Eleven Oaks Realty is proud to present their October 2023 Austin Condo Price Report measuring activity in the Austin condo market. Our October 2023 Austin Condo Price Report covers all condominiums and townhomes in the City of Austin.
The Austin Condo Market is Almost a Buyer’s Market
With 6.62 months of Austin condo inventory reported in October 2023, we are almost in a buyer’s market. We have been teetering on this edge for the last few months and if things continue to slow down, we should be into a buyers market by the end of the year, which might be the time for buyers to get a good deal. The average list to sales price was 96.9%, down 0.5% in month over month comparisons. The median time to sell jumped 47.37% from last month to 56 days. The median sold price was $388,000, down 10.02% in month over month comparisons.
What does this mean for sellers? Sellers are having to shift their mindset to meet the market. With it taking nearly 2 months to sell, sellers will have to live in a show ready unit for longer. Today’s buyer is taking quite a long time to think and make a decision, so sometimes you can get an offer from a buyer who saw your unit a week prior. Today’s buyers are also being aggressive with their first offers. They will often come up, but they need to know they can’t buy it for the pie in the sky number they want to buy it for. Negotiate with everyone, no matter their offer. You never know what their real bottom line is. Having patience and persistence will go a long way in this market.
What does this mean for buyers? Buyers are almost in the driver seat and probably already feel like they are. Sellers are making concessions and taking less than list price. Appraisal waivers are a thing of the past and often buyers will pay less than the appraised value. Buyers have more time to make a decision and often times have to wait out sellers to get more realistic on their prices. But, they are successful more often than not. If you’re looking for a more business like approach to condo buying, this is the market. And I anticipate it’s going to shift even more towards buyers as we head into the slower winter season.
12.5% Decrease in Median Sold Price
The median sold price of an Austin condo in October 2023 was $388,000 compared to $443,350 in October 2022, showing a 12.5% decrease in year over year numbers. Last month, in September 2023, the median wold price for a condo in Austin was $431,200, showing a 10% decrease in month over month comparisons.
33% Decrease in Number of Closed Condo Sales
In October 2023 there were 107 Austin condos that closed escrow compared to 159 in October 2022, showing a 33% decrease in year over year numbers. Last month there were 169 condos that closed escrow showing a 36.7% decrease in month over month comparisons. Buyer demand for Austin condos is definitely down, which is contributing to the lowering of prices and significant increase in time to sell.
0.7% Decrease in Average List Price to Sales Price
In October 2023, the average list price to sales price for Austin condos was 96.86%, down 0.7% from October 2022 where the average list to sales price was 97.56%. Last month the average list to sales price for an Austin condo was 97.35%, showing an 0.5% decrease in month over month comparisons. Sellers are taking more from their bottom line so they can get their condos sold.
107% Increase in Median Time to Sell
In October 2023, the median time to sell a condo in Austin was 56 days compared to 27 days in October 2022, showing a 107% increase in year over year numbers. Last month, the median time to sell a condo in Austin was 38 days, showing a 47% increase in month over month comparisons.
11% Decrease in Median Price per Square Foot
The median price per square foot of a condo in Austin in October 2023 was $333 compared to $373 in October 2022, showing an 11% decrease in year over year numbers. Last month, the median price per square foot was $381 showing a 12.6% decrease in month over month comparisons.
43% Decrease in Total Austin Condo Sales Volume
The total sales volume for Austin condos in October 2023 was $48,965,563 compared to $86.4MM in October 2022, showing a 43% decrease in year over year numbers. Last month the total sales volume for Austin condos was $92.73MM showing a 47.2% decrease in month over month numbers. The Austin condo market has really slowed in the last month, which is contributing to the decreased prices and higher time to sell.
131% Increase in Months Supply of Condo Inventory
In October 2023, there were 6.62 months supply of inventory on the Austin condo market compared to 2.87 months in October 2022, showing a 131% decrease in year over year numbers. Last month there was also 6.62 months of inventory on the Austin condo market showing no change in month over month comparisons.
12% Increase in New Pending Condo Listings
In October 2023, there were 145 Austin condos that accepted a contract compared to 130 in October 2022 showing a 12% increase in year over year numbers. Last month, 123 Austin condos accepted a contract, showing an 18% increase in month over month comparisons. Buyers are seeing the opportunity in the market and taking advantage.
2% Decrease in Median List Price of an Austin Condo
The median list price of a condo in Austin in October 2023 was $500,000 compared to $510,000 in October 2022 showing a 2% decrease in year over year numbers. Last month the median list price was $489,000, showing a 2.2% increase in month over month numbers. Condo sellers are pricing at about the same number as last year. The decrease in price we are seeing is due to them having to take less for their units to make a sale.
