been a major factor affecting affordability and buyer sentiment. Despite these challenges, the sustained demand and strong absorption rates reflect a resilient housing market supported by ongoing in-migration, strong employment figures, and a robust local economy in Austin. Looking ahead, the months of November and December often see seasonal slowdowns, but if the current trend of declining MOI persists, it may point to stronger underlying demand heading into early 2025. The ongoing absorption of inventory, coupled with stable demand, could result in increased competition among buyers, especially if the Federal Reserve signals any potential adjustments to interest rates. The upcoming months will be critical to observe as these factors play out, shaping the market dynamics for the new year. Overall, the latest data shows that the Austin real estate market is making a notable shift back towards a seller’s market. The MOI at 4.96 indicates strong buyer activity and a tightening of supply, which could lead to stabilizing or even rising home prices in the near future. This change, while subtle, may signal the beginning of a new phase in the Austin housing market cycle.&nbsp;

The latest Austin real estate market update reveals a shift back to a seller’s market, with Months of Inventory (MOI) dropping to 4.96 in November 2024. Active residential listings remain steady at 14,136, while increased absorption rates highlight rising buyer demand. Discover how these trends may impact home prices and the Austin housing market moving into 2025.

Austin Real Estate Market Update: Seller’s Market Returns as Inventory Falls in November 2024

Austin Real Estate Trends: Withdrawn and Expired Listings Shape Market Inventory in 2024 November 01, 2024 : The Austin real estate market has seen a significant shift in recent months, with inventory levels falling below 5 months for the first time since May 2024. This decrease in available housing inventory reflects dynamic changes in market behavior and supply adjustments, particularly due to a rise in withdrawn and expired listings across the six-county Austin Metropolitan Statistical Area (MSA), which includes Travis, Williamson, Bastrop, Hays, Caldwell, and Burnet counties. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241101104816.png" alt="" width="" height="" style=""></figure></div> Inventory trends have shown considerable fluctuation in 2024. The year began with a relatively low inventory of around 3.4 months, a level often associated with a balanced real estate market. As the spring months progressed, inventory levels began to increase, hitting 4.0 months in early April and climbing consistently through May, ultimately reaching 5.38 months in June. This rise signaled a cooling market, where new listings outpaced buyer demand, leading to slower absorption rates and a buildup of active properties. However, as the summer and early fall months unfolded, the Austin MSA experienced a different trend: a sharp increase in the number of listings withdrawn from the market or allowed to expire without a sale, directly impacting the months of inventory. In October 2024 alone, there were 1,036 withdrawn listings and 652 expired listings in the Austin MSA, a significant rise compared to earlier months. For comparison, January 2024 saw 585 withdrawn and 410 expired listings. This substantial growth in withdrawn and expired listings suggests that sellers are increasingly cautious about market conditions. This pattern first became prominent in the summer, with July seeing nearly 1,000 withdrawn listings and August reaching 1,085, coupled with rising expired listings that peaked in September at 679. As a result, many sellers opted to pull their homes from the market rather than leave them available without securing offers, a trend that continued through October. While the Austin area has witnessed a slight increase in pending sales year-over-year, the significant rise in withdrawn and expired listings has played a larger role in shaping the current market inventory. This combination of stable demand and decreasing active listings has brought months of inventory down to 4.97 in November, a notable change from the highs seen earlier in the year. In addition to indicating a potentially more competitive market for buyers, this decrease in months of inventory reflects a shift from the cooling conditions of the summer months, as the number of properties available for sale declines. From an annual perspective, 2024’s average months of inventory has been 16.1% higher than 2023, signaling a generally higher inventory throughout the year. However, the recent decline suggests that supply may become increasingly limited as the market heads toward the end of the year. October's rise in withdrawn and expired listings has clearly impacted the months of inventory, with sellers showing reluctance to keep listings active during uncertain conditions. The number of listings pulled from the market reflects both sellers' cautious approach and the broader seasonal cycles that typically affect real estate activity in the fall. As the Austin MSA real estate market closes the year, the trend toward lower inventory levels could have multiple implications for buyers, sellers, and the market as a whole. Fewer homes on the market can lead to increased competition among buyers, while sellers may face renewed confidence if inventory continues to decline. By tracking months of inventory, active listings, and the status of withdrawn and expired properties, both buyers and sellers in the Austin area can gain a clearer understanding of current market cycles and trends. With the months of inventory now below 5 months, the Austin real estate market stands at a pivotal moment, one marked by shifting supply and demand dynamics that will likely influence decisions moving into 2025.&nbsp;

Discover the latest trends in the Austin real estate market as inventory levels fall below 5 months for the first time since May 2024. Explore how increased withdrawn and expired listings across Travis, Williamson, Bastrop, Hays, Caldwell, and Burnet counties are impacting months of inventory, shaping a more competitive environment for buyers and sellers alike

