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Happy Thursday!
I'm thrilled to share that our family has expanded with the healthy arrival of our newest twins just over a week ago. It's been a whirlwind with now four kids under 5 years, but we're thankfully settling into a new rhythm again.
This week, the July stats from ABOR have been unveiled, revealing shifts in recent months' price trajectories and sales volume. Notably, contracts written have increased while net new listings have significantly dropped. In this report, we'll dissect these figures and offer insights as we approach the end of summer. Plus, investors can expect multifamily insights and a spotlight on a Central Texas suburb named #1 for first-time homebuyers in a fresh Smart Asset report.
As always, count on us to navigate the market's intricacies, and thank you for your referrals. Enjoy this update and feel free to share it with others!
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Austin-Round Rock Housing Market Holds Strong Despite High Interest Rates | |
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Let's delve right in now that the official ABOR stats have been released. July's housing market showcases the Austin MSA's resilience. With a full year-over-year perspective of our market since last summer's significant shift, the substantial fluctuations are leveling out.
Prices experienced the first month-over-month decline since February. Pending units are rising for the second consecutive month. New listings saw a sharp decrease of -23% compared to last year, while withdrawn and expired listings surged by +20%. Consequently, the actual net new listings on the market plummeted by over 80%.
Sellers are showing ingenuity by converting potential listings into rentals or choosing to stay in their homes instead of adjusting prices due to their locked-in low-interest rates.
Now, the spotlight is on when buyer demand will rebound and encourage potential sellers to reintroduce their inventory to the resale market. Our prediction is that demand will escalate as the Fed eases policies and major employers resume hiring, along with the drop in rates enhancing affordability, thereby opening up the sidelined inventory.
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Looking at the broader picture for 2023, comparing January to July with the same period in 2022, the median sales price in the Austin MSA has experienced a decline ranging between 10% and 20% in most areas. While there are a few exceptions in central Austin, that percentage is diminishing as we move into the second half of the year. | |
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City of Austin
•837 – Homes sold, 1.3% more than July 2022.
•$550,000 - Median price 12.0% less than 2022.
•1,224 – New listings, 22.6% less than July 2022.
•2,881 – Active listings, 20.0% more than July 2022.
•847 – Pending sales, 13.2% more than July 2022.
•3.9 – Months of inventory, 1.5/mo above July 2022.
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Travis County
• 1,344 – Homes sold, 5.5% more than July 2022.
• $545,000 – Median price, 9.2% less than July 2022.
• 1,836 – New listings, 26.7% less than July 2022.
• 4,697 – Active listings, 15.8% more than July 2022.
• 1,314 – Pending sales, 13.7% more than July 2022.
• 4.0 – Months of inventory, 1.4/mo above July 2022.
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Williamson County
• 895 – Homes sold, 5.4% less than July 2022.
• $428,350 – Median price, 11.7% less than July 2022.
• 1,247 – New listings, 28.1% less than July 2022.
• 2,788 – Active listings, 2.1% less than July 2022.
• 937 – Pending sales, 5.6% more than July 2022.
• 3.1 – Months of inventory, 0.5/mo above July 2022.
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HAYS COUNTY
• 400 – Homes sold, 0.3% less than July 2022.
• $405,243 – Median price, 10.5% less than July 2022.
• 522 – New listings, 10.8% less than July 2022.
• 1,493 – Active listings, 31.1% more than July 2022.
• 439 – Pending sales, 27.3% more than July 2022.
• 4.1 – Months of inventory, 1.1/mo above July 2022.
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Bastrop County
• 132 – Homes sold, 9.1% more than July 2022.
• $349,995 – Median price, 15.7% less than July 2022.
• 210 – New listings, 1.9% less than July 2022.
• 545 – Active listings, 25.6% more than July 2022.
• 143 – Pending sales, 40.2% more than July 2022.
• 4.6 – Months of inventory, 1.2/mo above than July and the highest inventory in the MSA.
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Caldwell County
• 44 – Homes sold, 22.8% less than July 2022.
• $298,048 – Median price, 20.2% less than July 2022.
• 69 – New listings, 38.0% more than July 2022.
• 140 – Active listings, 55.6% more than July 2022.
• 59 – Pending sales, 68.6% more than July 2022.
• 3.4 – Months of inventory, 1.1/mo above July 2022.
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For Buyers!
Yes, interest rates have been climbing, but 2023 is your golden ticket to a solid buying opportunity. Make the move now, and you'll be grinning from ear to ear in a year or two. Snatch a property at a sweet price and then refinance your mortgage down the road. It's a smart move, that's what we're doing and you could slash your payments in the near future.
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If you're a Seller...
The Market is moving, and selling is right now is doable, but realistic pricing is key. The market is very cyclical, prices typically drop in the fall-winter months. In this slower time window, it's vital to stay ahead of the pricing shift and demand decline. If urgency isn't a factor, you can stick to your price, but be ready to possibly have to relist in 2024.
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Surprising Central Texas city boasts No. 1 U.S. housing market for first-time buyers | Homebuyers looking to live outside of the bustling big city should turn their attention 70 miles north of Austin: Killeen has the best housing market in the country for first-time buyers, according to a new study by SmartAsset. | | | |
Multifamily Real Estate Could See a Huge Decline in Values by the End of 2024-What That Means for Investors | The multifamily market has been on the brink for a while, but new data shows a dire outlook through the end of 2024. Here's what you need to know. | | | | |
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Mike & Steve Cossette
(512) 299 5904
[email protected]
Do you know anyone who may need my services? Feel free to pass this email along so I can chat with them about their real estate needs!
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