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

Navigating <a href="https://teamprice.com/short-sale">Austin's Short Sale Market</a>: Key Data and Trends for Buyers and Sellers October 16, 2024 : <a href="https://teamprice.com/short-sale">Short sales</a> are becoming increasingly relevant in the Austin real estate market, especially given the recent data that indicates a total of 29 active short sale listings as of October 16, 2024. These listings are spread across various cities in the Austin area, including Austin, Kyle, and Killeen, with a range of price reductions that reflect the market’s current challenges. This report provides a comprehensive breakdown of the price reductions and other details for these listings, illustrating the unique aspects of short sales and their significance in today’s housing market. In Austin, there are six <a href="https://teamprice.com/short-sale">short sale listings</a> with an average price of $470,000, which have experienced a notable average price drop of approximately 12.6%, or $67,758 per property. These price adjustments reflect the homeowners' need to sell their properties for less than what they owe on their mortgages. Meanwhile, Kyle has two listings, with average price reductions of 11.4%, and Cedar Creek has a single property marked down by 4.1%. Other cities like Georgetown and Pflugerville show price drops of 7.1% and 3.1%, respectively. The most substantial price drop can be found in West Lake Hills, where a high-value property listed at $3,149,000 has been reduced by $200,000, translating to a 6% decrease. This mix of price reductions across different cities highlights the challenges faced by sellers in today’s market, particularly those navigating short sales. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20241016063326.png" alt="" width="" height="" style=""></figure></div> The data also highlights specific zip codes where these short sale properties are concentrated. In zip code 78640, representing Kyle, properties have seen price reductions of $49,656, or 11.4%, on average. Meanwhile, zip code 78155 in San Antonio shows a property with a significant 24.1% reduction, totaling $69,998 off the original listing price. Such sizable adjustments suggest that these areas might be facing higher rates of financial distress among homeowners, leading to a greater prevalence of short sales. A short sale occurs when a homeowner sells their property for less than the remaining mortgage balance due to financial hardship. This process is often chosen as an alternative to foreclosure, as it allows the seller to avoid the damaging consequences associated with foreclosure. The short sale process starts with the homeowner listing their property as a short sale, often working with a real estate agent. Once an offer is received, the lender must approve it, which can be a lengthy process due to the potential for multiple layers of approval. Sellers are generally required to submit a hardship letter and financial documents to justify the sale. If the lender agrees, the sale proceeds, allowing the homeowner to avoid foreclosure, which typically has more severe credit implications and may result in the homeowner owing additional funds to cover the lender’s losses. Lenders may agree to a <a href="https://teamprice.com/short-sale">short sale</a> to avoid the expenses associated with foreclosure, which include legal fees, maintenance, and the hassle of reselling the property. However, the presence of mortgage insurance (PMI or MPI) can influence the lender’s decision to approve a short sale. Mortgage insurance protects lenders from losses when borrowers default, but it also adds a layer of complexity. If the property has PMI or MPI, the insurer may need to approve the short sale as well, as they may be responsible for covering part of the lender's loss. In some cases, the mortgage insurer may prefer to foreclose rather than approve a short sale if they believe they can minimize their payout this way. Therefore, while PMI or MPI does not necessarily prevent a short sale, it can affect the decision-making process and extend the time required to gain approval from all involved parties. Considering the detailed information provided here, potential buyers and sellers in the Austin area should approach short sales with a thorough understanding of the process and the market dynamics. The trend in price reductions across these cities and zip codes provides valuable insights into where opportunities and challenges might arise within the local real estate market.&nbsp; The historical data on short sale transactions in the Austin area reveals distinct trends over the years. The graph below shows total <a href="https://teamprice.com/short-sale">short sale transactions in the Austin-area MLS</a>, peaking at 489 transactions in 2012, then steadily decreasing each year afterward. By 2017, short sales had significantly declined to 38 transactions, with only 26 recorded so far in 2024. Similarly, in the City of Austin, short sales reached a high of 143 transactions in 2012 but dropped sharply to single digits from 2016 onward. As of 2024, there have been just two short sales, indicating a stabilization in the market. These trends reflect the broader economic recovery and rising property values in recent years, which have reduced the number of distressed sales like short sales.&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/20241016063512.png" alt="" width="" height="" style=""></figure></div>

Explore the latest data on short sales in the Austin area as of October 2024. Learn about price reductions, the short sale process, and how mortgage insurance can impact lender decisions. This comprehensive guide offers valuable insights into current market conditions for buyers and sellers

