The Federal Reserve's monetary policy and interest rates continue to be the biggest drivers of our market. While prices have stabilized, we've seen more sellers entering the market in 2024 than buyers. This influx has led to an increase in active listings and overall inventory. Here are the key highlights from the May 2024 Austin market statistics:
- Average and Median Sold Prices: Slight decreases of -1.1% and -2.1% Year Over Year (YOY).
- Sold Units: Down by -5.5% YOY in May, following a nice increase in April.
- Pending Units: Decreased by -5.9% YOY, with a similar trend expected for June.
- Sold Volume: Declined YOY for the first time since January.
- New Listings: Up by +18.4% YOY.
- Active Listings: Increased by +22.6% YOY.
- Expired and Withdrawn Listings: Up by +30.9% YOY.
Contracts Decline While Prices Remain Stable
Pending Units dropped by -5.9% YOY in May after seeing negligible changes in April. Pending Units often indicate market demand, so we expect Sold Units to decrease similarly. Prices remain stable because many sellers prefer withdrawing their listings rather than lowering their prices, leading to a +30.9% YOY increase in Expired/Withdrawn Listings.
MOI, New and Active Listings Increase 📈
New Listings have surged for the fourth consecutive month, with Active Listings up by +22.6% YOY. The combination of fewer Pending Units and more Expired/Withdrawn Listings pushed Months of Inventory (MOI) to 4.0, a +22.5% increase YOY, though slightly down from April 2024.
Sellers vs. Buyers: A Market Stalemate 🤔
The market has more new sellers than buyers, with buyer purchasing power hampered by mortgage rates. Sellers with historically low fixed rates are reluctant to lower their prices, creating a stalemate.
Sold Volume: A Potential Trend? 📉
May 2024 saw a -6.56% decline in Sold Volume, the first since January. As we approach the presidential election, we might see a trend of volume declines due to the usual negative sentiment that accompanies election campaigns.
Advice for Buyers 🛍️
The market currently favors buyers, with more listings than new buyers. However, many sellers are unwilling to reduce their prices due to favorable mortgage rates. When house shopping, be prepared for mixed messages—your favorite house might not have a favorable price. Decide whether to keep shopping or go for the house you love the most.
Advice for Sellers 🏷️
The market is challenging but not impossible. Active Listings are rising, but MOI remains stable due to many sellers withdrawing their listings. With a seasonal decline in demand approaching, it's crucial to strategize your pricing and have a "Plan B." Work closely with your agent to develop a robust pricing strategy and pay attention to buyer feedback.
Keep an eye on the market and stay connected with Sean Harden Realty for the latest updates and expert advice. Whether you're buying or selling, we're here to help you navigate the Austin real estate market.
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Feel free to reach out with any questions or to discuss your real estate needs. Until next time, happy house hunting or selling! 🏡💼
