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

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

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’s 78701 Zip Code Sees Record Lease Price Drop in 2024: A 25-Year Market Analysis October 29, 2024 : The downtown Austin real estate market, centered in the <a href="https://teamprice.com/zip-codes/78701">78701 zip code</a>, has seen substantial changes over the past 25 years. Known for its vibrant culture, proximity to major employers, and mix of high-rise apartments and luxury condos, downtown Austin has traditionally been a high-demand rental market. However, the latest data for 2024 reveals a surprising downturn in leasing prices, indicating a potential shift in the market. Understanding these trends provides valuable insights for both investors and 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/20241029121012.png" alt="" width="" height="" style=""></figure></div>​ Since 1999, leasing prices in the <a href="https://teamprice.com/zip-codes/78701">78701 zip code</a> have steadily increased, with the median leased price rising from $1,100 to $2,995 in 2024. The average leased price has also grown significantly, starting at $1,270 in 1999 and reaching $3,567 in 2024. This consistent increase translates to an annual compound growth rate of 3.72%, reflecting the appeal and economic strength of the downtown Austin area. Over the years, the area has attracted a steady influx of residents who are drawn to its unique amenities and vibrant lifestyle. Yet, despite this long-term growth, the market is now experiencing a notable drop in leasing prices. From 2023 to 2024, the average leased price declined by 10%, marking the largest year-over-year decrease in 25 years. The median leased price similarly dropped by 6% over the past year. This decrease is significant, considering the historical trend of steady price increases. Such a substantial decline in both average and median prices points to changing demand dynamics within downtown Austin. The year-over-year variations in the data also reveal how the 78701 leasing market has responded to economic shifts over time. For example, in 2000, the median leased price surged by 36%, and in 2011, it increased by 18%. These spikes coincide with periods of economic growth, when high demand for downtown living pushed prices upward. Conversely, the financial crisis in 2009 brought a downturn, with the average leased price dropping by 6%. This pattern demonstrates how closely tied the downtown Austin rental market is to the broader economy. More recently, the downtown market experienced a period of rapid growth following the COVID-19 pandemic. As urban areas reopened and people returned to city life, demand for <a href="https://teamprice.com/zip-codes/78701">rentals in 78701</a> surged. In 2022, the average leased price increased by 19%, reflecting this demand spike as renters sought the convenience and lifestyle that downtown Austin offers. However, the recent price drop in 2024 suggests a correction in the market, possibly influenced by rising living costs, increased rental supply, or shifting renter priorities. Affordability is likely playing a key role in the latest price shift. <a href="https://teamprice.com/zip-codes/78701">Downtown Austin</a> has traditionally been one of the most expensive rental markets in the city, making it sensitive to economic pressures that affect renter budgets. As rental prices climbed, other parts of Austin became more attractive to renters seeking affordability. Additionally, rising interest rates have created affordability challenges for both renters and prospective homebuyers, further impacting demand in the downtown market. The <a href="https://teamprice.com/zip-codes/78701">78701 area’s leasing market</a> also faces increased competition from newly developed properties across Austin. As more rental units become available, renters have more options, potentially easing demand in the core downtown area. This influx of supply could explain part of the recent decline in leased prices as property owners adjust rates to remain competitive. The leasing trends in <a href="https://teamprice.com/zip-codes/78701">Austin’s 78701 zip code</a> provide a clear picture of the area’s market cycles and economic responsiveness. While the long-term growth trend underscores downtown Austin’s sustained appeal, the recent downturn highlights the impact of affordability and supply dynamics. Investors and renters alike should keep an eye on these changes, as they reflect the ongoing evolution of Austin’s housing landscape. With Austin’s rapid growth and development, downtown remains a dynamic and influential part of the city’s real estate market.&nbsp;

Latest 2024 data on leasing trends in Austin’s 78701 zip code. This in-depth analysis covers a 25-year span, revealing the largest year-over-year price drop downtown Austin has seen. Discover how economic shifts, affordability challenges, and increased supply are impacting rental prices in Austin’s prime downtown area

Downtown Austin’s 78701 Zip Code Sees Largest Lease Price Drop in 25 Years: 2024 Analysis

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 Housing Market Trends: Sales Data Reveals Sharp Decline in 2024 The real estate market in Austin, Texas, has experienced significant shifts over the past decade. As one of the fastest-growing cities in the United States, Austin's housing market has seen periods of rapid growth followed by sharp declines, particularly in the last few years. By analyzing the data from January 2014 through September 2024, it becomes clear that the number of home sales in Austin has fluctuated, with noticeable drops in the most recent years. This article dives into these trends, offering an in-depth look at how the market has evolved and what the current state of sales looks like. In September 2024, the <a href="https://teamprice.com/residential-inventory">City of Austin recorded 629 home sales</a>. This number represents a substantial decline from previous years. In fact, comparing September 2024 to September 2020, when 1,533 sales were recorded, shows a dramatic reduction of nearly 60%. Even when compared to September 2023, which saw 840 sales, this represents a decrease of 25.1%. The trend is not unique to September. Months like August and July have also seen reduced activity, with August 2024 recording 870 sales, down from 1,485 in August 2018. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240930115127.png" alt="" width="" height="" style=""></figure></div>​ If we look further back, the sales numbers tell an even more complex story. Between 2014 and 2019, sales were relatively stable. For example, in September 2014, 1,146 <a href="https://teamprice.com/residential-inventory">homes were sold</a>, and in 2019, that number was slightly higher at 1,234. However, by 2022, sales dropped to 948 in September, and the numbers have continued to decline since then. The COVID-19 pandemic brought significant changes to the housing market, as seen by the surge in sales in 2020 and 2021. July 2020 was particularly strong, with 1,815 sales recorded, but by July 2024, sales had fallen to just 900. Year-over-year changes highlight the extent of this decline. In September 2024, sales were down 49% compared to September 2020 and 45.1% compared to September 2015. This downward trend has been consistent across most months, with only occasional upticks. For example, April 2024 showed a 13.6% increase from April 2023, but the overall trend has been a steady reduction in sales since the highs of 2020. The seasonal nature of real estate activity is also evident in the data. Summer months, such as June, July, and August, tend to have more <a href="https://teamprice.com/residential-inventory">home sales</a> compared to the winter months. For example, June 2024 saw 865 home sales, which is notably lower than June 2020's 1,505 sales, but still higher than the early months of the year, such as January 2024, when only 551 homes were sold. This pattern of higher summer activity followed by lower sales in the fall and winter is typical in the housing market, but the recent decline in sales is more than just seasonal. It reflects broader market conditions that have shifted over time. The five-year and ten-year comparisons further emphasize how much the market has changed. Between 2020 and 2024, there has been a 43.7% <a href="https://teamprice.com/residential-inventory">decline in sales</a> in June alone. Similarly, comparing the years 2015 to 2024 shows a 45.1% decrease in September sales. These declines point to a challenging real estate environment, where fewer homes are being sold despite the rapid growth Austin experienced earlier in the decade. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240930115143.png" alt="" width="" height="" style=""></figure></div>​ Overall, the data shows that while Austin's real estate market was thriving in the mid-2010s, it has faced significant challenges in recent years. The rapid <a href="https://teamprice.com/residential-inventory">increase in sales</a> during 2020 and 2021 has been followed by a period of contraction, with fewer homes being sold each month. This trend is likely influenced by a combination of factors, including rising home prices, higher interest rates, and changing buyer behavior. As Austin continues to grow, these trends will be important to watch for anyone looking to buy or sell property in the area​