Austin Short Sale Market Analysis: October 2024 Trends and Insights

<a href="https://teamprice.com/sold-price-to-list-price-ratio">Sold Over List Price</a> in Austin: What 20+ Years of Data Reveals Over the past two decades, the Austin real estate market has experienced significant fluctuations in the percentage by which homes sell over their list prices. This data, ranging from 2000 to 2024, reveals compelling trends in Austin's housing market, offering insights into buyer behavior and market competitiveness. From a steady climb in <a href="https://teamprice.com/sold-price-to-list-price-ratio">over-list sales percentages</a> through the early 2000s to peak demand in recent years, Austin's housing market has shown how dynamic it can be. In the early 2000s, the percentage of <a href="https://teamprice.com/sold-price-to-list-price-ratio">properties sold over list price in Austin</a> started modestly. In 2000, the average percentage peaked at 30.8% by June, highlighting a growing interest in Austin’s real estate market even then. This pattern of sales percentages hovering in the high teens and low twenties continued into the 2000s, with some monthly highs reaching just above 26%. Despite some fluctuations, the market remained relatively stable until 2020. The Austin real estate market experienced its most dramatic surge in 2021. During this period, the percentage of <a href="https://teamprice.com/sold-price-to-list-price-ratio">properties sold over list price</a> reached unprecedented heights, with an April high of 72.6%. These elevated percentages persisted throughout the year, reflecting a time of strong demand and highly competitive bidding. Many factors contributed to this demand spike, including positive net migration, increased employment opportunities, and a desirability that led to intense buyer competition. This trend extended slightly into 2022, though the numbers started to decline as the market began cooling. By mid-2022, as inventory levels increased and buyer demand started to wane, the average percentages of properties sold over list price dropped from 64.7% in March to 11.6% by December. In 2023, the market continued its downward trend, with percentages stabilizing to levels last seen before 2011. For example, the <a href="https://teamprice.com/sold-price-to-list-price-ratio" class="on">highest percentage of over-list sales</a> was in April at 17.9%, a significant decrease compared to the peaks of previous years. As of October 2024, Austin’s real estate market is seeing the lowest percentage of properties sold over list price in over a decade, reflecting a new era where buyers have greater opportunities to purchase homes without the need to outbid list 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/20241016032959.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-real-estate-sold-over-list-price-2000-2024.png" data-file-size="481585" data-origin="," style=""></figure></div> Throughout the past few years, Austin has transformed into a balanced market, where buyers are finding more options and less competition. With the surge in over-list sales percentages cooling, it has become an opportune time for buyers who were previously priced out. As Austin continues to evolve, these trends demonstrate that while the market can be fiercely competitive, there are periods when opportunities for buyers emerge, enabling them to find the right home at the right price​

Explore the changing trends in Austin’s real estate market, focusing on homes sold over list price from 2000 to 2024. Discover how demand surged to record highs, influencing prices and creating buyer opportunities as the market cooled

Austin Real Estate Trends: Sold Over List Price from 2000 to 2024

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

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

Austin Real Estate Market Trends: A Deep Dive into Sold Properties and Realtor Performance September 23, 2024 : The Austin real estate market has been experiencing a significant transformation, as evidenced by recent <a href="https://teamprice.com/sales-density-population-and-realtors">data on sold properties</a> and Realtor performance in the area. From January through September 2024, the number of sold properties in the six-county area was projected to reach 23,423, reflecting a 14.4% drop year-over-year. This decline highlights the continued downward trend in sold properties, marking a 10.1% decrease below the average and a stark comparison to previous years. In particular, the month of September is expected to show a drop of 14.4% compared to the same period in 2023, contributing to an overall challenging year for real estate transactions. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240923062352.png" alt="" width="" height="" style=""></figure></div> The <a href="https://teamprice.com/sales-density-population-and-realtors">detailed analysis of sold properties</a> per 100,000 residents paints a clearer picture of the market’s current state. As of September 2024, the figure stands at 82.36, down from 105.46 the previous month. This decline underscores the cooling of the market as fewer properties are changing hands relative to the local population. Comparatively, the market is performing better than in 2010, with sold properties per 100,000 residents at that time hovering at lower levels. However, the drop is significant enough to impact market dynamics and decision-making for both buyers and sellers. While the overall sales figures are declining, the number of active Realtors in the Austin-area MLS continues to grow, albeit with some fluctuations. As of September 2024, there are 19,979 Realtors registered in the Austin-area MLS. This is a 6.1% decrease from the September 2022 peak, indicating that some Realtors may be exiting the profession in response to the current market conditions. However, the market remains saturated, which can be seen in the ratio of sold properties per 1,000 Realtors. This metric has dropped to 104.4, down from 133.7 in August 2024 and marking the lowest level for September on record. This indicates that fewer properties are being sold per Realtor, increasing competition among agents for available listings. Year-to-date performance shows that <a href="https://teamprice.com/sales-density-population-and-realtors">cumulative sold properties</a> are 27.9% below the long-term average. Between January and September, the sold properties per 1,000 Realtors totaled 1,199, reflecting a year-over-year decrease of 0.8%. This suggests that despite the high number of Realtors in the market, overall productivity has decreased, and agents are selling fewer properties compared to previous years. The 39.4% drop below the average sold properties per 1,000 Realtors for September further confirms that this month will be among the slowest in recent history. Despite these market challenges, there is some optimism within certain real estate circles. Some brokerages, such as Team Price Real Estate, have seen positive year-over-year growth, with a nearly 10% increase in transactions while maintaining a steady agent count. This performance is notable given the broader market slowdown and speaks to the importance of strategic market positioning and strong agent performance in navigating difficult market conditions. The data-driven approach used to project future sales in the Austin real estate market is also worth noting. By analyzing 20 years of historical data, adjustments for population growth, and accounting for seasonal sales trends (such as the surge in sales during the last seven days of the year), real estate professionals can create highly accurate projections. With an average error margin of just 1% to 3%, these projections provide valuable insights into future market trends, helping buyers, sellers, and agents make informed decisions. As the Austin real estate market continues to evolve, it remains crucial for industry professionals to closely monitor data on sales density, Realtor performance, and population trends. While the overall market may be experiencing a downturn, opportunities still exist for those who can adapt to the current conditions and leverage the available data to their advantage. <div class="se-component se-video-container __se__float-center" style="width: 100%; min-width: 100%;"><figure style="width: 100%; height: 56.25%; padding-bottom: 56.25%;"><iframe src="https://www.youtube.com/embed/Y-0CDuFdRKI" width="100%" height="56.25%" style="width: 100%; height: 100%;"></iframe></figure></div> ​

Discover detailed insights into the Austin real estate market trends in 2024. Explore the data on sold properties, Realtor performance, and market density, with a deep dive into key statistics that shape the Austin-area MLS. Learn how these trends impact buyers, sellers, and Realtors in a competitive market

