For the first time in many years, Austin has officially become a buyer’s market. Before you rush out to make lowball offers, let’s break down what this really means for you and what you can expect if you’re planning to buy a home in the summer of 2024.
Understanding the Latest Market Stats
According to the Austin Board of Realtors, Austin now has 6.2 months of inventory. This is a significant increase compared to previous years. Back in the spring of 2021, the market was so tight that we had only a week’s worth of inventory. This scarcity led to fierce competition and multiple offers on available homes, with sellers clearly holding the upper hand.
Inventory is a crucial metric to understand. It refers to the amount of time it would take to sell all the existing homes on the market, assuming no new homes were listed. Currently, it would take about 6.2 months to sell off all homes. Anything over six months of inventory is considered a buyer’s market, meaning buyers now have more bargaining power.
Price Trends and Seasonal Cycles
Despite the increase in inventory, prices are still rising month over month when you look at median sales prices. Austin’s market follows a typical seasonal cycle: prices go up in the spring, peak in June and July, and then taper off as the year progresses. While we saw a price correction in 2022, prices have stabilized, and we’re back to normal seasonal trends.
One interesting observation is that many sellers are holding firm on their prices, even if they are high or unrealistic. This is different from the 2008 market conditions, where many homeowners were in foreclosure and desperate to sell. Today, many homeowners have substantial equity and are willing to keep their homes on the market at their desired price or convert them into rental properties if they don’t sell.
Market Conditions and Negotiation Power
If you’re looking to buy, don’t expect huge price cuts. The market has already corrected itself. However, homes are generally selling about 5% off the list price, and you have good negotiating power. Homes are taking around 48 days to sell in Austin and 54 days in Travis County. This gives you, as a buyer, the luxury of time to shop around without the pressure of immediate competition.
Why Now is a Great Time to Buy
With more inventory and less competition, you have more choices and time to find the perfect home. The market conditions are favorable for buyers, giving you the opportunity to negotiate and make informed decisions.
Remember, real estate is highly localized. Market conditions can vary significantly from one neighborhood to another. If you have specific questions about a particular area in Austin, don’t hesitate to reach out to us for more detailed information.