Discover the latest trends in Austin's real estate market with an in-depth analysis of sales data from 2014 to 2024. This detailed article explores the steady decline in home sales over the last decade, the factors driving these changes, and what it means for buyers and sellers in the Austin area. Stay informed on the current state of Austin real estate with this comprehensive report

Austin Real Estate Sales Decline: A Detailed Look at Trends from 2014 to 2024

Austin Real Estate Market: Examining Months of Inventory from 2014 to 2024 The Austin real estate market has experienced significant shifts over the past decade, with the <a href="https://teamprice.com/real-estate-glossary/months-of-inventory">months of inventory</a> serving as a key indicator of these changes. The term "months of inventory" refers to the amount of time it would take to sell all active listings in the market at the current pace of sales. When months of inventory are low, it signals a seller's market where demand exceeds supply. Conversely, higher months of inventory indicate a buyer's market, where there are more homes available than there are buyers. Understanding the fluctuation of months of inventory in Austin from 2014 to 2024 can offer insight into how the market has evolved and where it may be heading. In 2014, the Austin housing market had an average of 3.37 months of inventory. This level indicated a balanced market where neither buyers nor sellers had a significant advantage. By 2015, the months of inventory increased slightly to 3.61, maintaining the market’s balanced nature. However, a steady decline began in the years that followed, with the months of inventory dropping to 2.45 by 2018. This trend suggested that housing supply was tightening as demand increased, likely driven by Austin's booming population growth and economic expansion. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240926115222.png" alt="" width="" height="" style=""></figure></div> The onset of the pandemic in 2020 marked a dramatic shift in the real estate landscape. The months of inventory plummeted to just 1.54 in 2020, reflecting an extremely competitive seller's market. The pandemic spurred demand for homes as historically low interest rates and the rise of remote work led many to seek more spacious living environments. In 2021, the months of inventory reached an all-time low of 0.97. Buyers were facing significant challenges, with homes being sold almost as soon as they were listed, creating intense competition. However, by 2022, the months of inventory began to increase as the market started to correct itself. The average months of inventory for that year rose to 2.37, more than doubling from the previous year’s figure. This upward trend continued into 2023, with the months of inventory rising to 4.01, a sign that the market was beginning to balance after the volatility caused by the pandemic. As of 2024, the months of inventory have reached 4.89, suggesting that supply is starting to catch up with demand. Looking at individual months, the seasonal fluctuations in Austin's real estate market become apparent. For instance, January consistently sees lower months of inventory compared to the summer months, which is a common trend in real estate markets nationwide. In 2024, January had 3.27 months of inventory, while June reached 5.93, reflecting increased market activity during the warmer months when families tend to move. This pattern is consistent across the years, with inventory levels generally peaking during the summer and declining in the winter.&nbsp; Over the ten-year period from 2014 to 2024, the data reveals significant year-over-year percentage changes. For example, in January 2022, there was a 261.7% increase in inventory compared to 2021, highlighting how dramatically the market had shifted. The years immediately following the pandemic saw inventory levels steadily rise, marking a return to a more balanced market. Despite this correction, the 2024 levels are still higher than pre-pandemic figures, indicating that Austin’s housing market is likely entering a new phase of stabilization. In the long-term view, the 5-year and 10-year averages offer further perspective. From 2020 to 2024, there was a 73.6% increase in the months of inventory for January, while the 10-year comparison shows a 24.0% rise. These trends suggest that while the market is recovering from the dramatic shifts seen during the pandemic, it may not fully revert to the conditions seen in the mid-2010s when inventory levels were much lower. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240926115300.png" alt="" width="" height="" style=""></figure></div> The months of inventory is a crucial indicator of market health. For potential buyers and sellers in the Austin area, understanding these trends can help inform decisions about entering or exiting the market. With the current levels approaching 5 months of inventory in 2024, Austin is moving closer to a balanced market where neither buyers nor sellers have a distinct advantage. This return to equilibrium after years of intense competition is a promising sign for the stability of the housing market in the city.

Explore the evolution of Austin's real estate market with a detailed analysis of months of inventory from 2014 to 2024. Discover how the market has shifted from a seller’s market to a more balanced state, with data-driven insights into key trends and seasonal variations. Learn what these inventory changes mean for buyers and sellers in Austin

Months of Inventory in Austin Real Estate: A Decade of Data (2014-2024)

