Austin Real Estate Market Analysis - November 21st 2023 Update

by: Team Price Real Estate, Unmatched Agents, Unrivaled Insights
Published on: Tuesday, November 21, 2023 at 09:14 am

Welcome to our comprehensive analysis of the Austin real estate market as of November 21, 2023. At Team Price Real Estate, we're committed to offering accurate, data-driven insights into the ever-changing landscape of Austin's real estate market. Our focus is on delivering nuanced information about market trends, including supply and demand dynamics, and pricing variations in the Austin area and the broader Central Texas region. 

Mortgage Rates : This week's mortgage rates are showing stability, hovering between 7.25% and 7.50% for conventional loans. FHA loans with a 3.5% down payment are observing rates in the range of 6.75% to 7.0%. This is a notable shift from last month's rates, which peaked at 8.0% to 8.125%. The recent decrease in rates marks a positive development, enhancing affordability and bolstering purchasing power for prospective buyers. 

Market Overview : As we observe the Austin real estate market, a few key trends have emerged. There's been a noticeable increase in the number of active listings in the Austin-Area MLS, now at 12,195, up by 1.8% from last year's 11,982. This growth in listings indicates a more abundant choice for potential buyers. Similarly, the 'Months of Inventory' metric has risen to 5.20 months, up by 19.2% from the previous year, suggesting a gradual shift towards a market that's increasingly accommodating buyers.

Pricing and Affordability : In terms of pricing, we're seeing a downward trend. The average listing price in the Austin-Area MLS has decreased to $558,748, marking a 4.4% drop from last year. The median sold price, a critical indicator of market health, has also declined by 7.8% to $415,000. These figures reflect a changing landscape in pricing, possibly influenced by broader economic factors. Interestingly, while the average active price in Austin has risen by 4.2% to $784,074, the median active price shows a modest increase of 1.7% to $599,000. This divergence in average and median prices could suggest varying market behaviors across different housing segments. The average and median sold prices in Austin have also seen increases of 4.4% and 2.4%, respectively, contrasting with the broader area trends.

City and Regional Dynamics : Focusing on Austin itself, there's been a significant rise in active listings by 13.1% to 3,601. The 'Months of Inventory' in the city has also seen a notable increase by 31.1% to 5.31 months. This increase is higher than the overall Austin-Area MLS, highlighting a more pronounced shift within the city limits.

Zip Codes Analysis : In the broader Central Texas region, encompassing 75 zip codes, the market dynamics vary. Approximately 37% of zip codes are experiencing month-over-month price increases, while 60% are witnessing price decreases. On a year-over-year basis, 39% of zip codes have seen price increases, and 61% have experienced decreases. These figures highlight the localized nature of real estate markets and the importance of understanding specific area trends.

Sales vs. List Price : An essential aspect of the current market is the sales to list price ratio. This month, a significant 66.98% of properties sold below the list price, indicating a market where buyers may find negotiating room. In contrast, 19.66% of homes sold at the list price, and 13.36% sold above it. These statistics reveal a competitive environment, albeit with a tilt towards buyers, especially when compared to the previous months.

Our report aims to provide a nuanced understanding of the Austin real estate market, focusing on key aspects like market cycles, affordability, and interest rates. For deeper insights, our extensive 550+ page report is available, offering detailed analysis vital for informed decision-making. At Team Price Real Estate, we pride ourselves on being Austin's leading data analysis brokerage firm, where our motto "Unmatched Agents, Unrivaled Insights – Where Experience Meets Insight" guides our commitment to delivering expert, data-driven service.