U.S. Challenger Job Cuts Spike 53.4% in September: Implications for Real Estate and the Economy October 03, 2024 : The latest Challenger Job Cuts report for September 2024 revealed a significant increase in job cuts, with employers announcing 72,821 layoffs. This marked a 53.4% year-over-year rise, a sharp contrast to the 1.0% recorded in August. This spike in job cuts reflects growing economic challenges that may impact various industries, including the real estate sector. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241003020425.png" alt="" width="" height="" style=""></figure></div> The Challenger Job Cuts report measures the number of layoffs announced by employers and provides key insight into the health of the U.S. labor market. A 53.4% increase represents a substantial jump, suggesting potential ripple effects across different sectors of the economy. For real estate, job cuts can lead to lower consumer confidence, reduced spending, and a potential slowdown in home buying as individuals face job uncertainty. Layoffs often reduce the number of qualified buyers, as unemployment or financial instability make it harder for people to secure loans or make large purchases like homes. Adding context to this data, Andrew Challenger, Senior Vice President of Challenger, Gray &amp; Christmas, Inc., noted, “We’re at an inflection point now, where the labor market could stall or tighten. It will take a few months for the drop in interest rates to impact employer costs, as well as consumer savings accounts. Consumer spending is projected to increase, which may lead to more demand for workers in consumer-facing sectors. Layoff announcements have risen over last year, and job openings are flat. Seasonal employers seem optimistic about the holiday shopping season. That said, many of those who found themselves laid off this year from high-wage, high-skill roles, will not likely fill seasonal positions.” This perspective highlights both the short-term challenges and longer-term opportunities in the labor market. In addition to the Challenger report, the labor market data further complicates the economic outlook. The latest figures on Initial Jobless Claims came in at 225,000 for the week ending October 3, 2024, slightly higher than the forecasted 222,000 and an increase from the previous week’s 219,000. While the rise is modest, it indicates a slight uptick in unemployment claims. However, the four-week moving average, which smooths out volatility, stood at 224,250, slightly lower than the forecast of 225,000. This signals that, while layoffs are increasing, the labor market has remained relatively resilient. Moreover, Continuing Jobless Claims, which reflect the number of individuals still receiving unemployment benefits, were recorded at 1.826 million. This was lower than the expected 1.827 million, indicating that despite the rising job cuts, many people are finding employment or transitioning out of unemployment benefits. Beyond the labor market data, the S&amp;P Global Composite and Services PMI data for September paint a more cautious picture of the overall economy. The Composite PMI came in at 54.0, slightly below the previous month’s 54.6, while the Services PMI registered 55.2, down from 55.7 in August. These numbers indicate continued growth in the services sector but at a slower pace than before. A slowing services sector, combined with rising job cuts, could signal weaker economic conditions ahead, which may affect the housing market. For real estate professionals, the impact of rising job cuts on the housing market can be substantial. When job losses increase, fewer individuals may qualify for home loans, and buyer demand could weaken as economic uncertainty weighs on consumer confidence. Additionally, <a href="https://teamprice.com/30-year-fixed-mortgage-rate">mortgage rates</a> have been trending upwards. The 10-year Treasury yield is now at 3.817%, the highest level since early September, and this upward trend is likely to drive mortgage rates higher as we approach a repricing of mortgage-backed securities. Higher mortgage rates reduce <a href="https://teamprice.com/affordability">affordability</a> for potential homebuyers and could further slow the housing market, especially in regions where prices have remained elevated. The year-over-year Challenger Job Cuts data also offers insight into the broader trend of layoffs. Over the past 12 months, job cuts have fluctuated dramatically. For example, in July 2024, layoffs rose by 19.8%, while June saw a reduction of 20.3%. Earlier in the year, in January, job cuts were down by 40.8%, showing the volatility in employment trends. The September data is one of the highest year-over-year increases in 2024, underscoring the current pressures in the labor market. For the real estate market, these economic shifts emphasize the importance of closely monitoring employment trends. Rising layoffs and higher mortgage rates could create a perfect storm, reducing demand for housing and slowing the overall market. Buyers may face higher barriers to homeownership, while sellers could see longer listing times and pressure to lower prices. Real estate agents and brokers must be prepared to guide their clients through these uncertain times by staying informed about labor market data and how it may influence the housing market. As we look ahead, keeping a close eye on upcoming employment reports and mortgage rate trends will be crucial for understanding the direction of the U.S. real estate market. The Challenger Job Cuts report is just one of several indicators signaling potential shifts in economic conditions, and its impact on housing cannot be ignored.​

