Hello friends and neighbors,
As the summer continues to keep Austin hot, so does the real estate market. We’re seeing a lot of movement across price points, from the mid-range homes to the luxury properties. However, there are clear shifts happening as we inch closer to the end of the year, particularly in the pace and pricing of sales.
Market Overview
In the premium home market ($900,000 to $2,999,000), there have been some noticeable changes recently. In July, 26 homes sold, with a median sales price of $1,562,500, and homes were on the market for an average of 58 days. However, by August, sales dropped to 22 homes, and properties took longer to sell, averaging 72 days on the market. Despite slower sales, sold prices rose, with the median sales price reaching $1,632,500. Additionally, inventory dropped sharply to less than one month, meaning fewer homes are available, which could lead to more competition among buyers.
In the luxury market ($3,000,000 to $5,000,000), there have been even more significant changes. While only 4 homes sold in July with a median sales price of $3,975,000, the market picked up in August, with 5 homes sold. However, prices dropped, with the median sales price falling to $3,314,000. On a positive note for sellers, luxury homes were moving much faster, staying on the market for an average of 89 days compared to 136 days in July. Inventory also tightened, signaling growing demand.
Community Insights
Across the board, we’re seeing clear shifts in buyer and seller behaviors. In the premium market, homes are still selling quickly, even if the pace has slowed slightly. Sellers are benefiting from rising prices, though buyers are taking more time before committing. This, combined with the sharp drop in inventory, points to a competitive market for the months ahead.
In the luxury market, sellers have responded to market conditions, lowering prices to meet buyer demand. This recalibration is working, as homes are moving faster and inventory is shrinking, suggesting that well-priced homes are capturing buyers’ attention. The Eanes community, in particular, is seeing steady activity, with luxury sellers adjusting their expectations and buyers responding to the new price points.
Looking Forward
As we look toward the fall, Austin’s real estate market remains resilient. Sellers in both the mid-range and luxury segments will need to be strategic with pricing to ensure their homes sell in a timely manner, especially as inventory continues to tighten. For buyers, the current environment presents an excellent opportunity, particularly in the luxury segment where adjusted prices and quicker transactions make this an attractive time to invest.
If you’re considering listing your home or exploring new options, now is the time to act. Inventory is shrinking, prices are holding strong or adjusting favorably, and demand remains robust. As always, we’re here to help you navigate this exciting and evolving market.
Thank you for your trust and referrals. Whether you’re buying or selling, we’re here to offer expert guidance through these dynamic real estate conditions.
Greetings and a happy May to all! With the recent rains, Austin is bursting with life and our lake levels are rising. The real estate market has also seen positive shifts, especially in higher price segments. Let’s review the developments from April to see what trends are emerging.
Market Insights:
In the competitive $900,000 to $2,999,000 price range, the market has been dynamic. The number of available homes increased significantly, rising from 29 to 44. Additionally, homes are selling faster, with the average days on market decreasing from 88 to 58. There’s also been a noticeable increase in the median sales price, which climbed from $1,640,000 to $1,762,500. These factors combined point to a robust market with stabilizing prices and limited inventory creating keen competition among buyers.
Shifting focus to the luxury segment priced between $3,000,000 to $5,000,000, the landscape is somewhat more challenging. The inventory of available homes expanded from 12 to 21, reflecting a more saturated market. The number of homes sold saw a modest increase from 2 to 5, but homes took longer to sell, with average days on market rising from 58 to 77. This indicates that while there are more options for luxury buyers, the sales process can be lengthier.
Closing Thoughts:
The Austin housing market continues to demonstrate strength and resilience nationally. With an expanding inventory and rising sale prices, the market offers unique advantages for both sellers and buyers. Echoing the wisdom of Oprah Winfrey, “You can have it all. Just not all at once.” This holds true in real estate, where the journey to homeownership remains a vital part of many people’s dreams.
Thank you for your continued trust and referrals. We look forward to guiding you through the dynamic landscape of Austin’s real estate market.