Austin Real Estate Inventory Falls Below 5 Months as Withdrawn and Expired Listings Surge in 2024

Austin Real Estate Market October 2024: Rise in Pending Sales and Inventory The real estate market in Austin has seen significant changes as of October 2024, reflecting a combination of increased buyer activity and ample housing inventory. In the latest market update, the Austin area recorded a total of 4,130 pending listings, which marks a 6.0% increase compared to the same time last year. This rise in pending listings points to strong demand, suggesting that many buyers are finding value in the current market despite broader economic challenges. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241028060755.png" alt="" width="" height="" style=""></figure></div> Alongside this uptick in pending listings, the number of <a href="https://teamprice.com/active-residential-listings">active residential properties</a> in Austin reached 14,306, showing a notable year-over-year increase of 14.5%. This surge in available properties creates a well-supplied market for buyers, offering a wide selection of homes at competitive price points. Although inventory levels peaked in July 2024 at 15,503 active listings, the current figure still represents an ample supply, balancing demand effectively. This increase in active listings is coupled with other key market indicators that highlight the current market’s state. For instance, the Activity Index—measuring the ratio of pending to active listings—stands at 22.4%, an essential gauge for both buyers and sellers. This index level indicates a balanced market where demand is still strong but well-matched by supply, helping to maintain stability across property prices. Another valuable indicator is the Months of Inventory (MOI), which currently stands at 5.11 months. MOI measures how long it would take for the existing inventory to be sold at the current sales pace if no new listings entered the market. A MOI of over 5 typically suggests that the market leans towards a buyer's advantage, with more options for prospective homeowners to consider. However, this level is balanced enough that sellers can still anticipate steady interest in their listings. Breaking down the types of active listings reveals even more about current market trends. Of the 14,306 active listings, a significant portion represents resale properties, which make up 62.3% of the total. Resale homes average prices around $761,692, down by 7.1% from previous levels. New construction homes also form a substantial part of the inventory at 16.2%, with an average price of $742,062, reflecting an 8.1% decrease from past months. These price adjustments suggest that sellers and builders alike are aligning their pricing strategies with the market’s demand, creating opportunities for buyers. Looking at pending sales, resale properties constitute a large share, accounting for 50.4% of all pending listings, with average listing prices around $571,568. New construction follows closely, making up 17.9% of all pending listings with an average price of $599,742. The variance in pending prices indicates that while there is interest in new builds, resale properties continue to attract buyers who may be drawn to established neighborhoods or homes with existing character. For anyone tracking real estate trends in Austin, this data provides a clear view of the market's strength and balance. Higher pending listings, alongside abundant inventory and stable pricing, show a healthy market that caters to a wide range of buyers. As Austin's real estate landscape evolves, these key metrics provide valuable insights for buyers, sellers, and investors alike​

Explore Austin’s real estate market as of October 2024, with a 6% increase in pending sales and a 14.5% rise in available inventory, creating a balanced environment for buyers and sellers. Analyze key metrics like the Activity Index and Months of Inventory to understand market trends

Austin Housing Market October 2024: Increased Pending Sales and Inventory Trends

Austin’s Real Estate Market Hits Record-High Average List Price in October 2024 The City of Austin continues to demonstrate its robust real estate market growth, with the average list price reaching an all-time high of $947,796 in October 2024. This marks a significant increase from the previous October 2023 figure of $891,040, representing a 6.36% year-over-year rise. Austin’s real estate market has consistently demonstrated resilience and upward movement in property values over the past decade, contributing to its appeal for both homebuyers and investors. Looking back at historical data, the average list price in Austin has climbed steadily over the last decade. In 2014, the average price was $446,553, meaning that in 10 years, the city has seen a staggering 113.8% increase in property values. This growth is reflective of Austin’s position as one of the fastest-growing cities in the United States, driven by strong economic factors, population growth, and high demand for housing. Month-to-month data over the past year shows fluctuations in pricing, but the general trend has remained upward. In January 2024, the average list price was $887,148, slightly down by 0.5% from January 2023. However, this minor decline was quickly offset in subsequent months, with prices rebounding and ultimately peaking in October 2024. Notable increases include the February average list price, which rose to $913,186, and the March figure of $921,807. In addition to the year-over-year increase, the data shows strong growth over the past five years. From 2020 to 2024, Austin’s average list price rose by 69.6%. This five-year trend underscores the city's sustained price appreciation, making it a sought-after location for both residential and investment properties. The year 2021 was particularly noteworthy, with the market experiencing a 22.7% increase in list prices in October of that year, largely due to heightened demand and limited inventory during the pandemic. Examining the data from earlier years highlights the long-term upward trajectory of the market. In October 2015, the average list price was $480,635, and by October 2020, it had surged to $638,789, a 14.3% rise from 2019. As of October 2024, the city has maintained a steady pattern of growth, despite occasional market adjustments. This upward trend in Austin’s real estate market is not unique to October alone. Throughout 2024, other months also experienced substantial price increases. For instance, the average list price in April 2024 was $946,453, which represents a 3.0% rise compared to the previous year. In July 2024, the market held firm with an average price of $825,660, marking a 1.2% year-over-year growth. These figures emphasize the ongoing demand for housing in the Austin area. One of the most striking aspects of this data is the consistency of Austin’s real estate market growth, even during periods of economic uncertainty. The year-over-year percentage changes show that the city has experienced stable, upward trends for the better part of a decade. Whether looking at the 10-year growth of 113.8% or the five-year surge of 69.6%, it is clear that Austin remains a competitive market for both buyers and sellers. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241024043822.png" alt="" width="" height="" style=""></figure></div> As Austin’s average list price continues to rise, market analysts will closely watch whether this trend persists into 2025. For now, it’s evident that Austin's real estate market is strong, with prices reflecting both the high demand for housing and the area's rapid economic growth. The data suggests that as long as these driving factors remain in place, Austin’s market will likely continue to thrive, presenting opportunities for those looking to invest in one of the nation’s most dynamic housing markets​