Austin Real Estate Market in 2024: A Data-Driven Analysis of Sold Properties

Austin Real Estate Market: Analyzing the New Listing to Pending Ratio September 16, 2024 : The Austin real estate market has seen significant fluctuations throughout 2024, and one of the key indicators to track its health is the <a href="https://teamprice.com/new-listing-to-pending-ratio">New Listing to Pending Ratio</a>. This ratio provides a snapshot of market activity by comparing the number of new listings that enter the market to those that move into a pending status, representing homes that are under contract but not yet closed. As of September 16, 2024, the current New Listing to Pending Ratio sits at 0.54, reflecting an ongoing trend of more homes being listed than moving into a pending status, a pattern we've seen consistently throughout the year. <div class="se-component se-video-container __se__float-center" style="width: 100%; min-width: 100%;"><figure style="width: 100%; height: 56.25%; padding-bottom: 56.25%;"><iframe src="https://www.youtube.com/embed/Th1UBoV2UZY" width="100%" height="56.25%" style="width: 100%; height: 100%;"></iframe></figure></div>​ Year-Over-Year ComparisonA closer look at the year-over-year comparison reveals that the ratio in September 2024 (0.54) is notably lower than the ratio during the same period in 2023, which stood at 0.81. This marks a decline in the pace at which homes are going under contract compared to the number of new listings coming to the market. While the number of homes entering the market has not changed drastically, the slowing pending sales suggest either a cooling buyer demand or possibly longer negotiation periods.&nbsp;Weekly data offers further insights. For example, from September 9 to September 16, 2024, 1,003 new listings were added to the market, while only 649 properties moved to pending status. This imbalance has contributed to the declining ratio, signaling a potential shift toward a buyer's market as inventory begins to outpace demand. In comparison, the same week in 2023 showed a healthier balance, with 952 new listings and 817 pending properties.​Mortgage Rates and Market Impact<a href="https://teamprice.com/30-year-fixed-mortgage-rate">Mortgage rates</a> have played a substantial role in shaping market activity. The current average mortgage rate stands at 6.20%, up slightly from last month but down from earlier highs of over 7%. These higher borrowing costs have been a barrier for many potential buyers, suppressing demand and contributing to the growing inventory. However, as mortgage rates show signs of stabilization, we may see an uptick in pending contracts as buyers adjust to the new norm.​Price Drops Versus IncreasesAnother key factor influencing the market is the price drop to price increase ratio, which currently sits at 92%. This means that for every price increase in a listing, there are significantly more price drops, reflecting sellers' willingness to make concessions in order to attract buyers. A high percentage of price drops is often a signal that sellers are facing a more competitive environment where buyers are becoming more selective, and pricing strategies are more crucial than ever.​Market Shifts and Open House ActivityOne of the most telling signs of market sentiment is the level of open house activity. As of mid-September, there were around 3,000 open house offerings each week, indicating strong seller engagement in showcasing properties. However, despite these efforts, the shift in the New Listing to Pending Ratio suggests that buyers are either holding off on making decisions or encountering affordability challenges that prevent them from moving forward.​Residential Market PerformanceA breakdown of monthly residential data supports the narrative of a cooling market. From August to September 2024, the number of new listings dropped from 3,933 to 1,897, a steep decline of over 50%. Despite this, the number of pending properties also saw a significant reduction, from 3,500 in August to just 1,426 in September. The sharp reduction in pending contracts highlights the hesitancy among buyers, possibly due to the combination of higher interest rates and home prices.&nbsp;Additionally, the gap between new and pending listings is growing. In September 2024, there were 853 more new listings than pending properties, a stark contrast to earlier in the year when the difference was less pronounced. The growing inventory provides buyers with more options but also forces sellers to be more competitive, as reflected in the price drops across the market. What’s Next for the Austin Market?&nbsp;The Austin real estate market remains in a period of transition. With the New Listing to Pending Ratio below 1.0, it's clear that supply is outpacing demand, at least for the time being. However, with interest rates showing signs of stabilizing and sellers adjusting their pricing strategies, there is potential for the market to regain its equilibrium. If mortgage rates decrease slightly or if buyers become more accustomed to current conditions, we could see an increase in pending contracts and a tighter ratio in the months ahead. For now, the market presents opportunities for both buyers and sellers. Buyers benefit from more choices and negotiating power, while sellers who are willing to be flexible with pricing may still be able to secure deals. As always, monitoring key indicators like the New Listing to Pending Ratio will be essential for understanding market dynamics as we move into the final months of 2024.

Discover the latest insights into the Austin real estate market with a focus on the New Listing to Pending Ratio. Learn how current trends, mortgage rates, and price shifts are shaping the Austin housing landscape in 2024.

Austin Real Estate Market Update: Monday Touch Point – September 16, 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

