November 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 November, which are available below. Prices dipped on both a Year Over Year (YOY) and Month Over Month (MOM) basis due to seasonality, while mortgage rates improved moderately. Rates are now in the low 7% range, which is the lowest we’ve seen since July.
Months of Inventory (MOI) crept up to 4.4 in the Austin Metro and 4.6 in the city, which remains a balanced market.
Total sales dropped -5.4% in the Austin Metro, which is a negligible difference and a sign that the market has stabilized.
Pending units increased +9%, a sign that the market is marginally improving on a YOY basis.
Average and median sold prices declined -5.6% and -9% on a YOY basis, which is an improvement over the summer months.
Median & Average Prices Remain Sluggish
Median and average sold price both declined on a YOY and MOM basis. The MOM decreases can certainly be attributed to seasonality, while the YOY declines are consistent with the price changes we’ve seen in 2023. Much of the pandemic boom gains have been erased in 2023.
Seasonality Continues to Set In
The 2023 pending unit (demand) curve continues to track identically to 2019, which is the last normal market Austin experienced. While demand is more sluggish than in 2019, buyers seem to have settled back into pre-pandemic behavior. This means fewer buyers (and sellers) during the holiday season and predicts a return to the market in late Q1 / early Q2 2024.
Mortgage Rates Improve
After increasing above 8% in October, mortgage rates settled in the low 7% range by the end of November. This increased affordability bodes well for the spring if rates remain in this range (or drop lower). Monthly payment affordability has been a primary driver of the 2023 price declines, and we will see those reverse when affordability improves.
If You're a Buyer:
Inventory has increased a bit, and prices have dropped a bit. This is a great buying environment if you want to find a deal. Many sellers have withdrawn from the market, but many sellers who remain are motivated and willing to take a lower price than they would have 3-6 months ago. There aren’t many buyers competing with you, but that will change in a few months. If you see something you like right now, the low competition and higher seller urgency are in your favor.
If You're a Seller:
This is a stressful time for sellers who remain on the market as buyer demand decreases significantly over the holidays. If you’re not in a “need to sell” situation, it’s best to set low expectations for yourself and to understand that demand will improve in March. If your situation dictates that you need to sell, then pricing is critical.
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 hyper-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.