What’s Happening In Austin’s Real Estate Market Today

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Join us as we dive into the Austin real estate market and explore the trends from December 2024!

Overall, the statistics are looking quite promising:

Total sales have increased by 4% compared to last year. Under contract and pending units have remained steady. Active listings saw a modest rise of just 7%, resulting in approximately 4 months of inventory, which indicates a balanced market.

Most importantly, pricing has shown stability this month, with a slight uptick in both average and median prices. We ended the year with a small increase in both metrics.

A common question we receive from buyers and sellers alike is, "How's the market?" The good news is that after about 18 months, we can confidently say that pricing has stabilized.

Seasonal trends have remained consistent over the past few years, and we anticipate an increase in listings starting this month, continuing into the summer.

We’re keeping a close watch on the tech sector and job postings. While the hiring freeze has transitioned into a cycle of layoffs, the pace of change has slowed, suggesting that the situation may not worsen significantly.

We hope to see these numbers stabilize by spring, and by mid-year, we’d like to see job postings return to normal levels.

What can we expect for this year? We don’t foresee the market performing worse than in 2024, even if mortgage rates hover around 7%. In fact, the market could improve in 2025, depending on mortgage rates. Demand is closely tied to these rates; when they decrease, more buyers re-enter the market, while rising rates often keep potential buyers on the sidelines. We’ll be monitoring the rates closely, as there’s a backlog of pent-up demand. Life continues to unfold—people are getting married, having children, going through divorces, and becoming empty nesters. Many are in need of new homes that better suit their evolving needs, but they’re waiting for rates to improve.

We’re hopeful that with every small drop in mortgage rates, more buyers will feel encouraged to make their move. So let’s all keep our fingers crossed for those rates to start coming down!

As always, we love discussing your goals, dreams, and how real estate can help you live your best life. Don’t hesitate to reach out! Have a fantastic day, and stay warm!