Austin Real Estate Market Analysis - January 18, 2024

by: Team Price Real Estate, Unmatched Agents, Unrivaled Insights
Published on: Thursday, January 18, 2024 at 1:37pm

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In our latest update on the Austin real estate market as of January 2024, we continue to observe important shifts and trends, offering a detailed perspective on the evolving market dynamics.

Market Overview: The current data from the Austin-Area MLS shows a slight reduction in active listings, with a decrease from 10,159 in 2023 to 10,141 in 2024, reflecting a -0.2% change. A significant development is noted in the Months of Inventory, which has increased from 3.39 months last year to 4.09 months now, indicating a 20.7% rise. This trend is more pronounced in the City of Austin, where the increase in inventory is approximately 51.0%.

Pricing Analysis: The Austin-Area MLS reveals a subtle increase in the average active listing price to $547,138, up by 0.1% from the previous year. The average sold price also shows a marginal growth, currently at $525,507, a 0.4% increase from last year. However, there is a noticeable decrease in the median sold price, now at $428,000, which is down by 1.6%. The median active listing price has seen a decline of 2.2%, now standing at $440,000. In contrast, the City of Austin shows a positive trend with a 1.9% increase in the median sold price from last year, now at $535,000.

City and Regional Dynamics: Austin has experienced a growth in total sales, rising 6.8% from 2,515 to 2,686. The Months of Inventory in Austin shows a substantial increase of 51.0%, rising from 2.50 to 3.77 months. The average active listing price in Austin has slightly decreased by 0.8% to $706,948, whereas the median active listing price has increased by a modest 0.2% to $550,000. The average sold price in Austin shows a slight decrease of 0.6%, now at $677,345.

City and Zip Code Statistics: In the broader Central Texas area encompassing 30 cities, 33% report month-over-month price increases, while 60% show decreases. On a year-over-year basis, 37% of cities have seen price increases, and 63% have experienced decreases. From the peak in the past 12 months, all cities reported price decreases, with 28 cities showing a decline. In the 75 zip codes in Central Texas, 41% have observed month-over-month price increases, and 55% have experienced decreases. Year-over-year analysis reveals that 40% of zip codes have seen price increases, while 60% have witnessed decreases. None of the zip codes reported an increase from their peak prices in the past 12 months, with 72 showing decreases.

Sales vs. List Price: The current sales-to-list price ratio is at 96.54%. This month, 72.61% of all sold properties sold under the list price, an increase from the previous month's 66.81%. Properties sold at list price account for 18.32%, decreasing from last month's 21.00%. Those sold over list price represent 9.07%, a decrease from last month's 12.18% and slightly below January 2023's 9.71%.

Peak Value Analysis : Austin-Area MLS : In our comprehensive analysis of the Austin-Area Multiple Listing Service (MLS), we have observed a notable downward trend from peak values in the market. The average list price, which peaked in March 2023 at $710,478, has since declined by 7.83% to a current figure of $654,857. More significant reductions are seen in the median list price, which has dropped by 12.04% from its May 2022 peak of $539,900 to $474,900. The average sold price and median sold price have experienced even steeper declines from their peaks in May 2022, with reductions of 19.91% and 21.54%, respectively. This translates to the current average sold price standing at $532,196, down from a peak of $664,515, and the median sold price at $422,100, down from $538,000. Additionally, there has been a substantial decrease in price per square foot, with the average sold price per square foot down by 20.68% and the median sold price per square foot decreasing by 22.5% from their peaks in April 2022.

Peak Value Analysis : City of Austin : Turning our focus to the City of Austin specifically, the market dynamics exhibit a contrasting stability in the average list price, which has remained steady at its peak value of $952,431 as of January 2024, indicating no decrease. However, other metrics point to significant downturns from their respective peak values. The median list price has seen a decrease of 8.91%, falling from a peak of $658,589 in May 2022 to the current $599,900. In terms of sold prices, the average has declined by 19.33% from a May 2022 peak of $847,583 to $683,774, and the median sold price has followed a similar trajectory, down by 19.56% from a peak of $680,000 to $547,000. The average and median sold price per square foot have both seen over a 22% drop, currently at $344 and $217, down from their peaks at $442 and $393, respectively. These figures underscore a substantial recalibration in property values within the city, reflecting a market adjustment from previously heightened levels.

This extensive report, with over 570 pages, dives deep into every facet of the Austin real estate market, focusing on market cycles, affordability, and interest rates, providing essential insights for informed decision-making. Team Price Real Estate, with its expertise and data-driven approach, continues to uphold its commitment to "Where Experience Meets Insight," delivering exceptional service in the Austin real estate market.​