Discover how the 53.4% rise in U.S. job cuts reported in September 2024 could impact the real estate market, including mortgage rates, homebuyer demand, and housing affordability

September 2024 Job Cuts Spike 53.4%: Impact on Real Estate and Mortgage Rates

Why Austin Home Prices Fell 21.3%: A Decade of Real Estate Data September 26, 2024 : The City of Austin real estate market has experienced significant changes over the past decade, with a notable rise and subsequent correction in the <a href="https://teamprice.com/residential-price">average sold price per square foot</a>. From 2014 to 2024, the price of homes in Austin has shown both steady growth and moments of rapid appreciation, followed by a marked decline in recent 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/20240926044501.png" alt="" width="" height="" style=""></figure></div> In 2014, the <a href="https://teamprice.com/residential-price">average sold price per square foot in Austin</a> was $172. Over the next several years, prices increased gradually, reflecting healthy market growth. By 2019, the average price had risen to $239 per square foot, signaling strong demand in the Austin area. However, it was the period from 2020 to 2022 when the market saw a dramatic surge, driven by factors such as historically low interest rates and increased housing demand. The most significant rise occurred in 2021 and 2022. In May 2022, the <a href="https://teamprice.com/residential-price">average sold price per square foot</a> peaked at $442, marking the highest point in Austin's real estate history. This sharp increase represented a surge of over 85% in just a few short years, as prices climbed from $239 per square foot in 2019 to $442 per square foot in May 2022. Many buyers were priced out of the market during this period, as the rapid appreciation made homes less affordable. However, as is often the case in overheated markets, a correction followed. After reaching its peak in May 2022, Austin’s real estate prices began to decline. By September 2024, the average sold price per square foot dropped to $348, representing a 21.3% decrease from the market peak. This decline is indicative of the natural market cycle, where prices begin to correct after a period of unsustainable growth. This correction can also be seen when comparing prices across specific months. For instance, the average price in January 2024 was $337 per square foot, a noticeable drop from $385 per square foot in January 2022. Similarly, in March 2024, the price was $361 per square foot, compared to $416 per square foot in March 2022. These numbers clearly reflect the downward trend as the market stabilizes after the extreme price hikes seen during the pandemic boom. While the recent drop in prices may seem concerning to some, it is important to consider the overall long-term growth of Austin’s real estate market. Even with the recent decline, the average sold price per square foot is still significantly higher than it was in the mid-2010s. In September 2014, the average price was $190 per square foot, meaning the current price of $348 represents an increase of over 83% over the last decade. This pattern of rising prices followed by a correction aligns with the concept of mean regression in real estate. As prices skyrocketed in 2021 and 2022, they moved far above the historical trend line. The current price adjustments reflect a reversion to the mean, where the market returns to more sustainable levels in line with long-term growth 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/20240926044531.png" alt="" width="" height="" style=""></figure></div> As Austin continues to grow, its real estate market remains robust, despite the recent corrections. Buyers and sellers in the Austin area should understand these trends and the historical context when considering current pricing. The market is adjusting after a period of unprecedented growth, and while prices are down from their peak, the long-term outlook remains positive for those who are considering entering or exiting the market.​

The Austin real estate market has experienced a significant correction, with the average sold price per square foot dropping 21.3% from its May 2022 peak. This detailed analysis tracks the market's trends from 2014 to 2024, providing insights into the factors behind the price surge and subsequent decline. Learn how the market is stabilizing and what it means for buyers and sellers in the Austin area