Austin Area Leased Median Price :&nbsp;6.32% Decline Over Two Years as of September 2024 As of September 2024, the Austin real estate market is witnessing a notable decline in <a href="https://teamprice.com/market-cycle-lease">median leased prices</a>. Recent data reveals that the median leased price in September 2024 stands at $2,150, representing a 6.32% decrease compared to the same month 24 months prior, in September 2022. This drop marks one of the most significant shifts in recent years, with the market moving away from its peak in July 2023, when the median leased price reached $2,300. The 6.32% drop over the past 24 months is the largest decrease since August 2004 versus August 2002, when the market experienced a 6.98% decline. This change reflects the cyclical nature of Austin’s leasing market, which has seen various periods of both rapid growth and correction. For instance, in May 2022, the market experienced a peak with a 28.57% increase in leased prices compared to May 2020, illustrating the sharp contrast in market dynamics over the past few years. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240924021250.png" alt="" width="" height="" style=""></figure></div> Historical data further highlights the substantial growth the Austin leasing market has seen in the past decade. In January 2021, the median leased price was $1,800, while in January 2020, it was slightly lower at $1,700. These figures show how the market steadily appreciated in value over time. Going back even further, in January 2015, the median leased price was only $1,430, underscoring the strong market growth during this period. However, the recent 24-month decline points to a cooling phase in the market, with prices falling after years of rapid appreciation. The <a href="https://teamprice.com/market-cycle-lease">current median leased price</a> of $2,150, though down from its peak, still represents a higher baseline compared to pre-pandemic levels. However, the 6.32% decrease compared to two years ago signals that the market is cooling off significantly. This cooling trend could be attributed to various factors, such as increased inventory, changing demand, and broader economic conditions impacting both renters and landlords in the Austin area. While the Austin leasing market has long been characterized by high demand and rising prices, the current data suggests that these dynamics may be shifting. The last time the market saw such a significant decline was in the early 2000s, reflecting the cyclical nature of real estate markets. As both renters and investors navigate these changes, it’s essential to stay informed about current trends and how they may impact leasing decisions moving forward. With the ongoing shift in the market, the upcoming months will be critical in determining whether this downward​​

In September 2024, Austin’s median leased prices dropped 6.32% compared to 24 months prior, marking the largest decline since August 2004. The current median leased price is $2,150, down from the July 2023 peak of $2,300. Learn about the latest trends and insights into the evolving Austin leasing market.

Austin Leased Prices Fall 6.32% Over 24 Months: September 2024 Market Update

How Mortgage Rates and Home Prices Are Improving&nbsp;&nbsp;<a href="https://teamprice.com/affordability">Affordability in Austin</a> September 19, 2024 : The housing market in the Austin area has seen some relief for homebuyers in 2024, thanks to a combination of decreasing home prices and improved mortgage rates. According to the latest data from Team Price Real Estate, the Monthly Mortgage Payment (PITI) — which includes principal, interest, taxes, and insurance — has dropped to $3,161 in September 2024. This figure is calculated using the median sold price for that month with a 20% down payment and the 30-year mortgage rate. This is a significant improvement compared to the previous years, offering more <a href="https://teamprice.com/affordability">affordability</a>&nbsp;for potential buyers in the region. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240919022832.png" alt="" width="" height="" style=""></figure></div> The Austin real estate market has been turbulent over the last few years, with 2022 marking a particularly challenging time for homebuyers. During that year, monthly mortgage payments peaked in May at $3,767, and the average payment for the entire year was $3,476. This surge was driven by a combination of high property prices and rising mortgage rates, which made it increasingly difficult for buyers to afford homes in the area. In 2023, there were some fluctuations in the monthly mortgage payments, ranging from $3,207 in February to $3,617 in June. The average mortgage payment for that year was $3,443, which still reflected elevated prices, but with some signs of stabilization in the market. By the beginning of 2024, the data shows a further improvement. In January 2024, the monthly mortgage payment stood at $3,244, and by September 2024, it had declined to $3,161. This decline represents the ongoing efforts to balance out the supply and demand in the Austin real estate market, with home prices dropping and mortgage rates slightly easing. In particular, the improved mortgage rates in 2024 have played a major role in helping homebuyers. While interest rates remain higher than the historic lows seen in 2020 and early 2021, they have dropped from the peak levels of 2022. This means that buyers are now able to secure slightly better mortgage rates, which directly impacts their monthly payments. Coupled with lower home prices, this has provided significant relief, making homeownership more achievable for a wider range of buyers. Looking back, the trends in the Austin housing market highlight the dramatic shifts in <a href="https://teamprice.com/affordability">affordability</a>. For example, in 2021, the monthly mortgage payment started at $2,087 in January and rose throughout the year, peaking at $2,782 in December. This upward trend continued in 2022, with the monthly payment reaching an all-time high of $3,767 in May before gradually easing toward the end of the year. In 2023, the market saw more stable conditions, though the monthly payments still remained above $3,200 for most of the year. The improvements in 2024 have been more pronounced, offering a break for potential buyers who may have been priced out of the market in the previous years. The September 2024 figure of $3,161 is not only lower than the peak levels of 2022 but also lower than many months in 2023. This trend of decreasing monthly payments is a welcome development for the Austin real estate market, which has been one of the most competitive in the country. Despite the improvements, it's important to note that the Austin housing market remains expensive compared to pre-pandemic levels. For context, in 2019, the average monthly mortgage payment was $1,954, significantly lower than what buyers face today. However, the recent improvements in both home prices and mortgage rates have made a noticeable difference, offering a better financial picture for buyers in 2024. As the market continues to evolve, it’s clear that buyers are benefiting from the current trends. Lower home prices and improved mortgage rates have combined to reduce the monthly financial burden on buyers, making homeownership more accessible. While prices are still high compared to historical averages, the downward trend is a positive sign for those looking to enter the Austin housing market.

Discover how declining home prices and improved mortgage rates are making homeownership more affordable in the Austin area. Learn about the latest trends in Monthly Mortgage Payments (PITI) and what they mean for potential buyers in 2024

