Austin Housing Market Report June 2024

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In the first half of 2024, the Austin-Round Rock-San Marcos housing market has seen a 1.8% decline in residential home sales compared to the first half of 2023, with the median price dropping slightly to $450K. However, new home listings have surged by 15%, and active listings have increased by 15%, providing buyers with more options. Despite a slight dip in the total dollar volume of homes sold, the market remains dynamic, with pending sales up by 1.6% more than the first half of 2023. These shifts highlight the importance of staying informed and adapting strategies for buyers and sellers in this evolving market.

Let's take a closer look at the latest trends from June and what they mean for you:

• Home prices decline — Median home prices decreased by 2% from last month and showed a 6% decrease compared to last year.
• Time on the market increases — Homes are now on the market for an average of 65 days, up 8 days from last month and 2 days from last year.
• Buyer demands slows— Pending sales decreased by 2% compared to last year and 5% from last month.
• Home sales decline — Home sales decreased by 13% compared to last year and by 7% from last month.
• Housing supply and inventory — Housing supply stands at 5.0 months, up from 3.7 months last year.
• Current market snapshot — Over 13,000 homes are for sale, selling for 96% of their original listing price. 

"Sellers have been steadfast in their pricing, contributing to a 13% drop in sales year-over-year. Buyers facing a surge in active listings and affordability challenges are becoming more selective. As the market stabilizes, both buyers and sellers will need to stay flexible and collaborate closely with their REALTOR® to secure the best deals,” said John Coake, Vice President of Sales at Realty Austin Compass. 

Forecasted Decline in Mortgage Rates Is Good News

The 30-year fixed-rate mortgage fell to its lowest level since mid-March, dropping 12 basis points from last week, now at 6.77% according to Freddie Mac as of July 18. Mortgage rates are headed in the right direction and the economy remains resilient, two positive incremental signs for the housing market. 

“Lower rates can significantly reduce monthly payments for buyers and increase activity for sellers, potentially leading to faster sales at higher prices. The forecasted decline might encourage hesitant buyers and sellers to enter the market,” said Tom Thornton, Agent Success Manager at Realty Austin Compass.

Why Time in the Market Matters More Than Timing It
According to the Fannie Mae Home Price Expectations Survey, home prices will continue rising by 3-4% annually through at least 2028. This reinforces the importance of entering the market now to benefit from long-term appreciation.

“Home prices are expected to rise more moderately, which may seem challenging now but will benefit you once you own a home. Trying to time the market can lead to missed opportunities for building equity. If you're ready and able to buy, consider whether waiting is truly worth it. Focus on the long-term benefits of being in the market rather than trying to predict the perfect moment to buy,” said Amanda Dudley, Agent Success Manager at Realty Austin Compass.

Why Start with a Private Exclusive When Selling Your Home?

Sellers can benefit from pre-market exposure with private exclusives allowing a real estate agent to list the property privately before it hits the public market. This approach helps generate early interest, allows for premium pricing trials, and maintains low days on the market, ensuring your property sells smoothly and successfully.

"Homes are selling at 96% of their original list price, but proper pricing and presentation are key to a quick sale. Time on the market can hinder sales, so sellers must focus on these critical elements. For buyers, this high-inventory period is ideal for broadening your options and making strong offers," said Jennifer Korba, Agent Success Manager at Realty Austin Compass.

How Long Will it Take To Sell Your Home?

As of June 2024, homes in Austin typically remain on the market for about 65 days before selling—a slight increase from the previous year. Realty Austin Compass agents achieve significantly faster sales, with homes averaging just 51 days on the market, outpacing the area's average by 14 days. This efficiency is due to strategic pricing, optimal home presentation through staging and repairs, and robust marketing efforts, including pre-market exposure across Austin’s leading real estate platforms.

"Our agents excel at determining the right pricing strategy and ensuring homes are impeccably prepared and marketed, which substantially reduces days on the market and enhances seller satisfaction," notes John Coake, Vice President of Sales at Realty Austin Compass.

What to Expect in Austin's Housing Market

As we enter the second half of 2024, the Austin real estate market is expected to see seasonal declines in activity and prices, which typically peak at the end of June. Buyers and sellers should anticipate a dip in inventory and sales which usually hit their highest point around June 30as we move into the third quarter. Home prices, , will likely decrease slightly due to slower buyer demand and rising unsold inventory.

Your Moves Inspire

At Realty Austin Compass, your moves inspire our agents to serve as invaluable guides throughout your real estate journey, alleviating complexities and always advocating for your best interests. They will navigate market trends, decode pricing dynamics, review contracts, and leverage negotiation skills to ensure you can make an informed decision and secure a favorable outcome. Connect with one of our local agents today to confidently navigate your next move.

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