Austin Tx Real Estate is a Buyer’s Market: The 2024 Scoop on Homebuying
Jun. 19. 2024
Hey Austinites or future Austinites! Let me tell you why buyers are getting the VIP treatment in the Austin real estate market right now!
We have 422% more inventory now than we did two years ago (yes the pandemic was definitely an anomaly and many people moved to Austin, seeking all the perks of Texas living). And to compare that to last year alone-there is about 4.1months of inventory in the Greater Austin area now (pre-pandemic times, we have had about 2-3mo of inventory).
But now that the dust has settled, we have more inventory than we have had in over 10 years in Austin Texas!! So what does that mean for our buyers??
Well, I will tell you –
Options – Buyers have more to choose from in the Austin real estate market than they ever have before. Two years ago a buyer could not find a one story with decent schools under $500,000 without overpaying by $150,000, now a buyer has plenty of options and they can be choosy. We have 5mo of inventory. (See below for definition of inventory) but essentially the higher levels of inventory–the more in favor it is for home buyers. Austin typically operates around 2mo of inventory and it was down to two weeks during the height of the pandemic.
Negotiation power– New roofs, closing costs, money from sellers to buy a lower interest rate on the buyer’s home loan–there are lots of ways to negotiate on these homes! Builders are also offering incentives galore as they have inventory sitting. See our case studies below of the last few transactions where we have scored for our buyers! Having an agent with years of experience on your side and market knowledge plus industry relationships is a benefit to getting a great deal! Whether it’s closing costs to bring less money to the table, a credit for flooring, or a new roof, the power is in the hands of the buyer currently.
Deals! Finally, the prices have decreased in the Austin market and you can avoid overpaying. When a home has been on the market for quite some time, or homes that were not marketed properly. Typically the better deals are found on properties that have been on the market more than 60 days. As one can imagine, the longer a home sits on the market, and a seller keeps paying expenses and costs of owning the home, the more “desperate” a seller can become to accepting a lower offer.
Below are some case studies (aka recently closed homes) where my team and I negotiated for our last homebuyers.
In the last two quarters of 2023 we saved our clients a combined $329,000 across 11 properties.
In 2024 so far:
A home in Pflugeriville-Negoitiated $34,000 in combined sales price and closing cost credits
Another homebuyer purchased a multifamily property in 78757-saved $54000 from the list price and received some repairs before closing completed!
Another lovely property in NW hills our clients wanted to remodel, which means they wanted to bring less cash to te closing table (to invest cash in improvements), so we negotiated $60k in closing costs and an additional $25000 from the sales price and the home was only on the market 5 days.
So yes, “deals” can still happen on homes that have been on the market a few days. As we advise our sellers “a bird in the hand is better than two in the bush” so if there are no other potential buyers lingering or inquiring (then definitely work with what you got!)
Please keep in mind that Austin is a hyper local market. As a buyer, if you are studying the market and you see a desirable home hit the market that fits your budget and criteria that you believe is priced well, chances are it is going to move pretty quickly. In order to score a deal in this market sometimes you have to look at the “not so pretty homes” and the properties that have been on the market more than 30 days.
My last two listings for sale in Maple Run have received multiple offers. Why? Because we priced aggressively, staged the home, had pre-inspections complete and they were a very attractive price point. So yes, being competitive for a home can still happen, but the key is setting yourself up for success has a homebuyer with a pre-approval, lender scenarios and understanding the market.
Studying what properties recently sold for, especially in the last 30 days will help you keep an educated grasp on the Austin real estate market. Once you hone into a neighborhood, it is good for your agent to explain overall inventory for that area.
Some communities have a lot of inventory (aka homes for sale) therefore, buyers have a bigger advantage in negotiating and homes will typically take longer to sell.
I have some great YouTube videos for homebuyers and sellers as well. Here are some of my solid take-aways being in the Austin real estate industry as long as I have–HERE.
And for my homebuyers–HERE is a video you may want to watch as you begin the process.
If you are a potential home buyer in the Austin area and wanting to start the journey–let’s schedule a call today. Our team believes in educating clients, so they feel more assured when making their decision. Something I find myself saying quite a bit is “I will control the process, you will make the decisions.” The more we can prepare you for what’s to come, the more reassured you will feel about your home purchase.
Definition of Inventory: Inventory is calculated monthly by taking a count of the number of active listings and pending sales on the last day of the month. If inventory is rising, there is less pressure for home prices to increase.
To understand this more you can click the article HERE