Austin Real Estate Market Update: Pending Listings Reach New High in September 2024

September 16, 2024 : The Austin real estate market continues to show dynamic changes as we head into September 2024. One of the most notable shifts in the market is the rise in pending listings, which have reached 4,100 on September 16, 2024. This marks the highest number of pending listings in a month, showcasing an increase in buyer activity despite the broader market trends. Although pending listings have risen, they are still down -2.9% year-over-year (YoY), reflecting the impact of a market in transition.

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Simultaneously, the number of active residential listings in the Austin area has decreased, with 14,838 active listings as of the same date. This represents a significant decline of -19.7% compared to September 2023. Month-over-month (MoM), the active listing count dropped by -2.32%, indicating a steady contraction in available homes. The steady drop in active listings, coupled with the rise in pending listings, suggests that homes are selling more quickly, leading to fewer options for prospective buyers.

The Austin real estate market’s Activity Index, a key indicator of market absorption, stands at 21.6% as of mid-September. The Activity Index is calculated by dividing the number of pending properties by the total number of active and pending listings. This figure shows the rate at which homes are moving from being listed to going under contract. With pending listings at their highest in a month, it’s clear that buyer demand remains strong in the region.

In addition to these numbers, the months of inventory available in the Austin market is another important measure. As of September 16, 2024, there are 5.31 months of inventory on hand. Months of inventory is calculated by dividing the number of active listings by the number of homes sold in the past year. This metric helps determine how balanced the market is between buyers and sellers. A balanced market typically has about 5 to 6 months of inventory, which suggests that Austin is in a relatively stable position despite the fluctuations in active and pending listings.

While pending listings have risen, the trend leading up to this point showed notable fluctuations. For example, between August 26, 2024, and September 16, 2024, pending listings varied from a low of 3,974 on September 2, 2024, to their peak of 4,100 on September 16, 2024. Meanwhile, active listings showed a steady decrease, highlighting the ongoing reduction in housing supply, which could be contributing to the heightened buyer interest.

Overall, the data suggests that the Austin housing market is experiencing a shift, with fewer homes available for sale but strong buyer interest pushing pending listings to new heights. This tight inventory and increased pending activity may signal that buyers are taking advantage of more favorable conditions, such as competitive pricing and improving market trends.