Austin Market Report - April 2024

[David Ivy]

The April 2024 market report from the Austin Board of REALTORS® (ABoR) shows that the median home price in the City of Austin rose by 6% to $593,500 over the past 12 months. The greater metro area’s median home price increased by a more modest 1.1% to $466,998 over that same period. Housing inventory in Austin rose to 5.4 months, which is over one month higher than the greater metro’s 4.3 months of inventory. Inventory is now very substantially above the extreme lows seen in recent years, when inventory fell below 1 month for a sustained period.

Here are the full stats for Austin and the greater metro:

A 30-year fixed rate mortgage is sitting around 7.1% interest, which is down a bit from last month, but still well above where we began 2024. So, interest rates still present a major headwind to the Austin market by making ownership more expensive in a market that already struggles with affordability.

What if I’m a buyer? In many ways, this is the best market for buyers in Austin in years. There are more listings to choose from now than any other time in nearly a decade. Listings are selling for roughly 95% of their list price on average. Multiple offers are now the exception, not the norm. Buyers have significantly more negotiating power. They can take time with their search and be more selective about a property’s location and condition. So, if interest rates are a buyer’s primary roadblock, then I recommend seeking opportunities to negotiate a reduced interest rate from a seller or looking at new construction, where builders are offering rate reductions and other substantial incentives.

What if I’m a seller? Know that there is still robust demand for Austin housing and that prices are still considerably higher than just a few years ago. However, it’s important to price for today’s market conditions. Days on market are around 68 days on average, and many listings are adjusting their asking price at least once while on the market. But properties priced appropriately can still go under contract in a matter of days, sometimes with multiple offers. Now is not the time to “test the market” with an ambitious price to “see what happens.” With the increased competition among sellers, it’s crucial to prepare a listing to stand out among the rest and work to address potential buyer objections prior to going on market.