Austin, TX Metro Area Housing Market Analysis - August 2024
The Austin, TX metro area housing market in August 2024 presents a nuanced landscape with several key indicators showing both positive and negative trends. This analysis delves into the various metrics to provide a comprehensive overview of the current state of the market.
Median Sales and List Prices
The Median Sales Price for homes in the Austin metro area stands at $440,000, reflecting a year-over-year (YoY) decrease of 2.2%. Conversely, the Median List Price has seen a slight increase of 1.1% YoY, now at $469,990. This divergence suggests that while sellers are optimistic, buyers are negotiating prices down, possibly due to market conditions or increased inventory.
Price Per Square Foot
The median Price Per Square Foot for sold homes is $226.17, which is down by 3.5% YoY. The Median List Price per square foot is $235.91, showing a marginal decrease of 0.4% YoY. These figures indicate a slight softening in the market, with sellers adjusting their expectations to align more closely with buyer affordability.
Sales and Inventory
The number of Homes Sold in August 2024 is 2,596, marking a significant decline of 11.1% YoY. Pending Sales are also down by 4.9% YoY, totaling 2,778. New Listings have decreased by 8.2% YoY, with 3,396 homes entering the market. However, inventory has increased by 9.1% YoY, reaching 12,114 homes. The Months of Supply have surged by 90.0% YoY to 4.7 months, indicating a shift towards a buyer's market.
Market Dynamics
The Median Days on Market for homes in Austin is now 65 days, up by 11.0% YoY. This increase suggests that homes are taking longer to sell, which could be attributed to the higher inventory levels and decreased buyer urgency. The average sale to list ratio is 97.2%, down by 0.4% YoY, indicating that homes are selling slightly below their list prices.
Additional Metrics
The percentage of Homes Sold above list price is 10.8%, a decrease of 3.0% YoY. This decline further underscores the cooling market conditions. Price Drops have increased by 0.8% YoY, now at 40.8%, suggesting that sellers are becoming more flexible with their pricing strategies. The percentage of homes going off the market within two weeks is 19.9%, down by 5.8% YoY, indicating a slower pace of transactions.
Conclusion
In summary, the Austin, TX metro area housing market in August 2024 is experiencing a period of adjustment. While Median List Prices have seen a slight increase, sales prices and Price Per Square Foot metrics are down. The significant rise in inventory and Months of Supply, coupled with longer days on market and fewer homes selling above list price, point towards a market that is becoming more favorable for buyers. Sellers may need to adjust their expectations and pricing strategies to align with the current market dynamics.