Austin Housing Market Sees Decline in Monthly Mortgage Payments in 2024

Why 2024 Is a Standout Year for Austin Real Estate Listings As of September 17th 2024, the Austin real estate market continues to show dynamic activity, with <a href="https://teamprice.com/new-listing-to-pending-ratio">new listings reaching a historic high</a>. Between January and September 2024, 37,473 new listings entered the market, positioning this year as the third-highest on record for new home listings during this period. This is a notable achievement, especially when considering that the cumulative number of new listings is 14.1% above the historical average, a clear indicator of the robust market activity and increasing supply in the Austin area. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240917121325.png" alt="" width="" height="" style=""></figure></div> Over the years, Austin’s real estate market has experienced fluctuations in the number of new listings. In 2000, the market saw just 21,173 new listings from January to September. Fast forward to 2024, and the number has almost doubled. Looking at specific years, we observe consistent growth, with peaks and valleys reflective of various market conditions. For instance, in 2001, new listings rose by 34.3% from the previous year, reaching 28,445 listings. This upward trend continued until 2006, where listings peaked at 34,444, before a significant drop of -8.6% in 2008 to 31,498 listings, likely reflecting the broader economic challenges of that period. Interestingly, despite a few declines, the Austin real estate market has shown resilience over the years. In 2009, new listings fell by -13.7%, and again in 2011 by -13.8%, but these were followed by rebounds, with listings growing 8.2% in 2010 and 9.0% in 2012, demonstrating how market dynamics can shift in response to external factors. The current year’s performance is particularly impressive, especially as we move through the final days of September. The 2024 cumulative listings of 37,473 already surpass those of several previous years, such as 2019’s 35,808 and 2020’s 36,291. With more listings expected before the end of the month, projections suggest that 2024 could surpass 37,796, recorded in 2021, which would make this year the second-highest on record. The steady <a href="https://teamprice.com/new-listing-to-pending-ratio">increase in new listings</a> is a critical factor for both buyers and sellers in Austin’s competitive real estate market. For buyers, the increasing supply may offer more options and potentially better pricing, while for sellers, the data points to a continuously active market with sustained interest in properties. With Austin's real estate market continuing to evolve, understanding these data trends is essential for making informed decisions. Whether you are a buyer, seller, or investor, tracking new listings and comparing them to previous years provides a clear picture of the market's health and trajectory. As we approach the end of September, all eyes will be on the final count of new listings to see if 2024 will indeed claim the spot as the second-highest year for new listings on record.

The Austin real estate market is seeing record-breaking activity in 2024, with 37,473 new listings from January to September, marking the third-highest on record and 14.1% above the average. Learn how the market is shifting and what this means for buyers and sellers as we approach year-end.

Austin Real Estate Sees Record Listings in 2024: 14.1% Above Average

Austin Real Estate Market Update: Pending Listings Reach New High in September 2024 September 16, 2024 : The Austin real estate market continues to show dynamic changes as we head into September 2024. One of the most notable shifts in the market is the rise in pending listings, which have reached 4,100 on September 16, 2024. This marks the highest number of pending listings in a month, showcasing an increase in buyer activity despite the broader market trends. Although pending listings have risen, they are still down -2.9% year-over-year (YoY), reflecting the impact of a market in transition. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240916014447.png" alt="" width="" height="" style=""></figure></div>​ Simultaneously, the number of <a href="https://teamprice.com/active-residential-listings">active residential listings in the Austin</a> area has decreased, with 14,838 active listings as of the same date. This represents a significant decline of -19.7% compared to September 2023. Month-over-month (MoM), the active listing count dropped by -2.32%, indicating a steady contraction in available homes. The steady drop in active listings, coupled with the rise in pending listings, suggests that homes are selling more quickly, leading to fewer options for prospective buyers. The Austin real estate market’s <a href="https://teamprice.com/real-estate-glossary/activity-index">Activity Index</a>, a key indicator of market absorption, stands at 21.6% as of mid-September. The Activity Index is calculated by dividing the number of pending properties by the total number of active and pending listings. This figure shows the rate at which homes are moving from being listed to going under contract. With pending listings at their highest in a month, it’s clear that buyer demand remains strong in the region. In addition to these numbers, the months of inventory available in the Austin market is another important measure. As of September 16, 2024, there are 5.31 months of inventory on hand. <a href="https://teamprice.com/real-estate-glossary/months-of-inventory">Months of inventory</a> is calculated by dividing the number of active listings by the number of homes sold in the past year. This metric helps determine how balanced the market is between buyers and sellers. A balanced market typically has about 5 to 6 months of inventory, which suggests that Austin is in a relatively stable position despite the fluctuations in active and pending listings. While pending listings have risen, the trend leading up to this point showed notable fluctuations. For example, between August 26, 2024, and September 16, 2024, pending listings varied from a low of 3,974 on September 2, 2024, to their peak of 4,100 on September 16, 2024. Meanwhile, active listings showed a steady decrease, highlighting the ongoing reduction in housing supply, which could be contributing to the heightened buyer interest. Overall, the data suggests that the Austin housing market is experiencing a shift, with fewer homes available for sale but strong buyer interest pushing pending listings to new heights. This tight inventory and increased pending activity may signal that buyers are taking advantage of more favorable conditions, such as competitive pricing and improving market trends.

Discover the latest update on the Austin real estate market in September 2024. Pending listings have hit 4,100, the highest in a month, while active listings continue to decline. Learn more about the market trends, inventory, and what this means for buyers and sellers in Austin.

