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.

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.

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.

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. Austin Real estate statistics are constantly evolving. For the most current data and analysis, please refer to the following resources, updated weekly: Austin-Area Market Update