Happy New Year! I hope you are staying warm! Welcome to the second edition of our monthly newsletter, where we bring you the freshest insights and updates from the heart of Austin's real estate market. Our goal is to keep you informed and ahead of the curve, whether you're buying, selling, or just love to keep up with the market trends.
Quick Glance at Austin's Current Real Estate Trends
As we step into 2024, Austin's real estate landscape presents a balancing act. While the number of units sold has dipped compared to last December, the steadiness in both average and median sales prices indicates a market gradually stabilizing from the recent interest rate hikes. This snapshot offers a glimpse into a market inching towards normalcy, with insights into how these trends are shaping opportunities for buyers and sellers alike.
Here is some good news on progress towards a stable market! While total units sold are down from last December, the Average and Median Sales Price holding steady are indicators that the lowering of home prices has slowed significantly. This could mean that this market correction we have been experiencing in the wake of the interest rate increase is close to coming to a close. Anecdotally, I am seeing a reduction in current listing's "price improvements" (905 over the last 7 days out of 9,865 active listings) and have even seen a few multiple offer scenarios (!!!). Don't let that freak you out, we are a long way from the summer of 2022, all this means is that the current market reflects more of a "normal" market, or at least as normal as we have seen in Austin since 2020.
With days on market up to 85, listings are still sitting a bit longer than we would expect given the other data. however, DOM is a lagging indicator which does not reflect properties that have been listed too recently to close. The Median DOM is currently at 60 days, the median can be a better reflection of what is actually happening in the market as it helps control for outlying properties that have been sitting for a long time that have not sold (either not reducing their price or otherwise) that throw off the stats.
What does this mean for potential buyers?
Buyers were definitely more active in December than they have been in the months previous resulting in more attention on listings and slightly more competition against other buyers. This especially significant as December and the winter months are historically the slowest time for real estate in Austin.
The window for buyers to get a below-market deal with room for negotiations has started to close. There are still plenty of deals available now, but once the weather begins to warm and the projected interest rate drops begin, buyer competition could begin to heat up quickly and significantly. We are projecting there to be a lot of pent-up demand from buyers who are just waiting for the right interest rate, and some are getting ahead of the game and jumping into the buyer pool early.
If you are looking to make a purchase in 2024, NOW is the time to begin. Come the spring, we may not see this many homes for sale and it will definitely become much more challenging to negotiate repairs or cash back to you at the closing table. Its no secret, there are a lot of homes 20 years and older in Austin that need a lot of work. You need to ask yourself, is waiting for the interest rate to drop for a lower payment important to me? Or would I rather have the ability to better choose my future home with a budget for improvements? If you answered the latter, then you need to start your search NOW.
What does this mean for sellers?
The possible market stabilization is welcome news for potential sellers. It will be interesting to see the January numbers, but from a small sample size of homes that have closed in the last 7 days, the average DOM is 68 days with a median of 46 days. This tells me homes that are marketed and priced correctly are selling in a very healthy amount of time, and I expect that number to continue to drop once we exit these winter months. As it gets tougher to be a buyer, it gets easier to be a seller.
Historically speaking, homes sell for the most amount of money in Austin in the spring time. Take a look at the chart below. I ran the numbers for the last 10 years of home sales in Travis County. The late spring to early summer months (April to June) tend to have the highest sales price. This seasonal pattern is consistent across most years and is largely due to increased buying activity during these months.
It's important to note that these are CLOSED listing prices. With days on market currently somewhere between 60 and 80 days, that means a home will need to be on the market anywhere from 2-3 months. There is often a lot of work that needs to go into homes before they are ready to list as well. Sometimes that work can take weeks! Not to mention that once your home has an accepted offer, it takes an additional 30 days for property to close AFTER it's been on the market.
To target a closing date in April, you are looking at listing your property 3-4 months in advanced, which means your property needs to be on the market TODAY. To close in June, ideally you would have your home on the market no later than next month.
Sixth Street Highlights
News and Updates from Our Brokerage
2024 is going to be an EXCITING year with Sixth Street Realty. This will be our second year of doing business, and we are already growing. Last year we spent a lot of time formulating the brokerage, honing in our systems and laying the foundation for a great company. This year, we have everything fine-tuned and are set for a record breaking year! I couldn't be more excited.
If you haven't seen it yet, please check out my new website.
We spent a lot of time working on it so that our clients have the best experience when browsing for their next home. We are tied directly into the Austin MLS, so our data is as updated as possible so you can rest assured you are getting the best and most accurate information up to the minute.
Handpicked Properties Just for You
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From My Desk
A Personal Note from Adam
Hello, fellow icicles!! 🥶
Braving the big freeze, are we? Stack this winter against the previous ones, and it's like comparing a jalapeño to a bell pepper – it's supposed to be milder, but still has you reaching for the water. But let's not jinx it; February's still lurking around the corner like a surprise pop quiz.
Speaking of quizzes, here's one for you: What's a golfer's biggest winter conundrum? It's the classic sunny day that's as deceptive as a flirtatious wink at the bar that turns out to be an involuntary eye twitch. Here I am, glued to my desk, dreaming of greens and fairways. The sun beams in, whispering sweet nothings about a perfect day for golf. So, I race through paperwork like it's the last lap at the Indy 500, picturing myself triumphantly hitting the links for an afternoon round.
But as soon as I'm about to don my Slipstreams and Nike polo, reality crashes in colder than a dip in the Arctic. The great outdoors, it turns out, is less 'sunny day at Pebble Beach' and more 'a penguin's family reunion.' So, there go my golfing dreams, frozen quicker than a snowman's nose.
But hey, optimism is the golfer's middle name, right? I'm eyeing Thursday for a comeback. Surely, Mother Nature's got a sense of humor...
Get in Touch
I'm here to assist with all your real estate needs! If you have questions about the market or would like help preparing to list your house, I will gladly take the time to chat with you. Let me know your situation and I'll get back to you ASAP!