ATX – MSA Market Stats for January 2024

by | Mar 22, 2024 | Client Resources

What’s in store for 2024?

Hope you’re well!  I’m loving this spring weather!

Here is a look back at our ATX real estate market for January 2024, and a peak at what we believe is on the horizon for this year!

Image of Austin Market Stats for January 2024

Last month, the market certainly showed signs of picking up in response to the slight dip in interest rates in January. Mortgage applications and showing reports increased. Pending and closed sales increased as well!

This was especially evident in the speed of pending contracts for homes priced at $500K and under. I was and still am seeing multiple offers again at that price point!

Here is how January 2024 market activity compared with January 2023.

  • Median sales price = $430K (down 4%)
  • Sales price vs Original List price = 93%
  • Months of Inventory = 3.2 months (balanced market)
  • Average Days on the Market = up 9 to 86 days
  • Active Listings = down 3%
  • New Listings = up 5%
  • Pending Sales = up 3%
  • Closed Sales = up 4% (confirmation that January picked up)

Yet, just as we were feeling super excited about decreasing rates, rates took a slight uptick again, pushing mortgage application activity down just a bit over these last two weeks. But that also means less competition for buyers.

Mortgage Rate Rollercoaster

Image of Mortgage rates from march 2023 to February 2024

Mortgage rates peaked at 8% in October and then declined in November. After positive statements from the Fed in the December meeting, rates dropped again and were sitting in the mid 6% range in January. I even saw lower quotes for 30 yr fixed!

Inflation numbers came in at 3.1% in January, but still a little higher than the expected 2.9%. We now have seen about a 25 basis point (.25%) increase over the past month.

Strength in the labor market continues to delay the Fed’s action on rates. Tomorrow’s (Feb 22) job report will be interesting as the jobless numbers have been healthy in recent months. Obviously, less unemployed means stronger wage growth, and thus creates inflationary pressures that the Fed does not prefer.

Now we await the Fed as we go continue through Q1 2024. We will see what announcement is made in March and how rates are affected. However, the Fed wants to see evidence that inflation numbers are moving closer to 2%, and that may not be probable in the next 27-28 days before the next meeting…but perhaps by April/May timeframe.

Despire this uptick, I believe we will see more positivity late spring/summer! Even the slight rate decrease in January had buyers and sellers excited.

Image of Inflation Rates from April 2023 until January 2024

If You’re a Buyer

You’re likely gearing up for your purchase in 2024.   More homes will continue to hit the market as we enter the spring months. We’re already seeing more buyer demand, but the competition isn’t too fierce just yet. I anticipate the later spring/summer market will be more competitive, especially if we see any decrease in mortgage rates.  However, with the price correction and lessened competition, I strongly believe that 2024 will be viewed as a buying opportunity in hindsight.

If You’re a Seller

Timing is everything and it is currently on your side. Take the next 2-3 months to prepare your property for market and plan to list in the spring/summer. When buyer demand increases (and it is already), showcasing your home in the best condition possible will be so important.

As always, real estate is hyperlocal and hyper-situational, so please reach out to me to discuss your specific situation.

I would love to help you and strategize what’s in your best interest!

Image of Meleah Wehman Top Producer of 2023 for Realty Austin/Compass

Lastly, a quick, yet very heartfelt THANK YOU for your trust and support! 

We had our Company Wide Annual Agent Awards ceremony today, and I was honored to be recognized as a Top Producer in 2023.

I greatly appreciate your friendship and business, and look forward to being of service to you in the future!

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