In the City of Austin, the median rent for a one-story single-family home year-to-date has been $2,395/mo. The median days on market was 29 days. This is just for properties leased through the Austin MLS. However, the sample size is 1,665 leases year-to-date.
In the City of Austin, the median rent for a two-story single-family home year-to-date has been $2,800/mo. The median days on market was 38 days. This is still just for properties leased through the Austin MLS. However, the sample size is 1,272 leases year-to-date.
So, though they may spend a bit longer on the rental market, the median rent for a two-story home in Austin is higher than that of a single-story home. However, this difference in rents doesn't factor in that two-story homes on average tend to be larger than one-story homes.
My data source isn't super precise showing rent-to-sqft ratios, only rounding to whole dollars. That's less granular that you might like. However, my data source does say that, in the City of Austin, the median rent-to-sqft ratio for one-story homes is higher than that of two-story homes.
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.
The March 2024 market report from the Austin Board of REALTORS® shows that the median home price in the City of Austin rose modestly by 2.7% to $564,995 over the past 12 months. However, the greater metro area’s median home price remained unchanged at $450,000 over that same period. Housing inventory in Austin and the greater metro rose to around 4 months in March. While still technically in slight seller’s market territory, inventory is well above 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 mortgage is sitting around 7.3% interest, which is the highest it has been in 2024 thus far:
In addition to interest rates increasing the cost of real estate ownership, buyers are facing increased insurance premiums, maintenance costs, and rising property taxes. See this recent WSJ article. As a result, home-buying affordability has fallen to its lowest level since 1985.
However, Austin’s red-hot economic engine continues to generate strong employment numbers, making the Austin metro the best job market in Texas and #7 in the US (tied with Nashville), according to WSJ’s recent study:
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. Buyers should expect more competition in the spring, but conditions overall should remain favorable compared to recent years.
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 80 days on average, and many listings are reducing prices 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.” Since there are many more listings competing on the market than in previous years, it’s crucial to prepare a listing to stand out among the rest and work to address buyer objections prior to going on market. If you can wait to list in the spring or early summer, I recommend doing so to enhance your buyer exposure.
Does your home belong to an HOA? With it being 2022 construction in Buda, I'm assuming it does. If so, then you should check your HOA rules and/or speak with your HOA. Many HOAs for prohibit or otherwise restrict STR.
According to the February 2024 market report from the Austin Board of REALTORS®, the median home price in the City of Austin fell modestly by 2.8% to $543,200 over the past 12 months. However, the greater metro area fared a bit better with a 1.2% YoY increase to $443,065. Housing inventory in Austin and the greater metro remained at around 3 months in February. While still technically in seller’s market territory, inventory is well above extreme lows seen in recent years and has held steady for many months now. February saw new listings increase significantly by 40%+ compared to this time last year. Closed sales were only up modestly.
Overall, home prices and inventory in the Austin area look relatively stable over the previous 12 months. The substantial 40%+ YoY increase in new listings in February is generally consistent with Austin’s typical seasonal pattern, where seller activity picks up as we head into spring. Many more buyers typically enter the market at this time as well, and today's buyers are becoming more accustomed to this higher mortgage rate environment. However, it’s too early to tell if the increased buyer demand will be sufficient to absorb this fairly significant YoY increase in inventory. We’ll need to observe as we move through spring and into the early summer.
Here are the full stats for Austin and the greater metro:
SXSW is now in full swing in Austin, with many attendees renting one of the numerous short-term rentals in the area. So, I thought I would highlight this recent news story on the current state of Austin's STR license enforcement. According to the story, there are 10,000+ STRs in Austin, but only 2,236 are licensed by the city!
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 now selling for roughly 95% of their list price on average. Multiple offers are 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. Buyers should expect more competition in the spring, but conditions overall should remain favorable compared to recent years.
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 80 days on average, and many listings are reducing prices 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.” Since there are many more listings competing on the market than in previous years, it’s crucial to prepare a listing to stand out among the rest and work to address buyer objections prior to going on market. If you can wait to list in the spring or early summer, I recommend doing so to enhance your buyer exposure.
The January 2024 market report from the Austin Board of REALTORS® shows that the median home price in the City of Austin fell by 2.8% over the past 12 months to $534,500. However, that is around 4.5% up from just last month. The greater metro area fared a bit worse with a 4.4% year-over-year decline to $430,000. Inventory rose very slightly to 3.2 months in January. While still technically in seller’s market territory, inventory is well above extreme lows seen in recent years and has held steady for quite a few months now. New and pending listings were up in the greater metro compared to this time last year. Closed sales were also up about 4.3%.
Overall, the Austin real estate market looks relatively stable with and poised to exhibit its typical seasonal behavior as we head into the traditional spring/summer selling season, where more buyers enter the market and more owners aim to list their properties.
Here are the full stats for Austin and the greater metro:
Sales prices peaked in Austin around May 2022 as sharply increasing mortgage rates cooled buyer demand. Rates peaked above 8% for 30-year fixed in Oct. 2023 before pulling back to around 6.6% just earlier this month. However, rates have ticked back up to around 7% in recent days:
This has kept many would-be sellers “locked” in their current homes and properties with much lower interest rates.
So, despite lower buyer demand in the current interest rate environment, inventory and prices have not changed as substantially as you might expect. Overall economic conditions in the Austin metro (job creation, corporate investment, unemployment, etc.) still look very robust and promising for this decade and beyond. Though plenty of buyers were pushed to the sidelines (voluntarily or involuntarily) by rising mortgage rates, Austin's economic strength still supports a healthy demand for housing.
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. Prices have fallen. 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 reason for staying on the sideline, 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. Buyers should expect more competition in the spring, but conditions overall should remain favorable compared to recent years.
