Austin’s housing boom has slowed to a simmer, leaving more homes lingering on the market than ever before.
About 62 percent of Austin’s home listings in November sat on the market for at least 60 days, ranking the city second nationally behind Miami, the Austin Business Journal reported, citing Redfin.
Austin experienced rapid sales during the pandemic, and the market shift is a return to balance after years of unsustainable growth, said Kent Redding, president of the Austin Board of Realtors.
“It’s important to remember where we’ve come from,” Redding said. “Austin led the state and nation in record-breaking home price growth and sales activity during the pandemic. For three years, near-zero housing inventory, numerous offers above list price and a rapid-paced market raised home prices and left little negotiating power for buyers.”
The Austin-Round Rock metro had 4.8 months of inventory in November, marking a 1.1-month increase from the same period in 2023. Active listings rose by 5.2 percent year-over-year, totaling 10,845 listings.
“I explain to sellers that their house will sit on the market if it’s not fairly priced,” said Meme Loggins, an agent with Redfin Premier. “Homes that are priced well and in good condition are flying off the market in three to five days, but homes that are overpriced can sit for over three months.”
The housing segment facing the biggest setback is luxury. Despite an uptick in high-end deals in recent weeks, particularly in areas like West Lake Hills, the Austin market continues to see weak demand for multi-million dollar homes.
“Sellers must recognize that bringing buyers to the table requires a more aggressive pricing approach,” said Clare Knapp, a housing economist with ABOR and Unlock MLS. “Even in a more balanced market, buyers with limited purchasing power are struggling to meet current price expectations.”
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