21% Increase in Number of New Condo Listings
In October 2023, there were 297 Austin condos introduced to the market compared to 245 in October 2022 showing a 21% increase in year over year numbers. Though the market is a little tough for sellers right now, more of them are looking to get a sale compared to last year. Perhaps they want to take advantage of the buyers market and move into something that’s a little more suitable for where they are in this stage of their life.
36% Increase in Number of Active Condo Listings
In October 2023 the number of condos on the market was 970 compared to 713 in October 2022 showing a 36% increase in year over year numbers. Last month there were 961 condos on the market showing an 0.9% increase in month over month comparisons.
October 2023 Austin Condo Numbers
In October 2023, there were 111 condos and townhomes that sold in Austin. Condos ranged in size from 373-2,712 sq ft with 0-4 bedrooms and 1-4 bathrooms. The most expensive condo that sold in Austin sold for $1,650,000 and the least expensive condo sold for $165,000. It took, on average, 63 days to sell a condo in Austin and sellers received, on average, 92.37% of their original list prices. The average price per square foot of a condo sold in Austin in October 2023 was $380.44.
|||Bed||Bath||SqFt||List $||LP/SqFt||Sold $||SP/SqFt||SP/LP||SP/OLP||ADOM|
|Status||Sold||Sold Date||October 2023|
|Property Type||Condos & Townhomes||Number Sold||111|
|Source:||ABoR Sales Data||Area||Austin|
Time to Buy? Sell?
As we always say, the time to buy or sell a condo in Austin is when it’s right for you. Trying to time your condo purchase or sale for the market is next to impossible. The only way to know we’ve hit the peak or the bottom of the market is when it’s behind us. The most important factor in the decision to purchase is are you financially and emotionally ready to own a condo? Work with professionals who can help you wade through your finances and living situation and help you make an informed decision.
Looking strictly at the numbers, it’s time to buy. Inventory is up 131% and time to sell is up 107% giving buyers more choices and time, two luxuries they haven’t seen in years. Sellers are getting nervous with the increased time to sell and are making more concessions to try to get their condos sold faster, which is inching prices down. I expect we’ll see more of this as we head into winter and buyers start to focus on end of year holidays and other activities. Typically winter is the best time for buyers to get a good deal and I suspect this winter will be an even better time. We are already slowing down, almost at a buyer’s market, so that should put us firmly in a buyers market once demand dies down. If you want a great deal, start your search now and get it behind you when the busier spring market comes.
If you need to sell, know you’re still able to do that if you have patience and persistence. Be prepared for buyers to change their mind and get through all the contingencies before you determine your unit is sold. That being said, buyers are still out there and they’re making strong offers for units they feel stand out. Make your condo stand out as a value compared to the competition and you will be successful at getting an offer. Remember, positioning your condo as a value doesn’t just mean pricing lower. If you’re looking to sell a condo in Austin, spend some time preparing your condo to meet the market. The best condos are still selling quickly and for more money than they were last year. With some preparation and market appropriate pricing, you’ll have no trouble finding a buyer. Check out our Condo Marketing Plan, which we know is the best in Austin for how our team will sell your home faster and for more money than any other team in Austin.
If you’re looking to buy, be clear on what you want so you can be quick to move an offer if you find something that fits. Don’t wait until the weekend to check out listings in person. If you can, set alerts and get inside properties of interest early, you might just beat out the competition. Buyers have become complacent and are waiting to see condos thinking they have time. If you can beat them to the punch and make offers, you just might be successful. Though interest rates have risen, they are expected to rise even more in the coming weeks, so this might be the lowest we’ll see for a while. Scout new listings as soon as they are listed. Buyers today are getting complacent and waiting days to see condos when it is convenient for them. The problem is the best units are gone by then. Make house hunting a priority and you’ll have some extra time to make a decision. If you’re looking to buy, our team of experienced buyer’s agents can help you find the right condo in the right complex for you and your family. Because we know the market, we’re also pretty good at negotiating good deals as well. Check out our Austin Home Buyer Representation Program for more info about how we’ll consult you to a thoughtful purchase, rather than hard sell you the first condo we see.
Questions About the October 2023 Austin Condo Price Report?
Do you have questions about our October 2023 Austin Condo Price Report? Looking to buy or sell a condo or townhome in Austin? Call us at (512) 827-8323 or email us at info@11OaksRealty.com and we’ll help you in any way we can. If you’re looking to buy or sell Austin condos, don’t forget to check out our Austin Buyer Resources and Austin Seller Resources for more tips.