Austin Business Journal reports, "Mortgage rates remain elevated compared to recent years, but Austin-area homebuyers have a robust inventory of choices, according to the latest market data from the Austin Board of Realtors and Unlock MLS.
The median sale price for homes fell slightly in October to $430,000, a 3.2% drop from the same time last year. And with a housing inventory that eclipsed the five-month mark, buyers had plenty of options.
Meanwhile, overall transaction volume remained flat year-over-year, as both active and new listings increased compared to October 2023.
But elevated mortgage rates — the average 30-year fixed-rate mortgage was 6.79% for the week of Nov. 7 — continue to be the biggest factor affecting home sales, said Clare Losey, housing economist for ABOR and Unlock MLS.
“Mortgage rates averaged 6.4% in October with signs pointing to them remaining in the low- to mid-6% range as we head into 2025, even with the Fed’s second rate cut last week,” Losey said in a statement. “Buyers waiting on the sidelines for rates to drop significantly may be in for a long wait. In the meantime, sellers must recognize that bringing buyers to the table requires a more aggressive pricing approach. Even in a more balanced market, buyers with limited purchasing power are struggling to meet current price expectations.”
Buyers who do come off the sidelines have an expansive home inventory to choose from. While inventory levels haven’t quite hit the six-month mark — which is the level commonly cited as healthy — October’s housing inventory hit 5.1 months, up 0.5 months from the same period last year.
October saw 2,248 homes sold, a slim 1.5% year-over-year increase. But as home sales remained flat, there were 3,333 new home listings in October — a 7.4% year-over-year increase — and 11,599 total active home listings, a 9.3% year-over-year increase.
Rising inventory levels point to some long-term positives, Unlock MLS and ABOR President Kent Redding said.
“It’s important to remember where we’ve come from,” Redding said. “Austin led the state and nation in record-breaking home price growth and sales activity during the pandemic. For three years, near-zero housing inventory, numerous offers above list price and a rapid-paced market raised home prices and left little negotiating power for buyers. During this record-setting growth, ABoR and Unlock MLS consistently emphasized the unsustainability of the rapid growth, and now, our market is working to balance those extremes.”"
Source: Austin Business Journal
Written by: Cody Baird
Published: November 13, 2024
Posted by Grossman & Jones Group on
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