Austin Real Estate Market: Average Price Per Square Foot Drops 21.3% Since Peak

Fannie Mae Home Purchase Sentiment Index (HPSI)Report for August 2024: An In-Depth Look at Consumer Sentiment September 12, 2024 : The housing market is a key indicator of economic health, and understanding consumer sentiment can help forecast future trends. <a href="https://teamprice.com/fannie-mae-home-purchase-sentiment-index">Fannie Mae's Home Purchase Sentiment Index (HPSI)</a>&nbsp;for August 2024 provides valuable insight into how Americans perceive the current housing market. This index is derived from six key components that gauge consumers' views on buying and selling homes, expectations for home prices and mortgage rates, and preferences between renting or buying. In August 2024, the HPSI was 72.1, reflecting a slight improvement in sentiment compared to earlier months of the year. Let’s dive into the details of the report, breaking down each of these components to understand the current state of the U.S. housing market: Improvement in Overall Sentiment:&nbsp;In August 2024, the <a href="https://teamprice.com/fannie-mae-home-purchase-sentiment-index">Home Purchase Sentiment Index (HPSI)</a> rose to 72.1, a slight improvement from previous months of the year. While consumer sentiment has been fluctuating, this rise indicates a slow recovery in confidence. The index is calculated from six different factors that are vital to the housing market, reflecting the overall health of market perceptions. Despite ongoing challenges, such as high mortgage rates and affordability concerns, the HPSI suggests that Americans are becoming more optimistic about the housing market. However, this rise is modest, and the market still faces significant headwinds that are holding back stronger gains in sentiment. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240912044042.png" alt="" width="" height="" style=""></figure></div> Buying Sentiment Remains Low:&nbsp;Despite improvements in the overall index, consumer sentiment about buying a home remains weak. Only 17% of respondents in August 2024 felt that it was a good time to buy a home, while 83% felt that it was a bad time. This low buying sentiment is a continuation of a broader trend seen throughout 2023 and into 2024. High mortgage rates and rising home prices are making it difficult for potential buyers to afford homes, and many are choosing to wait for more favorable conditions. This pessimism around buying reflects the broader affordability crisis in the housing market, which continues to deter many would-be homeowners from entering the market. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240912044119.png" alt="" width="" height="" style=""></figure></div> Selling Sentiment is Relatively Strong: On the flip side, selling sentiment remains much stronger. In August 2024, 65% of respondents said it was a good time to sell, while 34% disagreed. This shows that sellers are benefiting from limited housing inventory, which has kept prices high. In many markets, sellers are able to command strong prices for their homes, making this an attractive time to list properties. However, the 34% who believe it's a bad time to sell suggests that some sellers may be cautious due to the same affordability issues that are impacting buyers. Overall, the strength in selling sentiment highlights the divide between those who already own homes and those looking to buy.​Expectations for Home Prices: The outlook on home prices is mixed, with 37% of respondents in August 2024 expecting prices to rise, while 25% expect them to fall. This disparity in views reflects the uncertainty in the market. While limited supply and high demand in some areas are driving prices upward, rising mortgage rates and affordability issues are putting downward pressure on prices in other regions. The mixed expectations indicate that while home prices may continue to increase in some markets, other areas could see stabilization or even declines. These competing forces make predicting future price trends challenging, adding to the uncertainty for both buyers and sellers. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240912044218.png" alt="" width="" height="" style=""></figure></div>​Mortgage Rate Outlook: Mortgage rates continue to be a major concern for consumers. In August 2024, 26% of respondents believed that mortgage rates would rise, while 39% expected rates to go down. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240912044250.png" alt="" width="" height="" style=""></figure></div> Rent vs. Buy Preferences: Despite the challenges in the market, homeownership remains a strong aspiration for many Americans. When asked whether they would prefer to buy or rent if they were to move, 68% of respondents said they would buy, while 32% said they would rent. This shows that even with the current affordability issues, the desire to own a home is still prevalent. However, the significant portion of respondents preferring to rent suggests that many consumers are being forced into renting due to high home prices and mortgage rates. The split between renting and buying preferences highlights the ongoing affordability crisis that is preventing many from achieving homeownership. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240912044339.png" alt="" width="" height="" style=""></figure></div> Is It a Good Time to Buy or Sell? Based on the data from the August 2024 HPSI, the answer depends largely on your individual situation. For sellers, current market conditions present a favorable environment with 65% of consumers believing it’s a good time to sell. Low inventory and high demand in certain regions continue to push prices up, making it an opportune time for sellers to maximize their returns. On the other hand, buyers face a more challenging landscape. With only 17% of respondents saying it's a good time to buy, affordability concerns, driven by high mortgage rates and rising home prices, are making it difficult for many to make a move. However, the decision ultimately depends on your personal circumstances, including financial readiness and long-term goals. If you're unsure how this data applies to your situation, it’s important to speak with a real estate professional who can help you navigate the market and provide guidance tailored to your needs. Contact us today with any specific questions to explore your best options in this complex housing market.

