Luxe Austin Homes - supply

"More listings add much-needed housing inventory, but some homes are sitting on the market longer"

Austin Business Journal writes, "The first few weeks of 2025 have brought an uptick in home listings, but whether housing inventory currently on the market is priced to sell remains to be seen.

New for-sale listings rose 7.9% in the four-week period ending Feb. 2 compared to the same timeframe a year earlier, according to data from Redfin Corp. (Nasdaq: RDFN). Despite the increased inventory, pending sales were still down 8.1% year over year.

Some of the pending sales slowdown could be seasonal or related to economic uncertainty, but mortgage rates and high home prices — including among newly listed inventory — are also keeping many would-be buyers sidelined.

Inventory is beginning to accumulate, and some homes are taking longer to sell, largely…

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"4 things to know about Austin’s housing market in 2025"

ATX Today writes, "Predictable, steady, opportunity. Those are the words Unlock MLS Housing Economist Dr. Clare Knapp used to describe Austin’s housing market this year at the Austin Board of Realtors Headquarters today.

If you’re looking to buy or sell a home in the Capital City in 2025, here’s what to expect. 

1. Predictable mortgage rates

Knapp said mortgage rates will likely stay in the 6% range during the first half of the year and might dip into the 5% range later in 2025.

2. Consistent home prices + sales

Active listings in Austin were up by nearly 15% in 2024, and Knapp said healthy inventory is expected to carry over into 2025. Home sales and prices will probably remain flat, but Knapp emphasized that prospects may still be…

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"Millennials desperate for affordable homes are willing to make surprising concessions"

Austin Business Journal reports, "Few millennials believe their generation can afford a home, and some are so desperate for an affordable purchase they would be willing to buy a home with serious defects.

According to a new survey of millennials by Clever Real Estate, just 21% of millennials believe their generation can afford a home, a substantial decline from 52% who said the same in early 2024. Additionally, 96% of respondents said they have concerns about purchasing a home, with 44% saying they're worried about finding an affordable home — up from 35% in 2024.

The report notes that the median home price is about $420,000, but 68% of millennials who want to buy a home in 2025 want to spend less than $400,000. That's up from 57% who planned to…

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"Zillow economist calls Austin’s housing market ‘healthy’ going into 2025"

AUSTIN (KXAN) — "A senior economist for real estate company Zillow told KXAN that the Austin-Round Rock Metropolitan housing market is set to enter 2025 in a “healthier” spot than its previous “unsustainably hot” situation.

Zillow senior economist Orphe Divounguy said in a Dec. 11 interview that 2024 saw a “cooling in the housing market.” The company rated the Austin-Round Rock Metro as a buyer’s market in an October 2024 report.

“We’re in a period of transition, and we’re going to continue to see home sales continue to rebound slowly from the big trough that we had in 2023,” he said. “The big surprise at the national level was the fact that we started to see some sellers return.”

Divounguy’s prediction for the national market in 2025?…

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"Forecasts in 4 top markets a reminder that real estate is local"

Key points:

• During NAR’s annual real estate forecast summit, a panel of economists shared predictions for their markets in 2025.
• Compared to much of the country, Austin and Florida have significant inventory, while in Virginia and California, supply remains constrained.
• Regional issues including post-boom rebalancing, chronic underbuilding and job shifts will continue to impact local markets next year.

RealEstateNews.com writes, "As real estate agents and brokers prepare for 2025, they will need to consider how national forecasts — including predictions of more transactions in 2025 — apply to their local markets.

While the mantra "all real estate is local" remains in play, some trends proved fairly consistent between 2020 and…

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"Here's a look at changes Austin made to development regulations in 2024"

Austin Business Journal shares, "It has been a year of change in Austin for regulations around homebuilding, with many new policies enacted that are meant to boost the supply of residences. 

They include new density bonus programs that enable developers to build taller buildings if they include affordable units, as well as modifications to rules governing lot sizes and how many homes can be built on them.

Here is a look at some of the changes enacted in Austin in 2024, in addition to proposals that the City Council may consider soon.

HOME Initiative 

One of the most debated undertakings was the implementation of the HOME Initiative, which altered the rules regarding how many homes can be built on single-family lots and also reduced the…

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"Housing Market Predictions For 2025: When Will Home Prices Drop?"

Forbes Advisor writes, "Home prices remain at record highs and mortgage rates are climbing again. Is there any relief in sight for buyers? Potentially. Although home prices continue to break records, they’re rising at a slower pace due to loosening inventory and sluggish demand—and experts project further price growth deceleration in 2025.

Meanwhile, even as many are still waiting for lower mortgage rates before taking the home-buying plunge, pending sales data indicates that at least some prospective buyers are starting to dip their toe into the market.

In fact, experts say now might be the ideal time for buyers to get ahead of a potential demand surge in 2025—one that could drive home prices up again and leave some would-be homeowners out in…

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"There Are Now 30 Renters for Every Home for Sale in the U.S."

Realtor.com reports, "the number of homes for sale for each renter household in the U.S. remains near record lows, highlighting the supply crunch that first-time buyers face in the current housing market.

Currently, there are about 30 renter households for each available home for sale, up from less than 10 in 2006, according to Freddie Mac’s latest market outlook report.

The supply shortage dates back to the Great Recession, which dealt a major blow to new home construction. Since then, construction has slowly increased, but failed to keep pace with demand, resulting in a shortage of at least 1.5 million homes.

“Therefore, not only do people seeking to buy their first home have to navigate an expensive market, but they also have to compete…

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"Mortgage rates finally fell, but homebuyers still face a big problem"

Austin Business Journal writes, "The Federal Reserve may have cut interest rates last month, but homebuyers still face a challenge when assessing the current market for real estate: home prices.

Prices were up 5.9% in the third quarter this year over the same three-month period in 2023, according to data from Fannie Mae. While that increase is down from a 6.4% spike in the second quarter, it’s still a substantial jump for buyers who are looking for a home.

Mark Palim, Fannie Mae senior vice president and chief economist, said the “robust” growth is because of a lack of supply. Many current owners don’t want to sell their homes and give up the low interest rate they obtained earlier only to step into a high-interest rate environment.

“Even though…

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"Down Payments Are Dropping From Historic Highs—See How Much Homebuyers Can Save Today"

Realtor.com writes, "homebuyers might be relieved to hear that down payments are finally dropping from recent historic highs.

A new report by Realtor.com® shows that the median down payment homebuyers plunked down from July to September of 2024 was an average of 14.5%—or $30,300.

That’s a $2,400 savings from last quarter’s historic peak of $32,700 (14.9%).

So why are down payments dropping? Fewer homebuyers are out there, which gives those who do brave today’s market more leverage, according to Realtor.com senior economic research analyst Hannah Jones.

“The annual decline in down payments is the result of less buyer competition in the third quarter,” Jones says. “Easing demand and increasing inventory gave buyers more flexibility last…

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