Eleven Oaks Realty is proud to present their October 2023 Austin Real Estate Price Report measuring activity in the single family home market.
Austin Is Still Hanging On to a Seller’s Market
For the past few months, the narrative has been the same. Austin is a seller’s market but still hovering around the 4-5 months of inventory, which is considered to be approaching a balanced market. This month we inch down a little to 4.28 months of inventory, down 7.16% in month over month numbers as last month had 4.51 months of inventory on the market. Sellers received, on average, 96.9% of their list prices, up 0.13% in month over month numbers. The median time to sell a home in Austin was 47 days, up 17.5% in month over month numbers. Though it seems like a big jump, it’s a jump we expect as we get into fall and winter. The median sold price of a single family home in Austin in October 2023 was $595,000, up 0.08% in month over month numbers.
What does this mean for buyers? Buyers continue to see a break in the market. Though we are still in a seller’s market technically, practically we are seeing a completely different market than we had been for years. We are seeing price reductions, increased time to sell (so more time for buyers to make a decision), sellers making concessions to attract buyers and a more professional way of buying a home. Interest rates are up, so you want to get a sense for your monthly payment and where that leaves the rest of your budget. That being said, interest rates are about the only thing that’s not in a buyers favor in our current market. We’re not seeing appraisal waivers, overbids or the frenzy we saw two years ago. Buyers can pick the home they want and negotiate a fair deal for it.
What does this mean for sellers? Sellers who have patience and work with the market will be successful. Patience and persistence is the key in this market. With a median time to sell of 47 days, it’s taking buyers a while to find your home, see it and make an offer on it. Some sellers have had success offering interest rate buy downs and others see more success by really setting their homes apart from the competition. A few hundred dollars and several hours to spruce up your home can mean the difference between getting an offer or sitting on the market. Work with a Realtor who has strategies for how you can be successful in your neighborhood so you can get your home sold and move on to the next chapter of your life.
Median Price Down 0.83%
The median price of a single family home in Austin went from $600,000 in October 2022 to $595,000 in October 2023, showing an 0.833% decrease in year over year numbers. Last month, the median price of a single family home in Austin was $594,500, showing an 0.1% increase in month over month numbers.
3.7% Decrease in Number of Closed Sales
There were 554 single family homes in Austin that closed escrow in October 2023, compared to 575 in October 2022, showing a 3.7% decrease in year over year numbers. Last month in September 2023, there were 622 sales, showing a 10.9% decrease in month over month numbers. Demand has cooled off compared to the height of the market, so that’s allowing us to get to a more balanced market.
0.4% Decrease in Average List Price to Sales Price
In October 2023, the average list price to sales price was 96.9% compared to 97.26% in October 2023, showing an 0.4% decrease in year over year numbers. Last month, in September 2023, the average list price to sales price was 96.77%, showing an 0.1% increase in month over month numbers. We have really seen pretty much a straight line from last year with a few slight variations. Sellers are getting about the same percentage of list price as they have been for the past twelve months.
42% Increase in Median Time to Sell
Median time to sell is where we have seen more variation over the past year. In October 2023, the median time to sell was 47 days compared to 33 days in October 2022, showing a 42% increase in year over year numbers. Last month in September 2023, the median time to sell was 40 days, showing a 17.5% increase in month over month numbers. Over the past year, we have ranged from a median of 21 days to sell in July to 76 days in February. The upward trend is very typical as we head into winter, even in the busiest of years.
3.5% Decrease in Median Price Per Square Foot
The median price per square foot of a single family home in Austin in October 2023 was $305 compared to $316 in October 2022, showing a 3.5% decrease in year over year numbers. Last month, the median price per square foot was $300, showing a 1.7% increase in month over month numbers. Though we hear the media tell us the market is falling, we really aren’t seeing too drastic a change in prices.
4.4% Decrease in Total Sales Volume
In October 2023, the total sales volume for single family homes in Austin was $447,309,191 compared to $468.09MM in October 2022, showing a 4.4% decrease in year over year numbers. Last month, the total sales volume was $487.24MM, showing an 8.2% decrease in month over month numbers.
Months Supply of Inventory Up 22.6%
In October 2023, there were 4.28 months of inventory on the market compared to 3.49 months in October 2022, showing a 22.6% increase in year over year numbers. Last month, there was 4.61 months of inventory on the market, showing a 7.2% decrease in month over month numbers. With the closed sales and homes taken off the market in preparation for the holidays, we are seeing a small dip in inventory compared to last month though we do have significantly more inventory on the market now than we did last year, which should be a welcome sign for buyers who have been waiting for the right house to pop up.
