The latest year-over-year data from the Austin Board of REALTORS® reveals that the median sales price has remained relatively stable, experiencing only a slight decrease. New listings have surged, indicating a prime season for listing and selling homes. However, the market’s absorption rate has declined, reflected by a significant 37.7% rise in active listings and an increase of 1.5 months in inventory compared to the same period last year. This uptick in inventory could be attributed to “school’s out for summer syndrome”, families taking a break once school is out, or possibly buyer hesitation in entering the market—likely a mix of both, with the latter being more probable.
Other notable market statistics include an 11-day decrease in average days on market, along with the average close-to-list price percentage coming in at 95.5%, which is up by 1.3% from the same period last year.
Year-Over-Year Market Statistics for Austin-Round Rock-Georgetown for May 2024:
Month-Over-Month Market Statistics for Austin-Round Rock-Georgetown for May 2024:
Year-Over-Year Market Statistics for Williamson County for May 2024:
The View from a Housing Economist:
“This data demonstrates that buyers can continue to be more selective when searching for a home in their price range. Although it may appear to be a buyer’s market from the outside, it’s important to understand the context behind these statistics, including higher interest rates resulting in a reduction in purchasing power. This market does not offer a clear advantage to either buyers or sellers,” said Clare Losey, Ph.D., housing economist for Unlock MLS and the Austin Board of REALTORS®.
Analysis
What does all this mean (in layman’s terms) if you plan to make a move this year?
For Sellers:
Prices remain firm and steady, with the average close-to-list price on the rise. Although there may be more competition among listings at the moment, you can rest assured that property values are holding strong, safeguarding the equity you have built over the years. It is essential, however, to partner with an experienced real estate professional who understands the importance of proper property preparation and presentation, and who excels in the art of negotiation in any market condition.
For Buyers:
Despite the Federal Reserve hinting at the possibility of a single interest rate cut for the rest of the year—down from the earlier forecast of 2-3 cuts in 2024—there is still reason to be hopeful if you are planning to buy a home this year. Creativity will be crucial, so be sure to hire a seasoned real estate professional. For instance, your agent should work to negotiate with sellers and/or new home builders to contribute to your closing costs to help “buy down” your interest rate, as this can significantly lower the mortgage rate you end up paying. Given the 37.7% increase in active listings, there are likely sellers open to negotiation. It’s just a matter of identifying those willing to make a deal—and we will find them!
Making a Move This Year?
The importance of hiring an experienced and knowledgeable real estate professional cannot be understated. Whether you’re selling or buying, an agent’s expertise in pricing, marketing, and negotiation can make a significant difference when it comes to achieving your real estate goals. A home is often the largest investment you’ll make, so it’s essential to work with a fiduciary who prioritizes your interests above all else. We take this responsibility seriously and are committed to protecting your interests every step of the way. If we can help guide you home, contact The Cummings Team® today!