For the first time in over a decade, Austin might officially become a buyer’s market. I’m going to break down all the latest stats and tell you exactly what that means if you’re planning on making a move in 2024.
The latest stats from the Austin Board of Realtors show a significant increase in the number of homes being listed compared to the number of buyers entering the market. This ratio is referred to as “months of inventory,” which measures how long it would take to sell all the current homes on the market at the current sales pace.
Currently, if no new homes were listed, it would take about five to five and a half months to sell off the existing inventory. To officially be called a buyer’s market, we need about six months of inventory. Although we’re not quite there yet, buyers already have some significant advantages.
What This Means for Buyers
Right now, buyers are not seeing the crazy multiple-offer situations that were common in previous years. Most homes are selling around 5% less than the list price. This figure doesn’t even account for the numerous price reductions or the seller concessions like paid closing costs or credits towards repairs, making it a very favorable time for buyers.
Another advantage for buyers is the sheer number of options. If you find a home that seems perfect but can’t get the price you want, plenty of other great houses are available. This abundance of choices includes a lot of new construction inventory from builders, adding to the overall housing stock.
Current Price Trends
Despite the increased inventory, prices are still showing a month-over-month increase, which is typical for this time of year. From March to June, prices usually rise as we approach the peak of the market in the summer months. Prices then taper off once the school year begins in the fall and during the holiday season.
So, while it might seem like the increased inventory should push prices down, they are actually following a normal seasonal cycle. Buyers can use the wealth of choices to their advantage to negotiate better prices.
What This Means for Sellers
If you’re selling, this news might sound alarming, but it doesn’t have to be. Realistic pricing is crucial in this market. Overpricing your home to test the waters will likely result in your home sitting on the market longer than average, which is currently a little over two months for Austin and surrounding areas like Travis County, Williamson County, and Hays County.
The key is to price your home competitively. Homes that are priced in line with comparable properties in the area are still selling relatively quickly. If you’re in a suburban area with a lot of new builds, remember that buyers are often willing to pay more for brand-new homes, so you’ll need to price accordingly.
Leveraging Equity
The good news is that as long as you’ve owned your home for several years, you likely have a substantial amount of equity. Even though your home might not fetch the 2021 or 2022 prices, you can still sell at a good price and purchase another home at a discount. This can make the transition more balanced if you’re staying within the Austin area.
Every Neighborhood is Different
It’s important to note that every neighborhood in Austin is different. Some areas are fully built out, and homes rarely come on the market, so these will typically sell faster and closer to the list price. In other areas, it might take longer to sell a home. Always consult with a local real estate expert to get specific information about your neighborhood or the one you’re interested in.
Austin is teetering on the edge of becoming a buyer’s market, offering significant opportunities for those looking to purchase a home. For sellers, realistic pricing and understanding the current market dynamics are crucial. Whether you’re buying or selling, you can still be successful by staying informed and strategic about your moves.
If you have any questions about moving into a specific part of town or selling your home, don’t hesitate to reach out for personalized advice to make the right decision moving forward.
