Bringing Back Balance

Throughout our metro area active listings have increased by 16.9% year over year. So very different from 2020-2021 when there was much more demand than supply. As interest rates rose, beginning in mid 2022, properties going under contract (pending) and closed sales declined. Seasonally, listings increase in our area in the March-May time frame. So as new listings come on the market and active listings remain we just keep increasing the number of active listings. This has an impact on the months of inventory and days on market, causing those numbers go up. It's only recently that we saw the number of pending properties increase in certain areas. What we have seen in 2024 is that the market has really stabilized. Sellers have become much more realistic relative to pricing their homes. Interest rates started to decline in Sept, bringing more buyers back into the market. The chart below shows where we are today with inventory, list and sold prices. As you can see even with existing inventory levels list and sold prices went up year over year in the city of Austin. Interest rates have ticked up recently so we'll need to see what they are "post election" and how that affects our market.

What is truly indicative of the market stability and being more balanced is the “type of market” we are currently in. We define those as sellers, neutral or buyers markets based on the number of months of inventory. We are now seeing that both cities and zip codes that still remain in a sellers market, have dropped substantially from recent years. Now the majority of cities and zip codes fall into the neutral and buyers markets. To see the specific city and zip code data go to violet.teamprice.com/insight-and-statistics, and scroll down the various categories and you will find the city and zip data.