Affordability in Austin-Area Real Estate Improves with Lower Mortgage Rates and Median Home Prices The Austin-area real estate market has seen a significant improvement in affordability, driven by a notable decrease in mortgage rates and median home prices. This report analyzes the key factors contributing to this improvement and provides a historical context to better understand current trends.​Mortgage Rates DeclineAs of August 2024, the average mortgage rates quoted by Fannie Mae have dropped to 6.6%. Local lenders are offering even more competitive rates, around 6.375%, for well-qualified buyers. This is a considerable reduction from the peak mortgage rate of 7.65% observed in October of the previous year. The decline in mortgage rates plays a crucial role in reducing the overall cost of home financing, making it easier for buyers to secure loans with lower monthly payments. For those interested in exploring these lower rates, we recommend reaching out to <a href="https://teamprice.com/preferred-loan-officer">Robert Merrell, our preferred loan lender</a>, who can answer any loan questions and help you get prequalified.&nbsp; Median Home Prices DropSimultaneously, the median sold price for homes in the Austin area has decreased to $440,000, down from $550,000 in May 2022. This 20% reduction in home prices further enhances affordability, making it easier for buyers to enter the market. The combination of lower mortgage rates and reduced home prices has led to a more favorable financial environment for homebuyers. Impact on Monthly Payments and Income PercentageThe combination of lower mortgage rates and decreased home prices has resulted in a substantial drop in the monthly Principal, Interest, Taxes, and Insurance (PITI) payments. With a 20% down payment, the PITI for a median-priced home is now $3,322. This is a significant decrease from the high of $3,767 recorded in May 2022. Moreover, the percentage of median household income required to cover the PITI has also improved dramatically. In May 2022, 47.2% of the median household income was needed to cover these costs. As of August 2024, this percentage has decreased to 38.2%, representing a substantial improvement in affordability for the average household. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240808091407.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="percentage of income.png" data-file-size="131059" data-origin="," style=""></figure></div> Historical Mortgage Rates and PricesTo contextualize the current trends, it's important to examine historical data on mortgage rates and home prices. For instance, in the early 2000s, mortgage rates were significantly higher, averaging around 8%. Over the years, rates have fluctuated, reaching a low of 2.69% in 2020 before rising again. The recent decrease to 6.6% still represents a relatively favorable rate compared to historical highs.&nbsp;Similarly, median home prices have seen a steady increase over the past two decades, with significant jumps in recent years. The price hike was particularly pronounced in 2021 and 2022, with median prices peaking at $550,000 in May 2022. The current median price of $440,000 reflects a return to more manageable levels for buyers. Final Thoughts&nbsp;The improvement in affordability in the Austin-area real estate market is a result of the dual factors of declining mortgage rates and reduced median home prices. This positive trend has lowered the financial burden on homebuyers, making it easier for them to enter the market. The historical context provided by the data highlights the cyclical nature of the real estate market and the importance of monitoring these key indicators to understand market dynamics. As mortgage rates and home prices continue to fluctuate, it will be essential for buyers and industry professionals to stay informed about these trends to make well-informed decisions.

August 08, 2024 : how lower mortgage rates and decreased home prices are making the Austin-area real estate market more affordable. Discover the latest trends and key data points that highlight this significant improvement in housing affordability for 2024.

Austin Housing Market Sees Improved Affordability 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

The True Picture of U.S. Home Prices: Understanding the <a href="https://teamprice.com/national-market-index">National Home Price Index Adjusted for Inflation</a> July 30, 2024 : Understanding the real value of home prices in the United States requires more than just looking at the raw numbers. The S&amp;P CoreLogic Case-Shiller Home Price Index (HPI) provides a valuable measure of changes in the selling price of single-family homes in 20 major metropolitan areas. However, to get a true picture of appreciation at the national level, we must adjust this index for inflation. By dividing the <a href="https://teamprice.com/national-market-index">Home Price Index</a> by the Consumer Price Index (CPI), we get an inflation-adjusted value that shows the real changes in home prices over time. This article dives deep into the data and methodology behind the National Home Price Index, explaining how it works and what it tells us about the housing market. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240730020209.png" alt="" width="" height="" style=""></figure></div> The journey of home prices from the year 2000 to 2024 is a fascinating one, filled with peaks and troughs that reflect the broader economic landscape. Starting in January 2000, the HPI/CPI was at 0.5939. Over the next few years, the index showed a steady increase, reaching 0.6251 by December 2000. This upward trend continued into 2001, with the index climbing to 0.6565 by the end of the year. The early 2000s were marked by a housing boom, driven by favorable economic conditions and easy access to credit. By December 2005, the HPI/CPI had soared to 0.9132, reflecting the rapid increase in home prices. However, the period from 2006 to 2011 saw a dramatic shift. The housing market bubble burst, leading to a significant decline in home prices. The HPI/CPI dropped from 0.9192 in February 2006 to 0.6248 in April 2011. This period was characterized by widespread foreclosures and a significant downturn in the housing market. The recovery from this downturn began slowly but gained momentum over time. By December 2014, the HPI/CPI had rebounded to 0.7113, showing signs of recovery. The most recent data from January 2020 to May 2024 paints a picture of a housing market that has experienced both resilience and volatility. Starting at 0.8305 in January 2020, the index showed a steady increase throughout the year, reaching 0.9028 by December 2020. This period of growth continued into 2021, with the index climbing to 1.0024 by December 2021. The year 2022 saw the index peak at 1.0421 in May, before experiencing a slight decline, ending the year at 0.9960. In 2023, the index demonstrated a gradual recovery, reaching 1.0184 by December. As of May 2024, the index stands at 1.0221, indicating a stable housing market. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240730020343.png" alt="" width="" height="" style=""></figure></div> Analyzing the month-over-month (MoM) and year-over-year (YoY) changes provides further insights into the market dynamics. For instance, in January 2000, the HPI/CPI increased by 0.41% from the previous month, which translates to an annualized change of 4.93%. This pattern of steady growth was typical of the early 2000s, with significant MoM increases observed in April 2000 (0.84%) and August 2000 (0.68%). The annualized change for these months was 10.05% and 8.16%, respectively. The period from 2006 to 2011 saw more frequent and substantial declines. For example, in September 2006, the index fell by 0.60% from the previous month, with an annualized decrease of 7.19%. The decline continued through 2007 and 2008, with some of the steepest drops occurring in 2008. In June 2008, the index decreased by 2.01% from the previous month, translating to an annualized drop of 24.14%. This period highlights the severe impact of the housing market crash. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240730020439.png" alt="" width="" height="" style=""></figure></div> Post-2011, the market began to recover, with more consistent MoM increases. For instance, in March 2013, the HPI/CPI increased by 1.76% from the previous month, leading to an annualized change of 21.13%. This period of recovery continued through the 2010s, with notable increases in 2014 and 2015. By 2019, the market had stabilized, with the HPI/CPI showing modest but steady growth. The period from January 2020 to May 2024 has been particularly interesting. Despite the challenges posed by the COVID-19 pandemic, the housing market showed resilience. In April 2020, the HPI/CPI increased by 0.98% from the previous month, with an annualized change of 11.72%. The index continued to rise throughout 2020 and into 2021, reflecting strong demand and limited supply. By October 2021, the MoM increase was 0.31%, with an annualized change of 3.76%. The year 2022 saw more fluctuations, with some months experiencing declines. For instance, in August 2022, the index decreased by 1.38% from the previous month, leading to an annualized drop of 16.55%. However, by the end of 2023, the market had stabilized again, with the HPI/CPI reaching 1.0184 in December. The most recent data from 2024 shows a relatively stable market, with the index at 1.0221 in May. The methodology used to calculate the S&amp;P CoreLogic Case-Shiller <a href="https://teamprice.com/national-market-index">Home Price Index</a> involves tracking repeat sales of single-family homes. This approach helps to isolate the true price changes by comparing the sales prices of the same property at different points in time. The data is then adjusted for inflation using the Consumer Price Index (CPI), providing a more accurate picture of real home price appreciation. This detailed analysis of the National Home Price Index adjusted for inflation highlights the importance of understanding the real value of home prices. By adjusting for inflation, we can see the true appreciation in home prices, providing valuable insights for homebuyers, sellers, investors, and policymakers. The data from the past two decades shows a market that has experienced significant growth, dramatic declines, and steady recovery. As we look to the future, the HPI/CPI will continue to be a critical tool for understanding the dynamics of the U.S. housing market.​ <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240730020604.png" alt="" width="" height="" style=""></figure></div>