Austin Real Estate Market Update: Pending Listings Hit 4100 in September 2024

Austin Real Estate Market Update: Understanding Current Trends August 10, 2024 : The Austin real estate market has experienced notable fluctuations over the years, with the most recent data offering valuable insights into its current state. One of the most critical metrics used to evaluate market conditions is the <a href="https://teamprice.com/market-update">Months of Inventory (MOI)</a>, a measure that indicates how long it would take to sell all the homes currently on the market if no new listings were added. The MOI is calculated by taking the average number of units sold monthly over the past year and dividing the current number of active listings by that figure. This calculation provides a snapshot of the market's current supply and demand balance. According to the latest data, the <a href="https://teamprice.com/market-update">Austin-area MOI</a> as of August 2024 stands at 5.3 months. This figure places the market squarely in the "neutral" category, which is defined by an inventory level between 5 and 6.9 months. A neutral market suggests that there is a relatively balanced number of buyers and sellers, with neither group holding a distinct advantage. Historically, the <a href="https://teamprice.com/market-update" class="on">Austin MOI</a> has seen significant variations. For example, in July 2010, the MOI peaked at 8.6 months, indicating a strong buyer's market at the time. In contrast, more recent years have witnessed much lower MOI levels, reflecting tighter market conditions. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240810011723.png" alt="austin-months-of-inventory-2024-update" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" data-align="center" width="" height="" data-size="," data-percentage="auto,auto" data-index="0" data-file-name="austin-months-of-inventory-2024-update.png" data-file-size="218707" data-origin="," style=""></figure></div> It's important to note that the MOI is considered a lagging indicator, as it reflects the inventory based on the historical absorption of properties. This means it provides insight into past market conditions rather than predicting future trends. To get a fuller picture of the market, it is also essential to consider leading indicators like the "<a href="https://teamprice.com/new-listing-to-pending-ratio">New Listing to Pending Ratio</a>" and the <a href="https://teamprice.com/activity-index-city">Activity Index for cities</a> and the <a href="https://teamprice.com/activity-index-zip-code">Activity Index for zip codes</a>.&nbsp;<a href="https://teamprice.com/new-listing-to-pending-ratio">New Listing to Pending Ratio</a> is (AUC + PB) / (New + BOM). AUC stands for "Active Under Contract," PB stands for "Pending, Taking Backups," New stands for "New Listings," and BOM stands for "Back On Market." A ratio less than one indicates an increase in inventory and a ratio of more than one will indicate a decrease in inventory.&nbsp;​The chart below will show you both the activity index and months of inventory for all 75 zip codes in the Austin-Area. We update this chart daily and you can access an updated version by going to our <a href="https://teamprice.com/active-residential-listings" style="font-size: 18px;">Austin-Area Active Residential Listings</a> resource. The Activity Index is calculated by dividing the number of pending properties by the total number of active and pending properties (Pending / Active + Pending). This ratio shows the current level of market absorption and, when analyzed alongside the MOI, provides a powerful way to understand both leading and lagging market indicators. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240810012018.png" alt="austin-zip-code-activity-index-months-of-inventory-2024" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" data-align="center" width="" height="" data-size="," data-percentage="auto,auto" data-index="2" data-file-name="austin-zip-code-activity-index-months-of-inventory-2024.png" data-file-size="168979" data-origin="," style=""></figure></div> This neutral stance in the market is further supported by the <a href="https://teamprice.com/active-residential-listings">number of active residential listings</a>. As of the latest update in August 2024, there are 15,690 active residential listings in the Austin area. This inventory provides a comprehensive view of the available housing supply, a critical factor influencing both pricing and market dynamics. A higher number of listings typically gives buyers more options and can lead to longer times on the market for sellers, which is consistent with the current neutral MOI. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240810011828.png" alt="active-listings-austin-august-2024" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" data-align="center" width="" height="" data-size="," data-percentage="auto,auto" data-index="1" data-file-name="active-listings-austin-august-2024.png" data-file-size="269108" data-origin="," style=""></figure></div> To understand the implications of these figures, it is essential to look at the historical trends. The <a href="https://teamprice.com/insight-and-statistics">Austin real estate market</a> has transitioned through various phases over the past two decades. In the years following the 2008 financial crisis, the MOI reached its highest levels, signifying a period when buyers had a strong upper hand due to the abundance of available properties. As the market recovered, the MOI gradually declined, moving through a seller's market phase, where homes were in high demand and inventory was scarce. The current neutral market indicates a period of stability, where supply and demand are more evenly matched. The data-driven insights provided by the MOI and active listings offer a detailed snapshot of the current Austin real estate market. Understanding these metrics, along with leading indicators like the <a href="https://teamprice.com/new-listing-to-pending-ratio">New Listing to Pending Ratio</a> and the Activity Index, is crucial for both buyers and sellers as they navigate the complexities of real estate transactions. For sellers, knowing that the market is neutral might influence their pricing strategies and expectations regarding how long their home will stay on the market. For buyers, the current MOI suggests that while there are options available, they should be prepared for a market that does not overwhelmingly favor them. As the <a href="https://teamprice.com/insight-and-statistics">Austin real estate market</a> continues to evolve, keeping a close eye on these indicators will be essential for making informed decisions. Whether you are buying or selling, understanding the dynamics of the market can help you navigate the process more effectively and with greater confidence.

August 10, 2024 : Explore the latest trends in the Austin real estate market with our August 2024 update. Learn about current inventory levels, Months of Inventory (MOI), and how leading indicators like the Activity Index and New Listing to Pending Ratio provide a comprehensive market analysis. Stay informed with our detailed market insights.

Austin Real Estate Market Trends: August 2024 Inventory Update and Analysis

Understanding the Gradual Improvement in Austin’s Cap Rates August 09, 2024 : Austin, Texas, is one of the fastest-growing real estate markets in the United States, known for its vibrant economy, cultural appeal, and a robust housing market. Investors and property owners often rely on key metrics to assess the performance of their real estate investments, and one such critical metric is the <a href="https://teamprice.com/cap-rate">capitalization rate</a>, commonly known as the cap rate. The cap rate provides insight into the return on investment for real estate properties, making it an essential figure for both current and prospective investors. The <a href="https://teamprice.com/cap-rate">cap rate for residential properties</a> is a metric used to gauge the return on investment by comparing the Net Operating Income (NOI) of the property to its market value. For example, if a house has a market value of $200,000 and generates a Net Operating Income of $20,000 annually, the cap rate would be 10%. The cap rate is calculated by dividing the NOI by the property's value, providing a percentage that helps investors assess the profitability of the property relative to its cost. At Team Price Real Estate, we use the median price in the Austin area, along with the median leased price, to calculate the cap rate for the entire area. Additionally, we perform these calculations by zip code to offer more localized insights.&nbsp; ​Between August 2022 and August 2024, the <a href="https://teamprice.com/cap-rate">cap rates in Austin</a> have shown a gradual, albeit modest, improvement. Cap rates in Austin have ranged from 3.05% in August 2022 to 3.67% in November 2023, reflecting slight increases over time. This data highlights a trend where returns on real estate investments in the Austin area have been inching upward, offering a bit more yield to investors than in previous years.​The <a href="https://teamprice.com/cap-rate">monthly cap rate data</a> reveals a nuanced picture. For instance, in August 2022, the cap rate stood at 3.05%, which then rose to 3.33% in September 2022. Over the following months, the cap rates continued to exhibit small fluctuations. By March 2023, the cap rate increased to 3.47%, indicating a positive shift in the market. This pattern continued through the following months, reaching 3.67% in November 2023, the highest observed during this period. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240809125814.png" alt="" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" data-align="center" width="" height="" data-size="," data-percentage="auto,auto" data-index="0" data-file-name="austin cap rate analysis.png" data-file-size="130530" data-origin="," style=""></figure></div>​Another important aspect of the Austin real estate market is the relationship between cap rates and the 6-Month Treasury Bill yield. The 6-Month Treasury Bill yield serves as a benchmark for low-risk investments, often used by investors to compare the returns offered by real estate. Over the analyzed period, the Austin area cap rate remained consistently lower than the 6-Month Treasury Bill yield. In January 2023, for example, the cap rate was 3.34%, while the 6-Month Treasury Bill yield was significantly higher at 4.80%. This gap widened further, reaching -2.17% in September 2023. While real estate investments in Austin have seen modest cap rate improvements, the returns compared to low-risk government securities still lag. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240809125851.png" alt="" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" data-align="center" width="" height="" data-size="," data-percentage="auto,auto" data-index="1" data-file-name="austin cap rate vs 6 month t bill.png" data-file-size="123543" data-origin="," style=""></figure></div>​The cap rate data also varies significantly by zip code within Austin. For example, in the 78725 zip code, the cap rate reached a high of 5.74%, making it one of the most attractive areas for real estate investment based on yield. On the other hand, zip codes such as 78703 and 78746 showed much lower cap rates, at 0.80% and 1.30%, respectively. These differences highlight the importance of localized market analysis when considering real estate investments in Austin. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240809125924.png" alt="" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" data-align="center" width="" height="" data-size="," data-percentage="auto,auto" data-index="2" data-file-name="austin cap rate analysis by zip code.png" data-file-size="231165" data-origin="," style=""></figure></div> Understanding these trends is crucial for investors aiming to make informed decisions. While the overall <a href="https://teamprice.com/cap-rate" class="on">cap rate in Austin</a> has shown a gradual improvement, it is essential to recognize the ongoing gap between these rates and the returns offered by government securities. This dynamic underscores the need for careful consideration of the potential risks and rewards when investing in Austin’s real estate market.

