Central Texas housing inventory grows, offering buyers more choices in high-rate market
In October, active listings across the Austin-Round Rock-San Marcos MSA increased 9.3% to 11,599 listings. This brings the total months of inventory for the region to 5.1 months of inventory, up 0.5 months more compared to October 2023. The data coupled with the average close-to-list price ratio hovering at 92.7% indicates that buyers have more options to purchase a home they can afford in a high interest-rate environment while sellers still have some room to negotiate.
Clare Losey, Ph.D., “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. 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.”
Kent Redding, “News headlines that characterize the Central Texas housing market as ‘ground zero’ are an extreme over-exaggeration. It’s important to remember where we’ve come from. 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.”
You’ll find comprehensive information on the current market stats right here. Additionally, for more details, feel free to explore www.abor.com.
If you would like to see a comparison to the Market Stats from October 2023, click here.
If you’re curious about markets beyond Austin, take a look at the Corpus Christi market.