28% Increase in New Pending Listings
In October 2023, 588 single family homes in Austin accepted a contract compared to 458 in October 2022, showing a 28% increase in year over year numbers. Last month, in September 2023, there were 648 single family homes that accepted a contract, showing a 9.3% decrease in month over month numbers.
7.6% Increase in Median List Price
In October 2023, the median list price of a single family home in Austin was $699,000 compared to $649,900 in October 2022, showing a 7.6% increase in year over year numbers. Since July 2023, the median list price has been the same in Austin, showing sellers are not trying to continue to increase their list prices like they were two years ago.
3.3% Decrease in Number of New Listings
In October 2023, there were 902 single family homes listed for sale compared to 933 in October 2022, showing a 3.3% decrease in year over year numbers. Last month, there were 1,003 new listings, showing a 10.1% decrease in month over month numbers. This market is a market of necessity versus a market of want. Most sell and buy because they have a driving reason to (job relocation, closer to family, new or fewer family members) versus two years ago when the market was hot, they sold because they wanted to. With that change in mindset, we are seeing fewer sellers list their homes.
11% Decrease in Number of Active Listings
In October 2023, there were 2,645 single family homes on the market compared to 2,970 in October 2022, showing an 11% decrease in year over year numbers. Last month, there were 2,800 active listings, showing a 5.5% decrease in month over month numbers. Less supply is helping keep us at the upper end of the seller’s market curve.
October 2023 Austin Real Estate Price Report – Strictly Numbers
For those of you who prefer to see the actual numbers, we’ve included the figures for October 2023 Austin home sales below. The most expensive home that sold in October 2023 sold for $11,500,000 and the least expensive home sold for $175,000. Homes ranged in size from 720 sqft – 8,740 sqft with an average size of 2,27011 sqft. The average price per square foot for a home that sold in Austin in October 2023 was $348.37 with the lowest being $127.44/sqft and the highest being $1,319.47/sqft. It took, on average, 59 days to sell a home in Austin and sellers received, on average, 91.67% of their original list prices.
|Beds||Baths||SqFt||List Price||LP/SqFt||Sold Price||SP/SqFt||SP/LP||SP/OLP||ADOM|
|Status||Sold||Sold Date||October 2023|
|Property Type||Single Family Homes||Number Sold||567|
|Source:||ABoR Sales Data||Area||Austin|
Time to Buy? Sell?
As we always say, the best time to buy or sell a home is when you need to buy or sell. If you have a house to buy, buying when its a sellers market may hurt you on the buying end, but you’ll make it up on the selling end. If you’re trying to get into the market for the first time, the only way you’ll know that we’ve “hit bottom” is when its in the rear view mirror. Work with professionals who can help you analyze your financial and lifestyle to determine if now is the right time to buy or sell.
Looking at the Austin market only and comparing where we have been in the past several years, it’s time to buy! Though we’re still in a sellers market, we are seeing more favorable market conditions for buyers than we’ve seen in years. Price reductions, increase time to sell, sellers offering concessions and willing to make repairs, no appraisal waivers and an overall more sensible approach to home buying. Buyers do need to factor in interest rates to get a good handle on budget, but if those numbers work out, we are really seeing some great deals for buyers, especially when compared to two years ago. Though interest rates were lower back then, most often buyers were having to come up with extra cash to close the gap between the appraisal and offer way over asking just to get the house. We aren’t seeing that anymore. Often, buyers are able to pay less than appraised value, so it’s really been a much more pleasant experience these past few months.
If you’re looking to buy, get with a knowledgeable mortgage broker who can guide you to getting the lowest interest rate possible. We are starting to see the frenzy pause for a minute, as hesitant buyers wonder what to do. Take advantage of lower demand and get in before interest rates rise again. The best homes are still selling quickly, so you don’t want to wait too long once you see a home listed that you like. If you’re looking to buy, we can help you be successful. We have experienced several market shifts in our careers and know how to navigate them. For more info about buying a home, visit Buy a Home in Austin.
If you need to sell, don’t be discouraged. Know it’s going to take a little more time, but also know that if you stick it out, you’ll be successful. If you’re a seller who needs to sell now, work with a professional Realtor who can help you position your home as the best value on the market. Check out our 88 Ways to Sell Your Home Faster and For More Money for some tips on how you can prepare your home to meet the market. For more info about our Home Selling Program and why it is the best in Austin, check out Sell My Austin Home.
Questions About the October 2023 Austin Real Estate Price Report?
Do you have questions about our October 2023 Austin Real Estate Price Report? 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 real estate, don’t forget to check out our Buyer Resources and our Seller Resources for more tips.