Market Overview
Austin’s real estate market tightened in November as we moved deeper into the holiday season. The city closed 563 single-family home sales, a 4.1% decrease from this time last year.
Pricing has adjusted, with the median sales price settling at $590,000 (-1.7% YoY) and the average sales price dipping to $760,032 The price per square foot averaged $329, creating opportunities for buyers looking to maximize value.
Active inventory sits at 2,456 listings, and while months of supply is at 4.4 months, we are seeing a critical shift: New listings dropped significantly to 579, down nearly 7% from last year.
Months Supply Of Inventory
At 4.4 months of supply, Austin remains in a Buyer's Market, though it is tightening compared to the summer highs. This level of inventory still gives buyers leverage, but the best homes—those priced right and presented well—are absorbing quickly.
Buyers: You still have the upper hand on negotiation, but inventory is shrinking. If you see a home you love, don't assume it will wait for you.
Sellers: With inventory dipping, your competition is fading. If you are on the market now, you have a better chance of standing out than you did in October.
Price Cuts & Compression
Price adjustments remain a dominant theme in this segmented market. In November, 59% of active listings had a price drop, with an average reduction of 9% off the original asking price.
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Median time to first price drop: 20 days
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Median time from price drop to contract: 25 days
List-to-Close & Buyer Leverage
Homes closed at approximately 92.2% of their original list price in November. This metric highlights the significant negotiating power active buyers currently hold.
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Buyers: Don't be afraid to test the waters with your offer, especially on homes that have been sitting for 40+ days.
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Sellers: To protect your equity, pricing accurately from day one is your best defense against low-ball offers. Overpricing in this market almost guarantees a sale below market value later.
90-Day Trend
We are seeing a distinct seasonal deceleration in new sellers entering the market, which is typical for the holidays. However, buyer demand is proving resilient, with pending sales actually up 6.6% compared to last November.
This divergence—falling supply and steady demand—suggests that serious buyers are taking advantage of the current rates and prices before the year ends.
What’s Coming Next (60-Day Outlook)
We anticipate inventory will continue to contract through December as sellers wait for the new year. This creates a unique window of opportunity right now.
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Buyers: You have maximum negotiating power today. As inventory tightens and we head into the "Spring Market", competition will likely increase.
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Sellers: If you are thinking of selling in Q1, preparing now is key. The market is segmented; homes that look brand new and are priced sharply will sell. Those that aren't prepared will struggle.
