December real estate stats for the Austin Metro are in! Here's what you need to know.
Happy New Year! We hope you had an amazing time with friends and family over the holidays and have wonderful plans for 2024.
We ran first-look statistics for December 2023, which are available below. Average and median sold prices were relatively unchanged on a Month-Over-Month (MOM) and Year-Over-Year (YOY) basis in December. Months of Inventory (MOI) dropped to 3.8 in the Austin Metro area and to 3.6 in the city as many sellers withdrew from the market for the holidays. The big news is that Fed meeting comments caused mortgage rates to drop into the mid-6% range.
Average sold price increased +0.3% YOY and +2.3% MOM in the Austin Metro.
Total sales dropped -16.2% in the Austin Metro, which is considerable at face value. However, December is very slow seasonally, so this is not alarming.
Pending units increased +13.2% YOY, a sign that the market continues to improve.
Months of inventory fell to 3.8 in the Austin Metro, which is a balanced market.
Median & Average Prices Remain Stable + Sold Units Dip
Average and median sold prices remained relatively unchanged on a YOY basis and improved modestly on a MOM basis. Sold units dropped by a noticeable amount. However, December and January are the slowest months of the year seasonally, so the sold units data is not alarming. We expect January and February to remain seasonally sluggish and see March pick up considerably.
Contracted Units Improve
While we see normal seasonality on a sold and pending unit basis, the YOY change in pending units is positive and encouraging. We have seen a gradual improvement in YOY pending units throughout the year, and the numbers are now decisively positive. This bodes well for the spring and for a market recovery.
Mortgage Rates Improve
Mortgage rates peaked at 8% in October and declined in November. After positive statements from the Fed in the December meeting, rates dropped again and now sit in the mid-6% range. All eyes (and ears) are on the Fed as we go into Q1 2024.
If You're a Buyer:
You’re likely gearing up for your purchase in 2024. Inventory is currently low, but we expect more homes to hit the market as we enter the spring months. We’re already seeing more buyer demand, and the spring market will likely be more competitive. However, we strongly believe that 2024 will be viewed as a buying opportunity in hindsight.
If You're a Seller:
Timing is everything and it is currently on your side! Take the next 2-3 months to prepare your property for market and plan to list in the spring of 2024. We will hopefully see more mortgage rate drops and more buyer demand. We do expect to see a stronger spring this year than last.
Our goal as your trusted real estate advisors is to provide you with the information you need to help you reach your investment goals.
As always, real estate is hyperlocal and extremely situational, so please reach out to us to discuss your specific situation. We’d love to help you and strategize what’s in your best interest.