Modest Gains in November Sales Indicate Healthy Market Activity: Chuck Farr’s December 2024 Newsletter

Source is ABoR Unlock MLS.

Merry Christmas and Happy Holidays, homeowners, tenants, prospective buyers, and real-estate investors. The winter solstice arrives on December 21, 2024. It is time to reflect and be grateful for yet another year.

Market Backchannel: As we move into the holidays, the Austin area real-estate market is showing some of the best signals in over a year. Several metrics indicate the market is stabilizing. The latest November Central Texas data from my local realty network shows median sold prices increased nearly 2.5% year over year despite typical seasonal cooling. Average days on market are now up to 75 (or 87 from another source), indicating a slower, though not stagnant, selling pace. Months of inventory are just below 5 months. Fall and Winter are historically slower than Spring and Summer, and this pattern should continue into 2025. Though prices remain below mid-2023 peaks, the current trend shows stability. Local hiring trends remain mixed. Continued improvements in job growth could spur further confidence in the housing market as interest rates stabilize.

In the News: According to the Austin Board of REALTORS® and their service, Unlock MLS:

‘In November across the Austin-Round Rock-San Marcos MSA, closed sales ticked up 4.6% to 2,130 closed listings, indicating a positive sign for buyers and sellers as the market continues to stabilize, according to the latest Central Texas Housing Report released by Unlock MLS. The growth in sales is reflective of September’s lower mortgage rates and consistent sales activity earlier in the fall.

‘Clare Knapp, Ph.D., housing economist for Unlock MLS and the Austin Board of REALTORS®, noted that November’s data reflects continued stability in Austin’s housing market.

‘“November’s sales increase is largely tied to the activity we saw in September and October, when mortgage rates inched down to 6.08% and prospective buyers felt encouraged to move towards buying a home. What’s really driving behavior in the market is where mortgage rates land. Moving forward, despite higher mortgage rates, sales activity should remain relatively consistent year-over-year.”

‘Kent Redding, 2024 Unlock MLS and ABoR president, highlighted the current momentum in the market, emphasizing both the opportunities for buyers and sellers as the market continues to stabilize heading into the new year.

‘“With solid pending sales activity and steady inventory levels, Austin’s housing market is positioned for a steady close to the year. Buyers who locked in lower rates earlier this fall are now finalizing purchases, while sellers are finding promising opportunities as the market stabilizes with the guidance of REALTORS®. Whether you’re ready to build equity through homeownership or have your sights set on a specific neighborhood, now is the time to take action and make your move.”

‘Austin-Round Rock-San Marcos MSA

• 2,130 – Residential homes sold, 4.6% more than November 2023.

• $435,000 – Median price for residential homes, 2.4% more than November 2023.

• 2,570 – New home listings on the market, 2.2% less than November 2023.

• 10,845 – Active home listings on the market, 5.2% more than November 2023.

• 2,255 – Pending sales, 16.7% more than November 2023.

• 4.8 – Months of inventory, 1.1 months more than November 2023.

• $1,193,804,656 – Total dollar volume of homes sold, 8.2% more than November 2023.

• 92.7% – Average close to list price, flat compared to November 2023.’

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 $435K, so you would have still done well investing in Central Texas real estate. Check the latest Central Texas Housing Report for more details and data for the city of Austin and surrounding counties.

Winter Home Maintenance Tips: Winter is here--and has its own home maintenance checklist in Central Texas. Here are a few items to consider during December:

·      Outdoor Tasks:

o   We had a late and beautiful leaf bloom this year. (I have not started raking mine!) Rake leaves and shred to use as mulch or dispose of them based on local guidelines.

o   If you are considering doing some big jobs, like HVAC, external painting, or roofing repair/replacement, remember that this is the slow season for many contractors, and you may get a better price and quicker scheduling now.

o   Clean gutters and downspouts if you did not in the Fall. Call your gutter company to get those gutters cleaned and inspected. Your workers should also inspect the roof for any loose or broken tiles.

o   Don’t forget to protect your people, pipes, plants, and pets when freezes come to town. Web search for “4Ps winterization” for details.

·      Indoor Tasks:

o   If you have ceiling fans, consider switching the rotation of the blades to conserve energy and feel warmer in winter months. Usually this means running the ceiling fan at a slow speed and switching the rotation from counterclockwise to clockwise in winter months. Watch this video for details.

o   Have your furnace professionally inspected if you did not in the Fall; make sure they check for carbon monoxide leaks. Remember to change out your indoor HVAC filters on a regular schedule.

o   Dryer vents: Clothes dryers cause 2,900 fires a year, with many fires happening in the Fall and Winter, according to the United States Fire Administration. Lint is a major culprit, so have your dryer vent inspected and cleaned annually by an HVAC specialist who specializes in ductwork or dryer vents.

Issues of this and previous newsletters are located on the Blog tab of my website at www.chuckfarr.com.