Austin Real Estate Weekly Market Update - December 05, 2024

by: Team Price Real Estate, Austin's leading data analysis brokerage, where data drives exceptional service
Published on: Thursday, December 05, 2024 at 8:13 am

Updated Market Overview

The Austin real estate market is continuing to adjust as we close out 2024. Data shows that inventory levels and pricing trends are evolving, impacting both buyers and sellers. The total number of active listings in the Austin-area MLS has risen to 12,942, reflecting a 17.56% increase from last year’s 11,009 active listings. Months of Inventory is currently at 4.53 months, up from 3.81 months a year ago, representing an increase of 18.85%. This suggests that buyers now have more choices, while the time properties spend on the market has lengthened. Within the City of Austin, the inventory increase is also notable, with active listings up 20.03% year-over-year, rising from 3,001 to 3,602. Months of Inventory in the city is now 4.30 months, up 22.33% from last year’s 3.52 months.

Pricing Dynamics in Austin Real Estate

Pricing trends across the Austin-area MLS show modest increases over the past year. The average list price for active homes is $567,189, marking a 3.85% increase from last year’s $546,144. The median active list price is now $440,000, up 3.53% from $425,000 in 2023. Sold prices have also risen, with the average sold price climbing 3.78% to $546,994 from $527,067 a year ago. The median sold price is now $429,643, up 4.27% year-over-year from $412,030. Within the City of Austin, the average list price for active homes has increased 5.55% to $799,210 from $757,214 last year, while the median active list price has risen 4.39% to $594,000 from $569,000. Sold prices in Austin have followed a similar trajectory, with the average sold price up 5.08% year-over-year to $767,218 and the median sold price up 4.55% to $575,000 from $550,000.

City and Regional Dynamics

Market dynamics vary across Central Texas. Approximately 53% of Central Texas cities saw month-over-month price increases, while 47% experienced declines. Year-over-year, 50% of cities recorded price growth, while the remaining 50% showed decreases. Across the 75 zip codes in Central Texas, 51% recorded month-over-month price increases, while 47% saw declines. Year-over-year, 48% of zip codes showed price growth, while 52% recorded decreases. Over the past 12 months, 30 cities and 72 zip codes have seen declines from their peak values, while only three zip codes have experienced gains.

Sales vs. List Price Analysis

Buyer behavior continues to reflect a cautious market. Currently, 69.04% of all sold properties in the Austin-area MLS are closing below their list price, up from 67.57% last month. Homes selling at their list price now account for 20.69% of transactions, a slight decrease from 21.00% last month. Properties selling above their list price have dropped to 10.26%, down from 11.43% last month and significantly lower than October 2023’s 12.97%. These trends indicate that buyers are negotiating more aggressively, leading to lower final sale prices relative to initial list prices.

Peak Value Analysis: Austin-Area MLS

From their peak values, both average and median prices in the Austin-area MLS have declined. The average list price peaked in March 2023 at $708,943 but has since dropped by 14.91% to $603,192. The median list price peaked in May 2022 at $539,900 and has fallen by 21.17% to $425,613. Average sold prices have decreased 15.96% from their May 2022 peak of $664,515 to $558,470, and the median sold price has dropped 9.85% from $538,000 to $485,000. The average sold price per square foot is down 11.42% from its peak, while the median price per square foot has declined by 15.00%.

Peak Value Analysis: City of Austin

Within the City of Austin, price declines from peak values have been less pronounced. The average list price reached a high of $1,016,897 in December 2024 and remains steady at that level. The median list price peaked in May 2022 at $658,589 and has since decreased by 1.43% to $649,174. The average sold price peaked in December 2024 at $946,570 and remains unchanged. However, the median sold price has dropped 6.47% from its May 2022 peak of $680,000 to $636,000. The average sold price per square foot has fallen 8.37% from its peak of $442 to $405, and the median price per square foot has declined 18.32% from $393 to $321

Closing Thoughts

The Austin real estate market continues to show signs of stabilization as it adjusts from the rapid price increases seen in recent years. Rising inventory levels, modest price growth, and evolving buyer behavior are shaping a market that is more balanced than in previous years. These trends provide valuable insights for buyers and sellers navigating the current landscape. As conditions evolve, staying informed on market data remains essential for making strategic decisions in the Austin real estate market. The following report, with over 800 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.