real estate report

Housing inventory is up, but the average Austinite still can't afford one, report says

Homes in the Austin-Round Rock MSA sold for a median price of $452,080 in September.

Photo courtesy of Trulia

A notable drop in closed home sales in September has produced the highest number of homes on the market in more than eight years, according to the latest report from the Austin Board of Realtors. But falling median home closing prices coupled with rising mortgage rates means affordability is still the most prominent concern for buyers.

Median home prices in the Austin-Round Rock metropolitan statistical area (MSA) dropped less than 5 percent year-over-year from September 2022, to $452,080. Closed sales dropped to 2,287 last month; an 18.2 percent drop from 2022. Homes are spending an average of 65 days on the market, which is 24 more days than this time last year.

2023 ABoR president Ashley Jackson stressed the importance for potential homeowners to strategize a "game plan" with their realtors, but also reiterated that the current housing market has vastly changed from what it was a few years ago.

"The benefit of this for buyers is they can take advantage of this extra time to get pre-qualified, while sellers can improve their home’s curb appeal," Jackson said. "These intentional preparations will result in better experiences and outcomes on both sides of the transaction."

Even with the greater number of homes available on on the market, ABoR housing economist Clare Losey, Ph.D. says a similar vast number of them are simply "not attainable" for the average Austinite.

"While our current market shows signs of health with more housing supply becoming available, they are not necessarily attractive options for first-time homebuyers or those shopping for more affordable homes," she said.

Travis County
A total 1,085 homes were sold in September 2023 in Travis County, with median prices dropping 4.2 percent year-over-year to $525,000. There were 4,875 active listings on the market; about 9.4 percent more than August 2022.

Williamson County
Fewer than 800 homes were sold in September, with median prices decreasing slightly to $426,752. There were 1,070 new home listings in Williamson County, with a total 2,873 active home listings.

Hays County
341 homes were sold last month in Hays County, with median prices sitting at an even $400,000. Pending sales were up by 24.5 percent year-over-year to 356, while active listings also rose nearly 38 percent to 1,685 homes.

Bastrop County
Home sales dropped nearly 12 percent this past month in Bastrop County, and median prices have remained at $340,000 for the second consecutive month. There are 23.5 percent more active listings on the market, coming out to 610 homes.

Caldwell County
Homes in Caldwell County sold for a median price of $289,330 in July, which is a 13.9 percent drop year-over-year. 37 homes were sold last month, nearly 10 percent less than the year before, and there are more than 190 active homes on the market. Continuing the dramatic rise in new home listings, Caldwell County had 81 new homes on the market in September, or 68.8 percent more than this time last year.

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local real estate report

Homebuyers can afford to be picky as Austin housing inventory rises

Photo by Avinash Kumar on Unsplash

Housing economist Clare Losey said the most significant factor affecting home sales in Austin is high mortgage rates.

The latest real estate report from Unlock MLS and the Austin Board of Realtors (ABoR) has revealed housing inventory is still on a steady rise in the Austin-Round Rock-San Marcos MSA, creating more choices for potential homebuyers as they navigate a high interest rate market.

Residential home sales dipped by a mere 1.5 percent year-over-year from October 2023, amounting to 2,248 closed sales in the Austin-Round Rock-San Marcos MSA. Median prices have also dropped to $430,000, or 3.2 percent less than this time last year. More than 3,300 new home listings were added on the market — a 7.4 percent increase from 2023 — bringing the total number of active home listings to 11,599.

According to Unlock MLS and ABoR housing economist Clare Losey, Ph.D., October's mortgage rates stood at 6.4 percent and are showing no signs of a significant drop in the near future. Even heading into 2025, Losey says potential homebuyers who are biding their time in the hopes of seeing rates plummet "may be in for a long wait."

"In the meantime, sellers must recognize that bringing buyers to the table requires a more aggressive pricing approach," Losey said. "Even in a more balanced market, buyers with limited purchasing power are struggling to meet current price expectations."

As for the overall health of the Central Texas housing market, 2024 Unlock MLS and ABoR president Kent Redding labeled recent news reports that called Austin "ground zero" for a downturn as an "extreme over-exaggeration."

"Austin led the state and nation in record-breaking home price growth and sales activity during the pandemic," Redding said. "For three years, near-zero housing inventory, numerous offers above list price and a rapid-paced market raised home prices and left little negotiating power for buyers. During this record-setting growth, ABoR and Unlock MLS consistently emphasized the unsustainability of the rapid growth, and now, our market is working to balance those extremes."

Central Texas housing trends in October 2024

In Travis County, 979 homes were sold last month — a slight 2.5 percent increase from last year. Median prices remained flat year-over-year at $510,000. Active home listings continued growing to 5,702 homes, which is 9.4 percent more year-over-year.

In Williamson County, 807 homes were sold in October, with median prices steadily dropping to $420,000. There were 1,028 new home listings on the market, showing a 4.5 percent increase from October 2023, bringing the total number of active home listings to 3,369.

Residential home sales dropped by nearly eight percent in Hays County in October, totaling 315 sales. Median prices also fell 5.5 percent year-over-year to $359,000. Active listings rose 6.6 percent year-over-year to 1,740 homes with the addition of 534 new listings on the market.

Meanwhile, 114 homes were sold in Bastrop County last month, which is 4.4 percent more than this time last year. Median prices dropped by a single percentage point year-over-year to $355,000. There were 654 active listings on the market in October, and 152 new home listings, representing a 1.3 percent slip in new inventory when compared to last year.

Only 33 homes were sold in Caldwell County in October to reflect a near 14 percent decline year-over-year from October 2023. Median prices fell to $262,990, which was a 13.5 percent decrease from last year. There were 136 active homes on the market last month, and 40 new homes added on the market.

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