Lower mortgage rates and home prices are creating a more affordable market

Wow, now that is cold! We thank goodness this super freeze is about over, until the next one arrives. But, who is complaining, this is nothing like the arctic blast we endured a couple of winters ago.

We hope your New Year is starting out well. Ours is. On the real estate front indicators are pointing in the right direction. We are beginning to receive listing and buying calls to ascertain if the time is right to move again, and some are jumping in now. As a matter of fact, we represent a buyer seeking a home on acreage similar to Escalera Ranch and Cimarron Hills, and a builder looking for infill lots in Liberty Hill, Bertram or Burnet. One of our clients just closed on a lake house on Buchanan, and we are set to close on two homes on acreage in Georgetown.

The long and short of our market forecast is this. The recent over-boiling and inflated pandemic  market was fueled by low mortgage rates and relentless demand. Locally, that demand was driven by the desire to find space away from people and out of apartments, a huge influx of high tech workers and the New York / California migration. By mid 2022 inflation began affecting mortgage rates, and high rates coupled with high pricing means a lack of affordability. Buyers and sellers just waited. We expect a good 2024. Prices are down, mortgage rates are down, and pent-up demand is strong. We just hope for a good steady market, depressions and bubble markets are not fun. With over 60 years of combined real estate sales experience, we have navigated our clients through them all. We can help you decide if this year is right for your next move.

In 2023, the median price for a home in the 5 county Austin-Round Rock MSA decreased 10.2% to $450,000, according to the Austin Board of REALTORS^® December 2023 and Year-End Central Texas Housing Market Report. When compared to the steep 24.2% decline in pending sales in 2022, 2023 saw a slight 3.0% decline to 30,353 sales.

In the month of December, closed listings across the MSA declined 8.9% to 2,295 year-over-year as sales dollar volume decreased 8.5% to $1,270,818,458. The median sales price dropped 1.4% to $443,753. New listings increased 8.4% to 1,956 listings, active listings ticked up 4.6% to 7,717 listings, and pending sales rose 13.8% in December to 2,082 sales. Last month, homes spent an average of 84 days on the market, 9 more compared to December 2022.

City of Austin

2023

• 8,554 – Residential homes sold, 14.9% less than 2022.
• $540,000 – Median price for residential homes, 8.2% less than 2022.
• 13,362 – New home listings on the market, 4.3% less than 2022.
• 2,489 – Active home listings on the market, 57.5% more than 2022.
• 8,579 – Pending sales, 9.7% less than 2022.
• $5,943,650,502 – Total dollar volume of homes sold, 19.0% less than 2022.

December 2023

• 558 – Residential homes sold, 8.4% less than December 2022.
• $511,250 – Median price for residential homes, 1.7% less than December 2022.
• 540 – New home listings on the market, 11.3% more than December 2022.
• 2,140 – Active home listings on the market, 21.1% more than December 2022.
• 549 – Pending sales, 7.2% more than December 2022.
• 3.0 – Months of inventory, 0.9 months more than December 2022.
• $356,934,322 – Total dollar volume of homes sold, 10.0% less than December 2022.

Travis County

2023

• 13,664 – Residential homes sold, 13.3% less than 2022.
• $523,800 – Median price for residential homes, 8.9% less than 2022.
• 20,827 – New home listings on the market, 5.6% less than 2022.
• 4,170 – Active home listings on the market, 54.3% more than 2022.
• 13,670 – Pending sales, 7.5% less than 2022.
• $9,501,653,000 – Total dollar volume of homes sold, 18.0% less than 2022.

December 2023

• 915 – Residential homes sold, 8.9% less than December 2022.
• $527,500 – Median price for residential homes, 2.4% more than December 2022.
• 896 – New home listings on the market, 8.9% more than December 2022.
• 3,581 – Active home listings on the market, 14.3% more than December 2022.
• 890 – Pending sales, 8.0% more than December 2022.
• 3.1 – Months of inventory, 0.7 months more than December 2022.
• $628,104,180 – Total dollar volume of homes sold, 4.8% less than December 2022
• .$412,884,151 - Total dollar volume of homes sold, 17.0% less than 2022.

Hays County

2023

• 4,423 – Residential homes sold, 0.1% less than 2022.
• $397,330 – Median price for residential homes, 9.7% less than 2022.
• 5,989 – New home listings on the market, 6.8% more than 2022.
• 1,407 – Active home listings on the market, 72.2% more than 2022.
• 4,407 – Pending sales, 9.6% more than 2022.
• $2,162,632,140 – Total dollar volume of homes sold, 13.6% less than 2022.

