August real estate stats for the Austin Metro are in! Here's what you need to know.
As we move into the fall, it's clear that the Austin metro real estate market is seeing some changes across several key metrics. Let's dive into the latest August 2024 statistics and trends.
Key Highlights
Total Sales: Down -10.3% year over year with 2,629 homes sold in August 2024 compared to 2,930 in 2023.
Pending Contracts: Slight decline of -2.4%, with 2,480 homes under contract.
New Listings: Dropped -4.2% year over year.
Active Listings: Up +13.1% to 12,100 homes, providing buyers with more choices.
Withdrawn/Expired Listings: Increased +12.5%, indicating challenges for some sellers.
Pricing Trends
The average sold price saw a marginal decline of -0.9% year over year, now at $573,000. While prices remain stable on the higher end, the median sold price dropped -5.0% to $435,000, which reflects affordability challenges for buyers. Price per square foot has also decreased -2.9%, showing softer pricing trends across the board.
Market Dynamics
Homes are taking longer to sell, with the average days on market increasing to 70 days — a 12.9% rise from last year. This slowdown in demand is also reflected in the increased months of inventory, now at 4.6 months, up 21.1% from last year. This shift means buyers have more negotiating power, while sellers face heightened competition.
If You’re a Buyer:
2024 continues to offer more opportunities for buyers with increased inventory and slower sales. If you can handle today’s mortgage rates, you’re likely to have more negotiating power. Rates may decrease later this year, so it could be a good time to start looking while inventory remains high.
If You’re a Seller:
The market is shifting, and pricing is becoming critical. With rising inventory and longer days on market, sellers need to stay competitive. While properties are still selling, expect the process to take longer, and be prepared for buyers to request concessions.
Economic Indicators
The Austin job market has seen fewer opportunities, with a notable decrease in Indeed.com job postings. Additionally, mortgage rates remain high, though they have decreased modestly to the ~6.5% range, which continues to affect affordability and overall buyer interest.
The Fed & Interest Rate Outlook
There is growing anticipation that the Federal Reserve will implement a rate cut in September 2024. This move is expected to kick off a series of rate reductions that could continue into 2025. Lower rates will likely translate into immediately reduced mortgage interest rates, which should increase affordability for buyers and stimulate more activity in the housing market. Additionally, this easing of monetary policy is expected to boost hiring in 2025, particularly in sectors like tech and construction, which are vital to Austin’s economy. This rate cut could signal a turning point for both the job market and real estate activity heading into next year.
Our goal as your trusted real estate advisors is to provide you with the information you need to help you reach your investment goals.
As always, real estate is hyperlocal and extremely situational, so please reach out to us to discuss your specific situation. We’d love to help you and strategize what’s in your best interest.
Cheers!
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