ATX Housing Highlights - October 2023

As we dive into the October 2023 market statistics for the Austin area, it's clear that our real estate landscape continues to evolve. Despite the backdrop of higher interest rates compared to earlier this year, the stats show that buyers continue to enter the market and are not showing signs they are worried about rates. We've witnessed many motivated sellers offering creative seller financing at substantially lower interest rates compared to traditional lenders and more buyer assumable loan offerings with rates as low as 2.75%!  

While the median sales price declined, Clare Losey, Ph.D., a housing economist for ABoR, pointed out that this drop should be viewed in the context of long-term equity gains. The median price remains an impressive 44% higher than it was in September 2018, highlighting the potential for homeowners to build generational wealth.  Furthermore, while closed sales have seen a modest 3% year-over-year decrease, the increase in pending sales by 3% indicates that buyers are still confidently entering the market. This influx of buyers is finding more bargaining power throughout their transactions, as reflected in the 26-day increase in the average days on market.

Additionally, the report sheds light on the housing supply challenges in Austin, particularly by City Council District and among various racial/ethnic groups. The ABoR calls for comprehensive reforms and policies to make homeownership more attainable for individuals across different income levels, emphasizing the need for abundant and affordable housing options in Austin.

In essence, this evolving market scenario provides opportunities for both buyers and sellers. As we approach the new year, we are excited for the opportunities the market brings for all parties and continue to scour for off market opportunities for our clients and share winning strategies.

With Love from ATX,

Khani Zulu Group