Big Questions Ahead

The Austin-Round Rock metro area witnessed dynamic shifts during 2024 relative to available inventory and prices. The first half of the year brought significant increases in inventory compared to 2023. Active listings grew due to high prices and increased interest rates that dampened sales. Pressure was put on prices and median sold prices declined. We began to see some YOY inventory declines begin in June. And in August the trend began in earnest. In part due to seasonality and in part to sellers having withdrawn their listings from the market. The fall brought interest rate relief, buyers came back and with that came increased sales and prices.

The data shows, surprisingly given the time of year, that both average and median prices have increased YOY, and month over month in the period from Septemer to December so far.

Residential Sold

The type of market charts show the market landscape for both cities and zip codes has changed. As of December 27, 2024 we now have more of both in “sellers market” territory than we had earlier in the year. Below these charts are the the type of market data from October 27, 2024, further demonstrating the market shift.

October 27, 2024

What will this mean going forward? The market stabilization trend if continued should show promise for a healthy 2025 market, with opportunities for both buyers and sellers. However, there are so many unknowns. The questions for 2025 is : will sellers return to the market and how many of those withdrawn or expired listings will become active again? Increased inventory should provide more options for buyers and help keep prices somewhat stable. Will mortgage interest rates settle into the 6-6.5% range that buyers have adjusted to? New construction boosted sales during 2024, will that continue or will the number of sales in the resale market align more closely with builder offerings providing sellers better opportunities to move their listings?

So many questions remain to be answered. The key to many of these will be what happens with inflation and mortgage ratesas those will have a huge impact on the overall affordability in the housing market going forward.