Discover the latest insights from the August 2024 Fannie Mae Home Purchase Sentiment Index. Learn how consumers feel about buying, selling, home prices, and mortgage rates, with data-driven insights into the current U.S. housing market.

Fannie Mae Home Purchase Sentiment Index August 2024: Market Sentiment Explained

September 03, 2024&nbsp;: The Austin real estate market in 2024 has experienced a significant increase in activity, particularly reflected in the cumulative new listings from January through August. This year, the number of new listings in the Austin Area MLS is 19.2% higher than the historical average for this period, which marks a substantial deviation from past trends. To fully understand the implications of this data, it’s important to examine how 2024 compares to previous decades and economic cycles, as well as consider the various factors contributing to this surge, including increased living costs, higher taxes, and record-high new construction activity. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240903020353.png" alt="" width="" height="" style=""></figure></div> Seasonal Trends in Austin MLS Listings Since 2000 :&nbsp;The data from 2000 to 2024 reveals clear seasonal patterns in the Austin real estate market. Typically, the spring and summer months (March through August) have been the most active in terms of new listings, while the fall and winter months (September through February) see a slowdown. This seasonal cycle is influenced by factors such as weather, school calendars, and economic conditions. Early 2000s: Economic Expansion and Housing Boom :&nbsp;In the early 2000s, the Austin real estate market saw a robust increase in new listings during the spring and summer months, driven largely by the tech boom. This period marked significant population growth and housing demand in Austin. For instance, in 2001, new listings peaked during the summer, significantly higher than in the winter months. This pattern continued throughout the early 2000s, with the market experiencing a steady rise in new listings each spring and summer as more people moved to the city. Mid to Late 2000s: The Housing Bubble and Financial Crisis :&nbsp;The mid-2000s continued the trend of increasing new listings, particularly during the spring and summer seasons, as the housing market reached its peak nationwide. However, the financial crisis of 2007-2008 caused a sharp decline in new listings, especially noticeable during the typically active spring and summer months. For instance, the number of new listings in the summer of 2008 was significantly lower than in previous years, reflecting the broader economic downturn. The fall and winter months saw even fewer listings, as market uncertainty kept both buyers and sellers on the sidelines. 2010s: Recovery and Renewed Growth :&nbsp;The early 2010s marked a recovery in the Austin real estate market. By 2012, new listings had returned to more typical seasonal patterns, with increases during the spring and summer months. This period also marked significant population growth in Austin, driven by the city’s growing reputation as a tech hub. The market’s recovery was particularly evident in 2015 and 2016, where summer listings were notably higher than in the winter, reflecting the return of seller confidence. Throughout the 2010s, the seasonal pattern of spring and summer surges in listings remained consistent. By 2017 and 2018, the market was particularly active, with strong numbers during these peak seasons. This growth reflected increasing housing demand as more people moved to Austin, coupled with favorable economic conditions. 