As 2024 comes to a close, the Austin housing market demonstrates its ability to adapt and evolve. While some challenges remain, there are also many reasons to be optimistic about the road ahead. For buyers, sellers, and investors, understanding the latest trends is key to making informed decisions. Here at Adam Timothy Group, we provide comprehensive insights into the market, empowering our clients to navigate every opportunity with confidence.

Market Insights

City of Austin Highlights: The City of Austin ended the year on a strong note, with homes sold up 8% year-over-year and a median sale price increase of 7%. Total sales volume surged by 16%, reflecting continued buyer interest and a dynamic housing market. While the days on market rose to 74, this reflects the patience required to achieve fair market value. Active listings stood at 2,818 as of early January, and months of inventory increased to 3.79, showing a more balanced and sustainable market.

Austin-Round Rock MSA Highlights: The broader Austin-Round Rock Metropolitan Statistical Area (MSA) displayed resilience. While home sales dipped slightly by 2.8%, the median sale price edged up 2.2%, signaling consistent demand for housing. New listings increased by 7.5%, contributing to an inventory of over 10,900 active properties. Pending sales climbed 4.6%, highlighting that buyers are still eager to find the right property. With months of inventory at 4.39, the region is shifting toward a healthier, more neutral market.

2024 highlighted the Austin housing market’s resilience and adaptability. While total sales and sales volume were slightly lower than the previous year, agents and sellers refined their strategies, leading to more effective pricing. The close-to-list price ratio improved, reflecting better alignment between sellers and buyers. The market’s ability to adjust to evolving conditions bodes well for sustained activity and growth in 2025.

Trends and Insights

National Trends: Recent national data highlights an 8% increase in new listings year-over-year during the last weeks of December, providing buyers with more options. Despite this, pending home sales dipped by 1.1%, influenced by high mortgage rates near 7%. The national median sale price rose 6.4%, showing strong demand even in a high-rate environment.

Austin-Specific Trends: Austin continues to overcome challenges with longer listing times, as 62.4% of homes stayed on the market for 60 days or more in November. This creates opportunities for buyers to negotiate and find great deals. Austin’s job market and population growth remain key drivers of demand, ensuring stability and optimism for future activity.

Mortgage Insights: Mortgage rates remained a significant factor in 2024, with the average 30-year fixed rate hovering around 7% as the year ended. However, recent weeks saw a slight dip in rates, creating opportunities for buyers and refinancers. Adjustable-rate mortgages (ARMs) gained popularity, offering buyers lower initial rates to navigate affordability challenges. Additionally, rate buy-down programs offered by sellers and builders allowed buyers to reduce their interest rates temporarily, making monthly payments more manageable. These tools ensure buyers have options to achieve their goals in today’s market.

Job Market and 2025 Outlook

Austin’s job market remains a cornerstone of its economic strength. As of October 2024, the unemployment rate in the Austin-Round Rock Metropolitan Statistical Area stood at 3.5%, well below both the Texas rate of 4.1% and the national rate of 3.9%. Over the past year, the region has added 27,300 jobs, reflecting a 2.0% annual growth rate. Key sectors driving this growth include professional and business services, which accounted for 40% of all private sector jobs added since February 2020, and leisure and hospitality, which has fully recovered from pandemic-related losses.

According to the Austin Board of Realtors, housing market trends in 2025 are expected to mirror those seen in 2024 and 2023. While affordability and longer days on market may remain considerations, the ongoing population growth, strong job market, and refined pricing strategies by agents and sellers create a positive outlook. Buyers and sellers can look forward to a balanced market offering opportunities for both sides.

What This Means for You

The current market offers exciting possibilities for those ready to take action. Sellers benefit from increasing prices and strong sales volume, while buyers have access to growing inventory and tools to manage borrowing costs. Properly priced homes continue to sell well, making strategic decision-making essential in this evolving market.

At Adam Timothy Group, we are committed to guiding our clients through every phase of their real estate journey. Whether you’re buying, selling, or investing, our team offers expertise and personalized support to ensure your success. Let us help you achieve your goals in 2025. We currently have four properties for sale that are not publicly listing and other amazing properties we are currently preparing to list. 

For tailored advice or to explore your options, contact Adam Timothy Group today.