January Sales Data Points to Signs of Optimism in the Austin Real Estate Market
The Central Texas real estate market is kicking off 2024 with some pretty good vibes! The Austin Board of Realtors recently released their latest Central Texas Housing Market Report, and guess what...we are seeing a nice boost in activity. In January, sales of residential homes went up by 4.3%, with a total of 1,667 homes getting snapped up. Plus, there's more good news with pending sales climbing 3.8%. This jump is a great sign, showing the market's heating up and bringing more opportunity for buyers and sellers to make their move.
Even though mortgage rates are still on the high side, they've taken a bit of a dip recently, making homes a bit more affordable and spurring buyers into activity as their purchasing power is starting to go up. This January, for the fifteenth month in a row, the market saw a decrease in median sales price year-over-year, making it easier for folks to buy.
I realize that we're only one month in so we don't have much data to go on, but it really feels like we are in the early stages of a market recovery. It will be interesting to watch activity as rates come down throughout the year. Experts are forecasting that the Fed will start cutting interest rates in May 2024, and mortgage rates are expected to follow suit (possibly even dipping a bit before that).
What does this mean for you:
If you're a buyer
On the surface, things seem pretty steady, but brace yourself for a bit more competition come springtime. While more appealing rates are on the horizon in a few months, you might find yourself paying a bit more for that dream home. I still think that 2023 offered a solid chance to buy, despite higher interest rates, and I think 2024 will also be a great time to make a purchase. If we truly have hit the pricing bottom, and if the 50,000 buyers who sat on the sidelines last year decide it's time to act, we will see prices start to rise again as demand builds. Remember: you can always refinance your loan (or buy it down at the time of purchase), but you cannot go back in time and change your sales price. Now's the perfect moment to dive into the Austin market.
If you're a seller
We're heading into the prime season for sellers to get their properties ready and on the market. Demand has picked up since the holiday lull, which, while expected, is definitely reassuring. If selling your property is on your agenda for this year (or if you're considering it), spring and early summer are the golden window to make your move. I'm always happy to help with staging tips and ideas to boost curb appeal to get top dollar for your home, so please reach out if you are thinking about selling.