2020s: Pandemic Impact and Rapid Market Changes :&nbsp;The 2020s brought unique challenges and shifts in the seasonal patterns of new listings. The COVID-19 pandemic initially disrupted normal market activity, with a slight dip in new listings in 2020, particularly during the spring. However, by 2021, the market had rebounded strongly, with new listings in the spring and summer months exceeding those of previous years. The rise in remote work and continued population growth fueled this recovery, making Austin one of the most active real estate markets in the country. In 2022 and 2023, the seasonal pattern continued with strong spring and summer activity. However, 2024 has been particularly notable, with a 19.2% increase in cumulative new listings from January through August compared to the historical average. The spring and summer months of 2024 have been exceptionally active, with new listings consistently outpacing those of previous years. Contributing Factors to the 2024 Surge :&nbsp;While the increase in listings could suggest a thriving market, several underlying factors indicate a more complex situation. One significant driver of the rise in new listings is the increasing cost of living in Austin. Over the past few years, housing affordability has become a pressing issue, with rising property taxes and other living expenses pushing some homeowners to sell and relocate to more affordable areas. This trend has contributed to a higher number of homes being listed on the market, particularly in 2024. This resource can be found in our <a href="https://teamprice.com/new-listing-to-pending-ratio">New Listing to Pending Ratio</a>; a resource that is updated weekly.&nbsp; Additionally, new construction activity in Austin has reached record highs. The city’s continued population growth and demand for housing have led to a surge in new developments, adding to the inventory of available homes. This influx of new construction has further increased the number of listings, particularly during the spring and summer months when these new homes are most likely to be completed and put on the market. Moreover, there is a possibility that some homeowners are looking to capitalize on current market conditions, anticipating that prices may peak soon due to the increased supply. The combination of existing homeowners listing their properties and new construction hitting the market has created a substantial boost in the number of active listings. Matching Seasonal Data with Economic Analysis :&nbsp;When comparing the 2024 data to previous seasons and economic cycles, it becomes evident that this year’s surge in new listings is part of a broader trend of market resilience, influenced by both economic pressures and ongoing demand. The early 2000s saw similar increases during the tech boom, while the recovery in the 2010s brought about strong seasonal activity. However, 2024 stands out due to the magnitude of the increase, particularly during the typically active spring and summer months. The rise in new listings in 2024 may reflect a market that is grappling with the challenges of high living costs and increased taxes, as well as the effects of a construction boom. While these factors contribute to a growing inventory, they also suggest that the market is experiencing significant changes that could affect pricing and overall market stability in the near future. The cumulative new listings in the Austin Area MLS from January through August 2024 represent a significant increase over the historical average, marking a return to high levels of market activity not seen since the early 2000s. However, this surge is driven by various factors, including rising living costs, increased property taxes, and record-high new construction activity. When analyzed within the context of past decades and economic cycles, 2024 emerges as a year of both growth and potential market shifts. As the year progresses, understanding these contributing factors and their impact on the market will be crucial for real estate professionals, buyers, and sellers navigating the dynamic Austin real estate landscape.

Rising living costs, increased property taxes, and record-high new construction have led to a 19.2% surge in new listings in the Austin real estate market in 2024. This detailed analysis compares current trends with past decades and economic cycles, providing key insights into the evolving market dynamics

How Rising Costs and New Construction Drove a 19.2% Increase in Austin MLS Listings in 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