August 09, 2024 : Austin's real estate cap rates have gradually improved from 2022 to 2024. Explore detailed data insights, understand market trends, and learn what this means for real estate investors in Austin, Texas.

Austin Real Estate Cap Rates: Tracking the Rise from 2022 to 2024

The Austin-area real estate market has been experiencing notable changes over the past two years. Understanding these shifts is crucial for homeowners, buyers, and investors. In this article, we analyze the latest data and trends to provide a clear picture of the current market conditions and what they might mean for the future. From May 2022 to July 2024, the average sold price in the Austin area dropped from $681,939 to $573,996, a decline of approximately 15.83%. Similarly, the <a href="https://teamprice.com/market-cycle">median sold price decreased</a> from $550,000 to $445,600, marking a significant drop of about 18.98%. These price declines align with what is typically seen in a market correction, which generally involves a price drop of 10% to 20%. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240804010152.png" alt="" width="" height="" style=""></figure></div> The duration of this price decline has been about two years, further supporting the notion that the Austin-area real estate market is undergoing a correction. Historically, corrections last between one to two years before the market stabilizes and begins to recover. However, several factors must be monitored to determine if this correction could escalate into a crash. One critical indicator is the <a href="https://teamprice.com/new-listing-to-pending-ratio">New Listing to Pending Ratio</a>, which helps gauge the balance between new listings and pending sales. This ratio is calculated by dividing the sum of Active Under Contract (AUC) and Pending, Taking Backups (PB) by the sum of New Listings (New) and Back On Market (BOM) properties. A ratio below 1.0 indicates that the market is experiencing an increase in inventory, as more properties are listed than are going under contract. In the Austin area, the <a href="https://teamprice.com/new-listing-to-pending-ratio">New Listing to Pending Ratio</a> has been consistently below 1.0 for the first half of 2024. Weekly ratios fluctuated between 0.68 and 0.96, with the most recent data showing a ratio of 0.77. Monthly ratios for the same period ranged from 0.71 to 0.95. This trend suggests a sustained increase in inventory, which can lead to more choices for buyers and potentially stabilize or decrease home 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/20240804010246.png" alt="" width="" height="" style=""></figure></div> Sales volume has also shown notable fluctuations. For example, January 2024 saw significant drops in the number of properties sold compared to previous years. These fluctuations indicate changing buyer behavior and market activity, influenced by factors such as mortgage rates. Recent economic developments have introduced new dynamics into the market. As of the latest jobs report on Friday, conventional mortgage rates dropped to 6.125%, and FHA 30-year fixed rates fell to 5.625%, the lowest in one year. This decrease in rates followed a crash in bond market yields. Lower mortgage rates typically stimulate buyer activity, suggesting that we might see an increase in market transactions in the coming months as borrowing becomes more affordable. Economic conditions play a crucial role in the real estate market's trajectory. While the recent drop in mortgage rates is a positive sign, high mortgage rates have historically dampened buyer demand, leading to price declines and increased inventory. Monitoring these economic conditions is essential to determine if the market is heading toward a crash or if it will stabilize with the new, lower rates. For the Austin-area market to shift from a correction to a crash, several severe indicators would need to align. These include the <a href="https://teamprice.com/new-listing-to-pending-ratio">New Listing to Pending Ratio</a> dropping consistently below 0.7, indicating a dramatic increase in inventory with few properties going under contract. Additionally, price declines would need to exceed 20%, reflecting more severe depreciation. The duration of the decline would need to extend beyond three years, signifying a prolonged market downturn. Significant and sustained drops in sales volume, coupled with worsening economic conditions such as rising unemployment and further increases in mortgage rates, would further exacerbate the market conditions, pushing it towards a crash. If the Austin-area market remains in a correction, the recovery is likely to follow historical patterns. The market could stabilize as inventory levels balance out and buyer demand increases, particularly with the recent drop in mortgage rates. Home prices might begin to recover within the next 1 to 2 years as economic conditions improve and buyer confidence returns. Increased market activity and a reduction in inventory oversupply would be key factors driving this recovery, leading to a gradual return to pre-correction price levels. In the event of a crash, the recovery would be much more prolonged and complex. Historically, real estate market crashes can take up to 5 to 10 years to recover fully. Recovery would depend on significant economic improvements, such as lowering unemployment rates, better access to financing, and sustained low mortgage rates. The market would need to absorb the excess inventory, and prices would gradually stabilize before starting to increase. The initial phase of recovery might see slow and uneven price gains, with more robust growth emerging as economic stability is restored. To summarize, the Austin-area real estate market is currently experiencing a correction, with price declines and increased inventory. The New Listing to Pending Ratio consistently below 1.0 and fluctuating mortgage rates are key indicators of this trend. The recent drop in mortgage rates to 6.125% for conventional loans and 5.625% for FHA loans brings hope for increased market activity. However, ongoing monitoring of these indicators and economic conditions is crucial to understanding the future outlook. <div class="se-component se-image-container __se__float-left" style="width: 100%;"><figure style="width: 100%;"><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240804010820.png" alt="" width="100%" height="" style="width: 100%;"></figure></div>

August 03, 2024 : Understand the current price declines, inventory changes, and economic conditions shaping the market. Is Austin heading towards a crash or just a correction? Find out more.

