Buyers Hope to Capitalize on Mortgage Rate Cuts, Lower Home Prices: Chuck Farr’s October 2024 Newsletter
Hello again, homeowners, tenants, prospective buyers, and real-estate investors!
Market Backchannel: (Keeping my ears peeled for local market chatter.) Nobody can predict the future, but the latest Central Texas data from my local realty network shows the real-estate market is settling into expected seasonal trends. Median sold prices continue to dwindle year over year by 5.3% or 6.6% depending on the data source. However, this indicates a continuation of the price stability we have observed for several months versus a significant drop. Pending units increased, defying expectations during an uncertain election year. Average days on market increased to 79 (or 80 from another source), the highest in ten years. Months of inventory increased again to 5.2 or 5.9 months (depending on source), reflecting a more balanced market as sales dwindle and listings rise. As reported here earlier this year, Fall and Winter are historically slower than Spring and Summer, and this pattern should continue into 2025.
In the News: According to the Austin Board of REALTORS® and their service, Unlock MLS:
“In September, the median home price in the Austin-Round Rock-San Marcos MSA housing market decreased by 6.6% to $425,000, while pending sales increased by 20.2%, according to Unlock MLS’ Central Texas Housing Report. These data points, when combined with inventory reaching 5.9 months, indicate the region’s housing market is becoming more balanced, while still facing affordability challenges.
“‘Sellers are adjusting their expectations to reflect buyers' growing leverage in light of ongoing affordability constraints’ Clare Knapp, Ph.D, housing economist for Unlock MLS and the Austin Board of REALTORS®, said. ‘We are also seeing active listings grow at a slower pace compared to earlier in the year, which indicates that our housing market will continue to be balanced between buyers and sellers. Pending sales in the Austin housing market have surged, likely driven by the mid-September drop in mortgage rates, as buyers are expected to take advantage of favorable conditions throughout the fall.’”
“Austin-Round Rock-San Marcos MSA
2,286 – Residential homes sold, 2.6% less than September 2023.
$425,000 – Median price for residential homes, 6.6% less than September 2023.
3,545 – New home listings on the market, 0.1% less than September 2023.
12,153 – Active home listings on the market, 11.6% more than September 2023.
2,569 – Pending sales, 20.2% more than September 2023.
5.9 – Months of inventory, 1.3 months more than September 2023.
$1,268,639,386 – Total dollar volume of homes sold, 7.8% less than September 2023.
92.8% – Average close to list price, compared to 93.2% in September 2023.”
As a reminder for folks in the Austin MSA area, if you had bought a house in 2018 at the median price of $305K, its value would have increased to $502K by the May 2022 peak. Median price for the MSA is now $425K, so you would have still done well investing in Central Texas real estate. Some say that regardless of the timing of when you enter and exit a real-estate market, it is always a good time to buy real estate. Check the latest Central Texas Housing Report for more details and data for the city of Austin and surrounding counties.
Fall Home Maintenance Tips: Fall is here--and has its own home maintenance checklist in Central Texas. Here are a few items to consider during October:
· Outdoor Tasks:
o Plant and fertilize. Fall is a great time to lay down some good fertilizer on the lawn, plant trees, bushes, and perennials; they will thank you for not planting them in the blaze of summer. Fall/Winter planting allows the plants and their roots to dig in before next year.
o Rake leaves and shred to use as mulch or dispose of them based on local guidelines.
o Clean gutters and downspouts after the raking season.
· Indoor Tasks:
o Test smoke and carbon monoxide detectors when you set clocks back (Sunday, November 3, this year).
o Have your furnace professionally inspected. If you are on a semi-annual HVAC maintenance plan, have your system serviced in the next couple of months.
o We will remind you soon about switching the direction of your ceiling fans for the Winter.
Issues of this and previous newsletters are located on the Blog tab of my website at www.chuckfarr.com.
