According to the February 2024 market report from the Austin Board of REALTORS®, the median home price in the City of Austin fell modestly by 2.8% to $543,200 over the past 12 months. However, the greater metro area fared a bit better with a 1.2% YoY increase to $443,065. Housing inventory in Austin and the greater metro remained at around 3 months in February. While still technically in seller’s market territory, inventory is well above extreme lows seen in recent years and has held steady for many months now. February saw new listings increase significantly by 40%+ compared to this time last year. Closed sales were only up modestly.

Overall, home prices and inventory in the Austin area look relatively stable over the previous 12 months. The substantial 40%+ YoY increase in new listings in February is generally consistent with Austin’s typical seasonal pattern, where seller activity picks up as we head into spring. Many more buyers typically enter the market at this time as well, and today's buyers are becoming more accustomed to this higher mortgage rate environment. However, it’s too early to tell if the increased buyer demand will be sufficient to absorb this fairly significant YoY increase in inventory. We’ll need to observe as we move through spring and into the early summer.

Here are the full stats for Austin and the greater metro:

SXSW is now in full swing in Austin, with many attendees renting one of the numerous short-term rentals in the area. So, I thought I would highlight this recent news story on the current state of Austin's STR license enforcement. According to the story, there are 10,000+ STRs in Austin, but only 2,236 are licensed by the city!

What if I’m a buyer? In many ways, this is the best market for buyers in Austin in years. There are more listings to choose from now than any other time in nearly a decade. Listings are now selling for roughly 95% of their list price on average. Multiple offers are the exception, not the norm. Buyers have significantly more negotiating power. They can take time with their search and be more selective about a property’s location and condition. So, if interest rates are a buyer’s primary roadblock, then I recommend seeking opportunities to negotiate a reduced interest rate from a seller or looking at new construction, where builders are offering rate reductions and other substantial incentives. Buyers should expect more competition in the spring, but conditions overall should remain favorable compared to recent years.

What if I’m a seller? Know that there is still robust demand for Austin housing and that prices are still considerably higher than just a few years ago. However, it’s important to price for today’s market conditions. Days on market are 80 days on average, and many listings are reducing prices at least once while on the market. But properties priced appropriately can still go under contract in a matter of days, sometimes with multiple offers. Now is not the time to “test the market” with an ambitious price to “see what happens.” Since there are many more listings competing on the market than in previous years, it’s crucial to prepare a listing to stand out among the rest and work to address buyer objections prior to going on market. If you can wait to list in the spring or early summer, I recommend doing so to enhance your buyer exposure.