March real estate stats for the Austin Metro are in! Here's what you need to know.
We ran first-look statistics for the month of March, which are available below. Pricing stabilization continued, while inventory increased again as new listings increased by double digits for the second month in a row.
Key Highlights
The average sold price in the metro area saw a slight increase of +2.2% year-over-year (YOY), while the median sold price experienced a slight decline of -1.1%
Months of inventory increased to 4.2 from 3.8 in March 2023 and 4.0 in Feb 2024
Average days on the market to sell decreased slightly to 68 days
Total sales and total/under contract or pending units were relatively flat YOY
Mortgage rates remain stable in the high 6% / low 7% range
Seasonal Pricing and Demand
Average and median sold price increased on a month-over-month (MOM) basis, which is to be expected. The market returned to normal seasonality in 2023, and this trend has continued. Normal seasonality sees strong buyer demand in the spring and early summer. We expect contracts to continue to be strong into the early summer, at which point it will decline into the holidays.
New Listings Jump Again
New listings increased by double digits again in March, but not as dramatically as in February. After increasing +44.8% in February, they increased by +10.2% YOY in March. This caused months of inventory (MOI) to increase to 4.2 from 4.0 in Feb 2024 and 3.8 in March 2023. We are still firmly in a balanced market, but it’s important for sellers to pay attention to this increasing inventory.
All Eyes Are on the Fed and Mortgage Rates
The Fed rate has been unchanged for 8 months, and mortgage rates have remained stable for a year. These are two of the three primary drivers of Austin’s real estate market (the third being jobs). The Fed has indicated they will begin dropping rates in 2024, but they have not indicated when. Experts predict rate drops to begin in late Q2 or early Q3 and that we will see 2-3 rate drops this year. We are unlikely to see the market change much until this happens.
If You're a Buyer:
2024 is still a good time to buy if it makes sense to you. The market is moving in your favor slightly with the additional inventory. Buyer demand usually peaks in the late spring, so you will see more competition now, but 2024 is not an overly competitive market. Our standard advice applies: If you are certain you will remain in your next home for 3+ years and confident you’ll live there for 5+ years, it makes financial sense to buy.
If You're a Seller:
You can absolutely sell your home in 2024, but pricing is important. While this is always the case, correct pricing becomes more important in a balanced or sluggish market since the market is not moving in your favor. We believe that timing is also very important in 2024, since it’s beneficial to sellers to list during peak demand.
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.
Cheers!
