Austin Real Estate Market Analysis: September 2024 City-by-City Breakdown

2024 Austin Area Real Estate Trends: Seller, Neutral, and Buyer Markets Explained

September 16, 2024 : The Austin area real estate market has displayed significant variations across different cities in September 2024, reflecting diverse conditions for buyers and sellers. Analyzing these trends through the lens of months of inventory helps to identify whether a specific city is in a seller's market, neutral market, or buyer's market. The months of inventory metric, calculated by dividing the total number of active listings by the rate at which properties are being sold, is a key indicator of the supply and demand balance in the market. The current market conditions across the region offer essential insights into how these factors shape the buying and selling experience in Central Texas.

In a seller’s market, inventory is typically below 4.9 months, meaning homes are selling more quickly due to higher demand compared to available supply. A total of 17 cities across the Austin area fall into this category. Austin itself, the region’s most prominent city, has 4,444 active listings with a median price of $624,950 and an average price of $1,001,119. The city’s inventory currently stands at 5.13 months, positioning it on the edge of a neutral market but still exhibiting seller-friendly conditions. Other cities within the seller's market include Buda, with an inventory of 2.77 months, and Cedar Park, which has a median price of $559,450 and an inventory of 3.32 months. Jarrell, with only 2.59 months of inventory and a median price of $299,550, is also a strong seller’s market, indicating that homes are selling quickly in these areas.

A neutral market is defined by 5 to 6.9 months of inventory, indicating a balance between buyers and sellers. Eight cities across the Austin area are experiencing neutral market conditions, where homes tend to stay on the market for a moderate amount of time. Bastrop, for example, has a median price of $435,000 and an inventory of 6.08 months, reflecting a more balanced market. Burnet, with a median price of $669,000 and 6.29 months of inventory, shows similar characteristics. Dripping Springs, known for its higher-priced homes, with a median price of $789,000, has 4.99 months of inventory, placing it close to the seller’s market threshold but remaining in the neutral range. Georgetown, a growing city with a median price of $514,700, has an inventory of 4.41 months, signaling a market that could shift depending on future supply and demand.

In a buyer’s market, where there is more than 7 months of inventory, the supply exceeds demand, giving buyers more negotiating power. Five cities fall into this category, reflecting longer times for homes to sell and greater opportunities for buyers. Cedar Creek, with 9.97 months of inventory and a median price of $530,000, exemplifies these conditions. Dale, with an inventory of 8.06 months and a median price of $439,000, also offers more favorable conditions for buyers. Lago Vista, with a median price of $513,050 and 8.83 months of inventory, further demonstrates the increased options for homebuyers. Marble Falls, with an 8.20-month inventory and a median price of $472,000, also shows strong buyer’s market characteristics. In these cities, buyers can take advantage of the surplus in available homes, leading to greater flexibility in negotiations.

The overall market in the Austin area presents a broad spectrum of conditions depending on the city. From fast-moving seller’s markets to more balanced neutral markets and buyer-friendly environments, each city offers different opportunities for prospective buyers and sellers. The months of inventory metric remains a crucial factor in determining the level of competition in each area. As market dynamics continue to evolve, staying informed on the latest inventory data is essential for making well-informed real estate decisions in the Austin area.