AUSTIN, TX — In February, home buyers continued to gain leverage across the Austin-Round Rock MSA as housing inventory increased to 2.6 months according to the Austin Board of REALTORS® latest Central Texas Housing Report. This increase in supply fuels growing confidence in the market from REALTORS® and home builders across Central Texas Last month, monthly housing inventory increased 2.3 months to 2.6 months of inventory, and homes spent an average of 84 days on the market, up 55 days from February 2022 across the MSA. The median home price fell 12.2% to $436,419 while residential home sales also declined 17.2% year-over-year to 2,106 closed sales and sales dollar volume declined 26.5% to $1,129,639,482. New listings dipped 0.9% year-over-year to 2,764 listings while pending sales dropped 9.5% to 2,465 transactions.
"Austin’s housing market is trending in the right direction. Buyers have more options and negotiating power with each passing month, and sellers have more time to make their next move,” Ashley Jackson, 2023 ABoR president, said. “Remember, a healthy housing market isn’t defined by breaking records every month, but by market activity that’s steady-paced and sustainable.”
"Incentives, down payment assistance programs — anything that increases housing accessibility— are very important right now,” added Jackson. “Many buyers remain priced out of the market, especially in Austin proper. There is still plenty of work to do to address systemic issues in affordability, accessibility, and missing middle construction, and those should remain our community’s number one concern.”
City of Austin In February, home sales decreased 29.9% to 577 sales, while sales dollar volume decreased 31.9% to $389,252,605. At the same time, median price decreased 6.0% to $530,000 for the City of Austin. Last month, new listings slightly decreased 0.8% to 879 listings, active listings skyrocketed 384.5% to 1,778 listings as pending sales declined by 19.7% to 677 pending sales. Monthly housing inventory increased 1.9 months year over year to 2.2 months of inventory.
Travis County
In Travis County, home sales decreased 26.5% to 938 sales, while sales dollar volume decreased 31.4% to $596,185,542. Last month, the median price in Travis County slightly dipped 7.0% year over year to $499,990, while new listings increased 5.7% to 1,411 listings and active listings ballooned 464.8% to 3,191 listings year over year. Pending sales declined 16.2% to 1,084 pending sales as monthly housing inventory increased 2.2 months year over year to 2.5 months of inventory.
Williamson County February home sales decreased 15.4% to 726 sales in Williamson County. Sales dollar volume declined 25.5% year over year to $336,341,463. The median price decreased 14.0% to $410,000 as new listings decreased 12.6% to 806 listings. During the same period, active listings soared 645.9% to 2,245 listings while pending sales slightly dropped 6.7% to 833 pending sales. Housing inventory rose 2.1 months to 2.4 months of inventory.
Hays County In Hays County, February home sales increased 3.8% to 301 sales and sales dollar volume dropped 12.9%% to $145,604,710. The median price for homes fell 13.1% to $380,000. During the same period, new listings increased 5.3% to 359 listings, while active listings skyrocketed by 448.8% to 1,136 listings. Pending sales decreased 10.3% to 375 pending sales as housing inventory jumped by 2.6 months to 3.1 months of inventory. (information courtesy of ACTRIS)
National Market Update February Existing Home Sales took everyone by surprise, rising for the first time in thirteen months--by 14.5%!--plus, we got the news that the median price fell year-over-year for the first time in 11 years. The February Pending Home Sales index of signed contracts on existing homes headed north for the third straight month. The National Association of Realtors noted, “the housing sector’s contraction is coming to an end.” An online real estate database reports the median down payment percentage has dropped from 13.6% a year ago to 10% of the purchase price, while the share of cash buyers has climbed to 32.1%. Buyer demand is also growing as home prices ease. The S&P CoreLogic Case-Shiller Home Price Index in January fell month-over-month for the seventh straight month, though it’s still up modestly year-over-year. Fannie Mae’s February Home Purchase Sentiment Index found most consumers still think it's a good time to sell a home and the share of those who say it's a good time to buy went up 5% from January. Realtor.com reports active inventory keeps climbing—up 61% from a year ago. Homes are spending more time on the market than last year, but they’re still selling quicker than before the pandemic, suggesting continuing buyer demand. A panel of housing experts surveyed by Zillow and Pulsenomics believes home price growth will pick up again in 2024, hitting a 3.5% annual growth rate every year through 2027, a reassuring prediction for this year’s buyers. New Home Sales also rose in February—up for the third straight month. In addition, inventories have recently made substantial gains, as the supply of completed homes has started to go up rapidly. Increasing for the first time in six months, housing starts shot up 9.8% in February, with both single-family and multi-unit projects posting gains. Building permits did even better—up 13.8%, the largest monthly gain in two years. Home builders are clearly feeling more optimistic. The homebuilder sentiment index headed up for the third straight month, indicating the housing market is starting to find its footing in the present mortgage rate environment. Home building data firm Zonda revealed most builders saw a strong start to the year. Their New Home Pending Sales Index (PSI) reported a non-seasonally adjusted 4.3% uptick in demand in January. The national average 30-year fixed mortgage rate decreased for the third straight week in Freddie Mac's Primary Mortgage Market Survey. In line with this, the Mortgage Bankers Association reported demand for purchase loans moved up for the fourth week in a row, as mortgage rates continued to slide back from their 2023 highs. Wall Street expects rates to hold at the next two meets, but there's growing sentiment for a quarter percent hike. There's a better than 50% probability the rate will change in July, but there’s mixed opinion whether the change will be a cut or a hike.