House Price Trends Across the U.S.: Insights from the <a href="https://teamprice.com/freddie-mac-house-price-index">Freddie Mac Index</a> July 31, 2024 : The <a href="https://teamprice.com/freddie-mac-house-price-index">Freddie Mac House Price Index</a> (FMHPI®) is an invaluable resource for anyone looking to understand the fluctuations and trends in the housing market across the United States. This index provides a clear picture of house price inflation, showing how prices have changed over time in different metropolitan areas. Updated monthly, the FMHPI® offers timely data that reflects the current state of the housing market. From January 2020 to January 2021, cities like Atlanta and Austin saw substantial growth in house prices. For instance, Austin experienced an impressive increase of 43.9% by May 2022. However, this growth was followed by a sharp decline, with a 13.6% drop in house prices by June 2022. This kind of volatility highlights the dynamic nature of the housing market and the various factors that can influence it. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240731021458.png" alt="" width="" height="" style=""></figure></div> The latest data from June 2024 shows a wide range of performance across different metro areas. Miami stands out with a remarkable growth of 77.9% since January 2020, making it one of the top-performing cities. Tampa and Charlotte also showed strong growth, with increases of 75.0% and 72.3% respectively. On the other hand, Austin's growth was more moderate at 43.9%, indicating regional differences in market performance. Year-over-year (YoY) changes provide a snapshot of how the housing market is performing on an annual basis. On average, there was a 5.1% increase in house prices across the metro areas included in the <a href="https://teamprice.com/freddie-mac-house-price-index">FMHPI</a>®. Cities like Columbus, Detroit, and Cleveland saw significant YoY growth, surpassing the national average and highlighting their strong market performance. Month-over-month (MoM) changes offer a short-term view of the housing market. The average MoM change was approximately 4.86%, showing how prices can fluctuate within a month. This metric is essential for understanding the immediate trends in the market and can help in making more informed decisions. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240731021607.png" alt="" width="" height="" style=""></figure></div> The <a href="https://teamprice.com/freddie-mac-house-price-index">FMHPI</a>® also tracks the changes from peak price levels, offering insights into how the housing markets are recovering or continuing to decline after reaching their highest points. For example, cities like Austin, Phoenix, and San Francisco experienced notable declines from their peak values, reflecting specific market conditions and economic impacts. Long-term trends are another critical aspect of the <a href="https://teamprice.com/freddie-mac-house-price-index">FMHPI</a>®. The historical data spans several decades, from 1976 to 2024, showing periods of rapid growth and significant declines. This long-term perspective helps in understanding the overall direction of the housing market and predicting future movements. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240731021653.png" alt="" width="" height="" style=""></figure></div> The regional variations highlighted in the <a href="https://teamprice.com/freddie-mac-house-price-index">FMHPI</a>® are particularly insightful. The Austin-Round Rock-Georgetown area in Texas saw diverse trends, with significant growth in the early 2020s followed by a notable decline. This area's year-over-year percentage differences provide a granular view of these fluctuations, helping to understand the market dynamics over time. Similarly, the Portland-Vancouver-Hillsboro area in Oregon-Washington reflected broader national patterns with its own set of fluctuations. Austin's housing market has been particularly interesting to watch over the past few years. After experiencing a dramatic rise in house prices, reaching a peak growth of 43.9% by May 2022, the market took a sharp downturn. By June 2022, Austin saw a significant decline of 13.6%, indicating a market correction. This volatility continued into recent years, with fluctuations influenced by various economic factors, including changes in demand and supply, interest rates, and broader economic conditions. Despite these challenges, Austin remains a vibrant market with potential for future growth as it adjusts to new economic realities. Top performers in the latest data include Miami, with a stunning 77.9% growth from January 2020, and Tampa, with a 75.0% increase. These cities showcase robust market growth, driven by various economic and demographic factors. On the other end of the spectrum, Austin experienced a significant drop of 13.6% from its peak, indicating potential market corrections or other influencing factors specific to that region. Overall, the <a href="https://teamprice.com/freddie-mac-house-price-index">Freddie Mac House Price Index</a> is a crucial tool for anyone involved in the real estate market. It provides comprehensive data that helps in understanding market trends, making informed decisions, and predicting future movements. The detailed regional analysis and historical data enable a deep understanding of the market's dynamics and future outlooks.​

July 31, 2024 : latest trends and data from the Freddie Mac House Price Index. Understand how house prices have changed over time across various U.S. metropolitan areas, including a detailed look at Austin's market, which saw a 43.9% growth followed by a 13.6% decline. Gain insights into market dynamics and future outlooks.

