Austin Real Estate Market Analysis - February 01, 2024

by: Team Price Real Estate, Unmatched Agents, Unrivaled Insights
Published on: Thursday, February 01, 2024 at 2:36pm

Updated Market Overview: The real estate landscape in the Austin area has seen subtle yet significant shifts over the past year. The total number of active listings in the Austin-Area MLS experienced a slight decrease, moving from 10,160 in 2023 to 10,092 in 2024, marking a reduction of 0.7%. This change is accompanied by a noteworthy increase in the Months of Inventory, which escalated from 3.39 months to 4.07 months, indicating a 20.1% rise. This data points to a slight easing in the market, with a modest reduction in available properties but a longer duration for inventory turnover.

Pricing Dynamics in Austin Real Estate: The pricing landscape has adjusted across the board. The average active listing price saw a decline of 2.5%, settling at $549,049, while the median active listing price decreased by 2.4% to $439,000. The sold property prices followed this downtrend, with the average sold price dipping by 2.4% to $527,288, and the median sold price falling by 2.5% to $425,000. These adjustments reflect a market that is recalibrating in response to various factors influencing buyer and seller behavior.

City and Regional Dynamics: Within the City of Austin, the market dynamics exhibit unique characteristics. The city has witnessed a 6.5% increase in total sales, from 2,516 to 2,679, showcasing a resilient demand. However, the Months of Inventory has seen a significant jump of 50.6%, from 2.50 months to 3.76 months. This increase suggests a growing availability of properties in Austin, despite the higher sales volume. The average active listing price in Austin has also decreased by 5.5%, indicating a shift towards more competitive pricing.

Central Texas Cities and Zip Code Analysis: Across Central Texas, 37% of cities reported month-over-month price increases, while 63% experienced decreases. Year-over-year data shows a similar trend, with 40% of cities witnessing price increases and 60% seeing declines. Notably, all cities reported decreases from their peak prices in the past 12 months. In a closer look at the 75 zip codes within Central Texas, 40% observed month-over-month price increases, and 35% saw year-over-year increases, suggesting localized variations in market conditions.

Sales vs. List Price Analysis: The current sales-to-list price ratio stands at 96.78%. A detailed breakdown reveals that 72.11% of sold properties fetched under the list price, 18.16% sold at the list price, and 9.73% exceeded the list price. This distribution signals a market where buyers often negotiate prices down from initial listings, though a notable fraction still achieves or surpasses their asking price.

Peak Value Analysis: Austin-Area MLS: Reflecting on peak values, the Austin-Area MLS has seen a decrease from its peak in several key metrics. The average list price peaked in March 2023 at $710,428, now down by 8.99%. The median list price, median sold price, and average sold price per square foot have all seen significant reductions from their peaks, underscoring a cooling trend from previously high market valuations.

Peak Value Analysis: City of Austin: The City of Austin's peak value analysis reveals a nuanced picture. While the average list price has seen a slight adjustment, down by 1.43% from its peak in March 2023, other metrics such as the median list price, average sold price, and median sold price have experienced more substantial declines. This indicates a recalibration of property values within the city, aligning more closely with current market conditions and buyer expectations.

The following report, with over 570 pages, dives deep into every facet of the Austin real estate market, focusing on market cycles, affordability, and interest rates, providing essential insights for informed decision-making. Team Price Real Estate, with its expertise and data-driven approach, continues to uphold its commitment to "Where Experience Meets Insight," delivering exceptional service in the Austin real estate market.​