June 2024 Market Statistics

 

In Austin MLS, residential sales units sold in June were down 20% compared to June of 2023.  Active listings of residential properties remain high at 15,414 units as of today.  The number of active listings are increasing as interest rates remain above 6.5% (per Mortgage Daily 6.87% on 30 year fixed conventional on 7/12/2024).

In Lake Travis ISD, residential sales units sold are down 9% compared to last June.  The number of active listings are at 763 today.

If you are considering buying or selling, contact me if this is a good time to buy/sell in Austin.

Ladera Market Statistics for May 2024

 

Ladera neighborhood in Bee Cave, an Austin suburb is showing slow sales in 2024.  The attached figure shows only 3 sold properties since the beginning of 2024.  

Austin MLS faces highest active inventory in over 10 years

 

 

On June 14th, Austin Board of Realtors MLS shows 15,329 active single family residential properties in the MLS.  The chart above shows that this has been the highest inventory ever (chart goes back to 2005), even when the foreclosures/short sales were up in 2010, where the inventory was as high as 13,820.  The current interest rates, per Mortgage Rates Daily, are at 7.01% for 30 year fixed conventional loans. 

What does this mean?  Although we are currently at a balanced market (neither sellers nor buyers market), we are trending towards a buyers market.  This would also mean that prices would have to drop if sellers want to sell.  Many buyers who are in need of a loan are on standby due to the higher than normal interest rates.  The property taxes and property insurance have also increased, hence, considerable additional costs to consider.

Before making a decision to buy or sell, give me a call to give you an understanding of the Austin market through my data analysis.  I just recently finished a Data Science in Real Estate Course from MIT S&P and would like to apply the knowledge I gained.

NAR Reports 10 cities with most Pent-up Housing Demand in 2024

Last month, I attended a NAR economic forecast, led by Economist Lawrence Yun.  Mr. Yun discussed many topics.  But one that I wanted to share with you, is his list of 10 cities where the market with the most pent-up housing demand.  Please go to the attached link to read the full article.

https://www.nar.realtor/research-and-statistics/research-reports/markets-with-the-most-pent-up-housing-demand

In the list, Austin, has earned the top #1 spot.  I am not surprised, with so many people still moving to Austin.   Other Texas Cities that made the list are Dallas (#2) and Houston (#7).  This will make it interesting as interest rates are forecasted to drop this spring.

If you are thinking of buying real estate, NOW is the time to buy before the increase demand surges.

SOURCE: National Association of Realtors website.

Austin Market Statistics for December 2023

 Austin Title reports the following Preliminary Market Statistics for December 2023 for Austin Real Estate:

Units Sold:

2,318 down 16.01% from December 2022

(This number is preliminary and may increase as sales are reported/updated in MLS)

Average Sales Price:

$548,622 down 0.48% from December 2022

Average Days on the Market:

88.06 days up 26.22 days from December 2022

Median Sales Price:

$436,640 down 1.41% from 1 year ago

In conclusion, 2023 was not a good year for Austin Real Estate.  The past 4 years have been much better.

SOURCE: Austin Title

Subject to or Wrap mortgages

As mortgage interest rates increase, we are seeing some creative transactions such as seller paying buy down rates for the buyer, buyers assuming seller's mortgage (if current mortgage allows) and subject to financing aka wrap mortgage. 

A real estate  lawyer, explains in the attached image why he advices against wrap mortgages. To explain, a wrap mortgage is when the buyer makes the payments in behalf of the seller without assuming the mortgage, which means the mortgage will remain under the sellers name though the deed has been transferred to the buyer.  The risk is that the buyer may stop making payments without the sellers knowledge,  hence, the property may go to foreclosure risking the sellers credit. In addition, the mortgage company may accelerate the balance of the mortgage once they find out a transfer of ownership occured. A brokerage I worked for will not allow wrap mortgages because of the risk of liabilities. Most of the time,  the sellers don't understand exactly what they're getting into though a lawyer is needed in writing the contract in this type of transaction.

This chart shows the relationship between the active single family residential property listings (in units) vs sold listings in the Austin Board of Realtor MLS.  In October, it shows 12,870 actives vs 2,585 units sold.  The supply is increasing rapidly as the demand slows especially in the cooler/winter months are here.  The current interest rate is at 7.92% (source: ABOR)