Happy Thursday, Michael

It feels great to welcome cooler and seemingly wetter weather, we'll delve into the shifting pulse of Central Texas real estate as the holiday season approaches. This week, we've combed through the MLS to present a sneak peek into October's stats, spotlighting the month-over-month and year-over-year shifts that define the current market dynamics.

In local updates, our attention is captured by a groundbreaking land development initiative in Austin—a testament to the ever-evolving cityscape, offering a glimpse into the future of local housing, potentially right in our own backyards. Don't miss our November Events calendar and a handy Holiday Festivities Guide, both waiting for you at the end!

Shifting focus to national news, we're immersed in a lawsuit with far-reaching implications for real estate enthusiasts. The NAR commission lawsuit takes center stage, and we've curated the latest updates to keep you well-versed. It's a compelling read, shedding light on potential shifts in the real estate landscape that may reshape our current operations.

So, buckle up as we navigate the intricate terrain of Central Texas real estate, seamlessly blending local insights with national perspectives. Feel free to share, and remember, we're here to assist with anything you might need in this dynamic real estate world.

This week, we're diving into the initial insights from October's market. The chart above, seasonally adjusted, compares October 2022 to October 2023. Despite lingering unentered sales, it's evident that MSA sales dipped by about 2%, which isn't too bad considering the backdrop of considerably higher interest rates.

In the MSA, the average sold price decreased by 6%, contrasting with the City of Austin's less than 1% decline. The median sale price in 2023 for the MSA was notably lower than in the city. Inventory showed a slight increase of half a month in the MSA and 3/4 of a month in the City.

The biggest takaway is the 11% increase in pending contracts this year compared to last year in the MSA, while the opposite occurred in Austin where pending contracts decreased by -1.5%. This disparity is likely influenced by suburban new construction sales, where builders can adjust prices and offer incentives.



Overall, no significant surprises emerged this year. Looking ahead, we're optimistic that the recent 1/2 point drop in interest rates might have a positive impact in November, particularly during this generally slower time of the year.

Keeping a close eye on our stats at the start of each month allows us to track market trends, providing you with the insights needed for informed decisions in a somewhat timely manner reducing the extremely lengthy lag time between on-the-ground activity and data we can analyse.

The most important observation for October we see is the 12% decrease in new listings compared to the previous month in both the city and the MSA. Despite increased withdrawn listings, and the decrease of new listings the months of inventory still rose.

In Austin city, the decrease in pending and sold listings, combined with fewer expired listings, led to a notable increase in inventory. In the MSA, while pending contracts dipped by 3%, the increase in both withdrawn and expired listings was counteracted by a marginal decrease in sales, resulting in an impact on increasing inventory.

Highlights (Month-Over-Month)

• Avg Days to Sell slightly increased by 1 day in the MSA from 61 days to 62 and by 8 days in the city from 52 to 60
• Median Sold Price stayed about the same in the city of Austin at $575,000 while dropping by 4.59% from $456K to $435K in the MSA.
• Pending Contracts fell by 3.03% in the MSA and by 15.19% in the city
• Months of Inventory in the Metro and the city both increased, 15.27% in the MSA and 15.76% in the city with both sitting at about 4.5 months
• New listings Decreased by 12.57% in the MSA and 12.16% in the City

Here is what NAR is providing as updates to this case continue and new lawsuits are filed across the county.

>>> LINK TO NAR UPDATES ON BURNETT TRIAL <<<

As Brokers and Agents many of us have already been asked what our thoughts are. My personal opinion on this topic, at this point in time, is that Compensation agreements will and always have been negotiable. As a professional in this industry, I am not overly concerned with how this might change things.

While yes some things will undoubtedly change with disclosures, agreements, and conversations the market will ultimately dictate what consumers are willing to compensate broker services. Good agents and Brokers' compensation will continue to be worked into a deal one way or another. And with hundreds of thousands of dollars if not millions at stake per transaction, and the simple fact that the general consumer has virtually no idea what they are doing without representation, both parties should ultimately be represented.

The judge(s) who make the final ruling(s) hopefully should understand that the way to protect the consumer is to make representation easy, while also mandating full disclosure around compensation agreements.

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