Austin went from one of the fastest selling cities during the pandemic to the third slowest, a recent analysis from Redfin shows. Combine this slowdown with a decreased migration to Texas and we finally have a more balanced market where locals can buy a home in Austin. This should be a welcome sign for buyers who have been trying to get in the market but have been frustrated with the highly competitive marketplace. Now, buyers have more time to make a decision, less competition and more motivated sellers who are willing to make concessions to get their homes sold. Why was Austin named the third slowest selling market in the US? Where are the fastest selling markets? What does this mean for Austin home buyers? Spoiler alert – it’s actually great news if you’re a home buyer. We’ve answered all of those questions below.
What are the Fastest Selling US Markets?
Albany New York is the fastest selling market in the country, which had a median time to sell of 8 days. Next on the list were Rochester, NY, Grand Rapids MI, Buffalo NY, San Jose CA and Seattle WA. The first four are some of the most affordable US cities with median prices of $235,000 in Rochester, $255,000 in Buffalo and just over $300,000 for Albany and Grand Rapids. The lower cost of housing has kept housing affordable, even at higher interest rates.
How are the Markets in the Fastest Selling US Markets?
To give you an idea of how these top markets compare to the slower markets, I’m going to include a snapshot of each in October 2023.
Albany, NY
Rochester, NY
Grand Rapids, MI
Buffalo, NY
San Jose, CA
What are the Slowest Selling US Markets?
The slowest sellers were also interesting. New Orleans was the slowest market with a median time to sell of 70 days, Honolulu at 62 days followed by Austin at 59 days, West Palm Beach FL at 58 days, McAllen TX at 53 days and Charleston SC at 53 days. These slower markets, with the exception of Austin, have been on the higher end of the time to sell for years so that was not a surprise. However, Austin has, up until very recently, been one of the fastest selling markets in the US as people flocked here. Why was Austin named the third slowest selling market in the US? We’ll give you our opinion after we show you some data on these markets.
How are the Markets in the Slowest Selling US Markets?
To give you an idea of how these slower markets compare to the faster markets, I’m going to include a snapshot of each in October 2023.
New Orleans, LA
Honolulu, HI
Austin, TX
West Palm Beach, FL
McAllen, TX
Austin Home Prices are Up Against National Median, But Still about 21% Less than the Peak
Austin has also seen increases in prices, which is now 9.2% above the national median price. Though that may seem high, we were 30% over the national median price at the peak of the market, so Austin home prices have come down. Last year, the median time to sell was 37 days, so we have climbed 12 days in year over year numbers. At the peak, we were seeing a median time to sell of 5 days and some months even less. Buyers had to be in front of their computer, waiting for new listings and immediately going out to see them. It was taking over their lives. Now, buyers can take a minute to really evaluate the property and make sure it will work for them before they commit.
Why Is Austin Seeing this Slowdown?
With prices increasing and mortgage rates pushing 8%, Austin homes are becoming less affordable. The Austin market is now more driven by locals who want to live in Austin for family and job reasons versus out of towners flocking to the area for a lower cost of living. Also, some of the residents who moved during the pandemic are being called back to the office, so they’ve had to move closer to their employer.
Austin is No Longer the #1 Migration Spot
At the beginning of 2021, Austin was the number one destination for out of state home buyers. They were flocking to the area by the hundreds per day. This huge migration was part of the reason Austin home prices skyrocketed during the pandemic. Not enough supply and overwhelming demand. Austin residents who leave are typically staying in Texas with San Antonio and Corpus Christi being the top Texas cities they go after Austin. Austin needed to slow down on its growth. Traffic was getting increasingly worse, housing was in high demand which was causing prices to become unaffordable and there weren’t enough services for residents. This break will allow housing supply to be replenished and give locals a chance to take back their city before another wave comes. It’s honestly a welcome change to see Austin named the third slowest selling market in the US.
If You’re a Local Looking to Buy a Home in Austin, Now Might Be Your Time
Literally the only thing against home buyers right now are interest rates. Don’t get me wrong, affordability is a HUGE part of the decision to buy a home. You want to have enough leftover every month where you can do more than just pay the mortgage payment. Evaluate affordability first and ensure you are able to have enough budgeted for other expenses. If so, other market forces are in buyers favor. We are seeing things we haven’t seen in at least five years like price reductions, sellers willing to make concessions (paying for closing costs, doing repairs, accepting lower than list price) and builders paying upwards of $30k (sometimes more) of closing costs for rate buydowns to make the payment more affordable. With fewer buyers in the market, sellers are having to do more to attract the buyers out there, which is generating more concessions for buyers.
Think You Want to Buy a Home in Austin? Evaluate Affordability First
Given the recent adjustment in interest rates, mortgage payments are quite different than they were. Decide what your comfortable monthly budget is and from that, determine the price you’re comfortable paying. Next, shop for homes in that price range and ask yourself, would I want to live here. If yes, now might be a good time to get your search started. The end of the year is always a time for better deals and even more motivated sellers.
Not Quite Sure Where to Look?
Our Austin Neighborhood Finder is perfect for you. Simply fill out our short survey about the type of home and neighborhood you’re looking for and one of our Austin neighborhood specialists will tell you where you can find it.
Ready to Buy a Home in Austin? We Can Help
Our team of buyer’s agents have a combined 60+ years of experience helping buyers in all types of markets. We can help you find the right house for your family and fully understand what you’re buying. We’ll also give you an idea of how hard it will be to sell the house when it comes time, so you know that before you buy it. As buyer’s agents, our job is to help you navigate and understand all aspects of the process, while making it easy and fun. Check out our Austin Home Buyers section to learn a little bit more about us and how we’re different. Then, call us at (512) 827-8323, email us at info@11OaksRealty.com or fill out our Buyer Survey to get started.
Austin Homes that Have Been on the Market the Longest
Homes that have been on the market the longest might be a good place to start if you want to get the best deals. Here are the Austin homes that have been on the market the longest.
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