Central Texas Housing Report - February 2024

If you are looking to buy or sell a home in Central Texas, contact me via email or at 512-650-7300. If you prefer to read instead of watch, here are the chart and transcript.

Welcome to the February 2024 edition of "How's the Market in Central Texas.”  The stats I’m providing are resale homes only in Travis and Williamson Counties.  More about that at the end.

In January, 857 resale homes closed in Travis & Williamson Counties which was down 2.9% from January 2023. The median price in January decreased 3.4% to $449,000.  In real estate, the primary way we measure home values is with the median price.  But, there are other numbers worth examining.  The average price of a home was down 4.8% to $566,270.  The average price per square foot decreased by 3.8% to $278.  Over the last year, the median price range has been fairly narrow.  As we head into the spring, I expect we will see prices increase a bit, but not too much.  Whenever we see mortgage rates drop, that can change.  I’ll talk more about that in a minute.

The number of available homes in January was 3,862, down 5% from last January.  During the month, 1,549 new listings hit the market which was down 0.9% from last year.  This is fairly typical of what we’ve been seeing for a while.

The average sales price to list price ratio was 97%.  For homes that closed in January, the average days on market was 82, up from 73 last year.  The January sales ranged from a low of $165,000 to a high of $5,150,000.  

Until recently, many industry analysts expected that mortgage rates would start to drop soon propelling the housing industry forward this year.  With the latest job and inflation numbers, the Fed is already trying to taper expectations that it will lower the Fed funds rate as soon or as much as some have predicted (again, I want to remind you that while mortgage rates and the Fed Funds rate don’t move in lock step, mortgage rates are definitely influenced by that Fed Funds rate).  Some buyers are holding off their home purchase as they expect mortgage rates to come down.  I say the following knowing that, as a whole, my industry will always tell consumers that right now is a great time to buy a home, regardless of when “right now” is.  If you as a buyer are holding off waiting for lower mortgage rates, you might be doing yourself a disservice.  If rates do indeed drop below 6% this year so that first number is five, I expect a lot of buyers to enter the market, which increases competition and increase prices.  For the cost of doing a mortgage refinance in the future, you can get in on today’s prices without competing against other buyers (for most homes, at least).  But this also depends on your overall circumstances, so let’s talk about your situation to see what the best course of action will be for you.

If you have any real estate related questions, please don’t hesitate to call or text me at 512-650-7300 or email me at [email protected].  Thanks for watching “How’s The Market in Central Texas.”

The stats I’ve cited are resale homes only in Travis and Williamson County classified as single family residential, condominium, or townhouse.  This is different than the stats released by the Austin Board of Realtors which include all types of homes and also include Hays, Bastrop, and Caldwell Counties.  Plus, their numbers include any new construction homes listed in the MLS.

Statistics based upon information from Unlock MLS for the periods cited.

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