Third Quarter Snapshot: Numbers worth highlighting
We have some interesting data points that we just couldn't keep to ourselves! Think of this as mini market update before our next monthly newsletter hits the press.
For clarity, this analysis centers specifically on resale transactions. By examining the past five years against 10-year averages, we gain valuable insights into the current phase of this market cycle.
Key Highlights
Pricing Stability: Prices have remained steady for 18+ months, and the 2024 median price slightly exceeds 2023, a reassuring indicator of stability.
Sold Volume: The total dollar volume sold remains higher than the 10-year average due to stable prices, even with lower transaction counts.
Success / Failure Rate for Sellers: Approximately 33% of listings don’t sell and are withdrawn or expire, reflecting a challenging market for some sellers.
Days on Market: Average days on market has quadrupled from 2021 and is now almost twice the 10-year average, indicating that properties are taking longer to sell.
Sold Units Decline: Total resale sales volume in 2024 is down 24.4% against the 10-year average and down 5% compared to 2023, reflecting a persistently challenging market.
Pricing Stability & Median Sold Price
Austin’s median sold price has experienced remarkable stability this year. After a correction from 2021's peak pricing, the 2024 median sold price is up slightly from 2023, an encouraging sign for market stability.
Sold Volume
Sold volume measures the total dollar value of properties transacted in the market. While unit sales are down, the total sold volume is actually up compared to the 10-year average, largely due to higher price points per property.
Success / Failure Rate
The success rate in real estate refers to the percentage of listings that sell versus those that are withdrawn or expire without a sale. This metric has taken a notable downturn this year, with approximately 67% of sellers successfully selling their properties compared to a 91% success rate during the 2021 boom and below the 10-year average of 81%.
Days on Market
In 2024, properties are taking four times as long to sell compared to the 2021 peak, averaging approximately 80 days on the market. The longer days on market is primarily due to greater buyer selectivity, economic uncertainty, and a growing inventory of listings.
Sold Units Decline
The number of sold units provides a primary indicator of overall market activity. In 2024, sold units remain well below recent highs, with the total number of sales down by 44% from the 2021 peak and down 5% compared to 2023. This marks a decrease of 24.4% when measured against the 10-year average.
If You’re a Buyer:
While buying conditions are still slightly advantageous, cautious optimism is key. Rates may ease soon, and the continued stability in pricing makes 2024 a unique opportunity to find a stable investment in Austin real estate.
If You’re a Seller:
Selling remains viable, but careful preparation is vital. With more competition and longer selling timelines, making your property as appealing as possible (pricing, presentation, and flexibility with showing instructions) is essential to a successful sale. If your property doesn’t receive strong interest quickly, adjusting price will help ensure success in today’s market.
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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