Jan 2024 / Austin Metro Update

MARKET SUMMARY
As interest rates go, so does the market. Yes, rates continue to be a strong headwind to the real estate market, but there is a light at the end of the tunnel. The industry consensus is that the Fed will lower rates sometime this year. When? That's the million-dollar question. (My money is on late spring or early summer.) No matter, rates have come down enough to provide us with a nice active start to the year, a much-needed improvement to the sluggish second half of 2023! Looking at our stats, they provide a slightly mixed bag. Year-over-year median sales prices for most of the central neighborhoods (sorry Westlake) are up. Some significantly! (See 78703.) Days on market and months of inventory are both up from the same time last year. So what's really going on in the market? I know that the really good properties, with the right location, finish out and price are going quickly. If you're overpriced or the property needs a lot of work, you're probably sitting for a while as buyers continue to be slow and deliberate in their decision-making. I do know that in my real estate world, showings have picked up, I'm seeing more people at my open houses, and I'm seeing more people on the weekly property tours. This all tells me that buyers are coming back into the market.