November 2024 Austin Market Trends: Rising Sales, Steady Prices, and Decreasing Inventory

Market Perspectives Blog Post

November 2024 Austin Market Trends: Rising Sales, Steady Prices, and Decreasing Inventory

November brought positive momentum to the Austin-area real estate market, with rising home sales, steady price growth, and continued buyer activity. While interest rates remain a factor, buyers and sellers alike are adjusting to the market’s new normal, setting the stage for opportunities as we move into the year-end. Here’s what the numbers—and the trends—mean for you.

Economic Context and Interest Rates

The broader economy remains a backdrop for the housing market’s evolution. November’s job growth of 227,000 signals a solid labor market, with wages up 4% year-over-year and unemployment at a healthy 4.2%. Treasury yields dipped slightly, with the 10-year yield closing at 4.15%, offering a reprieve from mid-November highs. Meanwhile, the Federal Reserve is expected to cut rates at its December meeting, with more reductions likely next year.

For buyers, this suggests that while interest rates may begin to decline, they will likely remain above the historic lows seen in previous years. Increasingly, buyers are settling into this “new normal” for financing costs and are acting now to secure good deals before prices rise again.

Austin Round Rock MSA and City of Austin Highlights

The Austin-Round Rock MSA showed robust performance in November, with home sales up 2.5% year-over-year and a median sale price of $423,000, reflecting steady demand. The close-to-list price ratio improved slightly to 92.8%, while homes spent an average of 75 days on the market, indicating a steadier sales pace. Active listings reached 12,561, providing ample options for buyers, though new listings declined by 3.5% as sellers held back. Pending sales surged 16.1%, signaling strong future activity, and the market remains balanced with 5.23 months of inventory. Total sales volume grew 6.2% to $1.311 billion, underlining the market’s ongoing resilience and strength.
The City of Austin’s housing market showed strong performance in November, with home sales up 7.3% year-over-year and a median sale price of $571,000, reflecting the city’s ongoing appeal and steady price retention. However, when compared to the broader Austin-Round Rock MSA, opportunities for buyers seeking more affordability and value remain evident. The MSA’s median sale price of $423,000, significantly lower than the city’s, highlights the potential for bargains outside the city center. While Austin’s market saw longer days on market at 76 days, the broader MSA offers similar decision-making time at 75 days, paired with a larger pool of active listings at 12,561. With buyers increasingly exploring the surrounding areas, the MSA presents a compelling option for those looking to balance affordability with access to Austin’s vibrant lifestyle.

What This Means for Buyers and Sellers

For Buyers: Now is an excellent time to buy for several reasons. While interest rates may start to decline, they are unlikely to return to the historically low levels seen during the pandemic. Increasingly, buyers are settling into this “new normal” for financing and are acting now to secure good deals. Months of inventory are gradually decreasing, reflecting both sellers holding out and buyers taking advantage of opportunities to find well-priced homes. Austin remains a strong and resilient market, and prices are likely to start climbing again soon. Acting now ensures you lock in a great property while options and negotiating power are still on your side.
For Sellers: If you’re considering waiting to sell, think carefully about the potential costs. Over time, your property may become older and more dated in style and finishings, which could impact its appeal and value. While the pandemic brought record-high prices, the market has adjusted, and those peaks may not return. With strong buyer demand and steady price growth, listing now provides a great opportunity to maximize your sale in today’s balanced market.

Looking Ahead

The November market reflects a blend of stability and opportunity. Buyers and sellers alike are adjusting to the evolving market, with Austin remaining a strong choice for those ready to make a move. Whether you’re planning to buy or sell, this is a great time to explore your options.

At Adam Timothy Group, we know that an informed client makes the best decisions. Our team is dedicated to providing you with expert insights and personalized guidance, whether you’re buying, selling, or simply looking to understand the current market. We don’t just facilitate transactions; we’re here to build relationships, supporting your goals today and for the future.

Let’s Talk. Contact us today.

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