July is Time for Yards, Watering, and HEAT Management [[+]] Surge in Inventory Defines First Half of 2024 in Austin Area Real Estate Market: Chuck Farr’s July 2024 Newsletter
Welcome back to the dog days of Summer, homeowners, tenants, prospective buyers, and real-estate investors!
In the News: To give you some perspective about where we stand today, here is a link to the recent historical pricing graph for the Austin area housing market (sorry, after publishing, I discovered that Statista requires you to create a login account to see it; my bad!) In current news, according to the Austin Board of REALTORS® and their service, Unlock MLS, the Austin metro statistical area (MSA) market in June and mid-year 2024 data described in the latest Central Texas Housing Report said that “active home listings in June increased 25.9% to 13,227 listings. This increase, coupled with the rise in mortgage rates in late April and early May to 7.2%, induced a decline of 6.3% to the median sales price of $450,000 in June, providing buyers with the highest level of inventory, 5.0 months of inventory, in the MSA since 2011.
“Clare Knapp, Ph.D., housing economist for Unlock MLS and the Austin Board of REALTORS®, pointed to buyer and seller tendencies and their effect on the market.
“’In June, and the first half of the year, we’ve seen sellers remain resolute in their price point, a main factor behind the decline in sales of 13.4%. For buyers, the recent surge in active listings, plus affordability constraints for moderate-income buyers, means that they are choosing to be more selective when purchasing a home. The market will continue to find its footing in the latter half of the year, proving that both buyers and sellers will need to remain nimble and work closely with their REALTOR® to find and negotiate their best option.’
“Kent Redding, 2024 ABoR and Unlock MLS president, stressed key actions to be successful in today’s market.
“’For the remainder of the year, both buyers and sellers need to adjust the way they navigate the market. Homes are selling at 96.4% of original list price, but the homes that are selling are moving because they are showing well and priced appropriately. Price and presentation are the top two critical components to a successful sale, whereas time on the market can be a big detractor. For buyers, now is the time to expand your options and make competitive offers in this high-inventory environment.’
“Austin-Round Rock-San Marcos MSA: June 2024
2,732 – Residential homes sold, 13.4% less than June 2023.
$450,000 – Median price for residential homes, 6.3% less than June 2023.
4,364 – New home listings on the market, 3.9% less than June 2023.
13,227 – Active home listings on the market, 25.9% more than June 2023.
2,802 – Pending sales, 2.4% less than June 2023.
5.0 – Months of inventory, 1.3 months more than June 2023.
$1,581,439,443 – Total dollar volume of homes sold, 18.0% less than June 2023.
96.40% – Average close to list price, compared to 94.7% in June 2023.
“Austin-Round Rock-San Marcos MSA: Year to Date
15,189 – Residential homes sold, 1.8% less than the first half of 2023.
$450,000 – Median price for residential homes, 2.2% less than the first half of 2023.
26,398 – New home listings on the market, 15.4% more than the first half of 2023.
63,005 – Active home listings on the market, 15.5% more than the first half of 2023.
16,676 – Pending sales, 1.6% more than the first half of 2023.
$8,780,135,436 – Total dollar volume of homes sold, 2.7% less than the first half of 2023.”
Just as a reminder for folks in the Austin area, if you had bought a house in 2018 at the average medium price of $305K, its value would have increased to $502K by the May 2022 peak. Average medium price for the MSA is now $450K, so you would have still done very well investing in Central Texas real estate. (Click here for the Statista historical graph. Login account required; again, sorry. ) And check the latest Central Texas Housing Report for more 2024 details and data for the city of Austin and surrounding counties.
Summer Home Maintenance Tips: Summertime has its own home maintenance checklist in Central Texas, especially for existing property owners. Here are a few items to consider during July (a repeat from the June newsletter):
· Set your mower on the highest setting so you do not cut the grass too short and expose it to drought and weeds.
· Make sure your foliage gets plenty of water during hot summer days. Water early in the day, but not necessarily every day. Plants prefer a good soaking a few times a week rather than a light, daily drizzle.
· Reverse the setting on your ceiling fans to counterclockwise (search YouTube for how to do that). This pushes the air down, creating a nice breeze. Shut off fans when you leave the house to save electricity.
· Whether you have central air-conditioning or window units, you should clean or replace your filters at least once every other month (or more often if they are visibly dirty).
· Check the weather stripping around doors and windows to keep the cool air in. Cover windows that receive morning or afternoon sun with drapes.
· Increase your insulation in the attic to R-30 or more. Each month buy a little insulation until the job is done. Alternatively, consider adding in the new foam style insulation inside your walls and in the attic with the help of a professional.
Issues of this and previous newsletters are located on the Blog tab of my website at www.chuckfarr.com.
