Central Texas Housing Report - June 2024

Welcome to the June 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 the stats at the end.

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.

In May,1,767 homes closed which was down 9.6% from May 2023.  The median price in May increased 2.9% year-over-year to $500,000.  This surprised me, but let’s take a look at some numbers before I explain why.  Year-over-year, the average price of a home increased 0.8% to $653,104.  The average price per square foot was down 1% to $304.

The number of available homes in May was 7,249, up 35% since last May.  During the month, 3,390 new listings hit the market which was up 21% from last year. 

This is why the numbers seem a little odd to me.  We have more homes on the market now than we have had in a long time.  In fact, when we measure the inventory of homes, we have almost a six month supply of inventory which is the highest in 13 years.  Compound that with fewer homes selling.  Given typical supply and demand, I would have expected prices to come down a bit, yet they were up almost 3%.  Additionally, over half the homes listed for sale had a price reduction in May.  I see two possible explanations.  First, it could be that the homes being purchased are skewing towards the mid and higher end homes.  Perhaps there are fewer buyers right now in the entry level range so the median price is skewing higher even if prices overall are not.  Frankly I think that’s the most likely option.  Another option is that nice homes that are well-priced can still sell quickly.  So homes are either on the market for a couple weeks or they sit for quite a while.  The median number of days of an available house on the market is definitely higher than those that closed.  So since the nicer homes are selling and the overpriced homes are sitting on the market, that may be a reason we’ve seen a small uptick in prices.

Back to the stats.  The average sales price to list price ratio was 98.1%.  For homes that closed in May, the average days on market was 45, down from 51 last year.  The May sales ranged from a low of $125,000 to a high of $7,500,000.  

Overall, the market is sluggish.  Many buyers don’t have an urgency to buy at current prices.  I expect we’ll see prices drift downward and inventory to rise.  As has been the case for two years, the interest rates are a big driver and, while they’ve come down to around 6.75%, many buyers are still on the fence.  The number of contracts accepted in May was lower than the number from May of ’23 so I expect we’ll have fewer closings in June as well.  In short, well priced homes are selling quickly compared to the others on the market.  Inventory is high so buyers have a big selection. 

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 Counties 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 that are listed in the MLS.

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

 

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