CRAZY THINGS HAPPENED: What Homeowners and Buyers in Austin Need to Know
Austin homeowners preparing to sell their properties are facing a challenging market. Unlike a few years ago, when homes sold quickly and often above asking price, today's market is more balanced. The Austin Board of REALTORS® latest data for May reveals significant changes that both buyers and sellers need to understand.
The current market inventory stands at six months for Austin and 4.9 months for the Austin MSA (Metropolitan Statistical Area), indicating a shift towards a more balanced market. With approximately 13,000 units available, this is the highest inventory level since 2011, a year marked by recovery from the financial crisis.
Key Market Insights
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Inventory Levels: Austin has a 6.2-month inventory, the highest in a decade. The Austin MSA, including Travis, Caldwell, Bastrop, and Williamson counties, is at 4.9 months.
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Home Prices: The median price in the Austin MSA is $459,000, down 1% from last year. In contrast, Austin city prices have increased by 11% to $608,000.
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Sales Trends: Closed sales in the Austin MSA dropped by 12.8% year-over-year, while Austin City saw a slight increase of 2.4%.
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Condos: There's an oversupply of condos, particularly in downtown Austin, where many luxury units remain unsold.
For Sellers: Sellers need to be realistic about pricing. Homes priced under $500,000 are moving faster, while those between $500,000 and $1 million see more competition. Accurate pricing is crucial as 66% of Austin's listings are "stale," having been on the market for over 60 days.
For Buyers: Buyers are cautious due to high interest rates, which hover around 7%. However, the increased inventory provides more options. If interest rates drop, expect a surge in buyer activity, particularly from renters eager to purchase homes.