July 30, 2024 : The true value of U.S. home prices with a detailed analysis of the National Home Price Index adjusted for inflation. Learn about the methodology, historical trends, and recent data from 2000 to 2024, providing valuable insights for homebuyers, sellers, and investors.

Understanding the Real Value of Home Prices : Inflation-Adjusted Insights from 2000 to 2024

Understanding the Trends in Monthly Mortgage Payments Over Two Decades July 24, 2024 : The journey of monthly mortgage payments over the past two decades reveals significant trends and changes that highlight the evolving landscape of the housing market. Using data from January 2000 to August 2024, we can observe how these payments have fluctuated due to various economic factors. Starting in the year 2000, the average monthly mortgage payment was $1,202. During the early 2000s, the payments remained relatively stable with minor increases. By 2006, the average payment had risen to $1,285, reflecting a steady but slow growth in housing costs. The following year, 2007, saw a further increase to $1,353, marking the beginning of a more noticeable upward trend. The financial crisis of 2008 had a significant impact on mortgage payments, with the average payment peaking at $1,357. This period was marked by economic instability, which affected housing prices and interest rates. Following the crisis, there was a dip in 2009, with the average payment falling to $1,246. However, the market began to recover, and by 2010, the average payment was $1,236. The decade of the 2010s experienced consistent growth in mortgage payments. By 2016, the average monthly payment had climbed to $1,706, indicating a sustained increase in housing costs. This trend continued into the late 2010s and early 2020s. In 2020, the average payment reached $2,010, a significant rise that highlighted the increasing financial demands on homeowners. The impact of the COVID-19 pandemic on the housing market was profound. In 2021, the average monthly mortgage payment soared to $2,686, reflecting the combined effects of rising housing prices and higher interest rates. This upward trend continued in 2022, with the average payment peaking at $3,476. The data for 2023 and 2024 shows that payments remained high, with averages around $3,445 and $3,459, respectively. Monthly variations within each year also paint a detailed picture of the housing market's dynamics. For example, in 2022, payments ranged from $2,891 in January to a peak of $3,767 in May. These fluctuations indicate the influence of changing interest rates and housing prices throughout the year. Comparing the peak and low points of the data period, the highest monthly payment recorded was $3,767 in May 2022, while the lowest was $1,028 in January 2004. This stark contrast underscores the significant changes in the housing market over two decades. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240724033244.png" alt="" width="" height="" style=""></figure></div> The data suggests that both interest rates and housing prices have played crucial roles in shaping the <a href="https://teamprice.com/affordability">affordability of housing</a>. The sharp rise in mortgage payments post-2020 can be attributed to the increased costs of homes and the corresponding rise in interest rates during the post-pandemic economic recovery period. Understanding these trends is vital for various stakeholders in the real estate market, including buyers, sellers, and policymakers. It provides a clear view of how the housing market has evolved and what factors have influenced these changes. This comprehensive overview can help inform decisions and strategies to navigate the shifting landscape of housing affordability.

July 24, 2024 : Discover how monthly mortgage payments have changed from 2000 to 2024. This detailed analysis explores trends, economic impacts, and key fluctuations in housing costs, providing valuable insights for buyers, sellers, and policymakers.

Trends in Monthly Mortgage Payments: A Detailed Analysis from 2000 to 2024

Understanding the Real Estate Market: New Listing to Pending Ratio and Active Listings July 13, 2024 : The real estate market is a dynamic and ever-changing environment that can be challenging to navigate. One way to gain insights into the market's health is by examining the <a href="https://teamprice.com/new-listing-to-pending-ratio">New Listing to Pending Ratio</a> and the number of active listings. This ratio, created by Team Price Real Estate, compares the number of new listings (including those that come back on the market) to the number of pending sales (active under contract and pending). It serves as a valuable tool for understanding whether the market is in equilibrium, favoring buyers, or favoring sellers. A ratio of 1.00 indicates a balanced market where the number of new listings equals the number of properties being sold. For example, if 1,000 new listings come onto the market and 1,000 are absorbed, the ratio is 1.00. If the ratio falls below 1.00, it means fewer homes are being sold than are listed, leading to an increase in inventory. Conversely, a ratio above 1.00 indicates a higher rate of sales compared to new listings, resulting in a decrease in active inventory. The data provided from 2005 to 2024 highlights various market conditions. In 2007, the <a href="https://teamprice.com/new-listing-to-pending-ratio">New Listing to Pending Ratio</a> reached its peak at 1.26 in April and May, showing a super-hot market where homes were selling faster than new ones were being listed. In contrast, 2001 experienced the lowest ratio at 0.45 in September, indicating a cold market with rapidly increasing inventory. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240713052603.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="new listing to pending ratio.png" data-file-size="393707" data-origin="," style=""></figure></div> Examining the number of active listings alongside the ratio offers additional insights. For instance, in 2008, the market faced significant challenges due to the financial crisis. Despite having a high number of active listings, with a peak of 13,384 in June, the New Listing to Pending Ratio dropped to 0.50 in October. This indicates that the market was struggling to absorb the available inventory, leading to a buildup of unsold homes. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240713052734.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="active listings.png" data-file-size="117731" data-origin="," style=""></figure></div> In recent years, the data reflects the impact of the COVID-19 pandemic on the real estate market. In 2021, the number of active listings in January was the lowest in the dataset at 2,842, and February was similar at 2,703. During this time, the New Listing to Pending Ratio remained above 1.00 for most of the year, reflecting a strong demand for homes driven by low-interest rates and changing housing preferences. By 2022, the market began to cool down, with the ratio dropping as low as 0.58 in June, indicating increasing inventory levels as market conditions stabilized. Seasonal trends are also evident in the data. Generally, the number of active listings tends to rise during the spring and summer months, peaking around June or July, and then decreases towards the end of the year. The New Listing to Pending Ratio often mirrors this seasonality, with higher values in the spring and summer when market activity is typically at its highest. Long-term trends indicate a gradual shift towards a seller's market. From 2011 to 2021, the ratios generally increased, while the number of active listings decreased. This trend is particularly noticeable in 2021, with the sharp drop in active listings and consistently high ratios, signifying strong market absorption and high demand. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240713052943.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="moi.png" data-file-size="222916" data-origin="," style=""></figure></div> July 2024: Recent Trends and Forecasts :&nbsp;As of July 2024, the real estate market is experiencing significant changes due to a recent increase in interest rates. The Federal Reserve's benchmark rate has been stable at 5.33% since the beginning of the year. <a href="https://teamprice.com/30-year-fixed-mortgage-rate">Mortgage rates</a> have also seen fluctuations, with the 30-year fixed mortgage rate averaging around 6.89% in early July 2024. These higher interest rates have impacted affordability, making it more challenging for potential buyers to enter the market. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240713052838.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="rates.png" data-file-size="103661" data-origin="," style=""></figure></div> Despite the increase in interest rates, more listings are entering the market. This influx is partly due to sellers trying to capitalize on the still relatively high property values before potential further rate hikes. The <a href="https://teamprice.com/active-residential-listings">number of active listings</a> in July 2024 is 15,682, a significant increase from the same month in previous years. The New Listing to Pending Ratio for July is 0.54, indicating that while more properties are coming onto the market, the absorption rate is slightly lagging, leading to a modest buildup in inventory. Forecasts :&nbsp;Looking ahead, the market is expected to remain somewhat volatile. The <a href="https://teamprice.com/30-year-fixed-mortgage-rate">higher interest rates</a> are likely to continue impacting affordability, potentially dampening buyer demand. However, if rates stabilize or decrease slightly towards the end of the year, as some forecasts suggest, we might see a rebound in buyer activity. The <a href="https://teamprice.com/new-listing-to-pending-ratio">New Listing to Pending Ratio</a> is expected to hover around the current levels, with minor fluctuations reflecting the seasonal trends and economic conditions. Overall, understanding the New Listing to Pending Ratio and active listings data can help real estate professionals, buyers, sellers, and investors make informed decisions. This ratio serves as a real-time indicator of market conditions, reflecting periods of equilibrium, overheated markets, and slowdowns. By analyzing these trends, stakeholders can anticipate market changes, strategically plan their actions, and navigate the complex real estate landscape more effectively.​

July 13, 2024 : Discover how the New Listing to Pending Ratio and active listings data reveal real estate market trends. Learn how this key metric can help you understand market conditions, anticipate changes, and make informed decisions in the real estate industry

Understanding the Real Estate Market with New Listing to Pending Ratio

Central Texas Real Estate Market Analysis: Top 30 Cities Breakdown July 09, 2024 : The real estate market in Central Texas presents a diverse landscape, with varying conditions across its top 30 cities. According to recent data, 17 of these cities are identified as sellers' markets, characterized by less than 4.9 months of inventory. This means that homes in these areas are selling quickly, indicating high demand. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240709093825.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="type of market.png" data-file-size="32405" data-origin="," style=""></figure></div> Examples of cities in a sellers' market include Austin, Cedar Park, and Buda. Austin, for instance, has an average home price of $1,036,767 and a median price of $649,999. With a median of 58 days on the market and 5.13 months of inventory, Austin is on the cusp of a neutral market but still leans towards a sellers' market due to its high demand and competitive pricing. <a href="https://teamprice.com/type-of-market-city">Detailed Analysis : Type of Market Cities</a>&nbsp; Bastrop, another city in a sellers' market, has 298 active listings with an average price of $508,110 and a median price of $439,902. Homes in Bastrop typically stay on the market for about 61 days, with 4.58 months of inventory available. Similarly, Cedar Park's real estate market is robust, with 242 active listings, an average price of $645,379, and a median price of $575,000. Homes in Cedar Park sell quickly, often within 39 days, reflecting its strong sellers' market status. Seven cities in Central Texas are classified as neutral markets, where the months of inventory range between 5 and 6.9 months. This balance indicates a stable market where the supply of homes meets buyer demand. San Marcos, for example, has 429 active listings, an average price of $531,984, and a median price of $399,990. Homes in San Marcos typically stay on the market for 58 days, with 5.08 months of inventory, placing it firmly in the neutral category. Driftwood also falls into the neutral market category, with 47 active listings, an average price of $1,570,336, and a median price of $1,235,000. Driftwood homes stay on the market for about 53 days, reflecting a balanced demand and supply situation. Six cities in Central Texas are experiencing a buyers' market, where the months of inventory exceed 7 months. This surplus of available homes often leads to more competitive pricing and longer time on the market. Burnet is a notable example of a buyers' market, with 122 active listings, an average home price of $869,755, and a median price of $697,000. Homes in Burnet typically stay on the market for 80 days, with an inventory lasting 8.13 months. Similarly, Wimberley has 188 active listings, an average price of $1,040,393, and a median price of $650,000. In Wimberley, homes remain on the market for 85 days, with an inventory of 9.64 months, highlighting its status as a buyers' market. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240709093938.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="months of inventory.png" data-file-size="109534" data-origin="," style=""></figure></div> Understanding the real estate market conditions across these Central Texas cities is crucial for both buyers and sellers. Sellers can capitalize on the high demand in sellers' markets, while buyers can take advantage of more favorable conditions in buyers' markets. Meanwhile, those looking at neutral markets will find a balanced environment where neither buyers nor sellers have a distinct advantage.​

July 09, 2024 : current real estate market conditions across the top 30 cities in Central Texas. Learn which cities are sellers, neutral, and buyers markets, with detailed data on inventory, prices, and market trends. Stay informed and make better decisions whether you're buying or selling a home in Central Texas.

Central Texas Housing Market Trends: Sellers, Buyers, and Neutral Markets

A Detailed Look at Austin's Pending Property Market from 2000 to 2024 July 09, 2024 : The Austin Metropolitan Statistical Area has experienced significant shifts in its real estate market over the past two decades. By examining cumulative pending properties from January to July for each year between 2000 and 2024, we gain valuable insights into the market’s evolution, trends, and fluctuations. In the year 2000, the number of pending properties was recorded at 16,167. This marked the beginning of a period of growth that saw some variations but overall demonstrated a trend towards increasing market activity. By 2001, the pending properties slightly decreased to 14,845, representing a 8.2% decline from the previous year. This decline continued marginally into 2002, with pending properties numbering 14,764, a small drop of 0.5%. The year 2003 saw a recovery, with pending properties increasing to 15,305, marking a 3.7% growth. This upward trend accelerated significantly in 2004, when the number of pending properties surged to 18,951, a substantial 23.8% increase. The momentum continued into 2005, reaching 23,489, another notable rise of 23.9%. The growth streak extended into 2006 with pending properties climbing to 27,663, reflecting a 17.8% increase. However, 2007 witnessed a slight dip to 26,560, a decrease of 4.0%. This downturn was a precursor to a more significant decline during the global financial crisis, with pending properties plummeting to 21,461 in 2008, a steep 19.2% drop. The following year, 2009, saw a further decline to 18,443, representing a 14.1% decrease. The market began to recover in 2010, with pending properties increasing to 19,466, a growth of 5.5%. This recovery continued steadily, albeit more modestly, into 2011 with 19,792 pending properties, reflecting a 1.7% increase. The year 2012 marked a robust resurgence with pending properties jumping to 24,262, a substantial 22.6% rise. This growth trend continued into 2013, reaching 29,134 pending properties, an increase of 20.1%. Despite a slight dip in 2014, where pending properties slightly decreased to 28,996, a small drop of 0.5%, the market rebounded in 2015, growing to 30,270, an increase of 4.4%. The growth persisted in 2016 with 31,204 pending properties, a rise of 3.1%, and in 2017, the market saw a further increase to 32,004, up by 2.6%. This upward trend continued into 2018 with 33,088 pending properties, reflecting a 3.4% growth. The year 2019 experienced a more significant increase, with pending properties reaching 34,977, a rise of 5.7%. This positive trend continued in 2020, with 36,090 pending properties, marking a 3.2% growth. The market saw a marginal increase in 2021, with 36,213 pending properties, a small rise of 0.3%. However, 2022 marked a notable downturn, with pending properties dropping to 31,257, a significant 13.7% decrease. This decline continued into 2023, with pending properties falling to 28,177, a further 9.9% drop. The downward trend extended into 2024, with pending properties reducing to 24,828, reflecting an 11.9% decrease. The sharp decline from the peak of 2021 to the current numbers in 2024 can be attributed to several key factors. The increase in interest rates, driven by the Federal Reserve's rate hikes, has had a direct impact on mortgage rates, making home loans more expensive. This has, in turn, contributed to a higher unemployment rate and affordability issues. Property prices have reached record highs, and coupled with the rise in mortgage rates, the principal, interest, taxes, and insurance (PITI) payments have surged dramatically. These affordability problems have made it difficult for many potential buyers to enter the market, resulting in a significant drop in pending properties. This combination of economic pressures has played a crucial role in the observed decline in pending real estate transactions. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240709050235.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="cumulative pending.png" data-file-size="152219" data-origin="," style=""></figure></div> Overall, the data reveals a dynamic and evolving real estate market in Austin, characterized by periods of robust growth, resilience during economic downturns, and significant fluctuations. This comprehensive analysis of cumulative pending properties from 2000 to 2024 provides a detailed understanding of the market trends and the factors influencing these changes.

Austin's Real Estate Market: An In-Depth Analysis of Pending Properties from 2000 to 2024

Detailed Analysis of Austin's Housing Market Using FMHPI® Data July 04, 2204 : The Freddie Mac House Price Index (FMHPI®) provides a detailed measure of house price inflation across various metropolitan areas in the United States. This index is crucial for understanding the dynamics of the housing market. In this article, we will focus on the housing market trends in Austin, Texas, using the latest data from the FMHPI®. From January 2020 to May 2024, house prices in Austin increased significantly by 46.3%. This period marks a robust upward trend in the housing market, reflecting increased demand and a limited supply of homes. The market's performance from January 2021 to May 2024 also showed a notable rise of 23.0%. However, from May 2022 to May 2024, the market experienced a correction, with house prices decreasing by 12.2%. When comparing Austin's housing market with other major metropolitan areas, we see varying trends. For example, Atlanta saw a 62.3% increase in house prices from January 2020 to May 2024, while Boston experienced a 48.5% rise in the same period. Chicago's house prices increased by 46.5%. These comparisons highlight that while Austin's growth was significant, it was not the highest among major cities. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240704041947.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="austin housing market national update.png" data-file-size="197163" data-origin="," style=""></figure></div> The data also shows that from peak prices, Austin's housing market experienced a 12.2% drop. Year-over-year, there was a decrease of 2.2% in house prices, indicating a slight cooling in the market. Despite this, the month-over-month data shows a small increase of 2.0%, suggesting some stabilization. The FMHPI® also provides historical data, which is essential for understanding the long-term trends in the housing market. For Austin, the yearly data from 1976 to 2024 shows various peaks and troughs. This long-term data reflects the cyclical nature of the housing market, influenced by economic conditions, interest rates, and other factors. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240704042028.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="history.png" data-file-size="87546" data-origin="," style=""></figure></div> From 2020 onwards, the Austin housing market saw significant changes. The year 2020 recorded steady growth, with monthly increases averaging 1.3%. In 2021, the market experienced the highest year-over-year increase at 30.9%, marking a boom period. However, by 2022, the market began to correct, with prices decreasing in the latter part of the year and continuing into 2023 and 2024. The data from the FMHPI® is crucial for anyone involved in the housing market, including investors, homeowners, and policymakers. It helps in making informed decisions by providing a clear picture of the market's performance over time. The detailed statistics and comparative analysis with other cities offer valuable insights into Austin's housing market trends. In conclusion, the Freddie Mac House Price Index (FMHPI®) data reveals a dynamic housing market in Austin, characterized by significant growth followed by a period of correction. Understanding these trends is essential for navigating the ever-changing landscape of real estate in Austin, Texas.&nbsp;This article is based on data published on July 04, 2024 with data for the month ending June 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/freddie-mac-house-price-index">Freddie Mac House Price Index</a>

July 04, 2024 : Discover the latest trends in Austin's housing market with an in-depth analysis of the Freddie Mac House Price Index (FMHPI®). Learn about significant price changes, comparative insights with other cities, and historical data to make informed real estate decisions

Austin Housing Market Trends: Insights from Freddie Mac House Price Index

Austin Real Estate Sees Highest Inventory in More Than a Decade As of June 2024, the Austin real estate market has reached a significant milestone with the highest months of inventory seen in over 12 years. This marks a critical point of analysis for market participants, as it offers insight into the current balance of supply and demand in the housing 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/20240629125626.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="months of inventory.png" data-file-size="230931" data-origin="," style=""></figure></div> The Austin-Area MLS currently lists 15,740 active residential properties for sale. This is a substantial number that indicates a healthy supply of homes available to prospective buyers. The months of inventory, a key indicator of market health, now stands at 5.4 months. This places the market in a neutral category, suggesting a balanced scenario where neither buyers nor sellers have a distinct advantage. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240629125651.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="active listings austin mls.png" data-file-size="117142" data-origin="," style=""></figure></div> To put this into perspective, the last time the inventory levels were this high was in October 2011. This represents a span of over 12 years, or 152 months, highlighting the significant changes and fluctuations that have occurred in the Austin housing market over more than a decade. Examining the historical data, we see notable trends in the months of inventory. For instance, in January 2010, the months of inventory stood at 6.2, which was indicative of a buyer's market at the time. This trend continued to rise, peaking at 8.6 months in July 2010. The market then began to tighten, with inventory levels gradually decreasing over the years, reaching a low of 0.8 months in May 2020 during the height of the housing boom. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20240629125725.png" alt="" data-rotate="" data-proportion="true" data-align="center" data-size="," data-percentage="auto,auto" data-file-name="moi graph.png" data-file-size="101000" data-origin="," style=""></figure></div> The current neutral market conditions reflect a return to a more balanced state after the extreme highs and lows experienced in the past decade. Among the top 30 cities in Central Texas, the months of inventory range from 2.42 to 11.00, showing a wide variation across different localities. This diversity underscores the importance of local market conditions and their impact on overall market dynamics. The current high inventory levels can be attributed to several factors, including increased new construction, changes in buyer demand, and broader economic conditions. For buyers, this means more options and potentially more negotiating power. For sellers, it underscores the need to price competitively and be responsive to market conditions. Overall, the current state of the Austin real estate market, with its highest inventory in over 12 years, provides a crucial context for understanding the supply and demand dynamics at play. By keeping a close eye on these metrics, market participants can make more informed decisions, whether buying or selling, and navigate the evolving landscape with greater confidence.​ This article is based on data published on June 29, 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/market-update">Austin-Area Market Update</a>

June 29, 2024 : Latest update on the Austin real estate market as of June 2024. Learn about the highest inventory levels in over 12 years, current prices, and market trends. Stay informed with key metrics and insights for the Austin housing market.

Austin Real Estate Market Update: Highest Inventory in Over 12 Years!

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