Is the Austin Real Estate Market Heading Towards a Crash? A Data-Driven Analysis

Austin Area MLS Sees Record High in Active Lease Listings for July 2024 July 07, 2024 : The Austin Area MLS has experienced a remarkable surge in active lease listings, reaching a record high of 6,662 in July 2024. This unprecedented number highlights significant growth in the real estate market, reflecting broader trends observed over the past decade. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240707124809.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="austin area lease inventory.png" data-file-size="140662" data-origin="," style=""></figure></div> In January 2014, the Austin Area MLS recorded 1,892 active lease listings. Fast forward ten years, and this figure has soared to 5,049 by January 2024, marking an impressive 166.9% increase. February showed a similar trend, with listings rising from 1,776 in 2014 to 4,869 in 2024, a staggering 174.2% growth. March also saw a significant increase, with listings jumping from 1,868 in 2014 to 4,760 in 2024, reflecting a 154.8% rise. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240707124852.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="austin area lease inventory graph 1.png" data-file-size="66417" data-origin="," style=""></figure></div> The data for April through June further underscores this upward trajectory. In April 2014, there were 2,123 active lease listings, which grew to 5,106 by April 2024. May's listings increased from 2,412 in 2014 to 5,978 in 2024, and June saw a rise from 2,852 to 6,480 over the same period. Each month consistently shows substantial year-over-year growth, emphasizing the expanding rental market in Austin. July 2024's record high of 6,662 <a href="https://teamprice.com/lease-inventory">active lease listings</a> is a milestone for the Austin Area MLS. This figure represents a significant leap from the 2,862 listings recorded in July 2014. The month-over-month data reveals a steady climb, with listings rising from 2,935 in 2015 to 3,491 in 2016, and eventually reaching 5,525 in July 2023. The current year's record surpasses the previous high, showcasing a robust and dynamic market. The trends observed over the last decade illustrate consistent growth in active lease listings, with notable increases year-over-year. For instance, January 2023 saw an 81.7% increase compared to the previous year, while February 2023 experienced a 79.0% rise. March 2023 also demonstrated significant growth with a 77.2% increase from the prior year. The five-year and ten-year averages provide further insight into these trends. The average number of active lease listings for the five years leading up to 2024 is 5,558, while the ten-year average is 4,908. This comparison indicates a notable increase in recent years, suggesting a vibrant and expanding market. Analyzing percentage differences year-over-year highlights the fluctuations in the market. January's data, for example, shows a 31.8% increase in 2024 compared to the previous year. Similarly, February and March recorded 28.2% and 21.1% increases, respectively. These variations reflect the market's responsiveness to various external factors and the overall growth trajectory. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240707125304.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="austin area lease inventory graph 2.png" data-file-size="73062" data-origin="," style=""></figure></div> In conclusion, the Austin Area MLS has reached a historic milestone with 6,662 active lease listings in July 2024. This record-breaking number is part of a broader trend of significant growth observed over the past decade. The data highlights the dynamic nature of the Austin rental market and underscores the increasing demand for lease properties in the area. This article is based on data published on July 07, 2024. <a href="https://teamprice.com/insight-and-statistics">Austin Real estate statistics</a> are constantly evolving. For the most current data and analysis, please refer to the following resources, updated weekly: <a href="https://teamprice.com/lease-inventory">Austin-Area Lease Inventory</a>

July 07, 2024 : In July 2024, the Austin Area MLS reached a record high of 6,662 active lease listings, marking a significant milestone in the real estate market. This article explores the decade-long trends and the impressive growth in lease listings, providing detailed insights into the Austin rental market.

Austin Area MLS Hits Record High: 6,662 Active Lease Listings in July 2024

Austin Real Estate Market Sees Record Highs in Active Listings and Inventory June 21, 2024 : The Austin real estate market has experienced significant changes, reaching record highs in active residential listings and months of inventory. As of June 21, 2024, active residential listings have reached an unprecedented 15,137, representing a 5.96% increase month-over-month and a substantial 28.7% rise year-over-year. This is the highest number of active listings ever recorded, surpassing the previous high of 15,035 on June 14, 2024, by 102 listings. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240622022318.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="active.png" data-file-size="88830" data-origin="," style=""></figure></div> A detailed comparison of the current year to the previous year reveals notable differences in the market dynamics. In 2023, the number of active listings was 11,760, which means the 2024 figure shows a remarkable increase of 28.7%. On the other hand, pending listings have seen a decline. In 2023, there were 5,245 pending listings, whereas in 2024, the number has decreased to 4,883, a drop of 6.9%. This shift indicates a cooling in the market’s absorption rate. The activity index, which measures the percentage of properties under contract out of the total available, provides further insight into market trends. The activity index has fallen from 31.6% in 2023 to 24.4% in 2024, showing a significant decrease of 22.7%. This metric is a leading indicator of market absorption, highlighting the percentage of properties going under contract out of the total available. A lower activity index suggests a slower pace of property sales relative to the number of active listings. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240622022357.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="activity.png" data-file-size="112031" data-origin="," style=""></figure></div> Another critical metric, months of inventory, has also reached a new high. In 2024, the months of inventory stand at 5.31, compared to 4.04 in 2023, marking a 31.6% increase. This indicates a slower turnover of homes, suggesting that properties are remaining on the market for longer periods before being sold. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240622022441.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="moi.png" data-file-size="69518" data-origin="," style=""></figure></div> The current market conditions also reveal significant price adjustments and occupancy trends. Out of all active listings, 52.1% have experienced price drops, and 44.2% of pending listings have had price reductions before going under contract. Additionally, 57.2% of all active listings are currently vacant, reflecting changes in property occupancy dynamics. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240622022530.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="price drop.png" data-file-size="194835" data-origin="," style=""></figure></div> When breaking down the types of listings, resale homes constitute the majority with 9,714 properties, accounting for 64.2% of the total active listings. New construction follows with 2,359 homes, making up 15.6% of the market. Other categories include updated or remodeled homes, which represent 5.9% of the market, and properties under construction, which account for 10.7%. Geographical distribution shows variations in market activity across different cities within the Austin area. For instance, Austin itself has 4,796 active listings, with 54.6% experiencing price drops. In contrast, Lakeway has 164 active listings, with a notable 68.9% having undergone price reductions. Other areas like Leander and Georgetown also show significant levels of price adjustments, with 58.6% and 56.1% of listings experiencing price drops, respectively. The overall increase in active listings and months of inventory, coupled with the decrease in pending listings and activity index, suggests a shifting market landscape. These changes highlight the importance of monitoring market trends and adapting strategies to navigate the evolving real estate environment in Austin.​ This article is based on data published on June 21, 2024. <a href="https://teamprice.com/insight-and-statistics">Austin Real estate statistics</a> are constantly evolving. For the most current data and analysis, please refer to the following resources, updated weekly: <a href="https://teamprice.com/active-residential-listings">Latest Active Residential Listings in the Austin-Area</a>

June 21, 2024 : Latest trends in the Austin real estate market as active residential listings and months of inventory reach record highs in 2024. Explore detailed market data, including price adjustments, occupancy rates, and geographical distribution, providing a comprehensive analysis of the current housing market dynamics.