Hello again, and welcome to April! As I mentioned in our last newsletter, spring is one of the best times to live in Austin. The weather is near-perfect almost every day, the wildflowers are beautiful and plentiful, and there is a wealth of events and outdoor activities to choose from. Spring also marks the historically “busy season” for real estate. Whether that trend will continue this year remains to be seen, but as we delve into the numbers, we might be able to discern some emerging trends. Let’s take a look.
Starting with the lower price points, we saw an increase in homes on the market from 22 in February to 29 in March. More inventory is invariably a boon for prospective buyers. The number of homes sold during the month remained consistent from February to March, as did the average days on the market. What caught my attention were the median listing and sales prices. The median listing price in February was $1,597,500, which leaped to $1,725,000 in March—a significant increase. Coupled with the median sales price in March of $1,640,000, it paints a picture of a robust seller’s market. For context, the median sales price in February was $1,395,600. Months of inventory saw a slight uptick from 1.3 months in February to 1.5 in March. Hence, there’s much to be enthusiastic about within the $900,000 to $2,999,000 price bracket!
Now, turning our attention to the higher end of the market—$3,000,000 to $5,000,000—the strong trend persists. The number of homes listed for sale on the MLS decreased from 16 in February to 12 in March. Although the number of homes sold remained the same at two for both months, both listing and selling prices increased in March. The median listing price climbed from $3,575,000 in February to $3,940,000 in March, and the median sale price escalated from $3,239,000 in February to an impressive $4,147,465 in March! Average days on the market ticked up slightly in March by two days, but the months of inventory decreased due to fewer homes on the market. Reading between the lines, we witness a flourishing luxury market with increased activity from luxury buyers. It’s been some time since we’ve seen a median sales price exceed the median listing price, signaling favorable conditions for our sellers. If you’re considering selling, now might be the opportune time!
Finally, we’ll part with a quote from actor Will Rogers that resonates with the current residential real estate environment here in Austin: “Don’t wait to buy real estate. Buy real estate and wait.” Thank you for reading this far, and I am profoundly grateful for all your referrals!
Well, that happened fast! February came and went, and now it’s March?! I have a feeling this year is going to fly by. But, coming into spring, I’m constantly reminded that this is the best season in Central Texas. The flowers, the birds, the weather, the events—Austin really comes alive in March. Historically, the real estate market in Austin starts to come alive in March as well, and this year seems to be no different! Anecdotally, we have been touring clients around the city for the past couple of weeks, and open houses are busier, houses are going under contract quicker, and are receiving several offers as well. It bodes well for anyone looking to make a move this spring, as people are ready to transact, and it’s happening all around us! But don’t take our word for it, just look at the numbers.
In the lower price point ($900,000 to $2,999,000), the inventory of homes for sale remained constant at 22 homes, but the homes sold jumped from 4 in January to 20 in February—quite the uptick in transaction volume. The median listing price jumped over $100,000 from $1,494,500 in January to $1,597,500 in February, and astonishingly, the median sale price jumped up more than $250,000 from January to February! The average days on the market dropped to a little over a month from 143 days, and months of inventory remained constant. Those numbers prove what we are seeing with our own eyes: the market is active!
Now, considering the higher price point ($3,000,000 to $5,000,000), the number of homes on the market increased from 1 home in January to 16 homes in February. Only two home sales happened in February, but the increase in inventory is striking in that these homes showing up on the MLS are the “canary in the coal mine” indicating that even the luxury price points are heating up. Median listing and sales prices are in the low to mid three-million-dollar range, and I interpret that as even in the luxury price point, buyers’ price sensitivity to value ratio still skews down. It is taking, on average, a little over two weeks to get a home under contract, and buyers obviously have more to choose from with months of inventory leaping up to over four months.
These numbers are encouraging and get us excited for the coming season! If you or someone you know is considering buying or selling in this market, or would just like to dig into the fundamentals a bit more, please feel free to reach out.
