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This picture shows the numbers from January as a comparison.
*All numbers calculated from ABOR data as of March 1; if the data changes significantly within the next few days, I will update February totals.
February Market Update
I wanted to provide a February market update and show a comparison to the January numbers. The mortgage interest rates for the 30 Yr Fixed fell to about 6.5% averages in the middle of December. This was enough of a drop to increase mortgage application activity and get more buyers into the market. We only saw that lower average around February 1, but between December and February 1 and then after, the interest rates have creeped back up to the low 7% averages for the 30 Yr Fixed.
Due to that increase in activity of homes going under contract in December and January, February numbers will be a reflection of that increased activity. Some of the homes that went under contract during that time, might still be under contract. Of course, there is always room for correction as sometimes the MLS is not updated when a home changes status, but if the numbers change significantly, I will update them when I do the March Market Update.
You will see that the average closed price has increased, and that there is less difference between the active price to sold price ratio. Months of inventory decreased, but I would also say February saw a decreasing number of homes listed as active. Average days on market has not changed, but my guess is that the spring market will bring that number down a bit. The median price point increased as well, going from $430,000 to $445,000.
The Austin market did need to make some adjustments after the high from Spring 2020 – Spring of 2022, but I believe we have normalized for the most part. The lows we saw in 2022-2023 were the low points, and we are slowly trending upward.
Buyers:
For the most part, I would say that we need to watch the average price points. They seem to be increasing, so if you are worried about paying too much, make sure you have a clear picture from your realtor what homes are selling for in your desired area. Ask them to show you the data, so you can understand just exactly what they are looking at, and then trust the information provided to you. Don’t walk away from a well-priced home that is only missing a few small things from your wish list. Simple, cosmetic updates can be made as you are living in the home. As buyers, remember that you make the home what you want it to be. Once your own furniture and decor fill a space, it will feel more like your home.
Sellers:
These trends do not mean you get to run out and place pie-in-the-sky prices on your homes. Remember that if someone is getting a mortgage to purchase your home, it has to appraise for price. If you price it too high, you run the chance of losing your buyer due to the financing not lining up, which also means your home was off the market for several weeks while all of those processes were running. This costs you more money and the buyers more money in the end. When you come back on the market, you will most likely need to do some kind of price drop and wait for a new buyer, which could take time. The longer your home sits on the market, the lower the chances of you getting your asking price. Price your homes appropriately, according to the current market you are in.
I would love to work with you and help you make a plan to sell your home. Set up a time for me to buy you coffee or tea!
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