In October 2024, Austin’s real estate market hit a record high, with the average list price reaching $947,796. Learn about the market's impressive 113.8% growth over the past decade and what’s driving these numbers.

Austin Real Estate Reaches Record-High List Price: October 2024 Analysis

Austin Zoning Changes Lead to Spike in 2-4 Unit Housing Permits In September 2024, Austin witnessed a remarkable <a href="https://teamprice.com/building-permits">surge in permits</a> for the construction of 2-4 unit housing developments. According to recent data, 314 permits were issued in that month alone. This is a substantial increase compared to previous months, reflecting a clear shift in Austin's housing market and development patterns. This surge is a result of recent zoning reforms that have reshaped how residential lots are used in the city, encouraging higher-density housing solutions. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241024030408.png" alt="" width="" height="" style=""></figure></div> Historically, Austin’s zoning laws favored single-family homes, limiting the potential for diverse housing options in many neighborhoods. However, in response to the city's growing population and affordability challenges, the Austin City Council introduced significant changes aimed at boosting housing density. One key reform, implemented in December 2023, allowed developers to build up to three units—such as duplexes and triplexes—on lots previously zoned for single-family homes. This change was a bold move to encourage more efficient use of space in Austin's urban core and increase the availability of affordable housing options. Further enhancing these efforts, in May 2024, the City Council reduced the minimum lot size requirement for single-family homes. The previous minimum of 5,750 square feet was reduced to 1,800 square feet, which opened the door for smaller, more affordable homes to be built on the same land footprint. This reduction in lot size also allowed for the development of 2-4 unit homes on lots that would have previously only accommodated a single-family residence. The data clearly shows that developers are taking advantage of these changes. The spike to 314 permits in September 2024 is a striking increase when compared to the year’s previous average. In August 2024, only 30 permits for 2-4 unit developments were issued, and in July 2024, there were just 25 permits. These lower numbers reflect a typical trend from earlier years, when fewer multi-unit developments were feasible due to Austin’s restrictive zoning laws. This recent spike marks a significant shift in how the city is addressing its housing needs. The multi-unit housing developments not only provide more affordable housing options but also help accommodate the influx of new residents to Austin. By allowing duplexes, triplexes, and fourplexes to be built in neighborhoods that previously only allowed single-family homes, the city is working to alleviate its housing shortage and offer more diverse living arrangements for its residents. While some local residents have voiced concerns about the potential changes to neighborhood character and increased density, the city’s leadership is focused on addressing Austin’s housing crisis through smart, calculated reforms. The dramatic rise in permits for 2-4 unit homes is evidence that these zoning changes are having a tangible impact on Austin’s housing market. Developers are responding quickly to the opportunities created by these reforms, and the result is a more diverse and dynamic housing landscape in the city. Austin’s recent zoning reforms aim to strike a balance between preserving neighborhood integrity and meeting the growing demand for housing. As developers continue to take advantage of these changes, Austin’s housing market will likely see further shifts, with increased density playing a crucial role in the city’s efforts to provide affordable housing options to its expanding population​

In September 2024, Austin issued 314 permits for 2-4 unit housing developments, marking a significant increase driven by recent zoning reforms. Discover how these changes are reshaping Austin’s housing market and addressing the city’s affordability challenges

Austin Real Estate: 2-4 Unit Permits Surge in September 2024

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