Austin Housing Market Report November 2024

Staying informed about the Austin housing market is crucial whether you're looking to buy or sell. With fluctuating mortgage rates, changing inventory levels, and shifting buyer demand, making informed decisions is essential in this dynamic environment. In this blog, we'll dive into the latest trends, analyze key indicators, and discuss what these changes mean for you.

Austin’s housing market is wrapping up the year with more options for buyers and consistent demand for sellers. In November, the median home price rose to $435K, up 2% from last year, while active listings increased 5% to over 10,800 homes. Homes spend an average of 4.8 months on the market, giving buyers more time to decide, while well-positioned properties sell closer to list price. Closed sales climbed 4.6%, reflecting September’s lower mortgage rates and steady fall activity. With solid momentum heading into 2025, the market continues to offer opportunities for buyers and sellers alike. Let’s take a closer look at the trends driving Austin’s housing market.

• Homes Actively for Sale Rise—The number of homes for sale is up 5% yearly, providing buyers with more options; however, it decreased by 6% month over month, reflecting a slight seasonal cooling.
• Home Prices Steady—Median home prices are $435K, up 2% year-over-year and increased by 1% from last month, hinting at steadying demand in the market.
• Time on Market Increases – Average days on the market rise to 75, up 7 days year over year. 
• Buyer Demand Increases—Pending sales rose 16% yearly, showing stronger buyer interest, but waned slightly by 3% monthly, reflecting standard seasonal cooling.
• Home Sales Increase —Sales rose 4% yearly and decreased 5% monthly, signaling a modest cooling in buyer activity.
• Housing Supply Steady – Supply stands at 4.8 months, a 1.1-month increase from last year, signaling a steady market with balanced conditions continuing.
• Market Snapshot – Over 10,000 homes are on the market, selling for an average of 92% of their original list price. Realty Austin Compass listings excel, achieving 97% of their original list price.

Mortgage Rates Expected to Stabilize in 2025
After a volatile 2024, mortgage rates are forecasted to stabilize and ease slightly in 2025. Projections from Fannie Mae, Mortgage Bankers Association, and Wells Fargo predict gradual declines, with rates averaging 6.67% in Q4 2024, moving to 6.58% in Q1 2025, and easing further to 6.45% by Q2 before settling at 6.33% by year-end.

“While mortgage rates are still elevated compared to pre-pandemic levels, this stabilization offers a more predictable environment for buyers and sellers heading into next year. Buyers can focus on factors within their control, such as improving credit score and saving for a down payment,” says Tom Thornton, Agent Success Manager at Realty Austin Compass.

Why Home Prices Aren’t Likely to Drop
The balancing act between supply and demand continues to keep home prices steady. Austin’s housing market remains stable, with active listings up 5% year-over-year and closed sales rising 4.6% in November. “Consistent buyer demand, combined with growing inventory and steady median prices, suggests that home values are unlikely to decline,” notes Amanda Dudley, Agent Success Manager at Realty Austin Compass. “Sellers are still well-positioned to achieve competitive prices in this balanced market.”

Looking ahead, forecasts for 2025 predict home price appreciation between 0.6% and 3.5%. New home sales are also expected to increase, contributing to modest but steady overall growth.

Housing Supply and Sales Trends
Housing supply is forecasted to grow in 2025, marking the highest levels since December 2019. This gradual increase offers buyers more choices while maintaining moderate competition. Pending home sales are running 16% ahead of 2023’s pace, reflecting growing buyer activity despite elevated mortgage rates. 

“An increase in housing supply represents a move toward a more balanced market, providing buyers with more options and helping sellers set realistic expectations,” shares John Coake, Senior Vice President at Realty Austin Compass.

Why Selling During the Winter Can Be a Smart Move
The winter season presents a unique opportunity for sellers. Motivated buyers, often driven by urgent life changes, are active and ready to act decisively. While the housing supply is slightly higher than in recent winters, overall levels remain seasonally low, giving sellers an edge in a less competitive market.

“The cooler months bring motivated buyers and fewer competing homes, creating a prime opportunity for sellers to maximize their market advantage,” explains Jennifer Korba, Senior Agent Success Manager at Realty Austin Compass.

Newly Built Homes: A Growing Opportunity
Newly built homes now account for nearly 29% of available inventory, offering buyers a solution to limited choices in the resale market. Builders are focusing on smaller, more affordable options, making new builds increasingly accessible. While navigating builder contracts requires attention, a knowledgeable real estate agent can simplify the process.

“The increase in newly constructed homes is giving buyers more options while builders prioritize affordability to meet market demand,” says Tom Thornton, Agent Success Manager at Realty Austin Compass.

Housing Demand Remains Resilient
Despite elevated mortgage rates, housing demand continues to show strength. Pending sales saw double-digit year-over-year growth last month compared to 2023 and 2022, driven by seasonal trends and motivated buyers. This momentum has carried into December, signaling a gradually strengthening market. Reports from the National Association of Realtors (NAR) and the Mortgage Bankers Association (MBA) also highlight sustained buyer activity, reinforcing the market’s resilience.

Your Next Move in 2025
As we head into 2025, the housing market is poised for a more predictable environment with stabilizing mortgage rates, steady price growth, and increasing inventory. For buyers, this means greater clarity and more opportunities to find the right home, especially as new construction expands and sellers adapt to changing market conditions. For sellers, the continued demand and low competition in certain areas present a chance to maximize returns.

Your Moves Inspire
At Realty Austin Compass, we’re closely monitoring the market to provide the most up-to-date insights and strategies. Your moves inspire us to help you navigate market trends, decode pricing dynamics, review contracts, and leverage negotiation skills to secure the best outcome for you. Connect with one of our local agents today to confidently navigate your next move.

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