Greetings and salutations, and all that jazz! February is upon us, and the local real estate market is starting to see some signs of life. For sale inventory increased and lenders are reporting an uptick in phone calls and mortgage applications. It does seem like mortgage rates are going to be stubbornly sticky, high 6’s to 7’s, for the next couple of months, but that doesn’t seem to be deterring buyers and sellers from transacting. A “new normal,” maybe. According to Jerome Powell, the Fed isn’t looking to cut rates anytime soon. We anticipate summer at the earliest. What does this mean for you? Well for sellers, offering rate buy downs and other financial incentives could be key in moving your home, and buyers still find themselves in the driver’s seat in terms of negotiations.
PSA announcement! We would like to educate you to not be fooled by the “date the rate, marry the home” phrase that is being thrown around. This can be deceiving and is an over simplification. A straightforward comparison: “Marry the house, marry the rate. While you can divorce from your current rate later on, the process might come with significant expenses in fees and interest.” To manage interest rate volatility, we suggest working with a trusted real estate team with trusted financial advisors that can help you do the math and stay educated about your options. It’s still a very temperamental and dynamic real estate market.
Let’s jump into the numbers!
Looking at the lower price range ($900,000 to $2,999,000), we saw a massive jump in homes for sale. Looking at the lower price range ($900,000 to $2,999,000), we saw a massive jump in homes for sale. In December, there were only 9 homes on the market, and in January that number shot up to 22. But the pace of sales slowed in January from 19 to 4. This reinforces that sellers did what they could to get their homes sold before the end of 2023. Both the median listing price and the median sales price dipped in January as well. Average days on the market for the homes that did sell jumped dramatically from 46 days in December to 143 days in January. Seems to be some clearing out of the old inventory. Also, with the increase in homes for sale, the months of inventory gained to a little over one month’s worth, up from half a month in December (a balanced market is generally agreed upon at 6 months of inventory).
In the higher price point category, there just isn’t much to report. There was only one home on the market in January, and no sales. Could these figures be right? Could there really have been NO sales of homes in the $3 million to $5 million price range in January? That is what the data says, but not the reality. Remember what I mentioned earlier about the market being dynamic? Well, the reality is that more of these higher price point homes are not going to the MLS (public), they are being traded offmarket, or between agents in the “know.” That’s why it is even more necessary to work with a local agent with specific local knowledge of the neighborhood(s) and area. That’s why it is important, vital even, to work with us! Curious how we are so involved in the Eanes community and about our extensive network? We’d love to share, so please reach out!
As always, let us know how we can help, and we’ll catch you next month!
Hello and Happy New Year! All of us here at the KS Group are excited to see what 2024 has inn store for us and there are already optimistic signs for the future. Mortgage rates have started to thaw, and we could see a gradual reduction throughout the year as Federal Reserve Chairman Jerome Powell has indicated he expects to cut rates three times during the coming year. The pent-up demand caused by the depressed activity of 2023 will spur a resurgence in buyers and sellers transacting more than in the past 18 to 24 months. Put simply: life happens, people need to move, and many of those decisions that were put on hold last year may now need to be addressed. Also, Austin continues to be a highly desirable place to move to and live in as we saw 46,000 people move here in 2023! That’s a TON of people who need a home. There is so much to be optimistic about in the coming year and we encourage you to reach out to us to help you craft a real estate plan to take advantage of 2024.
Let’s dig into the numbers from the last month of 2023, shall we? Looking at the $900,000 to $2,999,000 price range, active homes for sale dropped dramatically from 23 in November to 9 in December. But this drop is mitigated by the fact that there were 19 homes sold in December versus 11 in November. People were apparently trying to finalize sales before the end of the year. We are still seeing a delta between listing price and sales price, but it’s not as drastic as previous months. Average days on the market decreased by 4 days from November to December, and due to the small number of homes for sale, months of inventory shrank to roughly 15 days. It’s hard to get anyone to think about buying or selling a home during the holidays.
In the price point bracket from $3,000,000 to $5,000,000, there was an increase in one home for sale and sold, respectively, from November. Median listing price dropped almost $500,000 in December, and the median sales price dipped as well. Average days on the market climbed to 133 days indicating just a general lack of movement in this price point. We expect to see these numbers increase after the new year.