Austin Real Estate Market Trends: Active Listings and Inventory Surge

<h1>Is Austin a Buyer or Seller Market?</h1>In the landscape of real estate, understanding the market's current state is crucial for both buyers and sellers. One key metric that offers insight into this is the "Months of Inventory" (MOI). This figure represents the time it would take for all current homes on the market to sell given the current pace of sales. Analyzing MOI helps delineate whether we're in a seller's, neutral, or buyer's market. This article delves into the Austin real estate scene, dissecting the MOI across various areas to offer a comprehensive market update.&nbsp;The current analysis of Austin's real estate inventory reveals a diverse market, with significant variation across different areas. With an average MOI of 5.47, the broader Austin market appears to lean slightly towards a neutral market. However, this overarching figure masks the nuances of local micro-markets. Seller's Market: Characterized by less than 4.9 months of inventory, a seller's market indicates a higher demand for homes than the supply can meet. In such markets, sellers often enjoy the upper hand, with multiple offers driving up property prices. Homes tend to sell quickly, and buyers must act swiftly and decisively to secure their desired property.&nbsp;About half of the analyzed areas, including Hutto, Cedar Park, and Manor, feature less than 4.9 months of inventory, categorizing them as seller's markets. In these locales, sellers enjoy a competitive edge, with properties often receiving multiple offers and selling above the asking price. Buyers in these markets need to make quick, competitive bids to secure homes. The following cities are currently experiencing a seller's market: Austin (4.41 months) Bastrop (3.31 months) Buda (3.49 months) Cedar Park (2.95 months) Georgetown (3.63 months) Hutto (1.43 months) Jarrell (4.02 months) Kyle (4.25 months) Leander (3.44 months) Liberty Hill (4.58 months) Manchaca (4.00 months) Manor (2.90 months) Pflugerville (2.44 months) Round Rock (2.70 months) Neutral Market: Falling between 5 and 6.9 months of inventory, a neutral market strikes a balance between supply and demand. Neither buyers nor sellers have a distinct advantage, leading to more predictable pricing and a moderate pace of sales. This equilibrium allows for more negotiation room for both parties, creating a fair playing field.&nbsp;A significant portion of the Austin area, representing about a third of the market, falls into the neutral category. Areas like Driftwood, Liberty Hill, and San Marcos exhibit a balanced market dynamic. Buyers and sellers in these regions can expect a more measured transaction process, with neither party feeling pressured by extreme market conditions. Cities within this balanced market include: Cedar Creek (5.33 months) Dale (6.22 months) Del Valle (6.58 months) Driftwood (5.23 months) Dripping Springs (6.37 months) Elgin (6.77 months) Lockhart (5.95 months) Marble Falls (5.19 months) San Marcos (4.98 months) Taylor (5.78 months) Buyer's Market: With more than 7 months of inventory, buyer's markets are characterized by a surplus of homes for sale. This scenario tips the scales in favor of buyers, who can leverage the higher inventory to negotiate better prices, terms, and conditions. Sellers may need to be more patient and flexible to attract offers.&nbsp;The analysis identifies several areas, including Lago Vista, Smithville, and Spicewood, as buyer's markets. These areas, with their extended inventory, offer buyers the advantage of choice and negotiation power. Sellers in these markets may need to adjust expectations and strategies to attract interest. The cities in the Austin area that are currently buyer's markets include: Burnet (11.00 months) Lago Vista (11.00 months) Smithville (11.00 months) Spicewood (11.00 months) Wimberley (8.45 months) Is Austin a buyer or seller market?&nbsp;Considering the average months of inventory across various areas, the Austin real estate market currently presents a nuanced picture. While the average leans towards a neutral market, individual neighborhoods vary significantly, ranging from seller's to buyer's markets. Buyers and sellers should consider local MOI data to understand the specific market conditions they're entering. Conclusion :&nbsp;The Austin real estate market is diverse, with varying conditions across different areas. Understanding the current months of inventory is essential for navigating this complex landscape effectively. Whether you're buying or selling, a nuanced appreciation of local market dynamics can guide your decisions, ensuring you approach transactions with the right strategy and expectations. The Austin real estate scene offers opportunities and challenges, with market conditions fluctuating between seller's, neutral, and buyer's markets depending on the area. By staying informed and adapting to these conditions, participants in the Austin real estate market can navigate their transactions more successfully and strategically. As of today, March 14th, 2024, the insights and analysis presented in this article reflect the current state of Austin's real estate market, capturing the nuances of the "Months of Inventory" across various cities. It's important to note that this information is dynamic, changing daily based on fluctuations in inventory availability and sales activities over the past 90 days. For those seeking the most current and up-to-date analysis of the market conditions by city, a wealth of resources and updates can be found at <a href="https://teamprice.com/type-of-market-city">Type of Market: Navigating Central Texas Real Estate - In-Depth Insights for 30 Cities</a>. <a href="https://teamprice.com/">Team Price Real Estate</a> offers real-time insights, ensuring you have access to the latest data to make informed decisions in the ever-evolving Austin real estate landscape.​ <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240315011631.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="inventory.png" data-file-size="108638" data-origin="," style=""></figure></div>

Discover whether Austin is currently a buyer's or seller's market. Get the latest analysis on months of inventory across Austin's cities, understanding market dynamics to make informed real estate decisions. Visit us for daily updates on Austin's real estate trends.

Is Austin a Buyer or Seller Market?

Is Austin a Buyer or Seller Market? An In-Depth Analysis of Months of Inventory

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