What if I’m a seller? Sellers should know that there is still strong 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 80+ days on average, and many listings are reducing prices 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.” Since there are many more listings competing on the market than in previous years, it’s crucial to prepare a listing to stand out among the rest and work to address buyer objections prior to going on market. If you can wait to list in the spring or early summer, I recommend doing so to enhance your buyer exposure.
Happy New Year! The December 2023 market report from the Austin Board of REALTORS® (ABoR) shows that the median home price in the City of Austin remained stable over the past 12 months, falling just 1% from a year ago to $511,250. The greater metro area fared similarly with a 1% year-over-year decline to $443,753. Listing inventory settled at 3 months in December, which is down a bit from the month before. While still technically in seller’s market territory, inventory is well above extreme lows seen in recent years. New, active, and pending listings were all up compared to this time last year. Closed sales, however, were down about 8% from the year prior.
Overall, the Austin real estate market looks relatively stable and poised to exhibit its typical seasonable behavior as we head into the spring/summer selling season, where more buyers enter the market and more owners aim to list their properties.
Here are the full stats for Austin and the greater metro:
Here’s a look at the median single-family home price in Austin over the previous year:
For broader context, here’s the same chart, but now pulling in the past 10 years:
Buyers will be happy to hear that, over the past few months, single-family homes in Austin have sold for a median 93% of their original listing price. Moreover, Austin is among the the bottom 10 markets for homes selling above list price:
However, the overall Austin economy remains one of the strongest among major US metros:
The broader economic engine creating demand for housing in the Austin metro is still very robust. Here are some quotes from a recent Austin Business Journal article:
Mortgage interest rates have pulled back somewhat sharply from their 8%+ peak in October. Mortgage News Daily has a 30-year fixed loan around 6.6%:
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. Prices have fallen. Only about 13% of listings are selling over asking. 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 reason for staying on the sideline, my recommendation is to focus on opportunities to negotiate a reduced interest rate from a seller or take a look at new construction, where builders are offering rate reductions and other substantial incentives.
What if I’m a seller? Sellers should know that there is still strong 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 up and the majority of listings are reducing prices at least once during the process. However, 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.” Since there are many more listings competing on the market than in previous years, it’s crucial to prepare a listing to stand out among the rest and work to address buyer objections prior to going on market.
The November 2023 market report from the Austin Board of REALTORS® (ABoR) shows that home prices in the City of Austin remained stable over the past 12 months, rising 1% from a year ago to $518,000. The greater metro area, however, showed a more substantial 8% annual decrease to a median home price of $424,250. The market approached 4 months of listing inventory, well above the extreme lows seen in recent years. However, inventory has remained relatively stable on a monthly basis for some time now. Overall, with sales volume remaining stable and pending sales up 9% from a year ago, the greater Austin metro market still has healthy buyer demand for housing, despite mortgage rates recently reaching 20+ year highs.
Here are the full stats for Austin and the greater metro:
Note that mortgage interest rates have pulled back somewhat sharply from their 8%+ peak in October. As of today, Mortgage News Daily, has a 30-year fixed loan at 6.62%
Though the Federal Reserve doesn’t set mortgage rates directly, its monetary policy does have a substantial downstream impact. So, take note that the Fed has now signaled multiple potential rate cuts in 2024. According to a Freddie Mac economist, “Given inflation continues to decelerate and the Federal Reserve Board’s current expectations that they will lower the federal funds target rate next year, we likely will see a gradual thawing of the housing market in the new year.”
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. Prices have fallen. 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 reason for staying on the sideline, my recommendation is to focus on opportunities to negotiate a reduced interest rate from a seller or take a look at new construction, where builders are offering rate reductions and other substantial incentives.
What if I’m a seller? Sellers should know that there is still strong 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 up and the majority of listings are reducing prices at least once during the process. However, 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.” Since there are many more listings competing on the market than in previous years, it’s crucial to prepare a listing to stand out among the rest and work to address buyer objections prior to going on market.
The October 2023 market report from the Austin Board of REALTORS® (ABoR) shows that the median home price remained stable in the city at $540,000, which is only down 1% from this same time last year. The greater metro area, however, showed a 7% decrease to a median home price of $435,000. Inventory is up from last year. In fact, it’s the highest it has been in 8+ years in the metro. However, it has remained relatively stable on a monthly basis for some time now. Both closed and pending sales were up compared to October 2022. So, the Austin metro market continues to show resilience and signs of stability.
Here are the full stats for Austin and the greater metro:
What if I’m a buyer? In a number of ways, this is the best market for buyers in Austin in many years. There are more listings to choose from now than any other time in over eight years. Prices have fallen. Multiple offers are now the exception, not the norm. Buyers have significantly more negotiating power. They can take their time with their search and be more selective about a property’s condition. So, if interest rates are your primary reason for staying on the sideline, I recommend working with an experienced agent who can identify the best opportunities and work to negotiate a reduced interest rate from a seller. You can also take a look at new construction, where builders are often offering hefty rate reductions and other substantial incentives.
What if I’m a seller? First, you can be confident that there is still strong demand for Austin housing. Closed and pending sales in the metro area last month were up from the previous year. However, it’s important to price for today’s market conditions, not those of the previous few years. Days on market are up and the majority of listings are reducing prices at least once during the process. However, 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.” Since there are many more listings competing on the market than in previous years, it’s crucial to prepare a property to stand out among the rest and address potential buyer objections before hitting the market.
The most recent price peak in Austin definitely appears to have been in April/May 2022. Here's a chart showing the median sales price of a single-family home in Austin over the past 3 years:
