Steiner Ranch Housing Report - February 2024

If you are looking to buy or sell a home in Steiner Ranch, contact me via email or at 512-650-7300. Previous editions of How’s the Market in Steiner Ranch are also available.  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 Steiner Ranch.”  It’s been a little quiet around Steiner – let me explain how quiet.

In January, 5 resale homes closed in Steiner Ranch which was down 58% from January 2023. January is often the month of the year with the fewest number of closings, so there’s likely no where to go but up.  To put just five sales in historical context, we have to go back to March 2009, during the throws of the financial meltdown, in order to find a month with fewer sales and we closed just four of them that month. The median price in January decreased by 4.7% to $705,000. The average price of a home decreased 6.6% to $763,600. The average price per square foot decreased by 10% to $248.02. With just five sales, these monthly numbers are not a good representation of the Steiner Ranch market as they understate the prices that we are currently seeing in the neighborhood. So let’s look at a rolling six-month comparison to get a better picture of the market.  The number of resale homes sold during the past six months is 62, down 17% from this same time frame the year prior.  The median price of a home has increased 6.4% to $835,000.  The average price increased by 13.7% to $1,022,749. The average price per square foot increased 1.7% to $296.80. 

Even looking at six months, the number of homes sold is small so the pricing data can get skewed. I think the median price is actually a bit higher than the $835,000 that we see right now, but that just comes from my years of experience and being an active player in the Steiner Ranch real estate market. 

As for the activity, this is a trend that we’ve seen for a while.  Closings in January tend to be from contracts written in December. That’s a slow month traditionally for writing contracts.  However, mortgage rates had come off of their 8% highs by that point. 

The number of available resale homes at the end of January was 18, down 33% from last January.  The number of homes put on the market in January was 10, down 17% from the 12 last year.  Across Steiner, the January sales ranged from a low of $600,000 to a high of $1,100,000. The average sales price to list price ratio was 97% and for homes that closed in January, the average days on market was 105 up from 64 last January.

We’ll soon be heading into spring and the market traditionally gets stronger. Of course, we haven’t had a traditional spring since 2019 so who knows what will happen.  Until recently, many industry analysts expected that mortgage rates would start to drop in a couple of months propelling the housing industry forward this year. With the latest job numbers, the Fed is already trying to taper expectations it will lower the Fed funds rate as soon or as much as some predicted (again, I’ll remind you that while mortgage rates and the Fed Funds rate don’t move in lock step, mortgage rates are definitely influenced by the Fed Funds rate).  Some buyers are holding off expecting 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 may 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).

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

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

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