Happy Thursday!

Here we are in the midst of October, one of the liveliest times in Austin! With the second weekend of ACL about to start and Formula 1 just around the corner, there's an invigorating change in the air. Live music venues are gearing up for fantastic performances, and the scent of beloved local food festivals is already in the air.

As the fall season unfolds, we're thrilled to present this week's market report, featuring a selection of community insights and articles for real estate investors. In this edition, we'll explore year-to-date stats for the third quarter, highlight a groundbreaking tiny home community in Round Rock, and discuss the advantages of selling your home during the fall. We'll also gather insights from consumers regarding the economy and take a closer look at the renowned Hilton Conrad Hotel in downtown Austin, which has been making headlines. So, let's get started!

As always, we're here to guide you through the intricate real estate market and sincerely value your referrals. We hope you find this update informative, so don't hesitate to share it with others!

Community Update

First tiny home village in Austin suburb sees big demand

If you haven't seen this on the local news yet, it's making waves in Austin. Round Rock developer built a first-of-its-kind community to bring a tiny solution to a large problem. He's tackling affordability with a new tiny home community called Mustard Seed Village.

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Plans to build what one of Austin's largest towers fall through

Plans to build the massive 65 Story hotel and condo Downtown are up in the air after CBRE a commercial Real Estate firm listed the block for sale. So what was expected to be the Conrad Austin Hotel and Conrad Residences won't continue as originally planned.

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This Weeks New Listings

Local Market Update

Austin YTD SOLD Data Jan - Sept

Most of the data we typically analyze is month-over-month or seasonally adjusted, meaning we compare this month of this year to the same month last year. However, today, we have the year-to-date numbers, which encompass combined sales, total average pricing, and days on the market.

To put things in perspective, let's remember that last year, the market skyrocketed in the spring, peaked in May, and then gradually returned to more stable levels, reaching a low point in February. Now, we're seeing prices making a slow but steady recovery. When we examine the data, it becomes evident that while MSA prices are only 3% to 4% below where they were last September (as shown in the right chart), the year-to-date comparison, covering January to September of this year versus 2022, reveals that we are still down by 8.75% in terms of the average selling price and 10.25% for the median price (as depicted in the chart on the left).

On the flip side, the number of sales tells a slightly different story. Year-to-date, total sales are only down by 11.79% compared to 2022. However, for the month of September alone, there was a 24% decrease. These year-to-date figures provide valuable insights for assessing the overall picture of how 2023 is shaping up. We find it useful to offer this data at the end of each quarter to examine historical numbers from a year-to-date perspective and gain a better understanding of where we currently stand amidst the annual market fluctuations. It serves as a reliable baseline for overall market monitoring not just fluctuating trends..

Historical Active and Pending Data YTD Jan - Sept 30th

Active Listing History:

2023 = 11,984

2022 = 11,072

2021 = 4,269

2020 = 5,978

2019 = 8,779

2018 = 9,914

Total Pending History:

2023 = 2,603

2022 = 3,854

2021 = 4,747

2020 = 5,851

2019 = 4,750

2018 = 3,979

In 2023, we've witnessed the highest number of active listings during the first three quarters, over the last five years. Conversely, we've seen a significant decrease in pending contracts, with less than half of the activity compared to the pandemic year. Interestingly, it appears that more people are apprehensive about engaging in real estate transactions due to current interest rates, even more so than they were during the global pandemic.

The central question looming is when the Federal Reserve will decide to ease the pressure of these intimidating interest rates. The Fed remains under our watchful gaze, and there's a prevailing expectation that any move towards a more lenient monetary policy will yield positive effects on Austin's job market, subsequently benefiting our real estate market. At the present time, all signs point towards an anticipated policy shift, with expectations of the Fed commencing the easing in June 2024. .

New Listing Activity

Fall Advantages & Investor Insights

5 Advantages of Selling Your Home in the Fall

We know the spring and summer are traditionally considered prime real estate seasons, however their are some advantages of selling a home in the fall, and those are often overlooked and underestimated. Here are five compelling reasons why autumn might not be the worst time to sell.

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Here's What the U.S. Consumer Tells Us About the State of the Economy

U.S. consumers are spending a lot and taking out a lot of debt. That debt is only getting more expensive. What does that mean for the economy?

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See our Weekly Market Report Archive Here

Mike & Steve Cossette 

(512) 299 5904

[email protected]

Do you know anyone who may need our services? Feel free to pass this email along and we can chat with them about their real estate needs!

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