Overall, the December stats tracked with historic and seasonal trends and did not really have any outliers that stood out to us as unusual. We expect (and hope) to start to see inventory and sales trend higher in the coming months and will continue to bring you relevant stats so that you can make the most informed decisions possible. If you have any questions about these stats or would like to chat more about our views for the coming year, please reach out!
Until next month.
Hello and welcome to December! As we embrace the holiday cheer, it’s also a crucial time for those considering selling their home in the spring. The make-ready process is essential and can take several months. To ensure your home is in pristine condition for the peak selling season, it’s best to start now. If you’re thinking about selling, reach out to us soon so we can begin planning together.
Now, let’s look at the November numbers. In the price range of $900,000 to $2,999,000, inventory increased slightly with three more homes available than in October, but we saw a decrease in sales, with seven fewer homes sold. The median listing price remained nearly the same, but the median sales price saw a notable decrease of over $100,000, indicating a shift in the market. Additionally, homes are selling quicker, with the average days on market dropping by 40 days since October, suggesting that sellers are becoming more proactive.
In the higher price range of $3 million to $5 million, the market was tight, with only one home available in November, down from eight in October. However, sales increased, with four homes sold in November compared to just one in October. Both median listing and sales prices decreased significantly, and homes sold faster, spending 30 fewer days on the market compared to the previous month. This shows a market with eager sellers and a limited supply.
Overall, the statistics indicate a trend towards a more active market, with sellers more inclined to negotiate and close sales. As we send out our last monthly market update for the year, we to negotiate and close sales. As we send out our last monthly market update for the year, we want to express our gratitude for your trust in us as your real estate professionals. If you have any questions about these stats or just want to chat, please get in touch.
Wishing you a happy and safe holiday season!
Hello again! October was a super busy month for us- it feels like we blinked, and the month was over! Now that the dust has settled, let’s take a look at what happened last month.
Looking at the numbers, in the $900,000 – $2,999,000 million price range we saw an increase in both inventory and homes sold which was encouraging. Median listing price dropping slightly from $1.6 million to $1.574 million, and continuing the trend, median sales price was again below the median listing price, suggesting that sellers are still optimistic about their homes value. One stark number that jumped off the screen to us- the average days on market jumped from 60 days to 90 days!
In the $3,000,000 to $5,000,000 price range, there was hardly any activity with only one home sold. The things to take away from this sale is the list price versus the sale price, and how long it took to get this property sold. Months of inventory jumped up almost a whole month in October!
Last thought: It was encouraging to see activity pick up a bit in the month of October, but the pricing trends we are continuing to observe suggest that there remains opportunity for buyers to negotiate discounts and other incentives from sellers, especially as we head into the historically slow holiday season.
What is your view on the market and the broader economy? We’d love to hear your views and opinions so feel free to reply to this email or give us a call! And until next month, have a happy Thanksgiving!
Hello and welcome to October! September seemed to fly by and here we are, officially in Fallnot a traditionally busy month for real estate in the Eanes area, as most people are settling into the routine of school, football season, and starting to look forward to the holidays. Jumping into the numbers, we saw an increase in homes for sale in both price points, up from August, but we noticed a decrease of one home in both price points for sold homes. What is striking to us is the median listing price versus the median sales price. There continues to be a huge discrepancy in what sellers think their homes are worth, and what they end up selling for. Some could argue that housing prices are decreasing from the overheated market of 2020 and 2021, but we have a more nuanced take. We believe that in this economic environment, with the market down and mortgage rates at twenty-year highs, what buyers can afford has decreased significantly and thus we are seeing sold prices decrease. It can be debated that values are going down, but we stand firmly on the side of Austin real estate always holding its value, in fact appreciating year over year.
Last thought: it is interesting that our supply is so constrained (see months of inventory; 6 months being generally agreed upon as a balanced market), but sale prices are lower than list prices. We are in a weird, inverted market right now where sellers are conceding price and incentives to buyers, but there aren’t a lot of homes for sale for buyers to choose from. Just something to chew on…
As always, if you’d like to talk more about these or any of our numbers and insights, please feel free to reach out to us at any of our contacts (below). And until next month, happy house hunting!
