One of the biggest questions I’m getting right now is: How long are homes actually taking to sell in Austin? At the end of November and December, the average days on market in Austin was about 90 days. Yes, 90 days. That means from the time a home hit the MLS until it went under contract, the average was three months. Some homes went under contract quickly. Others have been sitting 120, 180 days, even close to a year. And right now, that is not unusual. So if you see a house that’s been on the market more than 90 days, is something wrong with it? Most likely, no. Of course, do your due diligence and have inspections. But in today’s Austin market, longer days on market are normal. This is very different from the COVID years when Austin saw some of the highest price increases and lowest inventory in the country. Back then, homes sold in days. Today, we have inventory. What is inventory? It’s simply the number of homes available for sale. And right now, if you walk out your front door in Austin and throw a rock, you’ll probably hit a For Sale sign. There are multiple homes for sale on almost every block in many neighborhoods. What does that mean for buyers? It means you have time. You can breathe. You can think. You don’t have to make a decision in two hours. But here’s the key: buyers expect move-in ready. With so many choices, if your home isn’t updated or priced correctly, buyers will walk next door. There is likely another home for sale. That said, a well-priced, move-in ready home will still go under contract quickly. In Circle C, for example, we recently had 25 groups through one Sunday open house and went under contract two days later. The home was on the market just four or five days. That neighborhood, looking at January data, is averaging about 29 days on market. Here’s how a few other areas compare based on January numbers: 78745 in South Austin is averaging about 48 days. 78746, the general Westlake area, is around 65 days. 78704, including Travis Heights, Bouldin, and Barton Hills, is around 69 days. You can see how it varies by neighborhood and price point. That’s why it’s so important to talk to your agent about expectations specific to your area. If a home has been on the market 120 days, what does that usually mean? In many cases, it means it started too high. Pricing has been shifting and adjusting. Right now, the average contract price in the City of Austin is about 4 percent below the last list price. That’s important. That does not mean 4 percent below the original price. Many homes have already reduced 10 percent or more from where they began. The market has likely hit more of a plateau, but pricing correctly is everything. Sellers need to understand that the price has to match what the lender’s appraisal will support. That matters. Now let’s talk interest rates. As of this morning, we’re just under 6 percent. I have a buyer closing today at 5.5 percent with a rate buy-down. Depending on credit and assets, buyers can secure rates under 6 percent right now. So what does all of this mean? For buyers: this is the best buyer’s market we’ve had in years. You have time. You have choices. You have negotiating power. For sellers: homes are still selling, but they must be move-in ready and priced right. Do not assume a buyer wants a project. They don’t. They want turnkey. If you’d like specific data for your neighborhood, call or text us at 512-994-9206. Our team is here to help you buy, sell, or lease in Austin and the surrounding areas. As always, we’re here to guide you and help you make smart, confident decisions in this market.
