In the Austin home market, it’s a tale of two trends. Homes for sale are spending longer on the market, but fewer homes are fetching prices above the list price, according to new data from real estate brokerage Redfin. One real estate agent says these two trends are a sign of much needed stability in the local market.
The Redfin data shows homes for sale in the Austin area sat on the market for a median 27 days during the first half of 2018. That’s the highest first half number since the first six months of 2012, when homes spent a median 44 days on the market.
Meanwhile, just 21.7 percent of homes in the Austin area were sold above list price in the first half of 2018, according to the Redfin data. That’s the lowest since the first six months of 2012, when 15.5 percent of home purchases were above list price.
“After a very busy start to 2018, and several years of intense homebuyer competition and strong price growth, it finally feels like the local housing market is starting to stabilize,” Andrew Vallejo, a Redfin agent in Austin, tells CultureMap.
“In contrast with previous years, buyers are no longer pay[ing] whatever it takes to win a bidding war, and homes are staying on the market longer,” Vallejo adds. “Bidding wars are less common than they were earlier this year, and when there are multiple offers, we rarely see prices escalate as high as they did in previous years.”
Regardless, the Austin home market has remained pretty hot this year. During the first half of 2018, the median sale price of a home in the Austin area rocketed past $300,000 for the first time, landing at $310,000.
Also, more homes are being sold in the region than ever before. The Redfin data shows 16,859 homes were sold in the area in the first half of 2018, compared with 16,294 during the same period in 2017.
Vallejo says demand for homes below the $300,000 price point in the Austin area continues to outstrip supply. “We need a lot more affordable homes to hit the market in Austin before we can consider it a balanced or healthy market,” he says.