Freddie Mac House Price Index: What the Data Reveals About the Austin and US Housing Markets

What's Happening in July 2024 with the Average Price Going Up So Much July 09, 2024 : In July 2024, the residential real estate market is witnessing significant changes that are noteworthy for both buyers and sellers. While we have projected that 2,526 homes will be sold this month, this projection is based on the data from the 514 homes that have already been sold so far. Despite this drop in sales compared to previous months and the same period last year, there has been a noticeable increase in home prices, capturing the attention of market analysts and participants alike. The projected total number of homes sold in July 2024 is 2,526, which represents a 6.4% decrease from June 2024, where 2,698 homes were sold. When compared to July 2023, the decline is even more pronounced, with a 10.5% drop from the 2,821 homes sold last year. This decrease in the number of transactions indicates a cooling in the volume of sales, which could be due to various factors such as seasonal trends, economic conditions, or changes in buyer behavior. Interestingly, while the number of homes sold has decreased, the average selling price has seen a significant increase. Based on the sales so far this month, the average price of a home sold in July 2024 is $630,037. This is a substantial 9.4% increase from the previous month of June 2024, where the average selling price was $575,980. Compared to July 2023, the average selling price has risen by 6.0%, up from $594,567. This upward trend in prices suggests that the demand for homes remains strong, or there is a limited supply of homes available, driving up the 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/20240709091439.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="market cycle.png" data-file-size="376172" data-origin="," style=""></figure></div> The median selling price also reflects this upward trend. In July 2024, the median price of homes sold so far is $475,000, which represents a 6.1% increase from June 2024's median price of $447,500. Compared to July 2023, the median price has increased by 3.3%, from $460,000. The median price is a critical indicator as it shows the middle point of all transactions, providing a more accurate reflection of the market without being skewed by extremely high or low prices. Another important metric to consider is the sold-to-list price ratio, which indicates how close the final selling price is to the initial listing price. In July 2024, the sold-to-list price ratio is 97.42%, slightly down from June 2024's ratio of 97.49%. This small decrease shows that homes are still selling relatively close to their asking prices, suggesting a competitive market where buyers are willing to meet sellers' pricing expectations. These trends highlight a unique situation in the real estate market for July 2024. While the number of homes being sold is decreasing, the prices are climbing. This could be indicative of a market where supply is not meeting demand, causing prices to rise even as fewer transactions take place. For buyers, this means facing higher costs, while sellers might find themselves in a favorable position to capitalize on the current market conditions. Understanding these dynamics is crucial for anyone involved in the real estate market, whether you're buying, selling, or simply keeping an eye on market trends. The increase in average and median prices, despite fewer sales, is a significant development that could influence market strategies and decisions moving forward. ​

July 09, 2024 : What's happening in the Austin real estate market in July 2024. Despite a projected decrease in home sales, average prices have surged. Learn about the trends and what they mean for buyers and sellers.

Why Are Home Prices Rising in July 2024 Despite Fewer Sales?

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

In the rapidly evolving Austin-Area real estate landscape, the Months of Inventory (MOI) is an essential metric for assessing market conditions. This analysis covers MOI trends from 2005 through 2024, providing critical insights that help buyers, sellers, and investors make informed decisions. By tracking how long it would take for all current homes on the market to sell at the current pace of sales, we can determine if the Austin-Area is in a buyer's or seller's market. Analysis of MOI Trends in the Austin-Area: The MOI in the Austin-Area has experienced significant fluctuations over the past two decades, reflecting broader economic forces and local demand dynamics. Notably, during the 2008 financial crisis, the MOI surged above 7 months, clearly indicating a buyer's market as excess inventory accumulated. Conversely, the recent years leading up to 2021 saw the MOI plummet to less than a month, signaling a strong seller's market where homes sold rapidly at premium prices. As of 2024, the Austin-Area real estate market presents a balanced scenario with an MOI of approximately 4.8 months. This equilibrium suggests a stabilization in the market, ideal for maintaining long-term health without giving undue advantage to either buyers or sellers. Current Market Conditions in the Austin-Area: With a stable MOI of 4.8 months and active residential listings totaling 13,964 properties, the current market conditions indicate a well-balanced inventory in the Austin-Area. This balance provides fair opportunities for both buying and selling, ensuring a healthy turnover of properties. It creates a neutral market landscape where neither buyers nor sellers dominate, facilitating reasonable negotiation periods and preventing price wars or slumps. Implications for Market Participants: For sellers in the Austin-Area, the balanced market means potential for fair sale prices and reasonable selling times without the need for significant price drops. Buyers benefit from less competition and more choices available, granting them better negotiating power compared to a low-MOI scenario. Real estate investors should note that the current stability suggests less risk of abrupt price changes, making it a safer climate for long-term investments rather than speculative buying. Conclusion: The MOI and active listings are critical indicators of the Austin-Area real estate market's health. Understanding these metrics is crucial for anyone involved in the Austin-Area market, as they influence strategy and decision-making. Current trends indicate a stable market, ideal for sustained activity without the volatility seen in previous years. Stakeholders should continue to monitor these trends to navigate the market effectively, ensuring strategic alignment with their real estate goals. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240516124653.jpg" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="1000010629.jpg" data-file-size="661088" data-origin="," style=""></figure></div>​