December 2023

• 362 – Residential homes sold, 4.7% less than December 2022.
• $401,500 – Median price for residential homes, 5.0% less than December 2022.
• 335 – New home listings on the market, 39.0% more than December 2022.
• 1,311 – Active home listings on the market, 17.9% more than December 2022.
• 330 – Pending sales, 18.7% more than December 2022.
• 3.6 – Months of inventory, 0.6 months more than December 2022.
• $174,205,270 – Total dollar volume of homes sold, 7.0% less than December 2022.

Bastrop County

2023

• 1,421 – Residential homes sold, 6.1% less than 2022.
• $350,210 – Median price for residential homes, 11.3% less than 2022.
• 2,208 – New home listings on the market, 0.9% less than 2022.
• 533 – Active home listings on the market, 61.0% more than 2022.
• 1,415 – Pending sales, 1.4% more than 2022.
• $560,854,895 – Total dollar volume of homes sold, 15.9% less than 2022.

December 2023

• 108 – Residential homes sold, 12.2% less than December 2022.
• $364,450 – Median price for residential homes, 3.5% more than December 2022.
• 109 – New home listings on the market, 6.0% less than December 2022.
• 497 – Active home listings on the market, 0.2% less than December 2022.
• 109 – Pending sales, 87.9% more than December 2022.
• 4.2 – Months of inventory, 0.3 months more than December 2022 and the highest inventory in the MSA.
• $42,362,462 – Total dollar volume of homes sold, 13.0% less than December 2022.

Caldwell County

2023

• 516 – Residential homes sold, 0.8% more than 2022.
• $299,990 – Median price for residential homes, 10.5% less than 2022.
• 771 – New home listings on the market, 15.4% more than 2022.
• 148 – Active home listings on the market, 100.0% more than 2022.
• 524 – Pending sales, 4.4% more than 2022.
• $166,940,902 – Total dollar volume of homes sold, 8.7% less than 2022.

December 2023

• 38 – Residential homes sold, 9.5% less than December 2022.
• $321,990 – Median price for residential homes, 2.6% more than December 2022.
• 39 – New home listings on the market, 18.2% more than December 2022.
• 172 – Active home listings on the market, 62.3% more than December 2022.
• 35 – Pending sales, 40.0% more than December 2022.
• 4.0 – Months of inventory, 1.5 months more than December 2022.
• $11,915,163 – Total dollar volume of homes sold, 11.6% less than December 2022.

Burnet County

2023

•    779 – Residential homes sold, 14.2% less than 2022
•    $391,695 – Median price for residential homes, 1.8% less than 2022
•    Median home size 1,812 sq ft.
•    Median price/sq ft $223.16, down 4,9% YOY
•    Median Year built 2009
•    Close / Original list price ratio 91.5%
•    Days on market 81, 41 days more than 2022
•    Days to close 36, 18 days less than 2022

December 2023

•    70 – Residential homes sold, 45.8% more than December 2022
•    $357,098 – Median price for residential homes, 17.6% less than December 2022
•   Median home size 1,745 sq ft.
•    Median price/sq ft $215.94, down 10% MOM
•    Median Year Built 2007
•    Close / Original list price ratio 89.8%
•    Days on market 74, 17 days more than December 2022
•    Days to close 36, 2 days less December 2022
•    Months of Inventory 7.2, up 2.8% MOM

$MaxaMillion, one of our cats that we rescued from a hollow tree last April. We saved him and his 5 siblings from a fox that had found them when they were first born. Can you believe he is only 9 months old and already 11.5 pounds. He's a beast!

Please remember if you have any questions about purchasing or selling real estate either now or in the future, call us to discuss your plans and we can help you with your plan.

Jon & C. J. Pfau

Currently Pending Close of Sale is 209 VP Ranch Dr., Georgetown, TX 78628 - www.209VPRanch.Info - Classic Texas Hill Country home nestled onto the perfect hillside property offering elegant living, serenity and privacy. Situated on a heavily forested 4.305 acre lot with long views and natural breezes.

If anyone you know might need help with buying or selling or just want to get monthly information for real estate, our link to our newsletter is below. Send it to friends and family. We won't bother anyone but we will give them monthly updates on the market for their own knowledge.

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Jon: 512-635-0232

C.J.: 512-415-0583

Email: Pfaucorealtors@aol.com