Explore the latest trends in the Austin-Area real estate market with our in-depth analysis of Months of Inventory (MOI) from 2005 to 2024. Discover whether the Austin-Area is currently a buyer's or seller's market, understand the implications for various market participants, and gain valuable insights into the current market conditions. Stay informed and make educated decisions in the dynamic Austin-Area housing market.

Understanding Market Dynamics: Austin-Area Real Estate and Inventory Trends

Let's dive into Austin's housing market to see what's been happening with house prices from May 2022 to March 2024. We'll review the ups and downs of the market to give us some clues about where things might head next. A Quick Overview of the Past Two Years :&nbsp;Starting off in May 2022, the median house price was $550,000. From there, we saw a pretty steady drop in prices for a while. By February 2023, prices had dipped to $435,000, marking a significant decrease. This period was tough, with prices dropping by around 21% from the starting point. But then, things started to look up. Prices began to climb again, reaching $475,156 by June 2023. However, this growth wasn't steady, and prices went through a few more ups and downs before hitting a low of $420,000 in November 2023. Yet, by March 2024, we saw prices climbing back up to $455,000. Taking a Closer Look at Recent Changes :&nbsp;Focusing on the more recent months, from the end of 2023 to early 2024, there's been a bit of a roller coaster. After a dip in January 2024, prices started to pick back up in February and March. This kind of fluctuation shows that the market is trying to find its footing again after the earlier drops. What's Behind These Changes? Several factors influence house prices, like changes in the economy, how many houses are for sale, and how many people want to buy. The drop in prices we saw is due to tougher inflationary times and changes in interest rates. But the recent signs of recovery could mean the market is starting to balance out again. So, Are Prices Still Going Down?&nbsp;It looks like the worst of the price drops might be behind us. The latest data shows prices beginning to rise again, suggesting that the market might be moving toward a more stable state. This could be good news for buyers looking for a deal and sellers hoping for better prices. However, the housing market can always change, influenced by bigger economic trends or local demand. It's important for both buyers and sellers to keep an eye on these trends and think about how they fit into the bigger picture. Wrapping Up :&nbsp;After a rough patch, the Austin housing market is showing signs of improvement, with prices starting to climb again in the early months of 2024. Whether this upward trend will hold is still up in the air, but for now, it seems like things are getting better.​ Current Market Insights : <a href="https://teamprice.com/market-update">Market Update</a> / <a href="https://teamprice.com/insight-and-statistics">Insight &amp; Statistics</a>&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/20240327031533.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="Are house prices still declining in Austin.png" data-file-size="381903" data-origin="," style=""></figure></div>

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Explore the latest trends in Austin's real estate market from May 2022 to March 2024. Find out if the median house prices are finally stabilizing after a period of decline and what this means for buyers and sellers in Austin, TX

Are house prices still declining in Austin? Austin's Housing Market: What's Happening with Prices?

Are house prices still declining in Austin?

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